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Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2016
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]  
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)
 
BALANCE SHEETS
 
ASSETS
December 31,
2016
2015
(In thousands)
 
 
 
 
 
 
Cash and cash equivalents
$
4,308
 
$
4,463
 
Investments
 
16,160
 
 
19,035
 
Investment in subsidiaries
 
112,472
 
 
106,675
 
Investments in unconsolidated trusts
 
1,238
 
 
1,238
 
Deferred tax asset, net
 
—
 
 
169
 
Income taxes receivable from subsidiaries
 
2,961
 
 
2,146
 
Other assets
 
4,554
 
 
4,677
 
Total assets
$
141,693
 
$
138,403
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
Deferred tax liability, net
$
500
 
$
—
 
Other payables
 
1,949
 
 
2,173
 
Junior subordinated debentures
 
33,738
 
 
33,738
 
 
 
 
 
 
 
Total liabilities
 
36,187
 
 
35,911
 
 
 
 
 
 
 
Shareholders’ equity
 
105,506
 
 
102,492
 
Total liabilities and shareholders’ equity
$
141,693
 
$
138,403
 
 
 
 
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)
 
STATEMENTS OF OPERATIONS
Year Ended December 31,
2016
2015
(In thousands)
REVENUE
 
 
 
 
 
 
Fee income from subsidiaries
$
7,395
 
$
7,449
 
Distributed earnings from subsidiaries
 
5,508
 
 
6,750
 
Other
 
408
 
 
571
 
Total revenue
 
13,311
 
 
14,770
 
 
 
 
 
 
 
GENERAL AND ADMINISTRATIVE EXPENSES
 
12,858
 
 
13,984
 
 
 
 
 
 
 
INTEREST EXPENSE
 
1,562
 
 
1,429
 
 
(1,109
)
 
(643
)
INCOME TAX BENEFIT(1)
 
(1,837
)
 
(1,514
)
 
728
 
 
871
 
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET
 
1,908
 
 
3,517
 
NET INCOME
$
2,636
 
$
4,388
 
 
(1)
Under the terms of a tax-sharing agreement, income tax provisions for the subsidiary companies are computed on a separate company basis. Accordingly, the Company’s income tax benefit results from the utilization of the Parent’s separate return loss to reduce the consolidated taxable income of the Company.
 
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)
 
STATEMENTS OF CASH FLOWS
Year Ended December 31,
2016
2015
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net income
$
2,636
 
$
4,388
 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Realized investment losses (gains), net
 
1
 
 
(190
)
Depreciation and amortization
 
713
 
 
673
 
Compensation expense related to share awards
 
586
 
 
365
 
Equity in undistributed earnings of consolidated subsidiaries
 
(1,908
)
 
(3,517
)
(Increase) decrease in intercompany taxes
 
(815
)
 
125
 
Deferred income tax (benefit) expense
 
(2
)
 
304
 
(Decrease) increase in other liabilities
 
(224
)
 
317
 
Other, net
 
(221
)
 
(12
)
Net cash provided by operating activities
 
766
 
 
2,453
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Proceeds from investments sold, called or matured
 
1,979
 
 
2,210
 
Investments purchased
 
(1,000
)
 
(3,956
)
Capital contribution to subsidiaries
 
(75
)
 
(200
)
Additions to property and equipment
 
(371
)
 
(230
)
Net cash provided by (used in) investing activities
 
533
 
 
(2,176
)
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Payment of dividends on Series D preferred stock
 
(399
)
 
(399
)
Payment of dividends on common stock
 
(408
)
 
(412
)
Proceeds from shares issued under stock plans
 
51
 
 
47
 
Purchase of shares for treasury
 
(698
)
 
(997
)
Net cash used in financing activities
 
(1,454
)
 
(1,761
)
 
 
 
 
 
 
Net decrease in cash
 
(155
)
 
(1,484
)
Cash and cash equivalents at beginning of year
 
4,463
 
 
5,947
 
Cash and cash equivalents at end of year
$
4,308
 
$
4,463
 
 
 
 
 
 
 
Supplemental disclosure:
 
 
 
 
 
 
Cash paid for interest
$
1,544
 
$
1,424
 
Cash paid for income taxes
$
675
 
$
1,465
 
Intercompany tax settlement from subsidiaries
$
2,845
 
$
2,409