----

|                                                                     |                                   |
|--------------------------------------------------------------------------|----------------------------------------|
|  IOWA                                                               | 42-1239454                             |
| (State      of incorporation)                                            | (IRS      Employer Identification No.) |
|                                                                     |                                   |
| 7010      Hwy 71 W., Suite 100                                           |                                   |
| Austin,      TX                                                          | 78735                                  |
| (Address      of principal executive offices)                            |  (Zip      Code)                  |
|                                                                     |                                   |
| Registrant's      telephone number, including area code: (512)  383-0220 |

----

|   |   |  BNL      Financial Corporation                     |  ----------->  |  Consumer's      Protective Association(Inactive      Association) |
|--------|--------|----------------------------------------------------------|-----------------------------|-------------------------------------------------------------------------|
|   |   | ||                                                       |                        |                                                                    |
|   |   |  Brokers      National Life Assurance Company  |                        |                                                                    |
|   |   | ||                                                       |                        |                                                                    |
|   |   |  BNL      Brokerage Corporation                |                        |                                                                    |

----

|                                                              |   | 2007                                         |   | 2006                                   |
|-------------------------------------------------------------------|--------|----------------------------------------------|--------|----------------------------------------|
| I. Annualized Premiums and Annuity Deposits In      Force:        |   |                                         |   |                                   |
| Ordinary      Life Insurance                                      |   | $      292,000 |   | $     263,000 |
| Individual      Annuities(1)                                      |   |  70,000                                 |   |  83,000                           |
| Group      Dental Insurance                                       |   | 42,299,000                                   |   | 43,084,000                             |
| Miscellaneous      A&H insurance                              |   |  2,356,000                              |   |  2,219,000                        |
|                                                              |   |                                         |   |                                   |
|           Total |   | $45,017,000                                  |   | $45,649,000                            |

| II. Collected Premiums and Annuity      Deposits:                 |                                                                       |                                   |   |                                   |
|-------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------|--------|----------------------------------------|
| Ordinary      Life Insurance                                      |                                                                       | $     284,000 |   | $     303,000 |
| Individual      Annuities(1)                                      |                                                                       |   61,000                     |   |   73,000                     |
| Group      Dental Insurance                                       |                                                                       | 41,926,000                             |   | 42,132,000                             |
| Miscellaneous      A&H insurance                              |                                                                       | 2,069,000                              |   | 2,242,000                              |
|                                                              |                                                                       |                                   |   |                                   |
|           Total |                                                                       | $44,340,000                            |   | $44,750,000                            |
|  III. Face Value of    Insurance:                            |                                                                       |                                   |   |                                   |
| Ordinary      Life Insurance                                      |                                                                       | $43,879,000                            |   | $43,645,000                            |
| Accidental      Death Insurance                                   |                                                                       | 120,655,000                            |   | 112,085,000                            |
|                                                              |                                                                       |                                   |   |                                   |
|           Total |                                                                       | $164,534,000                           |   | $155,730,000                           |
|                                                              | (1)      Classified as a deposit liability on the financial    statements. |                                   |

|   State     |   |   Life      Premiums                          |   |   Annuity                   |   |  Accident      andHealth |   |   Total |
|-----------------------|--------|---------------------------------------------------------|--------|---------------------------------------|--------|-------------------------------|--------|-------------------|
| Georgia               |   |  $       20,000 |   | $-                                    |   | $3,667,000                    |   | $3,687,000        |
| Louisiana             |   |  18,000                                            |   |  -                               |   | 3,562,000                     |   | 3,580,000         |
| Oregon                |   |  1,000                                             |   | -                                     |   | 2,867,000                     |   | 2,868,000         |
| Arkansas              |   | 26,000                                                  |   | -                                     |   | 2,600,000                     |   | 2,626,000         |
| Indiana               |   | 12,000                                                  |   | -                                     |   | 2,522,000                     |   | 2,534,000         |
| Minnesota             |   |  8,000                                             |   | -                                     |   | 2,504,000                     |   | 2,512,000         |
| Michigan              |   | 12,000                                                  |   |   -                         |   | 2,426,000                     |   | 2,438,000         |
| Ohio                  |   | 3,000                                                   |   |       - |   | 2,315,000                     |   | 2,318,000         |
| Idaho                 |   |        1,000         |   |       - |   | 2,234,000                     |   | 2,235,000         |
| All      Other States |   |   183,000                                     |   |  61,000                          |   | 19,298,000                    |   | 19,542,000        |
| Total                 |   | $284,000                                                |   | $      61,000                         |   | $43,995,000                   |   | $44,340,000       |

|   |   |                          |   |                          |
|--------|--------|-------------------------------|--------|-------------------------------|
|   |   |                          |   |                          |
|   |   | Group      Dental             |   | Individual      Dental        |
|   |   | Gross      Premiums Collected |   | Gross      Premiums Collected |
| 2007   |   | $41,926,000                   |   | $1,785,000                    |
| 2006   |   | 42,132,000                    |   | 1,988,000                     |
| 2005   |   | 41,629,000                    |   | 2,033,000                     |
| 2004   |   |  40,681,000              |   | 1,594,104                     |
| 2003   |   | 38,813,000                    |   | 872,000                       |

----

|                   |   |                   |   | Incurred                                              |
|------------------------|--------|------------------------|--------|-------------------------------------------------------|
|                   |   | Gross                  |   | Claims                                                |
| Group Dental Insurance |   |  Claims      Paid |   | Ratio                                                 |
| 2007                   |   | $26,340,000            |   |   61.8%                                     |
| 2006                   |   | 27,127,000             |   |   64.1%                                     |
| 2005                   |   | 26,046,000             |   |   63.1%                                     |
| 2004                   |   | 25,044,000             |   | 62.3%                                                 |
| 2003                   |   | 24,279,000             |   |         62.7% |

----

|                       |   | Gross         |   |             |   |                                                                                         |   | Net                     |
|----------------------------|--------|---------------|--------|------------------|--------|----------------------------------------------------------------------------------------------|--------|-------------------------|
|                       |   | Insurance     |   | Reinsurance      |   | Reinsurance                                                                                  |   | Insurance               |
|                       |   | In      Force |   | Ceded            |   | Assumed                                                                                      |   | In      Force           |
| Life Insurance             |   |          |   |             |   |                                                                                         |   |                    |
| 2007                       |   | $43,879,000   |   | $14,074,000      |   | $               0 |   | $  29,805,000 |
| 2006                       |   | 43,645,000    |   | 15,333,000       |   |                0  |   | 28,312,000              |
| 2005                       |   | 39,992,000    |   | 14,531,000       |   |                0  |   | 25,461,000              |
| 2004                       |   | 37,207,000    |   | 11,752,000       |   |               0        |   | 25,455,000              |
| 2003                       |   | 37,832,000    |   |  12,782,000 |   | 0                                                                                            |   | 25,050,000              |
|                       |   |          |   |             |   |                                                                                         |   |                    |
|                       |   |          |   |             |   |                                                                                         |   |                    |
| Accidental Death Insurance |   |          |   |             |   |                                                                                         |   |                    |
| 2007                       |   | $120,655,000  |   | $108,590,000     |   | $              0       |   | $  12,065,000 |
| 2006                       |   | 112,085,000   |   | 100,877,000      |   |               0        |   | 11,208,000              |
| 2005                       |   | 79,643,000    |   | 71,834,000       |   |               0        |   | 7,809,000               |
| 2004                       |   | 65,629,000    |   | 59,238,000       |   |         0                                            |   | 6,391,000               |
| 2003                       |   | 52,095,000    |   | 46,885,500       |   | 0                                                                                            |   | 5,209,500               |
|                       |   |          |   |             |   |                                                                                         |   |                    |

|    Year |   |   BNLAC      Statutory Net Investment  Income |   |    Net      Return on Mean Invested Assets |
|------------------------|--------|-------------------------------------------------------------------|--------|-----------------------------------------------------------|
| 2007                   |   | $1,123,716                                                        |   | 4.8%                                                      |
| 2006                   |   | 1,005,774                                                         |   | 4.6%                                                      |
| 2005                   |   | 853,563                                                           |   | 4.0%                                                      |
| 2004                   |   |  879,351                                                     |   | 4.4%                                                      |
| 2003                   |   |   854,548                                               |   | 4.2%                                                      |

----

|   | a)      Premiums are reported as earned over the premium paying      period.  Benefits and expenses are associated with earned      premiums so as to result in the matching of expenses with the related      premiums over the life of the contracts.  This is accomplished      through the provision for liabilities for future policy benefits and the      deferral and amortization of acquisitioncosts; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b)      Certain assets designated as "non-admitted assets" for statutory purposes      are reinstated to the accounts; |
|--------|------------------------------------------------------------------------------------------------------------------------|

|   | c)      The asset valuation reserve is reclassified as retained earnings rather      than as a liability.  The interest maintenance reserve is      reclassified from a liability to investment  income; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d)      Premium payments received on annuities are not reported as revenue but are      recorded as increases to a deposit liability account. The profits are then      deferred over the life of the policy instead of being realized when the      payments are received; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e)      Realized gains and losses from the sale of investments are reclassified to      a separate component of summary of operations.  Taxes thereon      are included in the tax provision;and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f)      Investments in fixed maturity securities that are available for sale are      carried at fair value with the unrealized appreciation (depreciation)      recorded to shareholders’ equity. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|    Period                                                            | (a) Total      number of shares purchased Note      1 | (b)  Average      price paid per share | (c)Total      number of shares purchased as part of publicly announced plans or      programs | (d)Maximum      number of shares that may yet be purchased under the plans or      programs |
|-------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------------|-----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
| Month      #1 (October 1–31)                                                  | 1,980                                                      |       $1.25        | NA                                                                                            | NA                                                                                          |
| Month      #2 (November 1-30)                                                       | 51,502                                                     |       $1.25        | NA                                                                                            | NA                                                                                          |
| Month      #3 (December 1-31)                                                       | 6,005                                                      |       $1.25        | NA                                                                                            | NA                                                                                          |
|              Total | 59,487                                                     |       $1.25        | NA                                                                                            | NA                                                                                          |

----

|    Plan      Category  |   |  ANumber      of Securities to be issued upon exercise of outstanding      options |   | B Weighted      Average exercise price of outstanding options |   | CNumber      of securities remaining available for future issuance under equity      compensation plans (excluding securities reflected in column      (a) |
|---------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  |   |                                                                                    |   |                                                               |   |                                                                                                                                                       |
| Approved      by security holders     |   |                                                                                    |   |                                                               |   |                                                                                                                                                       |
|                                  |   |                                                                                    |   |                                                               |   |                                                                                                                                                       |
| Brokers      and Agents Plan          |   | 110,425                                                                                 |   | $1.00                                                              |   | -                                                                                                                                                          |
|                                  |   |                                                                                    |   |                                                               |   |                                                                                                                                                       |
| Not      approved by security holders |   |                                                                                    |   |                                                               |   |                                                                                                                                                       |
|                                  |   |                                                                                    |   |                                                               |   |                                                                                                                                                       |
| Employee      Plan                    |   | 103,000                                                                                 |   | $.63                                                               |   | 134,000                                                                                                                                                    |

|                                                                                                        |  2007*                                                                        |   |  2006                                                                         |   |  2005                                                                         |   |  2004                                                                               |   |  2003                                                                               |
|-------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
| Total      Income............................................................                               | $48,084,920                                                                        |   | $47,646,337                                                                        |   | $46,614,276                                                                        |   | $44,906,665                                                                              |   | $42,505,179                                                                              |
| Net      Income      ...............................................................                        | $  3,449,368                                                             |   | $  2,564,243                                                             |   | $  2,303,089                                                             |   | $  2,652,503                                                                   |   | $  2,736,355                                                                   |
| Net      Income Per  Common      Share........................................................... |  $            .22 |   |  $            .16 |   |  $            .13 |   |  $             .14 |   |  $             .14 |
| Total      Assets................................................................                           | $30,301,075                                                                        |   | $27,009,634                                                                        |   | $26,621,477                                                                        |   | $26,058,520                                                                              |   | $24,555,254                                                                              |
| Total      Liabilities........................................................                              | $13,004,202                                                                        |   | $12,497,130                                                                        |   | $13,498,115                                                                        |   | $12,798,984                                                                              |   | $13,204,072                                                                              |
| Average      Shares Outstanding................................                                             | 15,602,725                                                                         |   | 16,481,342                                                                         |   | 17,495,881                                                                         |   | 19,184,245                                                                               |   | 20,082,075                                                                               |

|   | *This      information should be read in conjunction with the disclosure concerning      the Management's Discussion and Analysis of Financial Condition and the      audited Financial Statements and Notes thereto set forth elsewhere in this      Form 10-K. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                            | 2007           |   | 2006           |   | 2005           |   |
|---------------------------------|----------------|--------|----------------|--------|----------------|--------|
|                            |           |   |           |   |           |   |
| Current      tax provisions     | $      773,032 |   | $      514,377 |   | $      448,040 |   |
| Deferred      tax provision     |  40,602   |   |  4,025    |   |  79,001   |   |
|                            |           |   |           |   |           |   |
| Total      income tax provision | $813,634       |   | $518,402       |   | $527,041       |   |

----

|                                             |   |           2007 |   |           2006 |   | 2005                             |
|--------------------------------------------------|--------|------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------------------------|
|                                             |   |                                                             |   |                                                             |   |                             |
| Book      income before tax                      |   | $4,263,002                                                       |   | $    3,082,645                               |   | $2,830,130                       |
|                                             |   |                                                             |   |                                                             |   |                             |
| Income      tax computed at statutory rate (34%) |   |  $1,449,421                                                 |   |  $   1,048,099                               |   |  $   962,244 |
| Valuation      allowance for AMT credit          |   | (85,000)                                                         |   | 110,461                                                          |   | 106,891                          |
| Revision      of valuation allowance             |   | 173,923                                                          |   | (116,108)                                                        |   | 51,499                           |
| Rate      differential                           |   | (724,710)                                                        |   | (524,050)                                                        |   | (593,593)                        |
|                                             |   |                                                             |   |                                                             |   |                             |
| Total      income tax provision (benefit)        |   | $     813,634                           |   | $     518,402                           |   | $   527,041       |
|                                             |   |                                                             |   |                                                             |   |                             |

|        Expiring |   |                                   |
|----------------------------------------------------|--------|----------------------------------------|
|                                               |   |                                   |
| 2008                                               |   | $     203,000 |
| 2009                                               |   | 162,000                                |
| 2010                                               |   | 186,000                                |
| 2011                                               |   | 66,000                                 |
| 2012                                               |   | 193,000                                |
| 2018                                               |   | 105,000                                |
| 2019                                               |   | 86,000                                 |
| 2020                                               |   | 65,000                                 |
|                                               |   |                                   |
|                                               |   | $1,066,000                             |

|                                                       |   | 2007              |   | 2006              |   | 2005              |
|------------------------------------------------------------|--------|-------------------|--------|-------------------|--------|-------------------|
| Income      from Operations before Income Taxes       |   |  $4,263,002  |   |  $3,082,645  |   |  $2,830,130  |
| Book      Value Per Share                                  |   | $1.14             |   | $0.92             |   | $0.78             |
| Stockholders'      Equity                                  |   | $17,296,872       |   | $14,512,504       |   | $13,123,361       |
| Statutory      Capital and Surplus of Insurance Subsidiary |   |  $15,834,457 |   |  $13,223,044 |   |  $12,114,024 |
| A.M.      Best Financial Rating                            |   | B+                |   | B+                |   | B+                |
|                                                       |   |              |   |              |   |              |

----

| Portfolio      Designated “Held to Maturity” December 31, 2007                              |   |   Amortized      Cost |   |  Gross      Unrealized Gains           |   |  Gross      Unrealized Losses |   |   Estimated      Market Value |
|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|---------------------------------------------|--------|------------------------------------|--------|-----------------------------------------|
| US      Treasury securities and obligations of   US      government corporations and agencies |   |  $13,330,227               |   |  $     29,588 |   |  $   43,188    |   |  $13,316,627                       |
| Corporate      securities                                                                                    |   | 3,441,590                       |   | 49,117                                      |   | 71,705                             |   | 3,419,002                               |
| Mortgage-backed      securities   GNMA      & FNMA CMO                                    |   |  2,315,930                 |   |       4,074   |   |   27,720                 |   |  2,292,284                         |
|                                                                                                         |   |                            |   |                                        |   |                               |   |                                    |
| Totals                                                                                                       |   | $19,087,747                     |   | $    82,779             |   | $      142,613                     |   | $19,027,913                             |

| Less      Than Investment Grade Bonds  December 31, 2007 |   S&PRating |   |    Amortized      Cost |   |   Gross      Unrealized Gains |   |   Gross      Unrealized Losses |   |   Estimated      Market Value |
|--------------------------------------------------------------------|---------------------------|--------|---------------------------------------|--------|-----------------------------------------|--------|------------------------------------------|--------|-----------------------------------------|
| Ford      Motor Company                                            | CCC+                      |   | $187,592                              |   | $      -                                |   | $   59,592                |   | $128,000                                |
| General      Motors Acceptance Corporation                         | BB+                       |   | 100,000                               |   |     -               |   | 10,000                                   |   | 90,000                                  |
| Provident      Companies Inc.                                      | BB+                       |   | 136,239                               |   | 10,461                                  |   | -                                        |   | 146,700                                 |
|                                                               |                      |   |                                  |   |                                    |   |                                     |   |                                    |
| Totals                                                             |                      |   | $423,831                              |   | $10,461                                 |   | $69,592                                  |   | $364,700                                |

----

|  Long-Term Contractual Obligations      *                                              |  Total                                 |                    < 1 Year |  1-3 Years                                        |  3-5 Years                            |  > 5 Years                     |
|---------------------------------------------------------------------------------------------|---------------------------------------------|-------------------------------------------------------------------------------------------------|--------------------------------------------------------|--------------------------------------------|----------------------------------------|
| Bonds      and Related Future Interest Payable**                                            | $      2,166,000                            | $       96,000                                               | $    192,000                       | $   192,000                 | $1,686,000                             |
| Operating      Lease Obligations                                                            | $      1,733,000                            | $     337,000                                                          | $    610,000                       | $   608,000                 | $     178,000 |
| Liability      for Future Policy Benefits      (Note      A.) |  $      9,731,655                      |  $  1,317,066                                                                    |  $      2,122,810                                 |  $1,495,170                           |  $4,796,609                       |
| Policy      Claims Payable (Note B.)                                                        | $      2,306,288                            | $  2,306,288                                                                          | -                                                      | -                                          | -                                      |
| Liability      for Annuity Deposits (Note C.)                                               | $      5,430,377                            | $       87,241                                               | $    131,660                       | $  151,473                       | $5,060,003                             |
| Supplementary      Contracts (Note D.)                                                      | $      33,874 | $         1,495                                    | $        2,959 | $      2,909 | $26,511                                |

----

----

----

----

|   | ITEM 9A(T). Internal      Controls and Procedures |
|--------|---------------------------------------------------|

|   |   |
|--------|--------|

----

----

|    Name   |   |    Age |   |    First      Became Director or Executive Officer |   |    Position                                                                                   |
|--------------------------|--------|-----------------------|--------|-------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
| Wayne      E. Ahart      |   | 67                    |   | 1984                                                              |   | Chairman      of the Board and Director                                                                      |
| C.      Donald Byrd      |   | 66                    |   | 1984                                                              |   | Vice      Chairman of the Board and Director                                                                 |
| Kenneth      Tobey       |   | 49                    |   | 1994                                                              |   | President      and Director                                                                                  |
| Barry      N. Shamas     |   | 60                    |   | 1984                                                              |   | Executive      Vice President, Treasurer, Chief Operating Officer, Chief Financial      Officer and Director |
| Cecil      Alexander     |   | 71                    |   | 1994                                                              |   | Director                                                                                                     |
| Richard      Barclay     |   | 70                    |   | 1994                                                              |   | Director                                                                                                     |
| Eugene      A. Cernan    |   | 73                    |   | 1994                                                              |   | Director                                                                                                     |
| Hayden      Fry          |   | 78                    |   | 1984                                                              |   | Director                                                                                                     |
| John      Greig          |   | 72                    |   | 1984                                                              |   | Director                                                                                                     |
| Roy      Ledbetter       |   | 77                    |   | 1994                                                              |   | Director                                                                                                     |
| John      E. Miller      |   | 78                    |   | 1994                                                              |   | Director                                                                                                     |
| C.      James McCormick  |   | 82                    |   | 1984                                                              |   | Director                                                                                                     |
| Robert      R. Rigler    |   | 84                    |   | 1989                                                              |   | Director                                                                                                     |
| L.      Stan Schoelerman |   | 82                    |   | 1984                                                              |   | Director                                                                                                     |

----

----

----

|    Title      of Class |   |    Name      and Address of Beneficial Owner |   |   Amount      and Nature of Beneficial Ownership(1) |   |   Percent      of Class as ofDecember      31, 2007 |
|---------------------------------------|--------|-------------------------------------------------------------|--------|---------------------------------------------------------------|--------|---------------------------------------------------------------|
|                                  |   |                                                        |   |                                                          |   |                                                          |
| Common      Stock                     |   | Wayne      E. Ahart                                         |   | 4,712,216(2)                                                  |   | 30.97%                                                        |
|                                  |   | 8017      Cobblestone                                       |   |                                                          |   |                                                          |
|                                  |   | Austin,      TX  78735                            |   |                                                          |   |                                                          |
|                                  |   |                                                        |   |                                                          |   |                                                          |
| Common      Stock                     |   | Barry      N. Shamas                                        |   | 2,801,816(3)                                                  |   | 18.42%                                                        |
|                                  |   | 1095      Hidden Hills Dr                                   |   |                                                          |   |                                                          |
|                                  |   | Dripping      Springs, TX 78620                             |   |                                                          |   |                                                          |
|                                  |   |                                                        |   |                                                          |   |                                                          |
| Common      Stock                     |   | C.      Don Byrd                                            |   | 1,852,719      (4)                                            |   | 12.18%                                                        |
|                                  |   | 1725      S. 50th Unit 144                                  |   |                                                          |   |                                                          |
|                                  |   | W.      Des Moines, IA 50265                                |   |                                                          |   |                                                          |
|                                  |   |                                                        |   |                                                          |   |                                                          |
| Common      Stock                     |   | Kenneth      Tobey                                          |   | 1,161,762                                                     |   | 7.64%                                                         |
|                                  |   | 23      Tennyson                                            |   |                                                          |   |                                                          |
|                                  |   | N.      Little Rock, AR 72116                               |   |                                                          |   |                                                          |

|   | (1)      To the Company's knowledge, all shares are beneficially owned by, and the      sole voting and investment power is held by the persons named, except as      otherwise indicated. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)      This includes 133,290 shares owned directly by Wayne Ahart and Wayne      Ahart’s indirect ownership of   1,200,000 shares which are      owned by National Iowa Corporation and 686,037 shares which are owned by      Arkansas National Corporation.  Wayne Ahart controls both      National Iowa Corporation and Arkansas National Corporation and votes the      shares of the Company’s common stock owned by both      corporations.   LeRene Ahart, as a shareholder in National      Iowa Corporation and Arkansas National Corporation, has an indirect      pecuniary interest in 1,200,000 shares of the Company’s common stock owned      by National Iowa Corporation and 649,363 shares of the Company’s common      stock owned by Arkansas National Corporation.  Wayne Ahart has      voting control of all 2,400,000 shares of the Company’s common stock owned      by  National Iowa Corporation and all 2,178,926 shares of the      Company’s common stock owned by Arkansas National Corporation plus the      133,290 shares which are owned directly by Wayne      Ahart.  Consequently, Wayne Ahart has voting control of      4,712,216 (30.97%) shares of the Company’s common  stock. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (3)      Includes 1,400,000 shares held in the name of Life Industries of Iowa,      Inc., and 1,335,171 shares held in the name of Arkansas      Industries   Corporation, both of which are controlled by      Mr. Shamas. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4)      All of Mr. Byrd's shares are subject to a right of first refusal of the      Company to acquire said shares on the same terms and conditions as any      proposed sale or other transfer by Mr.Byrd. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   Title      of Class |   Name      of Beneficial Owner                     |   Amount      and Nature of Beneficial Ownership1 |   Percent      of Class as of December 31, 2007 |
|---------------------------------|---------------------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------------------|
| Common                          | Wayne      E. Ahart                                           | 4,712,2162                                                  | 30.97%                                                    |
| Common                          | Cecil      L. Alexander                                       | 37,088                                                      |  0.24%                                               |
| Common                          | Richard      L Barclay                                        | 46,088                                                      | 0.29%                                                     |
| Common                          | Tammy      Barr                                               | 600                                                         | 0.00%                                                     |
| Common                          | C.      Donald Byrd                                           | 1,852,7193                                                  | 12.18%                                                    |
| Common                          | Eugene      A. Cernan                                         | 37,088                                                      | 0.24%                                                     |
| Common                          | Jeffrey      A. Drees                                         | 18,843                                                      | 0.12%                                                     |
| Common                          | Hayden      Fry                                               | 69,047                                                      | 0.45%                                                     |
| Common                          | John      Greig                                               | 50,102                                                      | 0.33%                                                     |
| Common                          | Roy      E. Ledbetter                                         | 37,088                                                      | 0.24%                                                     |
| Common                          | C.      James McCormick                                       |  13,708                                                | 0.09%                                                     |
| Common                          | John      E. Miller                                           | 47,111                                                      | 0.31%                                                     |
| Common                          | Jerry      Ouzts                                              | 300                                                         | 0.00%                                                     |
| Common                          | Pamela      C. Randolph                                       | 2,905                                                       | 0.02%                                                     |
| Common                          | Robert      R Rigler                                          | 3,295                                                       | 0.02%                                                     |
| Common                          | Barry      N. Shamas                                          | 2,801,8164                                                  | 18.42%                                                    |
| Common                          | Kenneth      Tobey                                            | 1,161,762                                                   | 7.64%                                                     |
| Common                          |  All      Officers and Directors as a group (17 persons) |  10,891,776                                            |  71.59%                                              |

|   |  (1) To the Company's      knowledge all shares are beneficially owned by the persons named, except      as otherwise indicated, and they hold the sole voting and investment      power. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)      This includes 133,290 shares owned directly by Wayne Ahart and Wayne      Ahart’s indirect ownership of   1,200,000 shares which are      owned by National Iowa Corporation and 686,037 shares which are owned by      Arkansas National Corporation.  Wayne Ahart controls both      National Iowa Corporation and Arkansas National Corporation and votes the      shares of the Company’s common stock owned by both      corporations.   LeRene Ahart, as a shareholder in National      Iowa Corporation and Arkansas National Corporation, has an indirect      pecuniary interest in 1,200,000 shares of the Company’s common stock owned      by National Iowa Corporation and 649,363 shares of the Company’s common      stock owned by Arkansas National Corporation.  Wayne Ahart has      voting control of all 2,400,000 shares of the Company’s common stock owned      by National Iowa Corporation and all 2,178,926 shares of the Company’s      common stock owned by Arkansas National Corporation plus the 133,290      shares which are owned directly by Wayne Ahart.  Consequently,      Wayne Ahart has voting control of 4,712,216 (30.97%) shares of the      Company’s common stock. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)      All of Mr. Byrd's shares are subject to a right of first refusal of the      Company to acquire said shares on the same terms and conditions as any      proposed sale or other transfer by Mr.Byrd. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4)      Includes 1,400,000 shares held in the name of Life Industries of Iowa,      Inc., and 1,335,171 shares held in the name of Arkansas Industries      Corporation, both of which are controlled by Mr.  Shamas. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | None |
|--------|------|

|   | ITEM 14. Principal      Accountant Fees and Services |
|--------|------------------------------------------------------|

|   | The      information required under this item is incorporated by reference from the      Company’s 2008 Proxy Statement for its annual meeting of shareholders      scheduled for May 22, 2008. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| No.  |   | Description                                                                                                                                                                                                        |   | Page      or Method of Filing                                                                                                                                                                                                                           |
|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1  |   | Articles      of Incorporation of BNL Financial Corporation, dated January 27, 1984 and      Amendment to Articles of Incorporation of BNL Financial Corporation, dated      November 13, 1987.               |   | Incorporated      by reference to Exhibit 3.1 of the Company's Annual Report on Form 10-K      for the period ending December 31, 1993.                                                                                                                 |
| 3.2  |   | By-laws      of BNL Financial Corporation.                                                                                                                                                                         |   | Incorporated      by reference to Exhibit 3.2 of the Company’s Registration Statement No.      33-70318                                                                                                                                      |
| 4.1  |   | Instruments      defining the rights of security holders, including    indentures.                                                                                                                                 |   | Incorporated      by reference to Exhibit 4 of the Company's Registration Statement No.      2-94538 and Exhibits 3.5 and 4 of Post-Effective Amendment No. 3      thereto.                                                                        |
| 4.2  |   | Articles      of Incorporation of BNL Financial Corporation, dated January 27, 1984 and      Amendment to Articles of Incorporation on BNL Financial Corporation, dated      November 13, 1987.                    |   | Incorporated      by reference to Exhibits 4.2 of the Company's Annual Report on Form 10-KSB      for the period ending December 31, 1998.                                                                                                         |
| 10.1 |   | Form      of Agreement between Commonwealth Industries Corporation, American      Investors Corporation and Wayne E. Ahart regarding rights to purchase      shares of the Company.                                |   | Incorporated      by reference to Exhibit I of the Company's Quarterly Report on 10-QSB for      the period ended September 30, 1994.                                                                                                         |
| 10.2 |   | Agreement      dated December 21, 1990 between Registrant and C. Donald Byrd granting      Registrant right of first refusal as to future transfers of Mr. Byrd's      shares of the Company's common stock.  |   | Incorporated      by reference to Exhibit I of the Company's Quarterly Report on 10-QSB for      the period ended March 31, 1996.                                                                                                             |
| 10.3 |   | Convertible      Debenture Agreement dated July 25, 2001 between BNL Equity Corporation and      EPSI Benefits Inc.                                                                                                |   | Incorporated      by reference to Exhibit 10.9 of the Company's Annual Report on 10-K for      the period ended December 31, 2005.                                                                                                                 |
| 10.4 |   | Claims      Service Agreement dated  June 1, 1999 between Brokers National      Life Assurance Company and Employer Plan Services Inc.                                                                   |   | Incorporated      by reference to Exhibit 10.5 of the Company's Annual Report on 10-K for      the period ended December 31, 2005.                                                                                                                 |
| 10.5 |   | Office      lease agreement dated January 21, 2006, between Brokers National Life      Assurance Company and KIMCO for premises in Austin.                                                                    |   | Incorporated      by reference to Exhibit 10.6 of the Company's Annual Report on 10-K for      the period ended December 31, 2005.                                                                                                                 |
| 10.6 |   | Line      of Credit Agreement dated October 15, 2004 between Brokers National Life      Assurance Company and Employer Plan Services Inc.                                                                     |   | Incorporated      by reference to Exhibit 10.7 of the Company's Annual Report on 10-K for      the period ended December 31, 2005.                                                                                                                 |
| 10.7 |   | Marketing      Agreement dated July 25, 2001 between BNL Equity Corporation and Employer      Plan Services Inc. and EPSI Benefits Inc.                                                                            |   | Incorporated      by reference to Exhibit 10.8 of the Company's Annual Report on 10-K for      the period ended December 31, 2005.                                                                                                                 |
| 10.8 |   | Outsourcing      Agreement dated May 1, 2007 between Brokers National Life Assurance      Company and Virtual Item Processing Systems, Inc.                                                                        |   | Incorporated      by reference to Exhibit 10.9 of the Company's Annual Report on 10-K for      the period ended December 31, 2006.                                                                                                            |
| 11   |   | Statement      Re computation of per share earnings.                                                                                                                                                               |   | Reference      is made to the explanation of the computation of per share earnings as      shown in Note 1 to the Notes to Consolidated Financial Statements filed      herewith under Item 14(a)(1) above which clearly describes the      same.  |
| 12   |   | Statements      re computation of ratios.                                                                                                                                                                          |   | Not      applicable.                                                                                                                                                                                                                               |
| 16   |   | Letter      Re Change in Certifying Accountant.                                                                                                                                                                    |   | Incorporated      by reference to Exhibit I of the Company's periodic Report on Form 8-K      dated September 14, 1995.                                                                                                                            |
| 21   |   | Subsidiaries      of Registrant.                                                                                                                                                                                   |   | Filed      herewith.                                                                                                                                                                                                                               |
| 31.1 |   | Certification      of Chief Executive Officer Section      302                                                                                                                                           |   | Filed      herewith – E1                                                                                                                                                                                                                          |
| 31.2 |   | Certification      of Chief Financial OfficerSection      302                                                                                                                                                 |   | Filed      herewith – E3                                                                                                                                                                                                                          |
| 32   |   | Certification      of Chief Executive Officer and Chief Financial Officer Section      906                                                                                                                    |   | Attached      hereto – E5                                                                                                                                                                                                                         |

----

|                                      |   |                                                                                                                                                           |   |                   |
|-------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
| SIGNATURE                                 |   | TITLE                                                                                                                                                          |   | DATE                   |
|   /S/      Wayne E. Ahart       |   |                                                                                                                                                           |   |   03/28/2008 |
| Wayne      E. Ahart                       |   | Chairman      of the Board, Director (Principal Executive Officer)                                                                                             |   |                   |
|   /S/      C. Donald Byrd  |   |                                                                                                                                                           |   |   03/27/2008 |
| C.      Donald Byrd                       |   | Vice      Chairman of the Board and Director                                                                                                                   |   |                   |
|   /S/      Kenneth Tobey        |   |                                                                                                                                                           |   |   03/27/2008 |
| Kenneth      Tobey                        |   | President      and Director                                                                                                                                    |   |                   |
|   /S/      Barry N. Shamas      |   |                                                                                                                                                           |   |   03/28/2008 |
| Barry      N. Shamas                      |   | Executive      Vice President, Treasurer, Chief Operating Officer, Chief Financial      Officer and Director (Principal Financial and Accounting      Officer) |   |                   |
|   /S/      Hayden Fry           |   |                                                                                                                                                           |   |   03/27/2008 |
| Hayden      Fry                           |   | Director                                                                                                                                                       |   |                   |
|   /S/      John Greig           |   |                                                                                                                                                           |   |   03/27/2008 |
| John      Greig                           |   | Director                                                                                                                                                       |   |                   |
|   /S/      C. James McCormick   |   |                                                                                                                                                           |   |   03/27/2008 |
| C.      James McCormick                   |   | Director                                                                                                                                                       |   |                   |
|   /S/      Robert R. Rigler     |   |                                                                                                                                                           |   |   03/23/2008 |
| Robert      R. Rigler                     |   | Director                                                                                                                                                       |   |                   |
|   /S/      Stanley Schoelerman  |   |                                                                                                                                                           |   |   03/27/2008 |
| Stanley      Schoelerman                  |   | Director                                                                                                                                                       |   |                   |
|   /S/      Cecil Alexander      |   |                                                                                                                                                           |   |   03/27/2008 |
| Cecil      Alexander                      |   | Director                                                                                                                                                       |   |                   |
|   /S/      Richard Barclay      |   |                                                                                                                                                           |   |   03/27/2008 |
| Richard      Barclay                      |   | Director                                                                                                                                                       |   |                   |
|   /S/      Eugene A. Cernan     |   |                                                                                                                                                           |   |   03/27/2008 |
| Eugene      A. Cernan                     |   | Director                                                                                                                                                       |   |                   |
|   /S/      Roy Ledbetter        |   |                                                                                                                                                           |   |   03/27/2008 |
| Roy      Ledbetter                        |   | Director                                                                                                                                                       |   |                   |
|   /S/      John E. Miller       |   |                                                                                                                                                           |   |   03/27/2008 |
| John      E. Miller                       |   | Director                                                                                                                                                       |   |                   |

----

|                                                                                                                         |   | Page      Number of 2007Form      10-K |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|
| Item      15(a) Financial Statements                                                                                         |   |                                   |
|                                                                                                                         |   |                                   |
| Report      of Independent Accountants on Financial Statements                                                               |   | F-2                                    |
|                                                                                                                         |   |                                   |
| Consolidated      Balance Sheet, December 31, 2007 and 2006                                                                  |   | F-3                                    |
|                                                                                                                         |   |                                   |
| Consolidated      Statement of Operations and Comprehensive Income for the years ended      December 31, 2007, 2006 and 2005 |   |  F-4                              |
|                                                                                                                         |   |                                   |
| Consolidated      Statement of Changes in Shareholders' Equity for the years ended December      31, 2007, 2006 and 2005     |   |  F-5                              |
|                                                                                                                         |   |                                   |
| Consolidated      Statement of Cash Flows for the years ended December 31, 2007, 2006 and      2005                          |   |  F-6                              |
|                                                                                                                         |   |                                   |
| Notes      to Consolidated Financial Statements                                                                              |   | F-7                                    |
|                                                                                                                         |   |                                   |
| Item      15(d) - Schedule II, Condensed Financial Information of      Registrant                                            |   | F-20                                   |
|                                                                                                                         |   |                                   |

----

----

|                                                                                                                                                             |   |                                                          | December      31, |   |                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|-------------------|--------|---------------------------------------------------------------|
| ASSETS                                                                                                                                                           |   | 2007                                                          |              |   | 2006                                                          |   |
|    Cash      and cash equivalents                                                                                                                 | $      |     4,937,983                             |              | $      |     1,673,058                             |   |
|    Investments      in fixed maturities at fair value, Available for      Sale  (amortized cost $ 590,473; $590,133,      respectively) |   |     599,600                               |              |   |     596,800                               |   |
|    Investments      in fixed maturities at amortized cost, Held to Maturity  (fair      value $19,027,913; $18,798,802, respectively)   |   |  19,087,747                                              |              |   |  19,128,637                                              |   |
|    Other      long-term investments - (Note 4)                                                                                                    |   | 1,470,054                                                     |              |   | 1,507,809                                                     |   |
|    Investment      in equity securities, at fair value       (cost      $373,603, $442,574, respectively)      |   |  534,725                                                 |              |   |  509,381                                                 |   |
|                Total      Investments, Including Cash and Cash Equivalents            |   | 26,630,109                                                    |              |   | 23,415,685                                                    |   |
|                                                                                                                                                             |   |                                                          |              |   |                                                          |   |
|    Accrued      investment income                                                                                                                 |   | 220,461                                                       |              |   | 223,295                                                       |   |
|    Leasehold      improvements, furniture and equipment, net                                                                                      |   | 1,147,453                                                     |              |   | 1,322,369                                                     |   |
|    Deferred      policy acquisition costs                                                                                                         |   | 324,125                                                       |              |   | 359,491                                                       |   |
|    Policy      loans                                                                                                                              |   | 171,889                                                       |              |   | 153,798                                                       |   |
|    Receivable      from reinsurer                                                                                                                 |   | 53,383                                                        |              |   | 52,820                                                        |   |
|    Premiums      due and unpaid                                                                                                                   |   |   1,461,467                                         |              |   |   1,086,103                                         |   |
|    Income      tax assets                                                                                                                         |   |  -                                                       |              |   |  21,000                                                  |   |
|    Intangible      assets                                                                                                                         |   | 137,038                                                       |              |   | 142,853                                                       |   |
|    Other      assets                                                                                                                              |   |  155,150                                                 |              |   |  232,220                                                 |   |
|                                                                                                                                                             |   |                                                          |              |   |                                                          |   |
|                Total      Assets                                                      | $      | 30,301,075                                                    |              | $      | 27,009,634                                                    |   |
|                                                                                                                                                             |   |                                                          |              |   |                                                          |   |
| LIABILITIES                                                                                                                                                      |   |                                                          |              |   |                                                          |   |
|    Liabilities      for future policy benefits                                                                                                    | $      | 2,255,045                                                     |              | $      | 2,472,849                                                     |   |
|    Policy      claims payable                                                                                                                     |   | 2,306,288                                                     |              |   | 2,508,125                                                     |   |
|    Annuity      deposits                                                                                                                          |   | 2,463,546                                                     |              |   | 2,536,225                                                     |   |
|    Deferred      annuity profits                                                                                                                  |   | 253,159                                                       |              |   | 288,389                                                       |   |
|    Premium      deposit funds                                                                                                                     |   | 25,318                                                        |              |   | 28,458                                                        |   |
|    Supplementary      contracts without life contingencies                                                                                        |   |  5,905                                                   |              |   | 17,241                                                        |   |
|    Advanced      and unallocated premium                                                                                                          |   |   2,219,429                                         |              |   |   875,089                                           |   |
|    Commissions      payable                                                                                                                       |   | 514,014                                                       |              |   | 555,159                                                       |   |
|    Accrued      taxes and expenses                                                                                                                |   | 356,393                                                       |              |   | 615,700                                                       |   |
|    Bonds      payable                                                                                                                             |   | 1,607,576                                                     |              |   | 1,639,984                                                     |   |
|    Deferred      income tax liability                                                                                                             |   | 29,601                                                        |              |   | -                                                             |   |
|    Other      liabilities                                                                                                                         |   |          967,929 |              |   |          959,911 |   |
|                Total      Liabilities                                                 |   | 13,004,203                                                    |              |   | 12,497,130                                                    |   |
|                                                                                                                                                             |   |                                                          |              |   |                                                          |   |
|                                                                                                                                                             |   |                                                          |              |   |                                                          |   |
| SHAREHOLDERS’      EQUITY                                                                                                                                  |   |                                                          |              |   |                                                          |   |
|    Common      stock, $.02 stated value, 45,000,000 shares authorized, 15,463,965;      17,213,170; shares issued and outstanding, respectively   |   |  309,279                                                 |              |   |  344,264                                                 |   |
|    Additional      paid-in capital                                                                                                                |   |  5,751,240                                               |              |   |  7,582,733                                               |   |
|    Accumulated      other comprehensive income                                                                                                    |   |  122,630                                                 |              |   |  68,356                                                  |   |
|    Accumulated      surplus                                                                                                                       |   | 11,426,539                                                    |              |   | 7,977,171                                                     |   |
|    Treasury      stock, at cost, 250,252; 1,502,270; shares, respectively                                                                         |   | (312,816)                                                     |              |   | (1,460,020)                                                   |   |
|                Total      Shareholders' Equity                                        |   | 17,296,872                                                    |              |   | 14,512,504                                                    |   |
|                                                                                                                                                             |   |                                                          |              |   |                                                          |   |
|                Total      Liabilities and Shareholders' Equity                        | $      | 30,301,075                                                    |              | $      | 27,009,634                                                    |   |

----

|                                                                                                                                                                                                                                                                              |   | Year      Ended December 31,               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|
|                                                                                                                                                                                                                                                                              |   | 2007                                       |   | 2006 |   | 2005 |
| Income                                                                                                                                                                                                                                                                            |   |                                       |   |   |   |   |
|    Premium      income                                                                                                                                                                                                                                             | $      | 44,564,173                                 | $ | 44,646,393 | $ | 44,303,827 |
|    Net      investment income                                                                                                                                                                                                                                      |   |   1,320,614                      |   |   1,191,583 |   |   1,003,613 |
|    Marketing      fees (Note 4)                                                                                                                                                                                                                                    |   | 198,843                                    |   | 143,315 |   | 115,233 |
|    Vision      insurance income                                                                                                                                                                                                                                    |   | 1,979,359                                  |   | 1,603,767 |   | 1,051,720 |
|    Realized      gain on debt retirements                                                                                                                                                                                                                          |   |  10,803                               |   |  35,732 |   | 102,067 |
|    Realized      gains                                                                                                                                                                                                                                             |   |  11,128                               |   |  25,547 |   |  37,816 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
|                Total      Income                                                                                                                                                                       |   | 48,084,920                                 |   | 47,646,337 |   | 46,614,276 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                          |   |                                       |   |   |   |   |
|    Increase      (decrease) in liability for future policy benefits                                                                                                                                                                                                |   | (213,867)                                  |   | (123,066) |   | 308,563 |
|    Policy      benefits and other insurance costs                                                                                                                                                                                                                  |   | 33,496,995                                 |   | 34,374,507 |   | 33,317,136 |
|    Amortization      of deferred policy acquisition costs                                                                                                                                                                                                          |   | 16,060                                     |   | 26,219 |   | 22,467 |
|    Operating      expenses                                                                                                                                                                                                                                         |   | 9,012,950                                  |   | 8,759,605 |   | 8,558,205 |
|    Taxes,      other than on income                                                                                                                                                                                                                                |   | 1,509,780                                  |   | 1,526,427 |   | 1,577,775 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
|                 Total      Expenses                                                                                                                                                               |   | 43,821,918                                 |   | 44,563,692 |   | 43,784,146 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
|                 Income      from Operations before                     Income      Taxes |   |  4,263,002                            |   |  3,082,645 |   |  2,830,130 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
|    Provision      for income taxes                                                                                                                                                                                                                                 |   | 813,634                                    |   | 518,402 |   | 527,041 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
|                Net      Income                                                                                                                                                                         | $      |  3,449,368                            | $ |  2,564,243 | $ |  2,303,089 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
| Net      income per common share (basic and diluted)                                                                                                                                                                                                                              | $      | 0.22                                       | $ | 0.16 | $ | 0.13 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
| Weighted      average number of fully    paid      common shares                                                                                                                                                                                              |   |  15,602,725                           |   |  16,481,342 |   |  17,495,881 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
|                Net      Income (as above)                                                                                                                                                              | $      |  3,449,368                            | $ |  2,564,243 | $ |  2,303,089 |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
| Other      comprehensive income (loss), net of tax:                                                                                                                                                                                                                               |   |                                       |   |   |   |   |
|      Unrealized      gains on securities:                                                                                                                                                                                                                |   |                                       |   |   |   |   |
|           Unrealized      holding gain (loss) arising during period (net of $10,175 and $11,532 of      deferred taxes in 2007 and 2006; respectively)                                                                          |   |       65,626 |   |       73,496 |   |       (51,490) |
| Reclassification      adjustment for gain included in net income                                                                                                                                                                                                                  |   | (11,352)                                   |   | (15,761) |   | (28,052) |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
|                 Other      Comprehensive Income (Loss)                                                                                                                                            |   | 54,274                                     |   | 57,735 |   | (79,542) |
|                                                                                                                                                                                                                                                                              |   |                                       |   |   |   |   |
|                 Comprehensive      Income                                                                                                                                                         | $      | 3,503,642                                  | $ | 2,621,978 | $ | 2,223,547 |

----

|   |                                                   |                                                                                              |    |          |   |                          |   |              |   | Accumulated      Other  |   |            |   |
|--------|--------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------|---------------|--------|-------------------------------|--------|-------------------|--------|------------------------------|--------|-----------------|--------|
|   |                                                   |  Common                                                                                      |  S | tock     |   | Additional      Paid-In  |   | Accumulated  |   |  Comprehensive          |   | Treasury   |   |
|   |                                                   | Shares                                                                                       |    | Amount   |   | Capital                  |   | Surplus      |   | Income             |   | Stock      |   |
|   | Balance,      December 31, 2004                        | 20,980,760                                                                                        | $       | 419,616       | $      | 10,829,800                    | $      | 3,109,839         | $      | 90,165                       | $      | (1,189,884)     |   |
|   |                                                   |                                                                                              |    |          |   |                          |   |              |   |                         |   |            |   |
|   | Accumulated      other  comprehensive income |  -                                                                                           |    |  -       |   |  -                       |   |  -           |   |  (79,543)               |   |  -         |   |
|   | Sale      of treasury stock                            | -                                                                                                 |    | -             |   | (29,693)                      |   | -                 |   | -                            |   | 94,243          |   |
|   | Purchase      of treasury stock                        | -                                                                                                 |    | -             |   | -                             |   | -                 |   | -                            |   | (2,435,698)     |   |
|   | Stock      options exercised                           | -                                                                                                 |    |   - |   |  4,634                   |   | -                 |   | -                            |   |  6,796     |   |
|   | Retirement      of treasury stock                      | (3,767,590)                                                                                       |    | (75,352)      |   | (3,196,222)                   |   | -                 |   | -                            |   |  3,271,574 |   |
|   | Net      income                                        |                 - |    | -             |   | -                             |   | 2,303,089         |   | -                            |   | -               |   |
|   | Balance,      December 31, 2005                        | 17,213,170                                                                                        | $       | 344,264       | $      |  7,608,519               | $      | 5,412,928         | $      | 10,622                       | $      | (252,969)       |   |
|   |                                                   |                                                                                              |    |          |   |                          |   |              |   |                         |   |            |   |
|   | Accumulated      other  comprehensive income |  -                                                                                           |    |  -       |   |  -                       |   |  -           |   |  57,734                 |   |  -         |   |
|   | Sale      of treasury stock                            | -                                                                                                 |    | -             |   | (25,936)                      |   | -                 |   | -                            |   | 90,370          |   |
|   | Purchase      of treasury stock                        | -                                                                                                 |    | -             |   | -                             |   | -                 |   | -                            |   | (1,297,871)     |   |
|   | Stock      options exercised                           | -                                                                                                 |    |   - |   |   150               |   | -                 |   | -                            |   |  450       |   |
|   | Net      income                                        |                 - |    | -             |   | -                             |   | 2,564,243         |   | -                            |   | -               |   |
|   | Balance,      December 31, 2006                        | 17,213,170                                                                                        | $       | 344,264       | $      |  7,582,733               | $      | 7,977,171         | $      | 68,356                       | $      | (1,460,020)     |   |
|   |                                                   |                                                                                              |    |          |   |                          |   |              |   |                         |   |            |   |
|   | Accumulated      other  comprehensive income |  -                                                                                           |    |  -       |   |  -                       |   |  -           |   |  54,274                 |   |  -         |   |
|   | Sale      of treasury stock                            | -                                                                                                 |    | -             |   | 48,325                        |   | -                 |   | -                            |   | 102,995         |   |
|   | Purchase      of treasury stock                        | -                                                                                                 |    | -             |   | -                             |   | -                 |   | -                            |   | (789,184)       |   |
|   | Stock      options exercised                           | -                                                                                                 |    |   - |   |   5,736             |   | -                 |   | -                            |   |  20,494    |   |
|   | Retirement      of treasury stock                      | (1,749,205)                                                                                       |    | (34,985)      |   | (1,885,554)                   |   | -                 |   | -                            |   | 1,812,899       |   |
|   | Net      income                                        |                 - |    | -             |   | -                             |   | 3,449,368         |   | -                            |   | -               |   |
|   | Balance,      December 31, 2007                        | 15,463,965                                                                                        | $       | 309,279       | $      |  5,751,240               | $      | 11,426,539        | $      | 122,630                      | $      | (312,816)       |   |

----

|                                                                                                                                                                                                |    |                                              |    |                                  |    | Year      Ended December 31,                      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------|---------|---------------------------------------|---------|---------------------------------------------------|
|                                                                                                                                                                                                |    | 2007                                              |    | 2006                                  |    | 2005                                              |
| Cash      Flows from Operating Activities                                                                                                                                                           |    |                                              |    |                                  |    |                                              |
|      Net      income                                                                                                                                                       | $       | 3,449,368                                         | $       | 2,564,243                             | $       | 2,303,089                                         |
|      Adjustments      to reconcile net income to net cash        provided      by operating activities:                            |    |                                              |    |                                  |    |                                              |
|             Realized      gain on investments                                                                                           |    |  (13,677)                                    |    |  (17,367)                        |    |  (41,060)                                    |
|             Realized      (gain) loss on sale of furniture and equipment                                                                |    | 2,549                                             |    | (8,180)                               |    |  3,244                                       |
|             Realized      gain on debt extinguishments                                                                                  |    | (10,803)                                          |    | (35,732)                              |    | (102,067)                                         |
|             Depreciation                                                                                                                |    | 381,064                                           |    | 311,489                               |    | 234,632                                           |
|             Decrease      in deferred tax asset                                                                                         |    |   40,602                                |    |   4,000                     |    |   79,000                                |
|             Increase      in and amortization of deferred acquisition costs, and bond issuance      cost                                |    | 21,875                                            |    | (24,932)                              |    | 28,282                                            |
|             Accretion      of bond premium (discount)                                                                                   |    | (11,528)                                          |    | (5,623)                               |    | (1,031)                                           |
|         Change      in assets and liabilities:                                                                                                              |    |                                              |    |                                  |    |                                              |
|              (Increase)      decrease in accrued investment income                                                                 |    |   2,833                                 |    |   (38,009)                  |    |   (2,089)                               |
|              Increase      in receivable from reinsurer                                                                            |    | (563)                                             |    | (4,435)                               |    | (14,264)                                          |
|              (Increase)      in premiums due and unpaid                                                                            |    | (375,364)                                         |    | (58,420)                              |    | (171,724)                                         |
|              Increase      (decrease) in liability for future policy benefits                                                      |    | (217,804)                                         |    | (118,631)                             |    | 322,827                                           |
|              Increase      (decrease) in policy claims payable                                                                     |    | (201,837)                                         |    | (50,440)                              |    | 322,636                                           |
|              Increase      (decrease) in annuity deposits and deferred profits                                                     |    |  (107,909)                                   |    |  (350,367)                       |    |  17,158                                      |
|              Decrease      in premium deposit funds                                                                                |    | (3,140)                                           |    | (3,349)                               |    | (4,217)                                           |
|              Increase       in advanced and unallocated premium                                                               |    |  1,344,340                                   |    |  71,799                          |    | 143,792                                           |
|              Increase      (decrease) in commissions payable                                                                       |    | (41,145)                                          |    | 53,338                                |    | 18,166                                            |
|              Other,      (decrease)                                                                                                |    | (279,162)                                         |    | (138,876)                             |    | (92,908)                                          |
|                     Net      Cash Provided by Operating Activities                              |    | 3,979,699                                         |    | 2,150,508                             |    | 3,043,466                                         |
|                                                                                                                                                                                                |    |                                              |    |                                  |    |                                              |
| Cash      Flows from Investing Activities                                                                                                                                                           |    |                                              |    |                                  |    |                                              |
|      Proceeds      from sales of investments                                                                                                                               |    |        129,753 |    |      150,452 |    |      64,129              |
|      Proceeds      from maturity or redemption - Available for Sale    Investments                                                                                         |    |       -             |    |       - |    | 206,460                                           |
|      Proceeds      from maturity or redemption - Held to Maturity Investments                                                                                              |    | 5,623,542                                         |    | 4,244,735                             |    | 3,158,405                                         |
|      Proceeds      from sale of furniture and equipment                                                                                                                    |    |      43,809              |    |      12,786  |    |      -                   |
|      Purchase      of equity securities                                                                                                                                    |    |      (47,105)            |    |    (223,281)           |    |         - |
|      Purchase      of furniture, equipment and leasehold improvements                                                                                                      |    | (252,506)                                         |    | (466,286)                             |    | (618,235)                                         |
|      Purchase      of fixed maturity securities, Held to Maturity                                                                                                          |    | (5,605,447)                                       |    | (3,853,309)                           |    | (6,193,619)                                       |
|      Other      Investments - Line of credit - receipt (advanced)                                                                                                          |    | 37,755                                            |    | 35,632                                |    | 13,966                                            |
|                      Net      Cash Used In Investing Activities                            |    | (70,199)                                          |    | (99,271)                              |    | (3,368,894)                                       |
|                                                                                                                                                                                                |    |                                              |    |                                  |    |                                              |
| Cash      Flows from Financing Activities                                                                                                                                                           |    |                                              |    |                                  |    |                                              |
|      Sale      of treasury stock                                                                                                                                           |    |  164,226                                     |    |  64,550                          |    |  62,563                                      |
|      Purchase      of treasury stock                                                                                                                                       |    | (780,352)                                         |    | (1,297,948)                           |    | (2,435,698)                                       |
|      Net      change in supplementary contracts                                                                                                                            |    | (11,336)                                          |    | (19,740)                              |    | (18,818)                                          |
|      Stock      options exercised                                                                                                                                          |    |    4,492                           |    |    150                 |    | 11,430                                            |
|      Debt      extinguishments                                                                                                                                             |    | (21,605)                                          |    | (71,463)                              |    | (157,690)                                         |
|                       Net      Cash Used in Financing Activities                      |    | (644,575)                                         |    | (1,324,451)                           |    | (2,538,213)                                       |
|                        Net      Increase (Decrease) in Cash and Cash Equivalents |    |  3,264,925                                   |    |  726,786                         |    |  (2,863,641)                                 |
|                        Cash      and Cash Equivalents, Beginning of Period       |    |    1,673,058                       |    |    946,272             |    |  3,809,913                                   |
|                                                                                                                                                                                                |    |                                              |    |                                  |    |                                              |
|                       Cash      and Cash Equivalents, End of Period                   |  $ |  4,937,983                                   |  $ |  1,673,058                       |  $ |  946,272                                     |

----

----

----

|   |                     |   |        |   |  December      31 |   |        |
|--------|--------------------------|--------|-------------|--------|------------------------|--------|-------------|
|   |                     |   | 2007        |   | 2006                   |   | 2005        |
|   |                     |   |        |   |                   |   |        |
|   | Capital      and Surplus |   | $15,834,458 |   | $13,223,044            |   | $12,114,024 |
|   |                     |   |        |   |                   |   |        |
|   | Net      Income          |   | $ 3,350,129 |   | $ 2,490,537            |   | $ 2,263,342 |
|   |                     |   |        |   |                   |   |        |

----

|                                                          |  December      31                             |  ,  |  2007              |   |   December31                             |  , |  2006              |   | December      31                                        |  ,  |  2005              |
|---------------------------------------------------------------|---------------------------------------------------------|---------------|-------------------------|--------|---------------------------------------------------------|---------|-------------------------|--------|---------------------------------------------------------|---------------|-------------------------|
|                                                          |  Income                                            |          | Capital      andSurplus |   |  Income                                            |    | Capital      andSurplus |   |  Income                                            |          | Capital      andSurplus |
| Consolidated      reporting under                             |                                                    |          |                    |   |                                                    |    |                    |   |                                                    |          |                    |
|   generally      accepted accounting principles     | $3,449,368                                              |          | $17,296,873             |   | $2,564,243                                              |    | $14,512,504             |   | $2,303,089                                              |          | $13,123,361             |
| Attributable      to Parent Company and BNL  Equity |   14,075                                      |          |  21,701            |   |   63,937                                      |    |  (276,877)         |   |   74,933                                      |          |  (559,877)         |
|                                                          |                                                    |          |                    |   |                                                    |    |                    |   |                                                    |          |                    |
| Brokers      National Life Assurance Company                  | 3,435,293                                               |          | 17,275,172              |   | 2,500,306                                               |    | 14,789,381              |   | 2,228,156                                               |          | 13,683,239              |
|                                                          |                                                    |          |                    |   |                                                    |    |                    |   |                                                    |          |                    |
| Deferred      acquisition costs                               |  16,062                                            |          | (324,125)               |   |  29,620                                            |    | (359,491)               |   |  (42,734)                                          |          | (389,110)               |
| Reserve      and premium adjustments                          |  (113,047)                                         |          |  201,923           |   |  20,207                                            |    |  28,009            |   | 125,718                                                 |          | 200,520                 |
| Interest      maintenance reserve/AVR                         |  26,619                                            |          | (612,140)               |   |  20,204                                            |    | (623,563)               |   |  22,467                                            |          | (602,271)               |
| Unrealized      appreciation of securities                    |          - |          |   161,767     |   |          - |    |   66,807      |   |          - |          |  145,714           |
| Annuity      deposits and related adjustments                 | (35,230)                                                |          | 253,159                 |   | (51,040)                                                |    | 560,430                 |   | (97,569)                                                |          | 295,996                 |
| Income      tax credit                                        |  25,000                                            |          | 106,000                 |   |  (1,000)                                           |    | 86,000                  |   |  45,000                                            |          | 61,000                  |
| Other                                                         | (4,568)                                                 |          | (1,227,299)             |   | (27,760)                                                |    | (1,324,529)             |   | (17,696)                                                |          | (1,281,064)             |
|                                                          |                                                    |          |                    |   |                                                    |    |                    |   |                                                    |          |                    |
|    BNLAC      Statutory Basis                  | $3,350,129                                              |          | $15,834,457             |   | $2,490,537                                              |    | $13,223,044             |   | $2,263,342                                              |          | $12,114,024             |

|                            | 2007           |   | 2006           |   | 2005           |   |
|---------------------------------|----------------|--------|----------------|--------|----------------|--------|
|                            |           |   |           |   |           |   |
| Current      tax provisions     | $      773,033 |   | $      514,377 |   | $      448,040 |   |
| Deferred      tax provision     | 40,601         |   | 4,025          |   | 79,001         |   |
|                            |           |   |           |   |           |   |
| Total      income tax provision | $813,634       |   | $518,402       |   | $527,041       |   |
|                            |           |   |           |   |           |   |

----

|                                             |   |           2007 |   |           2006 |   | 2005                       |
|--------------------------------------------------|--------|------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------------------|
|                                             |   |                                                             |   |                                                             |   |                       |
| Book      income before tax                      |   | $4,263,002                                                       |   | $    3,082,645                               |   | $2,830,130                 |
|                                             |   |                                                             |   |                                                             |   |                       |
| Income      tax computed at statutory rate (34%) |   | $1,449,421                                                       |   | $   1,048,099                                     |   | $   962,244 |
| Valuation      allowance for AMT credit          |   | (85,000)                                                         |   | 110,461                                                          |   | 106,891                    |
| Revision      of valuation allowance             |   | 173,923                                                          |   | (116,108)                                                        |   | 51,499                     |
| Rate      differential                           |   | (724,710)                                                        |   | (524,050)                                                        |   | (593,593)                  |
|                                             |   |                                                             |   |                                                             |   |                       |
| Total      income tax provision                  |   | $   813,634                                       |   | $     518,402                           |   | $   527,041 |
|                                             |   |                                                             |   |                                                             |   |                       |

|        Expiring |   |                                   |
|----------------------------------------------------|--------|----------------------------------------|
|                                               |   |                                   |
| 2008                                               |   | $     203,000 |
| 2009                                               |   | 162,000                                |
| 2010                                               |   | 186,000                                |
| 2011                                               |   | 66,000                                 |
| 2012                                               |   | 193,000                                |
| 2018                                               |   | 105,000                                |
| 2019                                               |   | 86,000                                 |
| 2020                                               |   | 65,000                                 |
|                                               |   |                                   |
|                                               |   | $      1,066,000                       |

| Portfolio      Designated “Held to Maturity”(Note      1) December 31, 2007                 |   |    Amortized      Cost  |   |   Gross      Unrealized Gains     |   |   Gross      Unrealized Losses               |   |   Estimated      Market Value |
|--------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|---------------------------------------------|--------|--------------------------------------------------------|--------|-----------------------------------------|
| US      Treasury securities and obligations of   US      government corporations and agencies |   |  $13,330,227                      |   |  $     29,588 |   |  $   43,188                        |   |  $13,316,627                       |
| Corporate      securities                                                                                    |   | 3,441,590                              |   | 49,117                                      |   | 71,705                                                 |   | 3,419,002                               |
| Mortgage-backed      securities   GNMA      and FNMA CMO                                      |   |  2,315,930                        |   |       4,074   |   |   27,720                                     |   |  2,292,284                         |
|                                                                                                         |   |                                   |   |                                        |   |                                                   |   |                                    |
| Totals                                                                                                       |   | $19,087,747                            |   | $    82,779             |   | $      142,613                                         |   | $19,027,913                             |
| Portfolio      Designated “Available for Sale”(Note      1) December 31, 2007               |   |                                   |   |                                        |   |                                                   |   |                                    |
| US      Treasury securities and obligations of   US      government corporations and agencies |   |  $    402,881 |   |  $   72,844             |   |    $     4,125 |   |  $   471,600        |
| Corporate      securities                                                                                    |   |   187,592                    |   |        - |   |    59,592                               |   |   128,000                     |
|                                                                                                         |   |                                   |   |                                        |   |                                                   |   |                                    |
| Totals                                                                                                       |   | $    590,473       |   | $  72,844                         |   | $   63,717                              |   | $   599,600              |

----

| Portfolio      Designated “Held to Maturity”(Note      1)  December 31, 2006           |   |     Amortized      Cost |   |    Gross      Unrealized Gains                                                      |   |    Gross      Unrealized Losses         |   |    Estimated      Market Value |
|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|-----------------------------------------------|
| US      Treasury securities and obligations of   US      government corporations and agencies |   |  $14,325,106                           |   |  $               - |   |  $  262,543                             |   |  $14,062,563                             |
| Corporate      securities                                                                                    |   | 3,308,649                                   |   | 48,947                                                                                             |   | 50,856                                                 |   | 3,306,740                                     |
| Mortgage-backed      securities   GNMA                                                        |   |  1,494,882                             |   |       765                                                            |   |   66,148                                     |   |  1,429,499                               |
|                                                                                                         |   |                                        |   |                                                                                               |   |                                                   |   |                                          |
| Totals                                                                                                       |   | $19,128,637                                 |   | $    49,712                                                                    |   | $      379,547                                         |   | $18,798,802                                   |
| Portfolio      Designated “Available for Sale”(Note      1) December 31, 2006               |   |                                        |   |                                                                                               |   |                                                   |   |                                          |
| US      Treasury securities and obligations of   US      government corporations and agencies |   |  $    402,794      |   |  $   63,706                                                                    |   |    $     7,900 |   |  $   458,600              |
| Corporate      securities                                                                                    |   |   187,339                         |   |        -                                                        |   |    49,139                               |   |   138,200                           |
|                                                                                                         |   |                                        |   |                                                                                               |   |                                                   |   |                                          |
| Totals                                                                                                       |   | $    590,133            |   | $  63,706                                                                                |   | $   63,353                              |   | $   596,800                    |

|   |   | Held      to Maturity  |   | Available      for Sale |   |
|--------|--------|------------------------|--------|-------------------------|--------|
|   |   | December      31, 2007 |   | December      31, 2007  |   |

|                                        |   Amortized      Cost |   |  Estimated Market      Value |   |  Amortized      Cost                                                                                |   |  Estimated Market      Value                                                             |   |
|---------------------------------------------|---------------------------------|--------|----------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|
|                                        |                            |   |                                   |   |                                                                                                     |   |                                                                                               |   |
| Due      in one year or less                | $      2,496,407                |   | $  2,486,390                 |   | $                 - |   | $                - |   |
| Due      after one year through five years  | 5,215,712                       |   | 5,254,590                              |   | -                                                                                                        |   | -                                                                                                  |   |
| Due      after five years through ten years | 6,573,644                       |   | 6,513,486                              |   | -                                                                                                        |   | -                                                                                                  |   |
| Due      after ten years                    | 2,486,054                       |   | 2,481,163                              |   |   590,473                                                                                      |   |   599,600                                                                                |   |
|                                        | 16,771,817                      |   | 16,735,629                             |   |   590,473                                                                                      |   |   599,600                                                                                |   |
|                                        |                            |   |                                   |   |                                                                                                     |   |                                                                                               |   |
| Mortgage-backed      securities             | 2,315,930                       |   | 2,292,284                              |   | -                                                                                                        |   | -                                                                                                  |   |
|                                        |                            |   |                                   |   |                                                                                                     |   |                                                                                               |   |
|                                        | $19,087,747                     |   | $19,027,913                            |   | $  590,473                                                                                     |   | $  599,600                                                                               |   |

----

|                                                                           | 2007                                        |   | 2006                                        |   |
|--------------------------------------------------------------------------------|---------------------------------------------|--------|---------------------------------------------|--------|
|                                                                           |  Cost                                  |   | MarketValue                                 |   |  Cost |   | MarketValue |   |
|                                                                           |                                        |   |                                        |   |   |   |   |   |
| Banks,      trusts and     insurance      companies   |  $    81,183  |   |  $     84,345 |   |  $    81,183  |   |  $     92,300 |   |
| Industrial,      savings     and      loans and other |  292,420                               |   |  450,380                               |   |  361,391 |   |  417,081 |   |
|                                                                           |                                        |   |                                        |   |   |   |   |   |
|                                                                           | $373,603                                    |   | $534,725                                    |   | $442,574 |   | $509,381 |   |

|                                                                                    |   | 2007                                                                                                  |   | 2006                                                                                                  |   | 2005                                                                                                   |
|-----------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|
|                                                                                    |   |                                                                                                  |   |                                                                                                  |   |                                                                                                   |
| Interest      on debt securities and     cash      investments |   |  $      1,325,720                                                                                |   |  $      1,196,221                                                                                |   |  $      1,005,399                                                                                 |
| Dividends      on equity securities                                                     |   |                 6,215 |   |                 7,680 |   |                 11,484 |
|                                                                                    |   |                                                                                                  |   |                                                                                                  |   |                                                                                                   |
|                                                                                    |   |  1,331,935                                                                                       |   |  1,203,901                                                                                       |   |  1,016,883                                                                                        |
| Investment      expenses                                                                |   | (11,321)                                                                                              |   | (12,318)                                                                                              |   | (13,270)                                                                                               |
|                                                                                    |   |                                                                                                  |   |                                                                                                  |   |                                                                                                   |
| Net      Investment Income                                                              |   | $1,320,614                                                                                            |   | $1,191,583                                                                                            |   | $1,003,613                                                                                             |

|                   | 2007                                                                                                                                                                                         |   | 2006                                       |   | 2005                                       |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------------------------------------------|
|                   |                                                                                                                                                                                         |   |                                       |   |                                       |
| Debt      securities   |                     $                     - |   | $      3,678 |   | $      3,273 |
| Equity      securities | 13,677                                                                                                                                                                                       |   | 13,689                                     |   | 31,299                                     |
| Fixed      assets      | (2,549)                                                                                                                                                                                      |   | 8,180                                      |   | 3,244                                      |
|                   |                                                                                                                                                                                         |   |                                       |   |                                       |
|                   | $    11,128                                                                                                                                                              |   | $    25,547            |   | $    37,816            |

----

|                                                                                                                    | 2007                                              |                                              | 2006      |                                              |                                              |      |
|-------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|---------------------------------------------------|-----------|---------------------------------------------------|---------------------------------------------------|-----------|
|                                                                                                                    | Carrying                                          | Fair                                              |      | Carrying                                          | Fair                                              |      |   |   |
| Assets                                                                                                                  | Amount                                            | Value                                             |      | Amount                                            | Value                                             |      |   |   |
|                                                                                                                    |                                              |                                              |      |                                              |                                              |      |   |   |
| Cash      and Cash Equivalents                                                                                          |                                              |                                              |      |                                              |                                              |      |   |   |
|        (Note      1)                                                                 | $4,937,983                                        | $4,937,983                                        | (a)       | $1,673,058                                        | $1,673,058                                        | (a)       |   |   |
| Investments-fixed      maturity, available for sale       (Note      4 & Note 1) |    599,600                         |    599,600                         |  (b) |    596,800                         |    596,800                         |  (b) |   |   |
| Investments-fixed      maturity, held to maturity       (Note      4 & Note 1)   |  19,087,747                                  |  19,027,913                                  |  (b) |  19,128,637                                  |  18,798,802                                  |  (b) |   |   |
| Investments      –equity securities                                                                               |                                              |                                              |      |                                              |                                              |      |   |   |
|        (Note      4 & Note 1)                                                    | 534,725                                           | 534,725                                           | (b)       | 509,381                                           | 509,381                                           | (b)       |   |   |
| Other      long term investments (Note 4)                                                                               | 1,470,054                                         | 1,470,054                                         | (a)       | 1,507,809                                         | 1,507,809                                         | (a)       |   |   |
| Other      financial instruments-Assets                                                                                 | 431,430                                           | 431,430                                           | (a)       | 434,146                                           | 434,146                                           | (a)       |   |   |
|                                                                                                                    |                                              |                                              |      |                                              |                                              |      |   |   |
| Total      financial instruments-Assets                                                                                 | $27,061,539                                       | $27,001,705                                       |      | $23,849,831                                       | $23,519,996                                       |      |   |   |
|                                                                                                                    |                                              |                                              |      |                                              |                                              |
| Liabilities                                                                                                             |                                              |                                              |      |                                              |                                              |      |   |   |
|                                                                                                                    |                                              |                                              |      |                                              |                                              |      |   |   |
| Premium      deposit funds                                                                                              | $       25,318 | $       25,318 | (a)       | $       28,458 | $       28,458 | (a)       |   |   |
| Bonds      payable                                                                                                      | 1,607,576                                         | 1,607,576                                         | (a)       | 1,639,984                                         | 1,639,984                                         | (a)       |   |   |
| Supplementary      contracts without life contingencies                                                                 |                                              |                                              |      |                                              |                                              |      |   |   |
|        (Note      1)                                                                 |  5,905                                       |  5,905                                       | (a)       | 17,241                                            | 17,241                                            | (a)       |   |   |
| Annuity      deposits                                                                                                   |                                              |                                              |      |                                              |                                              |      |   |   |
|        (Note      1)                                                                 | 2,463,546                                         | 2,463,546                                         | (a)       | 2,536,225                                         | 2,536,225                                         | (a)       |   |   |
|                                                                                                                    |                                              |                                              |      |                                              |                                              |      |   |   |
| Total      financial instruments-Liabilities                                                                            | $  4,102,345                            | $      4,102,345                                  |      | $  4,221,908                            | $      4,221,908                                  |      |   |   |
|                                                                                                                    |                                              |                                              |      |                                              |                                              |      |   |   |

----

| 2008   | $   337,000 |
|--------|----------------------------|
| 2009   |   293,000        |
| 2010   |  317,000              |
| 2011   | 292,000                    |
| 2012   | 316,000                    |
| 2013   |   178,000        |
|   |                       |
| Total  | $      1,733,000           |
|   |                       |

----

|                                                |             |   |                    |   |                |
|-----------------------------------------------------|------------------|--------|-------------------------|--------|---------------------|
|                                                | 2007             |   | 2006                    |   | 2005                |
| Balance      at January 1                           | $      2,517,366 |   | $      2,558,565        |   | $      2,235,929    |
|    Less      reinsurance recoverable | 9,241            |   | -                       |   | -                   |
| Net      Balance at January 1                       | 2,508,125        |   | 2,558,565               |   | 2,235,929           |
|                                                |             |   |                    |   |                |
| Incurred related to:                                |             |   |                    |   |                |
|    Current      year                 | 27,850,499       |   | 28,361,878              |   | 27,633,450          |
|    Prior      years                  | (571,329)        |   | (34,030)                |   | (28,226)            |
| Total      Incurred                                 | 27,279,170       |   | 28,327,848              |   | 27,605,224          |
|                                                |             |   |                    |   |                |
| Paid related to:                                    |             |   |                    |   |                |
|    Current      year                 | 25,553,705       |   | 25,844,512              |   | 25,074,885          |
|    Prior      years                  | 1,926,996        |   | 2,524,535               |   | 2,207,703           |
| Total      Paid                                     | 27,480,701       |   | 28,369,047              |   | 27,282,588          |
|                                                |             |   |                    |   |                |
| Net      Balance at December 31                     | 2,306,288        |   | 2,508,125               |   | 2,558,565           |
|    Plus      reinsurance recoverable | 306              |   |    9,241 |   |    - |
| Balance      at December 31                         | $      2,306,594 |   | $      2,517,366        |   | $      2,558,565    |

----

|     December 31, 2007              |      Gross      Amount   |   |    Ceded      To Other Companies |   |    Assumed      From Other Companies |   |     Net      Amounts |   |   Percentage      Of Amount Assumed To Net |
|--------------------------------------------------------|---------------------------------------------------|--------|-------------------------------------------------|--------|-----------------------------------------------------|--------|------------------------------------------|--------|------------------------------------------------------|
| Life      insurance in force  (in thousands) | $       43,879 |   | $    14,074                 |   | $   -                                |   | $     29,805    |   | 0.0%                                                 |
|                                                   |                                              |   |                                            |   |                                                |   |                                     |   |                                                 |
| Premiums-life      insurance                           | $     348,714            |   | $   62,805                       |   | $   -                                |   | $     285,909   |   | 0.0%                                                 |
| Premiums-accident      and health                      | 44,383,582                                        |   | 87,334                                          |   |      -                     |   | 44,296,248                               |   | 0.0%                                                 |
| Total      insurance premiums                          | $44,732,296                                       |   | $  150,139                            |   | $   -                                |   | $44,582,157                              |   | 0.0%                                                 |
|                                                   |                                              |   |                                            |   |                                                |   |                                     |   |                                                 |
| December 31, 2006                                      |                                              |   |                                            |   |                                                |   |                                     |   |                                                 |
| Life      insurance in force  (in thousands) | $       43,645 |   | $    15,333                 |   | $   -                                |   | $     28,312    |   | 0.0%                                                 |
|                                                   |                                              |   |                                            |   |                                                |   |                                     |   |                                                 |
| Premiums-life      insurance                           | $     378,533            |   | $   71,370                       |   | $   -                                |   | $     307,163   |   | 0.0%                                                 |
| Premiums-accident      and health                      | 44,435,776                                        |   | 74,521                                          |   |      -                     |   | 44,361,255                               |   | 0.0%                                                 |
| Total      insurance premiums                          | $44,814,309                                       |   | $  145,891                            |   | $   -                                |   | $44,668,418                              |   | 0.0%                                                 |
|                                                   |                                              |   |                                            |   |                                                |   |                                     |   |                                                 |
| December 31, 2005                                      |                                              |   |                                            |   |                                                |   |                                     |   |                                                 |
| Life      insurance in force  (in thousands) | $       39,992 |   | $    14,531                 |   | $   -                                |   | $     25,461    |   | 0.0%                                                 |
|                                                   |                                              |   |                                            |   |                                                |   |                                     |   |                                                 |
| Premiums-life      insurance                           | $     294,370            |   | $   62,430                       |   | $   -                                |   | $     231,940   |   | 0.0%                                                 |
| Premiums-accident      and health                      | 44,090,958                                        |   | 55,051                                          |   |      -                     |   | 44,035,907                               |   | 0.0%                                                 |
| Total      insurance premiums                          | $44,385,328                                       |   | $  117,481                            |   | $   -                                |   | $44,267,847                              |   | 0.0%                                                 |

----

----

|                                        |                                                                                Quarter Ended |
|---------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                        | March      31                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | June      30 |   | September      30 |   | December      31 |
| 2007                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
| Premium      Income                         |  $  11,270,566                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |  $      11,125,135 |   | $      11,187,480 |   | $      10,980,992 |
| Net      Investment Income                  |  325,047                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |  300,793 |   |  337,856 |   |  356,918 |
| Marketing      Fees                         | 33,874                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 33,673 |   | 100,448 |   |  30,848 |
| Vision      Insurance Income                | 509,505                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 487,250 |   | 482,579 |   | 500,025 |
| Realized      Gains (Losses)                |  5,403                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   7,836 |   |   5,993 |   |         2,700 |
| Expenses                                    |  (11,269,135)                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (11,281,522) |   | (11,292,402) |   |  (10,792,491) |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
| Net      Income                             |  $      875,260                                                                                                                                                                                                                                                                                                                                                                                                                        |   |  $     673,165 |   |  $   821,954 |   |  $     1,078,992 |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
| Earnings      Per Share (Basic and Diluted) | $             0.06                                                                                                                                                                                                                                                                                                                                                                                       |   |  $           0.04 |   | $         0.05 |   | $           0.07 |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
| Comprehensive      Income                   | $       936,892                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $     653,391 |   | $   895,527 |   | $     1,017,832 |

|   | Quarter      Ended |
|--------|--------------------|

|   |                                        | March      31                                                                       |   | June      30                                                                  |   | September      30                                           |   | December      31                                                        |
|--------|---------------------------------------------|-------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------------------------|
|   | 2006                                        |                                                                                |   |                                                                          |   |                                                        |   |                                                                    |
|   | Premium      Income                         |  $  11,316,687                                                       |   |  $      11,032,159                                                       |   | $      11,081,025                                           |   | $      11,216,523                                                       |
|   | Net      Investment Income                  |  272,364                                                                       |   |  321,674                                                                 |   |  312,502                                               |   |  285,043                                                           |
|   | Marketing      Fees                         | 33,960                                                                              |   | 33,726                                                                        |   | 39,027                                                      |   |  36,602                                                            |
|   | Vision      Insurance Income                | 392,024                                                                             |   | 332,830                                                                       |   | 445,745                                                     |   | 433,168                                                                 |
|   | Realized      Gains (Losses)                | 26,285                                                                              |   |   5,263                                                             |   |   3,654                                           |   |    26,075                                                |
|   | Expenses                                    |  (11,522,217)                                                                  |   | (11,227,573)                                                                  |   | (11,011,115)                                                |   |  (11,321,188)                                                      |
|   |                                        |                                                                                |   |                                                                          |   |                                                        |   |                                                                    |
|   | Net      Income                             |  $      519,103                                  |   |  $     498,079                                  |   |  $   870,838                            |   |  $     676,223                            |
|   |                                        |                                                                                |   |                                                                          |   |                                                        |   |                                                                    |
|   | Earnings      Per Share (Basic and Diluted) | $             0.03 |   |  $           0.03 |   | $         0.05 |   | $           0.05 |
|   |                                        |                                                                                |   |                                                                          |   |                                                        |   |                                                                    |
|   | Comprehensive      Income                   | $       505,645                                  |   | $     486,941                                        |   | $   926,155                                  |   | $     703,237                                  |

----

|                                                                                                                                                                                                                                     |   |                                                    |   |                                              |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                                                                                                                                                                                                     |   | 2007                                                    |   | 2006                                              |   |
| Assets                                                                                                                                                                                                                                   |   |                                                    |   |                                              |   |
| Cash      and cash equivalents                                                                                                                                                                                                           |   | $        64,342 |   | $       74,502 |   |
| Investments,      at fair value                                                                                                                                                                                                          |   |  195,875                                           |   |  192,100                                     |   |
|             Total      Investments, Including Cash and Cash                 Equivalents |   |   260,217                                     |   |   266,602                               |   |
|                                                                                                                                                                                                                                     |   |                                                    |   |                                              |   |
| Accrued      investment income                                                                                                                                                                                                           |   |  10,630                                            |   |  10,630                                      |   |
| Loan      to EPSI                                                                                                                                                                                                                        |   | 1,357,407                                               |   | 1,357,407                                         |   |
|  Investment      in Unconsolidated Subsidiaries at equity (eliminated in      consolidated statements)                                                                                                                         |   |   17,275,173                                  |   |   14,789,381                            |   |
| Income      tax asset                                                                                                                                                                                                                    |   |  21,399                                            |   |  37,000                                      |   |
| Other      assets                                                                                                                                                                                                                        |   |  147,757                                           |   | 154,126                                           |   |
|                                                                                                                                                                                                                                     |   |                                                    |   |                                              |   |
|                   Total      Assets                                                                                                            |   |  $      19,072,583                                 |   |  $      16,615,146                           |   |

| Liabilities                                                                                                                                                                                                                                                                                                                                                                                                |   |                                |   |                                |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|-------------------------------------|--------|
| Bonds      payable                                                                                                                                                                                                                                                                                                                                                                                         |   | $1,607,576                          |   | $1,639,984                          |   |
| Loan      from Brokers National Life Assurance Co.                                                                                                                                                                                                                                                                                                                                                         |   |  50,688                        |   | 320,782                             |   |
| Other      liabilities                                                                                                                                                                                                                                                                                                                                                                                     |   | 117,445                             |   | 141,877                             |   |
|                 Total      Liabilities                                                                                                                                                                                                                                                                                     |   |  1,775,709                     |   |  2,102,643                     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                |   |                                |   |
| Shareholders'      Equity                                                                                                                                                                                                                                                                                                                                                                                  |   |                                |   |                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                |   |                                |   |
| Common      stock, $.02 stated value, 45,000,000 shares authorized; 15,463,965;      17,213,170, shares issued and outstanding respectively                                                                                                                                                                                                                                                                |   |  309,279                       |   |  344,264                       |   |
| Additional      paid-in capital                                                                                                                                                                                                                                                                                                                                                                            |   |   5,751,240               |   |   7,582,732               |   |
|  Retained      earnings                                                                                                                                                                                                                                                                                                                                                                               |   |  11,426,540                    |   |  7,977,171                     |   |
| Treasury      stock, at cost, 250,252; 1,502,720 shares,         respectively                                                                                                                                                                                                                                                                                 |   |  (312,816)                     |   |  (1,460,020)                   |   |
| Unrealized      appreciation of securities                                                                                                                                                                                                                                                                                                                                                                 |   |  122,631                       |   |  68,356                        |   |
|                          Total      Shareholders' Equity                                                                                                                                                                                                                      |   | 17,296,874                          |   | 14,512,503                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                |   |                                |   |
|                          Total      Liabilities and Shareholders’                                Equity |   |   $  19,072,583 |   |   $  16,615,146 |   |

----

|                                                                                                                                                                |                                                             |                                                                               |                                                             |                                                                               |                                                             |                                                                               |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------------------------|
|                                                                                                                                                                |           2007 |                                                                               |           2006 |                                                                               |           2005 |
| Income                                                                                                                                                              |                                                             |                                                                               |                                                             |                                                                               |                                                             |                                                                               |
|     Net      investment income                                                                                                                  |                                                             |  $      204,656                                 |                                                             |  $      223,021                                 |                                                             |  $      202,003                                 |
|     Marketing      fees                                                                                                                         |                                                             | 198,843                                                                            |                                                             | 143,315                                                                            |                                                             | 115,232                                                                            |
|     Realized      gain on debt extinguishment                                                                                                   |                                                             |   10,803                                                                 |                                                             |  35,730                                                                       |                                                             | 102,067                                                                            |
|     Realized      gains (losses)                                                                                                                |                                                             | -                                                                                  |                                                             |      (1,621)                                              |                                                             |      -                                                    |
|                 Total      Income                                                   |                                                             |  414,302                                                                      |                                                             |  400,445                                                                      |                                                             |  419,302                                                                      |
|                                                                                                                                                                |                                                             |                                                                               |                                                             |                                                                               |                                                             |                                                                               |
| Expenses                                                                                                                                                            |                                                             |                                                                               |                                                             |                                                                               |                                                             |                                                                               |
|     General      and administrative                                                                                                             |                                                             |  259,888                                                                      |                                                             |  211,236                                                                      |                                                             |  141,873                                                                      |
|      Interest      expense                                                                                                                 |                                                             | 124,738                                                                            |                                                             | 120,246                                                                            |                                                             | 168,496                                                                            |
|                  Total      Expenses                                           |                                                             |  384,626                                                                      |                                                             |  331,482                                                                      |                                                             |  310,369                                                                      |
|                                                                                                                                                                |                                                             |                                                                               |                                                             |                                                                               |                                                             |                                                                               |
|      Income      from operations before income taxes                                                                                       |                                                             |    29,676                                                           |                                                             |    68,963                                                           |                                                             |   108,933                                                                |
|      Provision      for income taxes                                                                                                       |                                                             |  15,601                                                                       |                                                             |  5,025                                                                        |                                                             | 34,000                                                                             |
|                                                                                                                                                                |                                                             |                                                                               |                                                             |                                                                               |                                                             |                                                                               |
|      Net      income before equity in undistributed          income      of subsidiaries |                                                             |    14,075                                                           |                                                             |    63,938                                                           |                                                             |    74,933                                                           |
|       Equity      in undistributed income of subsidiaries                                                                             |                                                             |  3,435,293                                                                    |                                                             |  2,500,306                                                                    |                                                             |  2,228,156                                                                    |
|                                                                                                                                                                |                                                             |                                                                               |                                                             |                                                                               |                                                             |                                                                               |
|                    Net      Income                                   |                                                             |  $  3,449,368                                                       |                                                             |  $  2,564,244                                                       |                                                             |  $  2,303,089                                                       |
|                                                                                                                                                                |                                                             |                                                                               |                                                             |                                                                               |                                                             |                                                                               |
|  Net      Income Per Common Share (Basic and Diluted)                                                                                                          |                                                             | $             .22 |                                                             | $             .16 |                                                             | $             .13 |

----

|                                                                                                                                                                                                                                                                 |   |                                        |   |                                        |   |                                        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------------|
|                                                                                                                                                                                                                                                                 |   |  2007                                  |   |  2006                                  |   |  2005                                  |
| Cash      Flows from Operating Activities                                                                                                                                                                                                                            |   |                                        |   |                                        |   |                                        |
|       Net      income                                                                                                                                                                                                                  |   |  $  3,449,368                |   |  $  2,564,244                |   |  $  2,303,089                |
|          Adjustments      to compute cash provided by            operating      activities                                                                  |   |  (3,491,331)                           |   |  (2,420,083)                           |   |  (2,468,796)                           |
|                Net      Cash Provided (Used) by Operating                  Activities           |   |  (41,963)                              |   |  144,161                               |   |  (165,707)                             |
|                                                                                                                                                                                                                                                                 |   |                                        |   |                                        |   |                                        |
| Cash      Flows from Investing Activities                                                                                                                                                                                                                            |   |                                        |   |                                        |   |                                        |
|       Dividend      from subsidiary                                                                                                                                                                                                    |   | 1,000,000                                   |   | 1,450,000                                   |   | 2,950,000                                   |
|                                    Net Cash Provided by Investing Activities                                        |   |     1,000,000           |   |    1,450,000                 |   |    2,950,000                 |
|                                                                                                                                                                                                                                                                 |   |                                        |   |                                        |   |                                        |
| Cash      Flows from Financing Activities                                                                                                                                                                                                                            |   |                                        |   |                                        |   |                                        |
|       Purchase      of treasury stock                                                                                                                                                                                                  |   | (789,184)                              |   | (1,297,948)                            |   | (2,432,056)                                 |
|       Sale      of treasury stock                                                                                                                                                                                                      |   |   102,995                         |   |   64,550                          |   |   64,550                          |
|       Stock      options exercised                                                                                                                                                                                                     |   |    20,494                    |   |    150                       |   | 11,430                                      |
|       Payments      on long term debt                                                                                                                                                                                                  |   | (270,094)                                   |   | (249,005)                                   |   | (231,014)                                   |
|       Debt      extinguishments                                                                                                                                                                                                        |   | (32,408)                                    |   | (107,194)                                   |   | (157,690)                                   |
|                Net      Cash Provided (Used) by Financing Activities                                                                                                                 |   | ($968,197)                                  |   | ($1,589,447)                                |   | $2,744,780)                                 |
|                Net      Increase (Decrease) in Cash and Cash                   Equivalents |   |     (10,160)            |   |     4,714               |   |   39,513                          |
|                                                                                                                                                                                                                                                                 |   |                                        |   |                                        |   |                                        |
|                Cash      and Cash Equivalents, Beginning of                  Period             |   |  74,502                                |   |  69,788                                |   |  30,275                                |
|                                                                                                                                                                                                                                                                 |   |                                        |   |                                        |   |                                        |
|                Cash      and Cash Equivalents, End of Period                                                                                                                              |   | $      64,342 |   | $      74,502 |   | $      69,788 |

----