CASH 2018 Special Proxy Statement

CRESTMARK BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 16 – FAIR VALUE (Continued) As discussed previously, the fair values of impaired loans, leases, and receivables carried at fair value are determined by third party appraisals or collateral evaluations. Management makes adjustments to these values based on the age of the appraisal and the types of collateral underlying. The following table presents quantitative information about level 3 fair value measurements for the larger classes of financial instruments measured at fair value on a non-recurring basis at December 31, 2017 and 2016: 2017 Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) Impaired loans, leases and receivables: Commercial loans . . . . . $6,040,000 Sales comparison, Realizable value Management discount of cash flow streams and asset values 3-26% (7%) Factoring receivables . . 282,000 Collectibility, Realizable value Management discount of collectability of receivables and other asset values 0-16% (13%) Leases . . . . . . . . . . . . . . 60,000 Sales comparison, Realizable value Management discount of cash flow streams and asset values 0% (0%) 2016 Impaired loans, leases and receivables: Commercial loans . . . . . $3,269,000 Sales comparison, Realizable value Management discount of cash flow streams and asset values 22-54% (25%) Factoring receivables . . 2,143,000 Collectibility, Realizable value Management discount of collectability of receivables and other asset values 47-54% (50%) Leases . . . . . . . . . . . . . . 371,000 Sales comparison, Realizable value Management discount of cash flow streams and asset values 2-43% (24%) F-36