Management is presenting these tables to provide a clear understanding of out of period adjustments, the adoption of accounting principles and reclassifications to the Company’s historical results for 2013.

We have revised our prior year financial statements for previously uncorrected misstatements that affected periods prior to 2013 through the third quarter of 2014. The corrections are immaterial to our financial statements for the period ended December 31, 2013. Accordingly, we have revised our previously issued financial statements within these consolidated financials as presented in the schedule below. The first revision, related to our real estate segment, affected the balance sheet by increasing intangible assets by $7,240, decreasing real estate by $7,666, increasing deferred tax assets for $45 and decreasing equity by $381. This revision also affected the income statement by increasing depreciation and amortization expense by $426, decreasing provision for income taxes, and decreasing net income attributable to noncontrolling interest. The second correction, related to discontinued operations, affected the balance sheet by increasing assets held for sale by $1,465, increasing retained earnings by $341, and increasing non-controlling interest by $1,124. This revision also increased each of income from discontinued operations and net income attributable to noncontrolling interest.

In August 2014, ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity was issued. Management believes this change in accounting principle is justified since the measurement approach prescribed by this new guidance will better align the consolidated CLO asset values with the consolidated CLO liability values. The Company has elected to measure both the financial assets and the financial liabilities of the CLOs using the more observable fair value measurement of the financial assets. As such, the notes payable of the CLOS are measured as (1) the sum of the fair value of the financial assets and the carrying value of any nonfinancial assets held temporarily, less (2) the sum of the fair value of any beneficial interests retained by the Company and the Company’s carrying value of any beneficial interests that represent compensation for services. The application of this new guidance results in adjustments to certain balances in the previously issued consolidated balance sheets, consolidated statements of operations, and consolidated statements of cash flows for the year ended December 31, 2013 as well as the interim periods ending March 31, 2014, June 30, 2014, and September 30, 2014. The effects of these adjustments are presented below by line item for the year ended December 31, 2013. In addition, the cumulative effect of the change in retained earnings and other components of equity is presented in the consolidated statements of stockholders’ equity.

Also presented as re-classifications are those items associated with PFG, which have been classified as held for sale as of December 31, 2014. Further, this transaction qualifies to be treated as discontinued operations (see Note 5—Dispositions, Assets Held for Sale and Discontinued Operations).

Certain prior period amounts have been reclassified to conform to the current year presentation. These amounts are identified under the reclassification heading in the tables below.



As of December 31, 2013
	As previously filed		Out of period adjustments		ASU-2014-13 adoption		Discontinued operations			Reclassifications			As adjusted		Notes
Assets
Cash and cash equivalents – unrestricted	$	120,557	$	—	$	—	$	(22,912	)	$	—		$	97,645
Cash and cash equivalents – restricted	26,395		—		—		—			—			26,395
Trading investments, at fair value	35,991		—		—		—			(35,991		)	—		(1	)
Trading assets, at fair value	—		—		—		—			35,991			35,991		(1	)
Investments in available for sale securities, at fair value	17,763		—		—		(17,763		)	—			—
Investments in loans, at fair value	171,087		—		—		—			—			171,087
Loans owned, at amortized cost – net of allowance	40,260		—		—		—			—			40,260



As of December 31, 2013
	As previously filed		Out of period adjustments			ASU-2014-13 adoption			Discontinued operations			Reclassifications			As adjusted		Notes
Notes receivable, net	—		—			—			—			8,561			8,561		(1	)
Investments in partially-owned entities	9,972		—			—			—			—			9,972
Real estate	105,061		(7,666		)	—			—			—			97,395
Policy loans	102,147		—			—			(102,147		)	—			—
Deferred tax assets	3,310		45			—			(382		)	—			2,973		(4	)
Intangible assets	154,695		7,240			—			(153,636		)	—			8,299		(4	)
Goodwill	4,294		—			—			(3,088		)	—			1,206		(4	)
Other assets	49,201		—			—			(24,235		)	(8,561		)	16,405		(1	)
Separate account assets	4,625,099		—			—			(4,625,099		)	—			—
Assets of consolidated CLOs	1,414,616		—			(9,261		)	—			—			1,405,355
Assets held for sale	—		1,465			—			4,949,262			—			4,950,727		(4	)
Total assets	$	6,880,448	$	1,084		$	(9,261	)	$	—		$	—		$	6,872,271

Liabilities and Stockholders’ Equity
Liabilities:
Derivative financial instruments, at fair value	$	598	$	—		$	—		$	—		$	(598	)	$	—	(1	)
U.S. Treasuries, short position	18,493		—			—			—			(18,493		)	—		(1	)
Trading liabilities, at fair value	—		—			—			—			19,091			19,091		(1	)
Debt	360,609		—			—			(91,015		)	—			269,594
Policy liabilities	112,358		—			—			(112,358		)	—			—
Other liabilities and accrued expenses	21,829		—			9			(7,939		)	—			13,899
Separate account liabilities	4,625,099		—			—			(4,625,099		)	—			—
Liabilities of consolidated CLOs	1,175,606		—			160,774			—			—			1,336,380
Liabilities of discontinued operations and held for sale	—		—			—			4,836,411			—			4,836,411
Total liabilities	6,314,592		—			160,783			—			—			6,475,375

Stockholders’ Equity:
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding	—		—			—			—			—			—
Common stock - Class A: $0.001 par value, 200,000,000 shares authorized, 10,556,390 shares issued and outstanding respectively	11		—			—			—			—			11



As of December 31, 2013
	As previously filed		Out of period adjustments		ASU-2014-13 adoption			Discontinued operations		Reclassifications		As adjusted		Notes
Common stock - Class B: $0.001 par value, 50,000,000 shares authorized, 30,968,877 shares issued and outstanding respectively	31		—		—			—		—		31
Additional paid-in capital	100,903		—		(17,088		)	—		—		83,815
Accumulated other comprehensive income	33		—		—			—		—		33
Retained earnings	18,933		302		(4,146		)	—		—		15,089		(4	)
Total stockholders’ equity of Tiptree Financial Inc.	119,911		302		(21,234		)	—		—		98,979		(4	)
Non-controlling interest	361,354		782		(64,219		)	—		—		297,917		(4	)
Appropriated retained earnings of consolidated TAMCO	84,591		—		(84,591		)	—		—		—
Total stockholders’ equity	565,856		1,084		(170,044		)	—		—		396,896
Total liabilities and stockholders’ equity	$	6,880,448	$	1,084	$	(9,261	)	$	—	$	—	$	6,872,271



For the year ended December 31, 2013
	As previously filed			Out of period adjustments		ASU 2014-13 adoption		Discontinued Operations			Reclassifications			As adjusted			Notes
Revenues:
Net realized (loss) gain on investments	$	(833	)	$	—	$	—	$	(83	)	$	916		$	—
Change in unrealized appreciation on investments	2,971			—		—		—			(2,971		)	—
Income from investments in partially owned entities	3,250			—		—		—			(3,250		)	—
Net realized and unrealized gains	5,388			—		—		(83		)	(5,305		)	—
Investment income:
Net realized and unrealized gains from investments	—			—		—		—			6,887			6,887			(2), (3)
Interest income	16,477			—		—		(4,946		)	119			11,650			(1	)
Net Credit derivative revenue (loss)	—			—		—		—			(1,828		)	(1,828		)	(3	)
Separate account fees	22,248			—		—		(22,248		)	—			—
Administrative service fees	49,489			—		—		(49,489		)	—			—
Loan fee income	—			—		—		—			459			459			(1	)
Rental revenue	5,760			—		—		—			—			5,760
Other income	1,545			—		—		(6		)	(724		)	815			(1	)
Total investment income	95,519			—		—		(76,689		)	4,913			23,743
Total net realized and unrealized gains and investment income	100,907			—		—		(76,772		)	(392		)	23,743



For the year ended December 31, 2013
	As previously filed		Out of period adjustments		ASU 2014-13 adoption		Discontinued Operations		Reclassifications		As adjusted		Notes
Total revenue	100,907		—		—		(76,772	)	(392	)	23,743
Expenses:
Interest expense	17,517		—		—		(12,430	)	(222	)	4,865		(3	)
Payroll expense	35,552		—		—		(18,819	)	8		16,741		(1	)
Professional fees	8,555		—		—		(1,858	)	440		7,137		(1	)
Change in future policy benefits	4,710		—		—		(4,710	)	—		—
Mortality expenses	10,476		—		—		(10,476	)	—		—
Commission expense	2,344		—		—		(2,344	)	—		—
Depreciation and amortization expenses	4,467		426		—		(2,997	)	92		1,988		(4), (1)
Other expenses	15,456		—		—		(9,136	)	(710	)	5,610		(1	)
Total expenses	99,077		426		—		(62,770	)	(392	)	36,341
Net income before taxes and income attributable to consolidated CLOs from continuing operations	1,830		(426	)	—		(14,002	)	—		(12,598	)
Results of consolidated CLOs:
Income attributable to consolidated CLOs	52,687		—		8,492		—		—		61,179
Expenses attributable to consolidated CLOs	48,268		—		(15,954	)	—		—		32,314
Net Income attributable to consolidated CLOs	4,419		—		24,446		—		—		28,865
Income before taxes from continuing operations	6,249		(426	)	24,446		(14,002	)	—		16,267
Provision for income taxes	6,941		(45	)	—		(6,336	)	—		560		(4	)
(Loss) income from continuing operations	(692	)	(381	)	24,446		(7,666	)	—		15,707
Discontinued operations:
Gain (loss)on sale of discontinued operations, net	15,463		—		—		—		—		15,463
Income from discontinued operations, net	1,647		246		—		7,666		—		9,559		(4	)
Discontinued operations, net	17,110		246		—		7,666		—		25,022

Net income before noncontrolling interest	16,418		(135	)	24,446		—		—		40,729
Less net income attributable to noncontrolling interest	25,617		(153	)	4,872		—		—		30,336		(4	)
Less net (loss) income attributable to VIE subordinated noteholders	(18,044	)	—		18,044		—		—		—



For the year ended December 31, 2013
	As previously filed			Out of period adjustments		ASU 2014-13 adoption		Discontinued Operations			Reclassifications			As adjusted		Notes
Net income available to common stockholders	$	8,845		$	18	$	1,530	$	—		$	—		$	10,393

Basic, continuing operations, net	$	(0.81	)	$	—	$	0.16	$	(0.75	)	$	1.81		$	0.41
Basic, discontinued operations, net	1.67			—		—		0.75			(1.82		)	0.60
Net income basic	$	0.86		$	—	$	0.16	$	—		$	(0.01	)	$	1.01

Diluted, continuing operations, net	$	(0.81	)	$	—	$	0.16	$	(0.75	)	$	1.81		$	0.41
Diluted, discontinued operations, net	1.67			—		—		0.75			(1.82		)	0.60
Net income, diluted	$	0.86		$	—	$	0.16	$	—		$	(0.01	)	$	1.01

Notes:

(1) Prior period information reclassified to conform to the current year presentation.

(2) Collapse of line items presented individually in 2013.

(3) Net credit derivative income (loss) associated with master netting agreement (see Note 14—Derivative Financial Instruments).

(4) Adjustment relates to out of period adjustments.