CASH 2018 Special Proxy Statement

CRESTMARK BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 – LOANS, LEASES AND RECEIVABLES (Continued) The following table presents the activity in the allowance for credit losses by portfolio segment for the years ending December 31, 2017, 2016, and 2015: Commercial Loans Consumer Loans Leases Factoring Receivables Total 2017 Allowance for credit losses: Beginning balance . . . . . . . . . . . . . . . $ 4,674,197 $ 198,023 $ 806,138 $ 4,541,557 $10,219,915 Provision for credit losses . . . . . . . . . 1,960,246 52,000 2,721,826 2,515,928 7,250,000 Loans charged-off . . . . . . . . . . . . . . . (2,267,985) — (2,117,139) (5,026,025) (9,411,149) Recoveries . . . . . . . . . . . . . . . . . . . . . 405,620 — 195,292 1,717,107 2,318,019 Total ending allowance balance . . . . . . . . . . . . . . . . . $ 4,772,078 $ 250,023 $ 1,606,117 $ 3,748,567 $10,376,785 2016 Allowance for credit losses: Beginning balance . . . . . . . . . . . . . . . $ 3,713,853 $ 184,023 $ 628,927 $ 5,124,005 $ 9,650,808 Provision for credit losses . . . . . . . . . 1,635,221 14,000 660,222 2,045,557 4,355,000 Loans charged-off . . . . . . . . . . . . . . . (700,513) — (1,014,711) (3,767,370) (5,482,594) Recoveries . . . . . . . . . . . . . . . . . . . . . 25,636 — 531,700 1,139,365 1,696,701 Total ending allowance balance . . . . $ 4,674,197 $ 198,023 $ 806,138 $ 4,541,557 $10,219,915 2015 Allowance for credit losses: Beginning balance . . . . . . . . . . . . . . . $ 3,927,897 $ 506,799 $ 803,698 $ 4,799,887 $10,038,281 Provision for credit losses . . . . . . . . . (100,127) (322,776) 591,847 (122,112) 46,832 Loans charged-off . . . . . . . . . . . . . . . (209,292) — (796,836) (174,135) (1,180,263) Recoveries . . . . . . . . . . . . . . . . . . . . . 95,375 — 30,218 620,365 745,958 Total ending allowance balance . . . . $ 3,713,853 $ 184,023 $ 628,927 $ 5,124,005 $ 9,650,808 F-18