Schedule II. Condensed Financial Information of Registrant (Notes)

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Registrant [Abstract]

Scheule II. Condensed Financial Information of Registrant

Schedule II. Condensed Financial Information of Registrant

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
BALANCE SHEETS
(dollars in thousands)
	December 31,
	2015		2014
Assets
Fixed maturities available-for-sale, at estimated fair value	$	1,482	$	1,494
Investment real estate, at book value	356		356
Cash	991		271
Investment in subsidiaries (equity method) eliminated upon consolidation	58,986		57,541
Deferred income tax asset	3,435		5,071
Other assets	1,215		676
Total Assets	$	66,465	$	65,409
Liabilities and Shareholders' Equity
Liabilities
Accrued general expenses	$	1,948	$	1,842
Interest rate swaps	1,419		1,238
Short-term notes payable	857		857
Long-term debt	17,358		18,715
Total Liabilities	21,582		22,652
Total Shareholders' Equity	44,883		42,757
Total Liabilities and Shareholders' Equity	$	66,465	$	65,409

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
STATEMENTS OF INCOME
(dollars in thousands)
	Years Ended December 31,
	2015		2014
Income
Dividends (eliminated upon consolidation)	$	2,000	$	2,500
Property transfer from subsidiary	—		—
Net realized investment gains (losses)	—		1
Holding company management service fees	1,001		958
Other income	75		76
	3,076		3,535
Expenses
State taxes	43		43
Interest	1,318		1,455
Other expenses	325		439
	1,686		1,937
Income before income taxes and equity in undistributed earnings of subsidiaries	1,390		1,598
Income tax expense	422		33
Income before equity in undistributed earnings of subsidiaries	968		1,565
Equity in undistributed earnings of subsidiaries	3,729		6,051
Net income	$	4,697	$	7,616

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
STATEMENTS OF CASH FLOWS
(dollars in thousands)
	Years Ended
	December 31,
	2015			2014
Cash Flows from Operating Activities:
Net income	$	4,697		$	7,616
Adjustments to reconcile net income to net cash provided by (used in)operating activities:
Equity in undistributed earnings of subsidiaries	(3,729		)	(6,051		)
Net realized investment gains	—			(1		)
Deferred income tax expense	1,701			975
Other, net	(190		)	267
Net cash provided by operating activities	2,479			2,806
Cash Flows from Investing Activities:
Net sales (purchases) of investments	—			—
Net cash provided by investing activities	—			—
Cash Flows from Financing Activities:
Net (repayments) proceeds from debt	(1,357		)	(3,183		)
Cash dividends	(402		)	(300		)
Net cash (used in) provided by financing activities	(1,759		)	(3,483		)
Net increase (decrease) in cash and cash equivalents	720			(677		)
Cash, at beginning of year	271			948
Cash, at end of year	$	991		$	271

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 41.

Note 2 - Cash Dividends and Asset Transfers from Insurance Subsidiaries

In 2015, cash dividends of $2,000,000 were paid to the Registrant by its subsidiaries ($2,500,000 in 2014).