Pro Forma Statement of Income Three Months Ended June 30, 2015	Company Historical	Titan Agencies Historical	Pro Forma Adjustments		Pro Forma Combined
Revenues:
Premiums earned	$ 67,300	$ —	$ —		$ 67,300
Commission and fee income	11,929	6,422	—		18,351
Investment income	1,406	—	—		1,406
Net realized losses on investments, available-for-sale	(4)	—	—		(4)
	80,631	6,422	—		87,053
Costs and expenses:
Losses and loss adjustment expenses	55,003	—	—		55,003
Insurance operating expenses	23,645	7,296	—		30,941
Other operating expenses	263	—	—		263
Litigation settlement	129	—	—		129
Stock-based compensation	53	—	—		53
Depreciation	392	—	25	(a)	417
Amortization of identifiable intangibles assets	7	—	228	(b)	235
Interest expense	449	—	598	(c)	1,047
	79,941	7,296	851		88,088
Income (loss) before income taxes	690	(874)	(851)		(1,035)
Provision (benefit) for income taxes	375	(350)	(340)	(d)	(315)
Net income (loss)	$ 315	$ (524)	$ (511)		$ (720)
Net income (loss) per share:
Basic	$ 0.01				$ (0.02)
Diluted	$ 0.01				$ (0.02)
Number of shares used to calculate net income (loss) per share:
Basic	41,020				41,020
Diluted	41,384				41,384

Pro Forma Statement of Income Six Months Ended June 30, 2015	Company Historical	Titan Agencies Historical	Pro Forma Adjustments		Pro Forma Combined
Revenues:
Premiums earned	$ 129,915	$ —	$ —		$ 129,915
Commission and fee income	23,278	14,547	—		37,825
Investment income	2,551	—	—		2,551
Net realized gains on investments, available-for-sale	(7)	—	—		(7)
	155,737	14,547	—		170,284
Costs and expenses:
Losses and loss adjustment expenses	102,937	—	—		102,937
Insurance operating expenses	48,730	14,555	—		63,285
Other operating expenses	586	—	—		586
Litigation settlement	239	—	—		239
Stock-based compensation	72	—	—		72
Depreciation	800	—	50	(a)	850
Amortization of identifiable intangibles assets	7	—	455	(b)	462
Interest expense	872	—	1,190	(c)	2,062
	154,243	14,555	1,695		170,493
Income (loss) before income taxes	1,494	(8)	(1,695)		(209)
Provision (benefit) for income taxes	693	(3)	(678)	(d)	12
Net income (loss)	$ 801	$ (5)	$ (1,017)		$ (221)
Net income (loss) per share:
Basic	$ 0.02				$ (0.01)
Diluted	$ 0.02				$ (0.01)
Number of shares used to calculate net income (loss) per share:
Basic	41,018				41,018
Diluted	41,347				41,347

Pro forma adjustments

The following adjustments have been reflected in the unaudited pro forma combined financial information.

(a)	Depreciation expense related to acquired tangible asset

(b)	Amortization expense related to acquired identifiable intangible asset

(c)	Interest expense related to acquisition financing

(d)	Calculated income tax effect of pro forma adjustments at the estimated combined federal and state statutory rate of 40%