CASH 2018 Special Proxy Statement

Crestmark Bank currently conducts certain specialized operations through the wholly-owned, consolidated operating subsidiaries detailed below: • Crestmark Westgate LLC – a wholly-owned Michigan limited liability company engaged in commercial factoring; • CMFC, Inc. – a wholly-owned Michigan corporation engaged in financing commercial fuel cells; • Crestmark Equipment Finance, Inc. – a wholly-owned Michigan corporation engaged in leasing; • Crestmark Partner Services, Inc. – a wholly-owned Michigan corporation engaged in developing relationships with approved partner banks to encourage cross-referral opportunities and possible participation in Crestmark Bank-led lending relationships; • Crestmark Commercial Capital Lending LLC – a wholly-owned Michigan limited liability company engaged in commercial lending; and • Crestmark TPG LLC – a wholly-owned Michigan limited liability company engaged in commercial leasing and factoring. Crestmark Joint Ventures In addition, Crestmark Bank currently has interests in five joint ventures whereby Crestmark Bank has an 80% interest in the entity, with a 20% interest held by a third party partner. In each of the joint ventures, Crestmark Bank has agreed to make certain line of credit advances available to provide financing to the joint venture partner’s borrowers and for working capital needs. Crestmark Bank is then granted a security interest in all personal property of the joint venture entity to secure payment of the indebtedness. An overview of the business of each of the joint ventures is provided in the table below: Entity Name Purpose Approximate Total Earning Assets at December 31, 2017 Crestmark Line of Credit Commitment CM Sterling, LLC Joint venture partner provides smaller ticket factoring (the purchase of small size accounts receivable at a discount) and asset based lines of credit transactions (lines of credit based on collateral, including accounts receivable or hard assets), which are assigned to CM Sterling, LLC upon origination. $34.2 Million $40 Million Capital Equipment Solutions, LLC Joint venture partner provides term loans on machinery and equipment to manufacturing and servicing companies that are assigned to Capital Equipment Solutions, LLC upon origination. $19.3 Million $30 Million CM Help, LLC Joint venture partner markets and services loans to consumers as a financing alternative for the self-pay and co-pay portions of a patient’s hospital expenses. These affordable, patient-friendly loans allow the patient flexibility in the repayment of hospital expenses. CM Help, LLC funds certain patient loans from hospitals on a full recourse basis. $49.9 Million $50 Million CM Southgate II, LLC Joint venture partner provides fleet leases of cars and light duty trucks and provides loans/leases for commercial tractors and trailers, which are assigned to CM Southgate II, LLC upon origination and serviced by the joint venture partner. $8.4 Million $10 Million CM TFS LLC Joint venture partner provides equipment financing term loans and leases; which are assigned to CM TFS LLC upon origination. $15.3 Million $20 Million 105