Financial Information of Registrant (Parent Company)

12 Months Ended

Dec. 31, 2015

FIRST ACCEPTANCE CORPORATION AND SUBSIDIARIES

SCHEDULE II. FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY)

(in thousands)

	December 31,
Balance Sheets	2015		2014
Assets:
Investment in subsidiaries, at equity in net assets	$	132,430	$	126,494
Cash and cash equivalents		8,095		15,836
Loan to wholly-owned subsidiary		30,010		—
Deferred tax asset		8,649		7,965
Other assets		2,142		2,144
	$	181,326	$	152,439
Liabilities:
Debentures payable	$	40,256	$	40,211
Term loan from principal stockholder		29,753		—
Other liabilities		7,647		5,264
Stockholders' equity		103,670		106,964
	$	181,326	$	152,439

	Year Ended December 31,
Statement of Operations	2015			2014			2013
Interest income	$	1,328		$	61		$	52
Equity in income (loss) of subsidiaries, net of tax		(441	)		23,804			11,657
Expenses		(4,238	)		(2,887	)		(2,529	)
Income (loss) before income taxes		(3,351	)		20,978			9,180
Benefit for income taxes		(1,421	)		(7,090	)		—
Net income (loss)	$	(1,930	)	$	28,068		$	9,180

	Year Ended December 31,
Statement of Cash Flows	2015			2014			2013
Cash flows from operating activities:
Net income (loss)	$	(1,930	)	$	28,068		$	9,180
Equity in (income) loss of subsidiaries, net of tax		441			(23,804	)		(11,657	)
Stock-based compensation		144			185			243
Deferred income taxes		(684	)		(7,871	)		(2	)
Other		(203	)		28			(6	)
Change in assets and liabilities		2,385			3,197			790
Net cash provided by (used in) operating activities		153			(197	)		(1,452	)
Cash flows from investing activities:
Dividends from subsidiary		2,025			7,425			6,635
Loan to wholly-owned subsidiary		(30,010	)		—			—
Investments in subsidiaries		(10,000	)		(44	)		—
Net cash (used in) provided by investing activities		(37,985	)		7,381			6,635
Cash flows from financing activities:
Proceeds from term loan from principal stockholder		30,000			—			—
Net proceeds from issuance of common stock		91			74			51
Net cash provided by financing activities		30,091			74			51
Net change in cash and cash equivalents		(7,741	)		7,258			5,234
Cash and cash equivalents, beginning of period		15,836			8,578			3,344
Cash and cash equivalents, end of period	$	8,095		$	15,836		$	8,578