| Cash Flow for National Security Group Inc. (NSEC) | | | | | | | Cash Flow | in Thousands of Dollars | | | 12/2007 | 12/2006 | 12/2005 | 12/2004 | 12/2003 | | | Net Income | 4,721 | 4,250 | 1,558 | 3,113 | 4,090 | | Provision for Loan Loss | - | - | - | - | - | | Depreciation & Amortization | 2,922 | 2,771 | 944 | 2,921 | 2,366 | | Deferred Income Taxes | (357) | 349 | 174 | 362 | (275) | | Change in Assets (Receivables) | 1,317 | 10,135 | (10,357) | 29 | (153) | | Change in Liabilities (Payables) | 1,965 | (1,540) | 7,382 | 2,150 | 7,473 | | Investment Securities Gain | (1,493) | (2,615) | - | - | - | | Net Policy Acquisition Cost | (3,630) | (3,333) | 2,704 | (2,621) | (2,399) | | Realized Investment Gains | - | - | (3,727) | (2,162) | (1,416) | | Net Premiums Receivables | - | - | - | - | - | | Change in Income Taxes | (126) | 1,106 | 99 | (1,486) | 1,253 | | Other Non-Cash Items | (1,486) | (3,321) | (4,226) | (1,420) | (226) | | Net Cash from Operating Activities | 3,833 | 7,802 | (5,449) | 886 | 10,713 | | | | Proceeds from Sale/Mat. Inv. | 23,754 | 21,766 | 25,714 | 28,863 | 31,458 | | Purchase of Investment Securities | (26,394) | (25,880) | (27,130) | (24,312) | (40,149) | | Net Increase Fed. Funds Sold | - | - | - | - | - | | Purchase of Property & Equipment | (1,142) | 205 | (457) | (1,327) | (852) | | Acquisitions | - | - | - | - | - | | Other Investment Changes, Net | 2,506 | (873) | 4,378 | (2,771) | 668 | | Net Cash from Investing Activities | (1,276) | (4,782) | 2,505 | 453 | (8,875) | | | Net Change in Deposits | - | - | - | - | - | | Cash Dividends paid | (2,220) | (2,183) | (2,134) | (2,084) | (2,035) | | Repayment of Long Term Debt | (2,171) | (2,047) | (2,209) | (328) | (321) | | Change in Short Term Debt | 900 | - | - | - | 606 | | Issuance of Long term Debt | 3,093 | - | 9,279 | 243 | - | | Issuance of Preferred Stock | - | - | - | - | - | | Issuance of Common Stock | - | - | - | - | - | | Purchase of Treasury Stock | - | - | - | - | - | | Other Financing Activities | 34 | (34) | (2) | (105) | (111) | | Cash from Financing Activities | (364) | (4,264) | 4,934 | (2,274) | (1,861) | | | | Effect of Exchange Rate Changes | - | - | - | - | - | | Net Change in Cash & Equivalents | 2,193 | (1,244) | 1,990 | (935) | (23) | | | Cash at Beginning of Period | 1,106 | 2,350 | 360 | 1,295 | 805 | | Cash at End of Period | 3,299 | 1,106 | 2,350 | 360 | 782 | | | |
