CASH 2018 Special Proxy Statement

Non-Interest Income Years Ended December 31, Increase/ Decrease Percentage Change Non-Interest Income (dollars in thousands): 2017 2016 Net servicing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,423 $ 2,473 $ (50) -2.0% Gain on sale of government guaranteed loans . . . . . . . . . . . . . . . . . . . 4,647 4,947 (300) -6.1% Gain on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 200 (200) -100.0% Net (loss)gain on sales of leases and off lease equipment . . . . . . . . . . (133) 882 (1,015) -115.1% Rental income from equipment on operating leases . . . . . . . . . . . . . . . 45,925 34,389 11,536 33.5% Loan customer service fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,434 3,090 344 11.1% Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,256 730 1,526 209.0% Total non-interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $58,552 $46,711 $11,841 25.3% Non-interest income increased $11.8 million, or 25.3%, for the year ended December 31, 2017 compared to the year ended December 31, 2016. This increase was nearly entirely due to the increase in rental income from equipment on operating leases. Rental income from equipment on operating leases increased $11.5 million due to the continued growth in average balances related to lease equipment. Average lease equipment balances increased $22.1 million or 26.5% to $105.5 million as of December 31, 2017 from $83.3 million for the year ended December 31, 2016. In addition, depreciation expense on equipment on operating leases included in non-interest expense increased 26.8%, consistent with the increase in rental income. The decrease in the net (loss) gain on sale of leases and off lease equipment of $1.0 million was due to a recognized loss during the year ended December 31, 2017 of $2.5 million from equipment returned and repossessed from a borrower that was subsequently sold at a loss. Lastly, other income increased $1.5 million or 209.0% due to building rental income charged to lessors from the purchase of the main office building of Crestmark in Troy, Michigan in 2017 and an increase in late charges, over-advance and wire fees to loan customers throughout the year based on volume increases. Years Ended December 31, Increase/ Decrease Percentage Change Non-Interest Income (dollars in thousands): 2016 2015 Net servicing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,473 $ 2,552 $ (79) -3.1% Gain on sale of government guaranteed loans . . . . . . . . . . . . . . . . . . . 4,947 3,017 1,930 64.0% Gain on sale of securities available for sale . . . . . . . . . . . . . . . . . . . . . — 254 (254) -100.0% Gain on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 — 200 100.0% Net (loss)gain on sales of leases and off lease equipment . . . . . . . . . . 882 1,302 (420) -32.3% Rental income from equipment on operating leases . . . . . . . . . . . . . . . 34,389 17,792 16,597 93.3% Loan customer service fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,090 2,933 157 5.4% Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 730 262 468 178.6% Total non-interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $46,711 $28,112 $18,599 66.2% Non-interest income increased $18.6 million, or 66.2%, for the year ended December 31, 2016 compared to the year ended December 31, 2015. This increase was primarily due to the increases in rental income from equipment on operating leases and gains on sale of government guaranteed loans. Proceeds from sales of government guaranteed loans increased from $28.7 million in 2015 to $60.1 million in 2016, resulting in an increase of $1.9 million in the related gains on sale for the year ended December 31, 2016 as compared to the year ended December 31, 2015. Rental income from equipment on operating leases increased $16.6 million from 2015 to 2016 due to continued growth in average balances related to lease equipment. Average lease equipment balances increased $42.9 million or 105.9% to $83.3 million for the year ended December 31, 2016 from $40.5 million as of December 31, 2015. Crestmark management believes increases in rental income primarily result from Crestmark’s efforts to invest in and expand its leasing business since 2014. 115