CASH 2018 Special Proxy Statement

CRESTMARK BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 7 – PREMISES, LEASEHOLD IMPROVEMENTS AND EQUIPMENT Premises, leasehold improvements and equipment, consists of the following at year-end: 2017 2016 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,353,750 $ — Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,237,175 — Leasehold improvements . . . . . . . . . . . . . . . . . . . . . 647,959 636,269 Furniture and equipment . . . . . . . . . . . . . . . . . . . . . 6,991,640 4,791,250 Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,372,428 1,856,212 Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199,558 — 25,802,510 7,283,731 Less: accumulated depreciation . . . . . . . . . . . . . . . . (7,193,886) (6,287,474) $18,608,624 $ 996,257 Depreciation expense was $968,686, $733,176 and $762,030 for the years ended December 31, 2017, 2016 and 2015, respectively. Rent expense for facilities leased by the Corporation was $1,933,250, $2,161,031 and $2,114,416 for the years ended December 31, 2017, 2016 and 2015, respectively. Rent commitments under noncancelable operating leases were as follows, before considering renewal options that generally are present. 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 968,742 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366,281 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357,467 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364,650 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184,138 $2,241,278 During 2017, the Corporation purchased the building that serves as the corporate headquarters for $15,590,925. A portion of the building is leased to others which generated rental income of $591,639. NOTE 8 – DEPOSITS The following is a summary of deposits at year-end 2017 and 2016: 2017 2016 Certificates of deposit $250,000 and over . . . . . . . . . . . . . . . . . . $ 191,002,734 $ 86,563,990 Under $250,000 . . . . . . . . . . . . . . . . . . . . 827,826,744 632,638,259 $1,018,829,478 $719,202,249 F-25