BNL FINANCIAL CORP

CIK:0000757641|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Income:
Premium income	$ 9,485,415	$ 10,012,944	$ 28,719,085	$ 30,158,944
Vision insurance income	704,330	618,271	1,935,435	1,799,280
Net investment income	187,114	222,280	599,591	725,502
Realized gains on debt retirement	3,036		3,360	4,536
Realized gains (losses)	50,293	(47,763)	62,479	(64,315)
Total Income	10,430,188	10,805,732	31,319,950	32,623,947
Expenses:
Liability for future policy benefits expense	16,869	29,229	(94,760)	(62,377)
Policy benefits and other insurance costs	7,373,766	7,756,644	22,308,562	23,491,663
Amortization of deferred policy acquisition costs	5,273	5,918	10,943	11,191
Operating expenses	2,026,022	1,990,651	6,217,134	6,230,574
Taxes, other than income, fees and assessments	326,463	277,047	1,116,676	1,070,920
Total Expenses	9,748,393	10,059,489	29,558,555	30,741,971
Income from Operations before Income Taxes	681,795	746,243	1,761,395	1,881,976
Provision for income taxes	103,000	152,260	308,000	341,260
Net Income	578,795	593,983	1,453,395	1,540,716
Net income per common share (basic and diluted) (in Dollars per share)	$ 0.04	$ 0.04	$ 0.10	$ 0.10
Weighted average number of fully paid common shares (in Shares)	15,061,768	15,113,923	15,072,968	15,109,033
Unrealized gains (losses) on securities:
Unrealized holding gain (loss) arising during period (net of tax)	(73,629)	131,698	(41,309)	26,770
Reclassification adjustment for gain (loss) included in net income	(8,309)		1,793	13,563
Other Comprehensive Income (Loss)	(81,938)	131,698	(39,516)	40,333
Comprehensive Income	$ 496,857	$ 725,681	$ 1,413,879	$ 1,581,049

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net income	$ 1,453,395	$ 1,540,716
Adjustments to reconcile net income to net cash provided by operating activities:
Realized (gain) loss on investments	(56,197)	64,105
Realized gain on debt retirement	(3,360)	(4,536)
Realized gain on sale of furniture and equipment	(6,282)
Decrease in deferred tax asset	2,000	16,000
Depreciation	224,147	216,046
Amortization of deferred acquisition costs, and intangibles	15,305	15,552
Accretion of bond discount	14,946	19,759
Change in assets and liabilities:
(Increase) decrease in accrued investment income	(24,396)	1,581
(Increase) decrease in premiums due and unpaid	(108,393)	34,514
Decrease in liability for future policy benefits	(94,760)	(62,377)
Increase in policy claims payable	19,588	137,614
Decrease in annuity deposits and deferred profits	(90,668)	(73,857)
Decrease in premium deposit funds	(141)	(276)
Decrease in advanced and unallocated premium	(302,207)	(26,238)
Decrease in commissions payable	(72,436)	(62,049)
Other, decrease	(193,960)	(18,187)
Net Cash Provided By Operating Activities	776,579	1,798,367
Cash flows from investing activities:
Proceeds from maturity or redemption - Held to Maturity Investments	6,715,552	6,768,266
Proceeds from sale of equity securities	553,737	15,251
Proceeds from sale of furniture and equipment	8,100	11,290
Purchase of furniture and equipment	(178,539)	(211,273)
Purchase of fixed maturity securities - Held to Maturity Investments	(5,222,136)	(74,394)
Purchase of equity securities	(179,499)	(5,589,629)
Other investments – Line of credit payments received		27,216
Net Cash Provided By Investing Activities	1,697,215	946,727
Cash flows from financing activities:
Net change on supplementary contracts	15,946	(4,983)
Purchase of treasury stock	(36,910)	(88,528)
Dividends to shareholders		(1,513,257)
Bonds payable purchased	(29,045)	(27,871)
Exercised stock options	1,875	53,251
Net Cash Used In Financing Activities	(48,134)	(1,581,388)
Net Increase in Cash and Cash Equivalents	2,425,660	1,163,706
Cash And Cash Equivalents, Beginning Of Period	8,632,371	8,090,103
Cash And Cash Equivalents, End Of Period	$ 11,058,031	$ 9,253,809

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 11,058,031	$ 8,632,371
Investment in fixed maturities, at amortized cost, Held to Maturity (fair value $13,763,181; $15,057,111, respectively)	13,227,802	14,706,439
Other long-term investments (fair value $917,227, $876,423)	1,054,418	1,054,418
Investment in equity securities (cost $486,765, $834,268)	506,066	909,124
Total Investments, Including Cash and Cash Equivalents	25,846,317	25,302,352
Accrued investment income	114,489	90,093
Furniture and equipment, net	737,104	784,529
Deferred policy acquisition costs	212,099	223,041
Policy loans	170,362	160,120
Receivable from reinsurer	52,015	52,015
Premiums due and unpaid	1,045,334	936,941
Income tax assets	47,719	40,274
Intangible assets	115,231	119,593
Other assets	186,531	218,211
Total Assets	28,527,201	27,927,169
Liabilities:
Liabilities for future policy benefits	1,962,955	2,057,715
Policy claims payable	1,373,358	1,353,770
Annuity deposits	2,308,539	2,384,264
Deferred annuity profits	160,131	175,074
Premium deposit funds	19,947	20,088
Supplementary contracts without life contingencies	57,878	41,932
Advanced and unallocated premium	852,508	1,154,715
Commissions payable	464,345	536,781
Accrued taxes and expenses	245,739	298,462
Bonds payable	1,278,838	1,300,708
Other liabilities	810,273	989,814
Total Liabilities	9,534,511	10,313,323
Common stock, $.02 stated value, 45,000,000 shares authorized, 15,463,965 shares issued and outstanding	309,279	309,279
Additional paid-in capital	5,703,215	5,704,089
Accumulated other comprehensive income	6,064	45,581
Accumulated surplus	13,494,608	12,041,213
Treasury stock, at cost, 411,272; 382,030 shares, respectively	(520,476)	(486,316)
Total Shareholders' Equity	18,992,690	17,613,846
Total Liabilities and Shareholders' Equity	$ 28,527,201	$ 27,927,169