| Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT |
Schedule II
Page 1 of 3
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)
BALANCE SHEETS
| |
|
December 31,
|
|
| |
|
2025
|
|
|
2024
|
|
| |
|
|
|
|
(Restated)
|
|
|
ASSETS
|
|
(In thousands)
|
|
|
Cash and cash equivalents
|
|
$
|
2,196 |
|
|
$
|
3,916 |
|
|
Investments
|
|
|
1,909 |
|
|
|
1,696 |
|
|
Investment in subsidiaries
|
|
|
133,212 |
|
|
|
122,232 |
|
|
Investments in unconsolidated trusts
|
|
|
1,238 |
|
|
|
1,238 |
|
|
Deferred tax asset, net
|
|
|
15,044 |
|
|
|
15,970 |
|
|
Income taxes receivable from subsidiaries
|
|
|
2,839 |
|
|
|
658 |
|
|
Other assets
|
|
|
10,353 |
|
|
|
9,874 |
|
|
Total assets
|
|
$
|
166,791 |
|
|
$
|
155,584 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Other payables
|
|
$
|
7,244 |
|
|
$
|
7,252 |
|
|
Revolving credit facility
|
|
|
5,021 |
|
|
|
4,023 |
|
|
Junior subordinated debentures obligations, net
|
|
|
33,738 |
|
|
|
33,738 |
|
|
Total liabilities
|
|
|
46,003 |
|
|
|
45,013 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
|
120,788 |
|
|
|
110,571 |
|
|
Total liabilities and shareholders’ equity
|
|
$
|
166,791 |
|
|
$
|
155,584 |
|
Schedule II
Page 2 of 3
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)
STATEMENTS OF OPERATIONS
| |
|
Year Ended December 31,
|
|
| |
|
2025
|
|
|
2024
|
|
| |
|
|
|
|
(Restated)
|
|
| |
|
(In thousands)
|
|
|
Revenue
|
|
|
|
|
|
|
|
Fee income from subsidiaries
|
|
$
|
9,694 |
|
|
$
|
9,531 |
|
|
Distributed earnings from subsidiaries
|
|
|
8,400 |
|
|
|
9,000 |
|
|
Unrealized losses on equity securities, net
|
|
|
168 |
|
|
|
(187 |
)
|
|
Other
|
|
|
(164 |
)
|
|
|
(159 |
)
|
|
Total revenue
|
|
|
18,098 |
|
|
|
18,185 |
|
| |
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
16,489 |
|
|
|
16,073 |
|
| |
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
3,081 |
|
|
|
3,419 |
|
| |
|
|
(1,472 |
)
|
|
|
(1,307 |
)
|
|
Income tax benefit(1)
|
|
|
2,805
|
|
|
|
1,922 |
|
| |
|
|
1,333
|
|
|
|
615 |
|
|
Equity in undistributed earnings of subsidiaries, net
|
|
|
4,684
|
|
|
|
(2,008 |
)
|
|
Net income (loss)
|
|
$
|
6,017 |
|
|
$
|
(1,393 |
)
|
(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.
Schedule II
Page 3 of 3
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)
STATEMENTS OF CASH FLOWS
| |
|
Year Ended December 31,
|
|
| |
|
2025
|
|
|
2024
|
|
| |
|
|
|
|
(Restated) |
|
| |
|
(In thousands) |
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
6,017 |
|
|
$
|
(1,393 |
)
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Unrealized (gains) losses on equity securities, net
|
|
|
(168 |
)
|
|
|
187 |
|
|
Depreciation and amortization
|
|
|
89 |
|
|
|
190 |
|
|
Compensation expense related to share awards
|
|
|
2 |
|
|
|
11 |
|
|
(Deficit) equity in undistributed earnings of consolidated subsidiaries
|
|
|
(4,684 |
)
|
|
|
2,008 |
|
|
(Increase) decrease in intercompany taxes
|
|
|
(2,180 |
)
|
|
|
1,330 |
|
|
Deferred income tax (benefit) expense
|
|
|
(413 |
)
|
|
|
(3,290 |
)
|
|
(Increase) decrease in accounts payable and accrued expenses
|
|
|
(8 |
)
|
|
|
3,303 |
|
|
Other, net
|
|
|
(366 |
)
|
|
|
(1,336 |
) |
|
Net cash (used in) provided by operating activities
|
|
|
(1,711 |
)
|
|
|
1,010 |
|
| |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Additions to property and equipment
|
|
|
(198 |
)
|
|
|
(53 |
)
|
|
Net cash used in investing activities
|
|
|
(198 |
)
|
|
|
(53 |
)
|
| |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Payment of dividends on Series D preferred stock
|
|
|
(399 |
)
|
|
|
(399 |
)
|
|
Payment of dividends on common stock
|
|
|
(408 |
)
|
|
|
(408 |
)
|
|
Proceeds from shares issued under stock plans
|
|
|
- |
|
|
|
- |
|
|
Proceeds from revolving credit facility, net
|
|
|
1,000 |
|
|
|
1,000 |
|
|
Treasury stock acquired — net employee share-based compensation
|
|
|
(4 |
)
|
|
|
(7 |
)
|
|
Net cash provided by financing activities
|
|
|
189 |
|
|
|
186 |
|
| |
|
|
|
|
|
|
|
|
|
Net increase in cash
|
|
|
(1,720 |
)
|
|
|
1,143 |
|
|
Cash and cash equivalents at beginning of year
|
|
|
3,916 |
|
|
|
2,773 |
|
|
Cash and cash equivalents at end of year
|
|
$
|
2,196 |
|
|
$
|
3,916 |
|
| |
|
|
|
|
|
|
|
|
|
Supplemental disclosure:
|
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
3,106 |
|
|
$
|
3,445 |
|
|
Cash paid for federal income taxes
|
|
$
|
1,652 |
|
|
$
|
580 |
|
|
Cash paid for state income taxes
|
|
$
|
187 |
|
|
$
|
213 |
|
|
Intercompany tax settlement from subsidiaries
|
|
$
|
1,319 |
|
|
$
|
4,352 |
|
|