CASH 2018 Special Proxy Statement

CRESTMARK BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 16 – FAIR VALUE (Continued) Assets Measured on a Non—Recurring Basis Assets measured at fair value on a non—recurring basis as of December 31 are summarized below: Fair Value Measurements at December 31 using: Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Level 2 Significant Unobservable Inputs (Level 3) 2017 Impaired loans, leases and receivables: Commercial loans . . . . . . . . . . . . . . . . . . . . . . . $6,040,000 $— $— $6,040,000 Factoring receivables . . . . . . . . . . . . . . . . . . . . 282,000 — — $ 282,000 Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 — — 60,000 Total impaired loans leases and receivables . . $6,382,000 $— $— $6,382,000 2016 Impaired loans, leases and receivables: Commercial loans . . . . . . . . . . . . . . . . . . . . . . . $3,269,000 $— $— $3,269,000 Factoring receivables . . . . . . . . . . . . . . . . . . . . 2,143,000 — — 2,143,000 Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371,000 — — 371,000 Total impaired loans leases and receivables . . $5,783,000 $— $— $5,783,000 Impaired Loans, Leases and Receivables: At December 31, 2017, impaired loans, leases and receivables measured at fair value had a principal balance of $7,588,000, with a valuation allowance of $1,206,000 which resulted in a carrying value of $6,382,000 and a resulting provision for credit losses of $1,206,000 for the year. At December 31, 2016, impaired loans, leases and receivables measured at fair value had a principal balance of $7,034,000, with a valuation allowance of 1,251,000 which resulted in a carrying value of $5,783,000 and a resulting provision for credit losses of $1,133,000 for the year. F-35