Condensed Financial Information of the Registrant

12 Months Ended

Dec. 31, 2011

Schedule II. Condensed Financial Information of Registrant [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Schedule II. Condensed Financial Information of Registrant

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
BALANCE SHEETS
(Dollars in thousands)
	December 31,
	2011		2010
Assets
Cash	$	1,074	$	920
Investment in subsidiaries (equity method) eliminated upon consolidation	50,162		54,665
Other assets	3,548		3,921
Total Assets	$	54,784	$	59,506
Liabilities and Shareholders' Equity
Accrued general expenses	$	3,912	$	2,924
Notes payable	12,857		12,872
Total Liabilities	16,769		15,796
Total Shareholders' Equity	38,015		43,710
Total Liabilities and Shareholders' Equity	$	54,784	$	59,506

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
STATEMENTS OF INCOME (LOSS)
(Dollars in thousands)
	Years Ended December 31,
	2011			2010
Income
Dividends (eliminated upon consolidation)	$	2,100		$	2,800
Other income (includes fees from affiliates eliminated upon consolidation)	1,031			632
	3,131			3,432
Expenses
State taxes	43			12
Other expenses	3,105			3,377
	3,148			3,389
Income before income taxes and equity in undistributed earnings (loss) of      subsidiaries	(17		)	43
Income tax benefit	(784		)	(1,100		)
Income before equity in undistributed earnings of subsidiaries	767			1,143
Equity in undistributed earnings of subsidiaries	(5,723		)	2,122
Net (loss) income	$	(4,956	)	$	3,265

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
	Years Ended
	December 31,
	2011			2010
Cash Flows from Operating Activities:
Net (loss) income	$	(4,956	)	$	3,265
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Equity in undistributed (loss) income of subsidiaries	5,723			(2,122		)
Realized investment losses (gains)	39			(107		)
Change in other assets	702			(1,055		)
Change in accrued general expenses	18			1,537
Net cash provided by operating activities	1,526			1,518
Cash Flows from Investing Activities:
Net cash provided by investing activities
Net cash provided by investing activities	—			—
Cash Flows from Financing Activities:
(Repayments) Proceeds from short-term debt	(15		)	500
Cash dividends	(1,357		)	(1,480		)
Net cash used in financing activities	(1,372		)	(980		)
Net increase (decrease) in cash and cash equivalents	154			538
Cash, at beginning of year	920			382
Cash, at end of year	$	1,074		$	920

Notes to Condensed Financial Information of Registrant

Note 1-Basis of Presentation

Pursuant to the rules and regulations of the Securities and Exchange Commission, the Condensed Financial Information of the Registrant does not include all of the information and notes normally included with financial statements prepared in accordance with generally accepted accounting principles.  It is, therefore, suggested that this Condensed Financial Information be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Registrant’s Annual Report as referenced in Form 10-K, Part II, Item 8, page 40.

Note 2-Cash Dividends from Subsidiaries

In 2011, dividends of $2.1 million were paid to the Registrant by its subsidiaries ($2.8 million in 2010).