Crestmark Bank “We help”…….

“Our primary purpose is to provide cash to businesses when it is not available from traditional banks. Our expert, experienced staff will... develop a strategy for your current success and ultimate return to a conventional bank.” Chairman of Crestmark Bank

A different kind of bank that focuses on assisting smaller middle market companies that have either restructuring or growth capital needs. A CCTG Graduates National Resource

Crestmark Bank - “Some Quick Facts” Established as an FDIC bank in 1996 with headquarters in Troy, Michigan. Currently employs 213 people throughout the United States with 6 Regional Operating Offices. Has no “retail / branch network” in place…….no brick and mortar making operations more lean and cost effective. Does not take consumer deposits or “cash off the street” like commercial banks Operating Results……Net Income of $14MM on assets of $600 MM with loan loss provision of >.50% ( commercial finance industry norm is 3% ). $120MM in newly funded transactions in last 12 months with average deal size of $1MM - $2MM. Approved SBA Lender

Why Small Businesses Finance with Crestmark Provides multiple financing products ( Factoring, LLOC, Asset Based, SBA ) for businesses seeking working capital initiatives from $250,000 to $7,500,000. Core market focus on smaller, privately owned companies generating annual revenues from $2MM - $40MM based in the United States. These companies seek capital to accomplish two specific events - “financial restructuring or growth”. Flexible financing terms / contracts – 1 year, 2 year & 3 years. Capable of financing small companies with 4 financial products that can accommodate any and most economic cycles that business owners experience. Experienced and seasoned lending professionals that have financed every industry and weathered many if not all economic downturns. Strong experience in financing companies in industries such as manufacturing, distribution, service related.

The Financing Community – “Banks vs Lenders” Traditional “bankers” will always lend money when they have cash flow and operating net income. Use a multiple of net income to set the loan amount to finance great small profitable companies. Traditional “bankers” will always lend money when they have cash flow and operating net income. Use a multiple of net income to set the loan amount to finance great small profitable companies. These “business banking” loans have an annual “clean up” component to them which puts financial stress on the company at year end but always reduces the banks loan exposure to “zero” at this time in the year. These “business banking” loans have an annual “clean up” component to them which puts financial stress on the company at year end but always reduces the banks loan exposure to “zero” at this time in the year. These “business banking” loans take blanket liens against the company’s Balance Sheet ( AR, Inventory & M/E ) assets which further enhances the bank’s credit structure and loan exposure. These “business banking” loans take blanket liens against the company’s Balance Sheet ( AR, Inventory & M/E ) assets which further enhances the bank’s credit structure and loan exposure. True “lenders” will fund into companies that have experienced a “financial transition”. True “lenders” will fund into companies that have experienced a “financial transition”. Lenders will finance companies based on Balance Sheet collateral and not cash flow and net income to support their loans Lenders will finance companies based on Balance Sheet collateral and not cash flow and net income to support their loans Lastly, lenders take the truest form of risk in their financing of small companies by funding into losses and negative tangible net worth. Lastly, lenders take the truest form of risk in their financing of small companies by funding into losses and negative tangible net worth.

Why Small Companies Seek Financing – “Event Driven” Business owners enter the financing marketplace and will ask for your expertise in raising capital due to two specific events that have occurred or are occurring……………… Business owners enter the financing marketplace and will ask for your expertise in raising capital due to two specific events that have occurred or are occurring……………… FINANCIAL RESTRUCTURING – TURNAROUND FINANCING FINANCIAL RESTRUCTURING – TURNAROUND FINANCING GROWTH CAPITAL GROWTH CAPITAL

Crestmark Business Financing Products Traditional Factoring (Restructuring) - AR Onl y An agreement where the AR is “purchased” by Crestmark and focus is on credit quality and payment history of the borrower’s account debtors. LLOC – “Ledgered Line of Credit” (Restructuring) – AR & Inventory A loan and security agreement by which Crestmark “finances” the AR and Inventory with some reliance on financial performance of the company. Asset Based Financing (Restructuring & Growth)– AR, Inventory & M&E A loan and security agreement by which Crestmark finances the total Balance Sheet through working capital revolver and term loans secured by AR, Inventory and fixed assets of M&E & R/E. More reliance on financial performance of the company and loan governed by loan covenants and collateral exams. Term Loans for M&E (Growth) Fixed loan financing against new and used corporate M&E assets. Real Estate Financing with SBA Guarantee (Growth) Launched by March 2014

Wrapping It Up Crestmark Bank is “finance company” with a bank cost of capital. Crestmark Bank is “finance company” with a bank cost of capital. Crestmark Bank is a “lender” that understands the capital constraints and needs that smaller companies. Crestmark Bank is a “lender” that understands the capital constraints and needs that smaller companies. Crestmark Bank is the small bank that lends BIG amounts of $$$$$$$$$ into small businesses. Crestmark Bank is the small bank that lends BIG amounts of $$$$$$$$$ into small businesses. Mark J Simshauser Regional First Vice President