2

Celebrating a milestone inspires contemplation. Looking back on our 40 years, we have evolved from a one-person shop operating out of Stan Balbach’s office to the most respected lawyer service organization in the United States. And yet, it is striking to note that our approach to doing business–our commitment to serving lawyers and their clients–is the same today as it was 40 years ago from that small law office in Central Illinois.

CHAIRMAN’S LETTER

entire legal process. The courts push us for a faster resolution, certainly the client does. We seem to have less time to talk to each other and, unfor-tunately, more time to become hard to get along with. Every legal process has become more com-petitive. You and I need a friend in times like this.

That friend is ATG. Forty years ago, it was a gleam in the eye of Stan Balbach, our founder, along with a few strong supporters. Several attorneys are almost legendary in their support of ATG. People like Dick Hart, John Satter, Jim Elson, and Ed Moehle. Forgive me for omitting so many oth-ers who should be included in this group. These were men of singular vision. They saw the ero-sion of the lawyer’s role in real estate transactions in the 1960s and they knew it would ultimately harm consumers and lawyers. Consumers would be without guidance in the single biggest finan-cial transaction in their lives; lawyers would lose a practice area and financial return. They knew they must work to preserve both.

Many battles were fought to ensure that ATG would become a title insurer that was recognized in the real estate industry. This meant proving to lawyers that there could be another way, a better way than commercial title insurance. It also meant proving to financial institutions that this was a title insurer of fiscal and personal integrity. A title insurer that did not cut corners and did things right, one that went the extra distance.

The challenge was met. Then ATG looked for new ways to be not only a title insurer but rather the premier lawyer service organization for the benefit of the public and the practicing lawyer. This led to the creation of a subsidiary mortgage company, Capital Funding Corporation (CFC). If you haven’t used it, you must. The rates are competitive, the fees are reasonable (junk fees are unknown), and the service is timely. CFC allows ATG members to provide a great new service for clients.

ATG developed a niche service with The Judicial Sales Corporation, which provides ATG members professional assistance needed when handling a judicial sale after a foreclosure.

In creating a trust company, ATG set out to do for the estate planning bar what it did for the real estate bar: protect its future and that of the clients it serves. We who have witnessed the constant

Dear Shareholder,

It has been a year since I last addressed each of you, the shareholders of ATG. It has been a won-derfully exciting and rewarding year for ATG and for me. I hope it was the same for you.

As we celebrate ATG’s 40th anniversary, take a moment to reflect on the time span of 40 years. For a person, 40 years takes one from birth, through infancy, years of education, usually find-ing a spouse, beginning a family and a career, watching the family begin to grow up, possibly making a job change, and then, maybe, settling in just a bit.

Or, think of the 40 years from 1964 to 2004. We have seen different presidencies, some with honor and effectiveness, others, unfortunately, less so. We have been through wars of varying length and in several locations, always with the tragic loss of life. We have witnessed the end of the Cold War, the fall of the Berlin Wall, and the complete failure of communism as an ideology and a world force. We have seen the rise of nationalism in some areas and extremism in others. We have been horrified by 9/11 and are still experiencing its tremendous aftershocks in our society. We have been through economic times good and not so good. We have watched the fantastic growth in home ownership, especially among minorities. We have witnessed the development of technology and the “informa-tion highway.” We have even witnessed the Cubs almost winning a pennant.

So, what does all this mean for you as a practicing attorney? It means you have had to become acquainted with computers and different types of software. It has led to an acceleration in the

merger of financial institutions know full well that our clients are not well served when the local bank’s trust department is either closed or moved to Peoria. Only to find two years later the Peoria institution was merged and you could now deal with those nice folks in Memphis. But, that didn’t last long. Several years later it was Bank Ten in who knows where. (How long until trust depart-ments go off shore?)

It was readily apparent that the only way to con-trol the process was to put the attorney in charge. What better way to do this than to set up our own trust company? ATG Trust Company, founded in 1998, has a fair and very competitive fee structure and experienced, caring employees who provide the help and services that estate planning, probate, and other lawyers need.

So, what does our tour de horizon show? To me, it shows an organization that continues to have vision, knows its mission, and knows how to grow to help the lawyer and the lawyer’s client. I only hope that our present stewardship will allow our successors to say the same things 40 years from now.

I anticipate the coming year will be a continuance of last year. I encourage you to support ATG by utilizing all the products and services available; I know you will be pleased with the results. I look forward to leading ATG during the remainder of my term as Chairman. I urge you to be diligent in your practice, in your relationships with your clients, and in performing as an attorney with the highest degree of professional skills and integrity.

Sincerely,

James E. MolenaarChairman of the Board

Dear Shareholder,

As I write this year’s President’s letter, we are celebrating a major victory in Washington, D.C. When the Department of Housing and Urban Development (HUD) first proposed its revised Real Estate Settlement Procedures Act (RESPA) regulations, we were virtually the only company in the industry demanding that Congress be afforded the opportunity to conduct hearings on the impact the proposed regulations would have on consumers and the law firms who serve them.

We were told, “Give it up. This is a done deal.”

With full appreciation of the significant nega-tive impact the revised regulations would have on our members, we didn’t “give it up.” After many months of one-on-one meetings with more than seventy members of Congress, we were able to convince the House Financial Services Committee, the House Committee on Small Businesses, and the Senate Banking Committee to conduct hear-ings on the proposed RESPA regulations. Once the proposed regulations were brought into the light of day, it became immediately evident to many members of Congress that the proposed regulations would have a devastating impact on consumers of real estate services and small businesses including law firms.

You gave us your tireless support by writing let-ters to members of Congress and making generous contributions to ATG’s Federal PAC. With great leadership from Judy Biggert (R-IL) and Don Manzullo (R-IL), the proposed regulations were withdrawn at the eleventh hour.

ATG has a long history of not “giving it up.” This year we celebrate our 40th anniversary. Later in this Annual Report you will read about the efforts of our founder, Stanley Balbach, and other ATG pio-neers who pressed on when faced with challenging obstacles.

In thinking about those 40 years we have much to be proud of:

• We are the market leader in insuring Illinois resi-dential resale. Nearly one in every five homes sold in Illinois is insured by ATG.

• We are the nation’s advocate for the transactional lawyer. We have achieved significant victories in Congress, with HUD, in the Illinois Legislature, in the courts, and with the bar associations in advo-cating the rights of transactional lawyers and the clients they serve.

• We provide an important revenue stream for thousands of practicing lawyers in Illinois, Wisconsin, and Indiana. More than $100,000,000 of revenue flowed to our member attorneys in 2003 through ATG products and services.

• We are no longer a parochial title company. ATG offers a wide variety of services that include trust services, mortgage origination services, court-approved real estate sales, computer leasing services, and Internet-based closing and title production software for the law office.

By any measure, 2003 was one of the most out-standing years in the history of our organization. Revenue totals for all companies exceeded $28,000,000, with ATG subsidiaries and programs making significant contributions. The title company issued 117,620 policies with premiums of more than $12,000,000.

The Judicial Sales Corporation generated gross rev-enues of more than $2,000,000 and is the market leader in that industry.

ATG Trust Company now has more than $150,000,000 in assets and is gaining each and every day. Total revenue including service fees was more than $1,000,000.

Capital Funding Corporation, our mortgage banking subsidiary, had a record year with more than $75,000,000 in loans originated and more than $1,000,000 in total revenue.

The Wisconsin operation is poised for dramatic growth under the leadership of our new Managing Attorney, Anne Blood. Reviews of Anne’s perfor-mance to date have been terrific.

4

In 2003, we launched our most ambitious technol-ogy initiative, ATG REsource™. This state-of-the-art technology, which operates in an application service provider environment, will dramatically change the way members interact with ATG. Reviews from current users have been quite favor-able. This technology will be in the hands of all members within the next twelve months.

As we look to the future, we see many opportuni-ties and challenges.

There is no doubt that we will continue to meet with threats from realtors, lenders, and others who want to get into the title business.

You can also be assured that we will continue to see the unauthorized practice of law in Illinois. I am proud to say that I serve along with ATG Directors Jim Elson and John O’Brien on the Illinois State Bar Association (ISBA) Task Force on the Unauthorized Practice of Law. We will be vigi-lant in challenging those companies that attempt to practice law in Illinois.

ATG has grown dramatically over the past several years. With that growth have come times when our service levels have not met the high standards you expect and deserve from ATG. We are committed to delivering impeccable service to our members. Using a combination of new technology, hands-on training of employees, and a retooling of ATG processes, we are confident that we will continue to improve upon service levels in the coming year.

What a great pleasure it has been for me to be of service to you, our shareholder, for the past twenty-three years. On behalf of our dedicated Board and staff, we look forward to the opportunity to con-tinue to serve you in the months and years ahead.

Very truly yours,

Peter J. BirnbaumPresident and Chief Executive Officer

3

PRESIDENT’S LETTER

LIABILLIABILIITIES AND TIES AND STOCKHOLDERS’STOCKHOLDERS’ EQUITYEQUITY 2003 2002 2003 2002

Liabilities

Accounts payable $ 706,478 $ 760,636

Title search fees received in advance 3,545,823 1,587,657

Accrued expenses 2,613,314 2,171,071

Capital lease obligations 153,555 172,775

Estimated liability for claim losses:

Known 2,555,179 1,763,242

Incurred but not reported 5,480,911 5,070,540

Total liabilities $ 15,055,260 $ 11,525,921

Stockholders’ Equity

Class A common stock, voting, $40 par value;

100,000 shares authorized, shares issued and

outstanding 30,011, in 2003 and 30,109 in 2002 $ 1,200,440 $ 1,204,360

Class B common stock, nonvoting, $150 par value;

50,000 shares authorized; Wisconsin Series,

shares issued 179 in 2003 and 164 in 2002 26,850 24,600

Indiana Series, shares issued 38 in 2003 and 2002 5,700 5,700

Additional paid-in capital 212,585 218,465

Retained earnings 7,943,870 6,984,201

Accumulated other comprehensive income 298,612 (10,346 )

Total stockholders’ equity 9,688,057 8,426,980

Total liabilities and stockholders’ equity $ 24,743,317 $ 19,952,901

ASSETSASSETS 2003 2002 2003 2002

Cash and cash equivalents $ 9,541,036 $ 6,844,277

Receivables 4,880,266 2,974,780

Securities available for sale 2,966,436 2,538,516

Securities held to maturity 1,484,119 2,215,967

Note receivable 268,102 241,767

Prepaid expenses 802,795 664,925

Premises and equipment 3,889,919 3,420,057

Deferred income taxes 748,362 908,877

Goodwill 45,226 45,226

Other assets 117,056 98,509

Total assets $ 24,743,317 $ 19,952,901

REVENUEREVENUE 2003 20022003 2002

Policy premiums earned $ 12,471,031 $ 10,858,607

Reinsurance premiums ceded (291,842 ) (372,384 )

Net premiums earned 12,179,189 10,486,223

Interest and dividend income 699,471 985,026

Trust service fee income 545,658 547,999

1031 Exchange income 295,964 223,325

Judicial sales income 2,018,604 2,285,367

Mortgage fee income 1,162,723 1,030,720

Title fee income 406,372 323,310

Agency commission 68,400 36,934

Computer leasing 9,400 12,186

Search department income 3,293,825 3,099,314

Closing department income 4,910,464 3,779,479

Escrow income 195,198 241,851

Post closing income 37,991 48,010

Pro-OPTION income 1,146,504 1,042,774

Statutory premium reserve income 602,290 560,212

Management service fee 60,000 60,219

Gain (loss) on disposal of equipment (5,523 ) 943

Gain (loss) on sale of securities (10,103 ) 102,055

Interest on note receivable 54,429 10,367

Other 462,360 263,316

Total revenue $ 28,133,216 $ 25,139,630

EXPENSESEXPENSES 2003 2002003 20022

Direct expenses $ 3,500,800 $ 3,286,085

Salaries and employee benefits 12,235,805 11,270,318

Office 3,667,202 3,277,058

Business development 846,194 734,062

Meetings 595,051 467,923

Association dues 50,619 38,279

External affairs 102,157 114,637

Fees 679,943 521,792

Claims 2,878,741 1,813,677

Professional services 182,452 149,593

Depreciation and amortization 825,561 648,094

Interest 23,179 26,241

Other 831,998 797,709

Total expenses 26,419,702 23,145,468

Income before income taxes 1,713,514 1,994,162

Provision for income taxes 753,845 879,536

Net income $ 959,669 $ 1,114,626

CONSOLIDATED STATEMENTS OF INCOMECONSOLIDATED STATEMENTS OF INCOME

Years ending December 31, 2003 and 2002

CONSOLIDATED BALANCE SHEETSCONSOLIDATED BALANCE SHEETS

Years ending December 31, 2003 and 2002

5 6

INTRODUCTIONINTRODUCTION

Fifteen years ago ATG founder, attorney Stanley B. Balbach, gave his account of the early days at ATG in an interview for a magazine article. The intro-duction captures a bit of the drive and enthusiasm that Stanley brought to creating ATG forty years ago:

Known for his bow ties and ever-present briefcase, Stan Balbach has an interesting story to tell. A lobbyist of sorts and a full-time lawyer, his day begins at 5:30 a.m. with a three-mile run—outdoors when weather permits, indoors at the U of I track when it doesn’t. He’s in the office by 7 a.m. almost every day and has spent most of his career as a lawyer working on behalf of The Illinois Fund and spreading the bar-related ® concept to other states. At age 69, he has no intention of stopping.

At age 84, Stan no longer runs, but he has not stopped. Beloved by all, he is a regular visitor to the Champaign office—impeccable bow tie in place and over-stuffed briefcase in hand—where he checks-in regularly with staff to discuss ideas for contacting lawyers and getting the word out. Although he officially retired from the ATG board at the end of 2003, Stan remains passionate about the cause he championed back in 1964: preserving the lawyer’s role in real estate transactions for the benefit of the client.

HOW IT ALL BEGANHOW IT ALL BEGAN

They say it only takes a spark to get a fire going. For Balbach, that spark ignited at the 1952 American Bar Association convention in San Francisco. It was there that he met Donald Gregory, trustee of the nation’s first bar-related title insurer, Attorneys’ Title Insurance Fund, Inc., of Florida. Like Gregory, Balbach believed that the growth of commercial title insurance companies was seriously eroding law-yers’ involvement—and consumers’ protection—in residential real estate transactions. After learning how The Florida Fund helped preserve the lawyer’s role, Balbach thought “Why not Illinois?”

At this point, Stan had almost a decade of private practice behind him and had witnessed first hand the erosion of the lawyer’s role in real estate transactions in Central Illinois. The post-World War II housing

ATG: THE LAWYER’S ATG: THE LAWYER’S RESOURCE FOR RESOURCE FOR FORTY YEARSFORTY YEARS

8

Stanley B. BalbachStanley B. BalbachStanley B. BalbachStanley B. BalbachFounder of Attorneys’ Title Guaranty Fund, Inc.Founder of Attorneys’ Title Guaranty Fund, Inc.Founder of Attorneys’ Title Guaranty Fund, Inc.Founder of Attorneys’ Title Guaranty Fund, Inc.

In recognition of Stanley’s 1964 law partners:In recognition of Stanley’s 1964 law partners:In recognition of Stanley’s 1964 law partners:In recognition of Stanley’s 1964 law partners:Richard L. ThiesRichard L. ThiesRichard L. ThiesRichard L. ThiesCharles M. WebberCharles M. WebberCharles M. WebberCharles M. WebberThese men worked diligently with Stan toThese men worked diligently with Stan toThese men worked diligently with Stan toThese men worked diligently with Stan tostart the Illinois operation, giving generously start the Illinois operation, giving generously start the Illinois operation, giving generously start the Illinois operation, giving generously of their time, resources, and support.of their time, resources, and support.of their time, resources, and support.of their time, resources, and support.

9 10

boom was in full swing, and Stan was concerned about consumers’ interests and the future of his real estate practice. Commercial title insurance practices were increasingly cutting attorneys out of the loop, leaving no one to look out for the client. Up until this point, Stan estimated that 80 percent of residential real estate transactions in Champaign County had lawyer-involve-ment, but he witnessed a steady drop. “In fact,” he recalled, “by the early 60s, it was less than 50 percent.” This was of considerable concern for consumers and lawyers.

RAISING AWARENESSRAISING AWARENESS———AND MONE—AND MONEYY————FOR FOR THE BAR-RELATED CONCEPTTHE BAR-RELATED CONCEPT

Controversy and even opposition within the Illinois legal community only inspired Stan to take his plans to the next level. “My partners [Richard Thies and Charles Webber] and I started raising money. I called lawyer friends of mine in other counties to try and convince them to buy into the concept.” Stan recalls how slowly it went at first, but thanks to certain key players, surges of interest came at opportune times.

Several early supporters were integral to the new company’s success. At the urging of attorney John Satter from Pontiac, for instance, the entire Livingston County Bar Association signed up. Pete Ferracuti, a leading Illinois trial lawyer, single-handedly bought enough shares to qualify LaSalle County. Satter was on ATG’s original board, served as Chairman from

1972–1974, and continued to serve until his retirement in 2003. Ferracuti, who also

served on the original board, remained supportive of the Fund Concept for decades even though, as a trial lawyer, he never issued a policy. Richard Hart of Benton was instrumental in motivating lawyers from Southern Illinois to join. Mr. Hart also became one of ATG’s founding board members and served as Chairman from 1994–1996.

1964 – 1969: THE FIRST FIVE YEARS1964 – 1969: THE FIRST FIVE YEARS

On August 6, 1964, ATG was incorporated with 259 shareholder members. Its first headquarters was in Balbach’s own law offices in Urbana.

Balbach and the newly hired Executive Vice President, John W. “Jack” Metzger, ATG’s first paid employee, committed their energies to promoting the Fund Concept. “In those early days, there was no ATG office. Jack used my desk in the morning while I was in court and I used it in the afternoon when he was out on appointments,” Balbach recalls.

In 1968, ATG purchased a two-story building at 303 West Green Street in Urbana to use as headquarters. By this time, local attorney Samuel L. Erwin had taken the reins as Executive Vice President. Sam led ATG through signifi-cant growth in policy volume, membership, and lender acceptance during an era when we were qualified to do business in less than one third of the counties in Illinois. He went on to serve on the board of directors. By 1969, membership numbers were climbing and there were three employees provid-ing home-office support.

Stan notes, “We were small, but we started out profitably because of the vol-unteers who sold the stock, provided office space, purchased supplies, and made the necessary trips to find out how the existing bar-related companies in Florida and Connecticut were operating.” By “volunteers,” Stan is modestly referring to himself, his wife and children, his law partners, and the other principals. “Everyone helped out...and it lasted several years. I know there were many nights when Jim Elson was designing ATG ads for the ISBA Bar Journal at his kitchen table over in Canton, while Sarah and the kids and I were seated around ours, stuffing envelopes and licking stamps.” Jim served as publicity chair on the early board, designed the first ads and logos, served as Chairman from 1978–1980, and continues to serve on today’s board.

No account of ATG’s history would be complete without the mention of someone without whose unwavering support (not to mention envelope-stuffing proficiency) we would not be here today: Sarah Troutt Witherspoon

HEADLINESJanuary 1964

Stan’s original article got the attention of the Illinois bar, both pro and con.

1211

Balbach. At Stan’s side throughout 60-some years of marriage, her ongoing willingness to support Stan’s cause, keep the home fires burning, and make personal sacrifices are much appreciated by all at ATG. When drawn into the spotlight, she graciously turns it back to Stan, noting how he made time to eat breakfast and dinner with the family almost every day, read to the children (they had four), helped with homework, and often returned to the office at night.

THE 1970s: ATG ENTERS CHICAGOTHE 1970s: ATG ENTERS CHICAGO

The 1970s brought “stagflation,” the unlikely combination of high inflation and high unemployment, that inspired President Nixon to promote price controls. For ATG, however, the 1970s meant steady expansion in Illinois. A young Staff Attorney, Ward McDonald, was on his way to becoming ATG’s first corporate President, and by 1972 the Urbana staff had grown to include a secretary, two law clerks, an accountant/policy processor, and an office worker.

By 1973, ATG was qualified in every county in the state, and had been offi-cially certified by the Illinois State Bar Association. At Ward’s urging, the board of directors authorized a land purchase in Champaign and began con-struction of a 4,000 square-foot office building. The completed headquarters was dedicated in September 1974, marking the company’s 10th anniversary.

Under Ward’s leadership ATG grew to be a respected presence in the Illinois bar. During his tenure, membership swelled. Knowing that success in Chicago

was critical to the success of ATG, Ward dis-patched young Staff Attorney Doug Miles to open the Chicago office at Barrister Hall, 29 South LaSalle Street. Doug was a former ATG law clerk who continued to work in the bar-related title industry after he left ATG.

It was during this time that Congress passed the Real Estate Settlement Procedures Act (RESPA), controversial federal legislation that would dramati-cally impact the title insurance industry. Among other key provisions, Section 8 of RESPA specifically forbids kickbacks and referral fees for title agents and requires lenders to provide homebuyers with detailed estimates of settlement costs. No one could have guessed that during the mid 1990s and again in the years 2002-2004 ATG and its members would be engaged in fierce battles in Washington to stop RESPA reform that would potentially compromise original Congressional intent.

THE 1980s: OUTLASTING THE BOOM AND THE 1980s: OUTLASTING THE BOOM AND SURVIVING THE PRICE WARS SURVIVING THE PRICE WARS

From an economic viewpoint, the early 1980s seemed like a repeat of the mid-1970s. Once again, high inflation and unemployment created an unstable economy.

In 1981 President Ronald Reagan’s Economic Recovery Tax Act (ERTA) changed all that—for a few years. New, favorable real estate tax laws stimulated a construction boom that enabled many Americans to own not one, but two homes. Money seemed to flow effortlessly through various sectors of the economy, especially real estate investment and development.

ERTA brought prosperity to the title insurance industry as properties changed hands and new buildings were developed in unprecedented volume. During 1982, bar-related title companies were operating in 11 states, while commercial agents and underwriters entered new markets without restraint. Fierce competition among title insurers became commonplace. At ATG, it was a time of tremendous growth and shrewd adaptation to changing market conditions.

Enter first year law student, Peter Birnbaum. Peter came to ATG from his part-time job as a title searcher. Brought in by then paralegal Donna Gagliardo, Peter and others of his era contributed to pivotal times for ATG in Chicago, and as the economy improved, ATG grew along with it.

John W. Metzger 1964 – 1967

Samuel L. Erwin 1968 – 1970

Ward F. McDonald 1970 – 1983

Michael J. Rooney 1983 – 1991

Peter J. Birnbaum 1991 – Present

ATG LEADERS1964 – Present

DEDICATIONSeptember 1974ATG’s 10th Anniversary

Ward McDonald, past President of ATG, and the dedication of the 2408 Windsor building in Champaign, completed during his tenure.

13

There were several key people in place at that time, including current ATG Senior Vice President, Jerry Gorman, and Vice Presidents Mike Brandt (Claims Counsel) and Mona Stevens (Human Resources). Gorman recalls, “We all wore many hats. During the explosive growth of the 1980s, the Champaign staff roster climbed from a dozen or so to more than 40. Mona was ordering workstations for every conceivable space in Champaign. Judi Sawyer, another long-term employee, processed batch after batch of policies. There was always a certain energy to this place, a willingness to take on what-ever challenges were tossed our way, no matter how crazy things became. It still exists today.”

TechnologyTechnology Like most companies of its size, ATG started with handwritten ledgers and typewriters. “We really thought we’d arrived when we purchased our first IBM Selectric back in the 70s,” quipped Mona Stevens. ATG eventu-ally purchased a mainframe computer, the IBM System 36 for data processing. By 1986 personal computers had begun to find their way onto employees’ desks. It was during this time that veteran Chicago employee, Sandi Allfrey, was working with computer programmers and ATG member Larry Bauer to design REALAW,® the first policy production system for ATG members.

Technology, both at ATG offices and through products and services for members, is now an integral part of our business. Today, with more computers than employees, our Information Technology Department has grown to 12 employees.

Title Insurance Rate WarsTitle Insurance Rate Wars In the late 1980s the competition grew more intense in the Illinois title insurance market. Not only had ATG gotten the attention of the big underwriters, we were rapidly taking a piece of their marketshare, formerly thought to be impenetrable. While this was cause for

Chicago office leadership came from then Corporate Counsel Joanne Elliott and Peter, who after two promotions was serving as Vice President and Counsel. This dynamic pair worked side by side during the most rewarding and chaotic of times. Managers overseeing the core functions of the Chicago office (search, scheduling, RESPA preparation, closing, post-closing, member services, and lender services) reported directly to Peter and Joanne. Together they trained growing numbers of new attorney members, performed scores of title searches, closed record numbers of transactions, and made a significant impact on the Chicago real estate scene. (Incidentally, Donna Gagliardo [now Kogut] left ATG to pursue a successful law practice, where she was consistently one of ATG’s top issuers. She returned to ATG in 2002 and now manages the Commercial Division of our Title Services Department.)

In the meantime, Mike Rooney, previously a Staff Attorney and ATG law clerk, assumed the helm in 1983 where he remained until 1991. During that time, ATG experienced massive growth in membership, policy volume, and revenue. Mike will always be known as one of the finest real estate lawyers in the United States and the man who gave ATG the reputation of being a leader in supporting and educating lawyers.

In Chicago, ATG staff grew from fewer than 20 employees to more than 60 in a single year, 1986. Downstate, the Champaign staff felt growing pains as the pace quickened, and the building became overcrowded. The stewardship of a dedicated board, the support of a growing membership, and a hardwork-ing staff came together to form a successful organization that had already beaten the odds by staying in business nearly 25 years.

In 1989, ATG was named by Crain’s Chicago Business as the leading title insurer in the Illinois residential market. That year, ATG’s four Illinois offices (Champaign, Chicago, Oak Brook, and a brand-new office in Belleville) were staffed by more than 140 employees and processed almost 96,000 policies. Closing volume reached record levels.

WorkflowWorkflow To its credit, ATG’s prosperity during the golden 1980s was not solely the result of a booming, albeit highly leveraged, economy. Rooney and his staff were responsible for the departmentalization of all functions of the company and for improving the flow of data and communication by intro-ducing the first wave of PC technology into the organization.

14

ATG’s FOUNDING ATG’s FOUNDING ATG’s FOUNDING ATG’s FOUNDING BOARD MEMBERSBOARD MEMBERSBOARD MEMBERSBOARD MEMBERSOctober 1989 October 1989 October 1989 October 1989 ATG’s 25th AnniversaATG’s 25th AnniversaATG’s 25th AnniversaATG’s 25th Anniversaryryryry

John G. Satter

Wilbur D. Capps

Richard O. Hart

Stanley B. Balbach

1615

and leadership roles in several legislative initiatives: creating an amendment to the Illinois Consumer Fraud and Deceptive Business Practices Act (to ensure consumers paying for title insurance would be permitted to choose their title insurance provider) and later lobbying to protect it from repeal; deterring the American Bar Association from adopting a rule that would restrict an attor-ney’s ability to provide various services defined as “ancillary,” including title services; and most recently, battling to prevent sweeping RESPA reform. He continues to hold leadership positions on Illinois State Bar Association com-mittees such as the Task Force on the Unauthorized Practice of Law.

Growth continued. During the summer of 1996, ATG left its 21-year home at Barrister Hall and moved into new space at 33 North Dearborn. It was home to 130 employees representing 12 departments and one subsidiary. A few months later in December, Champaign employees moved in to a new 14,000 square-foot facility, which is connected to the original 1974 structure. At move-in time there were approximately 50 employees representing 10 departments.

With its core business thriving, ATG concentrated on expanding its offering of new products and services for members. The Judicial Sales Corporation, the Wisconsin office, expanded services via ATG’s Escrow and Search Departments, new technology, computer training, and stepped-up efforts in educational programming were all in full swing by the mid 1990s. By the close of the decade, ATG was offering computer leasing services, a member health plan, and a variety of discount programs for members. In addition, what was once just a title insurance company spawned not only The Judicial Sales Corporation, but also Capital Funding Corporation (mortgage banking services) and ATG Trust Company (trust and investment services).

2000 AND BEYOND: ATG IN THE NEW MILLENNIUM2000 AND BEYOND: ATG IN THE NEW MILLENNIUM

Before the end of the first quarter of 2000, ATG’s flexibility and ingenuity were tested when, practically overnight, the company gained more than 100 new members. This occurred in part through our agreement to underwrite four regional title companies formerly associated with another underwriter. To meet the demand, we opened five new service offices, hired 13 additional employees, moved Oakbrook Terrace employees to larger space in Lombard,

celebration at ATG, insurance giant Chicago Title took note and in 1988, lowered its rates overnight by 40%. This sweeping action sent the industry reeling and put in motion a title insurance rate war that changed the local scene to this day.

Without missing a beat, ATG responded by reducing prices, and, in yet another display of loyalty to ATG and dedication to their clients, many ATG members followed suit.

THE 1990s: MAKING A MILLION BEFORE TURNING 30THE 1990s: MAKING A MILLION BEFORE TURNING 30

Although embroiled in rate wars and turf battles, ATG still managed to pro-duce a profit during the leanest times in 1990 and 1991. To a great extent, our success was due to the sheer perseverance of ATG members, many of whom willingly accepted reduced compensation to ensure the long-term survival of their real estate practices and of ATG.

When falling interest rates prompted the 1992 refinance flurry, shareholders reaped the benefits of their loyalty. Downstate ATG members issued more policies in 1992 than in any previous year while all Chicago departments broke volume records. High volume continued into 1993; during peak peri-ods, ATG members’ efforts led to four record-breaking months of million-dollar premiums. As 1993 drew to a close, ATG member Rick Heavner of Decatur prepared what those early naysayers said would never exist: ATG’s millionth policy. Our first million before we turned 30!

By this time, Peter Birnbaum had nearly two full years in as President and Chief Executive Officer, having been promoted to this post in 1991 at the age of 34. This was the launching point of his role as activist and lobbyist on

behalf of the real estate bar, which today is unsurpassed. He has logged countless miles to Springfield and Washington, D.C., and is a seasoned advocate for the rights of consumers and real estate lawyers. He has had direct involvement

MILESTONESDecember 1994 ATG’s 30th Anniversary

Celebrating the anniversary and the issuance of our one millionth policy.

(continued on page 19)

FINANCIAL GROWTH OVER FORTY YEARS

1817

196

4

20

03

24,000,000

20,000,000

16,000,000

12,000,000

8,000,000

4,000,000

TOTAL ASSETS

196

4

20

03

3,000,000

6,000,000

9,000,000

12,000,000

15,000,000

18,000,000

21,000,000

24,000,000

28,000,000

30,000,000

GROSS REVENUEPREMIUM REVENUE

196

4

20

03

120,000

100,000

80,000

60,000

40,000

20,000

POLICY VOLUME

196

4

20

03

2,000,000

1,600,000

1,200,000

800,000

400,000

0

PRETAX PROFIT

ATG members have driven our financial success by steadily increasing their policy volume and remaining loyal to ATG over time. In addition, ATG’s responsible planning and strategic launching of new lines of business, which now account for a sig-nificant percentage of our annual income, have yielded positive results. New businesses include estate planning and adminis-tration, mortgage origination, real estate auctions, and fee-for-service real estate brokerage.

2019

and opened a Crystal Lake office for Belvidere-based subsidiary NLT Title, LLC. We closed more than 4,000 transactions brought in by the regional companies between May and December 2000 without disruption in service to existing members.

During 2001, 2002, and 2003, the numbers continued to climb as policy volume, premium revenue, gross revenue, and revenue for members each surpassed the prior year’s level. ATG reached another milestone in the fall of 2003 when long-time Orland Park member, Harry DeBruyn, issued the two-millionth policy.

Even during prosperous times, there is no rest from keeping a watchful eye on legislation. In what will no doubt be remembered as the fight of our profes-sional lives, ATG did daily battle from fall 2002 through spring 2004 to advo-cate against the proposed changes to RESPA regulations promulgated by the Department of Housing and Urban Development (HUD), which would have resulted in a virtual monopoly for the big banks in both the title and closing arenas. ATG lobbied more than 70 members of Congress, testified before two Congressional committees, and met with representatives from HUD. ATG also engaged in a high profile campaign encouraging members to write letters and otherwise let their voices be heard in opposition to what would be a dev-astating blow not only to the legal profession, but to the consumers we serve. The efforts of ATG and others in the industry paid off. HUD announced in March 2004 that it would indefinitely suspend implementation of the proposed RESPA regulations in favor of further study.

More clearly now than ever, we have defined our corporate mission to be the premier lawyer service organization for the benefit of the public and the profes-sion. In addition to our core real estate and title insurance services, we continue to focus on developing tools members need to compete and creating services and revenue streams that enhance the income and efficiency of members’ law practices. ATG plays an important role in enriching not just the practices, but the lives of thousands of lawyers. It is a major source of revenue, support, advocacy, and camaraderie for the legal profession.

THE FUTHE FUND CONCEPT: THE RIGHT IDEA, ND CONCEPT: THE RIGHT IDEA, THE RIGHT TIME, AND THE RIGHTTHE RIGHT TIME, AND THE RIGHT PLACE PLACE

ATG’s 40th anniversary celebration proves that Stanley Balbach’s long-ago dream of bar-related title insurance in Illinois was the right idea, at the right time, in the right place—involving the right people. His untiring crusade during those early years created a thriving company that now consistently ranks among the top title insurers in the residential market in Illinois and has forged ahead into Wisconsin and Indiana. Visionary leadership sparked the formation of five thriving subsidiaries and a host of revenue-producing products and services for lawyers.

ATG President Peter Birnbaum recalls, “I look back on when I started in 1981: We had four employees in Chicago, twelve in Champaign, and handled a few hundred transactions per month. Today, we close 50-some thousand transactions per year through 13 offices in three states. We have more than 3,700 shareholder members who issue more than 115,000 policies each year, affirming our place as the market leader in residential real estate title insur-ance in Illinois. With this growth and all the accompanying change, there is one thing that remains consistent, and you can go to any ATG event and see it for yourself: The friendship, fellowship, and the collective strength of the people are what make ATG such a meaningful organization.”

From a small law office in Central Illinois, one man started what would become the cornerstone for scores of real estate lawyers. ATG is deeply thankful to Stan Balbach and all the others whose early efforts helped us become the organization we are today.

Celebrating

40 years as

the lawyer’s

resource.

2003 ANNUAL REPORT

Hundreds of ATG members are using ATG REsource, our innovative Internet-based software, to make their real estate practices more productive and profitable.

RECOGNITRECOGNITRECOGNITRECOGNITIONIONIONIONJuneJuneJuneJune 2004 2004 2004 2004ATATATATGGGG’’’’s 40th Anniversarys 40th Anniversarys 40th Anniversarys 40th Anniversary

ATG received many congratulatory letters from friends, associations, and government officials.

TM

FIRST DISTRICTDaniel A. Marsh, Jr. James E. Molenaar John G. O’Brien William R. Warnock

SECOND DISTRICTWalter J. O’Brien, II Norman J. Pollock Herbert C. Steinmetz, Jr.Curtis R. Tobin, II

THIRD DISTRICTAndrew C. DystrupJames J. ElsonEdward C. MoehleDavid E. MurrayRobert F. Russell

James E. MolenaarChairman

Lansing

William W. AustinVice Chairman

Effingham

Robert F. RussellSecretary

Princeton

Walter J. O’Brien, IIChairman Emeritus

Oak Brook

Curtis R. Tobin, II Treasurer

Belvidere

EXECUTIVE COMMITTEE

Current Name of Firm City

Peter F. Ferracuti Ottawa James J. Elson Canton Thomas Clinton PeotoneSteve Tongren PeotoneThomas Knuth Peotone Sidney E. Smith PontiacSatter, Beyer & Bertram Pontiac Mason & Krieg Morton Badger & Badger Dixon Phebus & Koester Urbana Webber & Theis, P.C. UrbanaBalbach & Fehr, P.C. Urbana Larry Serene Kankakee Jim Lucie Macomb Allen, Korkowski & Associates Rantoul Strong, Blakeman, Schrock, Ltd. Pontiac Fruin, Garst & Kash Paris Wanless Professional Corporation Morton Johnson & Taylor Pontiac Niven & Clay Pontiac Lewis, Blickhan, Longlett & Timmerwilke Quincy Thad Kuhfuss Pekin Weeks & Brucker, Ltd. Fairbury James J. Herr Pontiac Leroy A. Ufkes Carthage McDonald, Strickland & Clough Carrollton Toohill, Toohill & Toohill Farmington Claudon, Lloyd, Barnhart & Beal, Ltd. Canton William Herring Peoria JBN Title Services Peoria Walter T. Morey DecaturThomas M. Shade Decatur Ralph Coletta Peoria Black, Black & Brown Washington Jordan Fifield Peoria John W. Yoder Law Firm BloomingtonMcNeilly & Olivero Peru Sidney D. Davidson Peoria Lamkin & Lamkin Clinton Ortheldo Peithmann Farmer CityWilliam Peithmann Farmer City Angel, Isaacson & Tracy Princeton Joseph Taylor Clinton Rudasill & Rudasill Clinton Manuele Law Office Springfield

FOURTH DISTRICT Stanley B. BalbachLarry J. FlynnJames M. Grant

FIFTH DISTRICTWilliam W. Austin James E. BuchmillerRichard O. HartThomas A. LeChien

WISCONSIN Douglas W. Kammer

EX-OFFICIOWard F. McDonald

Safford, West, Tornow & Jaeger Peoria Churchill & Churchill, P.C. Moline Froehling, Weber & Evans Canton Hupp, Lanuti, Irion & Burton, P.C. Ottawa Leiken & Leiken Minonk John B. Huschen Roanoke Leiken-Lankton, L.L.C. Eureka Julius Lytton East Moline Hart & Hart Benton Alan W. Applebee Jacksonville Reno, Zahm, Folgate, Lindberg & Powell Rockford David L. Martenson Rockford Mitchem, Tepper & Gwinn Urbana Young & Young Danville McCollum & Klobnak Flora Thomas, Mamer & Haughey Champaign Engert & Sinder Champaign Val C. Simhauser Springfield Pacey & Pacey Paxton Barrick, Switzer, Long, Balsley & Van Evera Rockford Russell, English, Scoma & Beneke, P.C. Princeton Schwiebert & Schwiebert Moline Franks, Gerkin & McKenna, P.C. Marengo Schlueter, Ecklund, Olson, Barrett, Mayfield & Davitt Rockford Klockau, McCarthy, Ellison & Marquis, P.C. Rock Island Beavers, Graham & Fines Taylorville Miley, Meyer, Austin, Spears & Romano, P.C. Taylorville Califf & Harper, P.C. Moline Glockhoff & Haytcher East Moline Guyer & Enichen Rockford Rawles, O’Byrne, Stanko & Kepley, P.C. Champaign Meyer Capel, A Professional Corporation Champaign DLD Title Servives, Inc. Peoria McLaughlin & Florini, Ltd. Sullivan William H. Amling Pana Robert G. Scott Rock Island

Our thanks to these individuals and law firms who have been with us since 1964 and remain active and supportive today.

Stanley B. Balbach 1965 - 1972

John G. Satter, Jr. 1972 - 1974

Charles H. Northrup 1974 - 1976

Francis M. Brittingham 1976 - 1978

James J. Elson 1978 - 1980

Edward C. Moehle 1980 - 1982

James W. Richardson 1982 - 1984

Wilbur D. Capps 1984 - 1986

William R. Warnock 1986 - 1988

Herbert C. Steinmetz, Jr. 1988 - 1990

Norman J. Pollock 1990 - 1992

Thomas A. LeChien 1992 - 1994

Richard O. Hart 1994 - 1998

Andrew C. Dystrup 1996 - 1998

Daniel A. Marsh, Jr. 1998 - 2000

Walter J. O’Brien, II 2000 - 2002

James E. Molenaar 2002 - Present

BOARD OF DIRECTORS

by Illinois Supreme Court District

ATG BOARD CHAIRMEN

1964 – Present

ACTIVE 1964 CHARTER MEMBERS

In member number order

ILLINOIS OFFICES

Champaign

Chicago (Loop)

Chicago (North Side)

Homewood

Libertyville

Lombard

Mt. Prospect

North Riverside

Oak Lawn

Wheaton

Belleville

800.252.0402

WISCONSIN OFFICE

Madison

800.788.8989

WWW.ATGF.COM

Celebrating40 years asthe lawyer’sresource.

2003 ANNUAL REPORT