Schedule II. Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2021

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
($ in thousands)	December 31,
	2021		2020
Assets
Fixed maturities available-for-sale, at estimated fair value	$	—	$	957
Investment real estate, at book value	356		356
Cash	2,761		3,108
Investment in subsidiaries (equity method) eliminated upon consolidation	56,787		57,681
Income tax recoverable	91		—
Deferred income tax asset	892		960
Other assets	564		546
Total Assets	$	61,451	$	63,608
Liabilities and Shareholders' Equity
Liabilities
Accrued general expenses	$	4,459	$	3,946
Interest rate swaps	—		619
Short-term notes payable	500		500
Long-term debt	12,690		13,177
Total Liabilities	17,649		18,242
Total Shareholders' Equity	43,802		45,366
Total Liabilities and Shareholders' Equity	$	61,451	$	63,608

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
STATEMENTS OF OPERATIONS
($ in thousands)	Years Ended December 31,
	2021		2020
Income
Dividends (eliminated upon consolidation)	$	—	$	1,100
Net realized investment gains	(17)		13
Holding company management service fees	1,106		1,035
Other income	48		60
	1,137		2,208
Expenses
State taxes	49		49
Interest	549		823
Other expenses	1,265		843
	1,863		1,715
Income (loss) before income taxes and equity in undistributed earnings of      subsidiaries	(726)		493
Income tax benefit	(152)		(122)
Income (loss) before equity in undistributed earnings of subsidiaries	(574)		615
Equity in undistributed earnings (losses) of subsidiaries	1,156		(9,234)
Net Income (Loss)	$	582	$	(8,619)

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
STATEMENTS OF CASH FLOWS
($ in thousands)
	Years Ended
	December 31,
	2021		2020
Cash Flows from Operating Activities:
Net income (loss)	$	582	$	(8,619)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in undistributed earnings (losses) of subsidiaries	(1,156)		9,234
Net realized investment (gains) losses	17		(13)
Income taxes	(153)		364
Other, net	535		531
Net Cash Provided by (Used in) Operating Activities	(175)		1,497
Cash Flows from Investing Activities:
Net sales (purchases) of investments	936		(675)
Net Cash Provided by (Used in) Investing Activities	936		(675)
Cash Flows from Financing Activities:
Net repayments of debt	(500)		(500)
Cash dividends	(608)		(607)
Net Cash Used in Financing Activities	(1,108)		(1,107)
Net change in cash and cash equivalents	(347)		(285)
Cash and cash equivalents, at beginning of year	3,108		3,393
Cash and Cash Equivalents, at End of Year	$	2,761	$	3,108

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 46.

Note 2 - Cash Dividends and Asset Transfers from Insurance Subsidiaries

In 2021, no cash dividends were paid to the Registrant by its subsidiaries ($1,100,000 in 2020).