CASH 2018 Special Proxy Statement

CRESTMARK BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 10 – INCOME TAXES Income tax expense was as follows: 2017 2016 2015 Federal: Current . . . . . . . . . . . . . . . . . . . . . . . . . . $ 848,845 $ 4,585,614 $ (8,187,874) Deferred . . . . . . . . . . . . . . . . . . . . . . . . . 2,037,763 (2,504,844) 13,085,217 Tax rate remeasurement . . . . . . . . . . . . . (5,675,896) — — (2,789,288) 2,080,770 4,897,343 State: Current . . . . . . . . . . . . . . . . . . . . . . . . . . 996,415 179,810 491,818 Deferred . . . . . . . . . . . . . . . . . . . . . . . . . (237,526) 297,779 41,616 758,889 477,589 533,434 Income tax (benefit) expense . . . . . . . . . . . . . $(2,030,399) $ 2,558,359 $ 5,430,777 A reconciliation of the differences between the income tax expense recorded and the amount computed by applying the statutory rate to income before income tax expense less net income attributable to noncontrolling interests is as a follows: 2017 2016 2015 Tax at statutory rate (35%) . . . . . . . . . . . . . . . $ 9,478,270 $ 6,336,117 $ 6,269,604 Increase (decrease) from: State income tax, net . . . . . . . . . . . . . . . . 493,278 310,433 346,732 General business credit . . . . . . . . . . . . . . (6,273,010) (2,483,097) (1,319,011) Stock compensation . . . . . . . . . . . . . . . . . (370,684) (1,632,777) — Tax rate remeasurement . . . . . . . . . . . . . (5,675,896) — — Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317,643 27,683 133,452 Income tax (benefit) expense . . . . . $(2,030,399) $ 2,558,359 $ 5,430,777 F-27