The National Security Group, Inc. Releases Second Quarter Earnings

Results for the three months and six months ended June 30, 2009 and 2008, based on accounting principles generally accepted in the United States of America, were reported today as follows:

    
      
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          Three Months Ended June 30
        
        
        
        
        
        
          Six Months Ended June 30
        
      
      
        
        
        
        
        
        
        
        
        
           
        
        
        
        
        
        
        
        
        
        
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          2009
        
        
        
        
        
        
          2008
        
        
        
        
        
        
          2009
        
        
        
        
        
        
          2008
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Premium Income
        
        
        
        
          $
        
        
          15,373,000
        
        
        
        
        
        
          $
        
        
          13,968,000
        
        
        
        
        
        
          $
        
        
          30,593,000
        
        
        
        
        
        
          $
        
        
          30,554,000
        
      
      
        
          Investment Income
        
        
        
        
        
        
          1,374,000
        
        
        
        
        
        
        
        
          1,241,000
        
        
        
        
        
        
        
        
          2,611,000
        
        
        
        
        
        
        
        
          2,562,000
        
      
      
        
          Realized Investment Gains
        
        
        
        
        
        
          (231,000
        
        
          )
        
        
        
        
        
        
          82,000
        
        
        
        
        
        
        
        
          (230,000
        
        
          )
        
        
        
        
        
        
          148,000
        
      
      
        
          Other Income
        
        
        
        
        
        
          192,000
        
        
           
        
        
        
        
        
        
          352,000
        
        
           
        
        
        
        
        
        
          333,000
        
        
           
        
        
        
        
        
        
          673,000
        
      
      
        
          Total Revenues
        
        
        
        
          $
        
        
          16,708,000
        
        
           
        
        
        
        
          $
        
        
          15,643,000
        
        
           
        
        
        
        
          $
        
        
          33,307,000
        
        
           
        
        
        
        
          $
        
        
          33,937,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income (Loss)
        
        
        
        
          $
        
        
          92,000
        
        
           
        
        
        
        
          $
        
        
          (36,000
        
        
          )
        
        
        
        
          $
        
        
          1,573,000
        
        
           
        
        
        
        
          $
        
        
          746,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income Per Share
        
        
        
        
          $
        
        
          0.04
        
        
           
        
        
        
        
          $
        
        
          (0.01
        
        
          )
        
        
        
        
          $
        
        
          0.64
        
        
           
        
        
        
        
          $
        
        
          0.30
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

The Company had net income of $1,573,000, $0.64 per share, for the six-month period ended June 30, 2009 compared to $746,000, $0.30 per share, for the same period last year. The primary reason for the increase in net income for the six-month period ended June 30, 2009 compared to last year was much improved first quarter results in 2009. The first quarter of 2008 results were adversely impacted by a significantly higher frequency of windstorm events. While we also experienced a much higher frequency of windstorm events in the second quarter of 2009, in the first quarter of 2009, the frequency of windstorm events was greatly diminished.

Net income for the quarter ended June 30, 2009 totaled $92,000, $0.04 per share, compared to a net loss of $36,000, ($0.01) per share, for the same period last year. Increased spring storm activity was the primary factor contributing to reduced earnings for the second quarter in both 2009 and 2008.

Shareholders’ equity as of June 30, 2009 was $37,277,000 compared to $34,648,000 at December 31, 2008. The $2,629,000 increase reflects net income of $1,573,000, an increase in accumulated unrealized investment gains associated with available-for-sale securities of $1,584,000, a gain on an interest rate swap of $212,000 and dividends paid of $740,000.

The National Security Group, Inc., through its property & casualty and life insurance subsidiaries, offers property, casualty, life, accident and health insurance in twelve states. The Company writes primarily personal lines property coverage including dwelling fire and windstorm, homeowners, mobile homeowners and personal non-standard automobile lines of insurance. The Company also offers life, accident and health, supplemental hospital and cancer insurance products. The Company was founded in 1947 and is based in Elba, Alabama.

The National Security Group, Inc., through its property & casualty and life insurance subsidiaries, offer property, casualty, life, accident and health insurance in twelve states.

NASDAQ Symbol: NSEC