CASH 2018 Special Proxy Statement

Consumer loans: Crestmark’s consumer loan portfolio is primarily comprised of loans to individuals for medical services received. The majority of these loans are guaranteed by the hospital providing the service to the debtor and this guarantee serves to reduce credit risk as the guarantors agree to repurchase severely delinquent loans. Credit risk is minimized on these loans based on the guarantor’s repurchase agreement. Leases: Crestmark’s lease portfolio is primarily comprised of leases on high-tech equipment, information systems hardware, capital equipment and durable goods, and vehicles such as automobiles and tractors. Beginning in 2016, Crestmark shifted its focus to middle market companies specializing in capital equipment and durable goods. Factoring receivables: Crestmark’s factoring clients provide detailed inventory, accounts receivable, and work-in-process reports for lending arrangements. With these loans, Crestmark withholds a contingency reserve which is the difference between the fair value of the invoice amount and the amount advanced. This reserve is withheld for nonpayment of factored receivables, service fees and other adjustments. The following table sets forth the composition of Crestmark’s loans, leases and receivables portfolio for the dates indicated (dollars in thousands): At December 31, 2017 2016 2015 2014 2013 Amount % of Total Loans Amount % of Total Loans Amount % of Total Loans Amount % of Total Loans Amount % of Total Loans Commercial loans . . . . . $333,999 37% $262,872 38% $241,567 42% $214,830 41% $150,088 35% Consumer loans . . . . . . . 49,920 6% 38,781 6% 34,917 6% 30,328 6% 22,905 5% Leases . . . . . . . . . . . . . . 201,400 23% 119,163 17% 74,321 13% 49,536 9% 19,839 5% Factoring receivables . . . 307,254 34% 266,138 39% 226,793 39% 228,634 44% 237,162 55% Loans, leases and receivables . . . . 892,573 100% 686,954 100% 577,598 100% 523,328 100% 429,994 100% Loans held for sale . . . . . 42,060 15,108 5,115 — — Total . . . . . . . . . . . $934,633 $702,062 $582,713 $523,328 $429,994 Loan Maturities The following table sets forth information regarding Crestmark’s scheduled maturity information for the loans, leases and receivables for the date indicated below (dollars in thousands): As of December 31, 2017 Due in One Year Or less Due after One Year through Five Years Due after Five Years Non- Performing Loans Fixed Rate Floating Rate Fixed Rate Floating Rate Fixed Rate Floating Rate Total Commercial loans . . . $1,317 $ 5,350 $271,572 $26,047 $29,713 $333,999 Consumer loans . . . . . 49,920 49,920 Leases . . . . . . . . . . . . 3,828 55,926 141,646 201,400 Factoring receivables . . . . . . . 1,410 172,338 133,506 307,254 Total . . . . . . . . . $6,555 $283,534 $405,078 $141,646 $26,047 $— $29,713 $892,573 Crestmark’s consumer loan portfolio is comprised of loans to individuals for medical services rendered by hospitals. These agreements do not contain specific maturity provisions and are generally short term in nature. Therefore, Crestmark management has classified these as due in one year or less. 119