we describe the various components of this noninterest income , as well as our noninterest expense , in the following discussion . the discussion and analysis also identifies significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements . we encourage you to read this discussion and analysis in conjunction with the financial statements and the related notes and the other statistical information also included in this report . 37 recent developments on october 20 , 2017 , we completed our acquisition of cornerstone bancorp ( “ cornerstone ” ) and its wholly-owned subsidiary , cornerstone national bank . under the terms of the merger agreement , cornerstone shareholders received either $ 11.00 in cash or 0.54 shares of the company 's common stock , or a combination thereof , for each share of cornerstone common stock they owned immediately prior to the merger , subject to the limitation that 30 % of the outstanding shares of cornerstone common stock were exchanged for cash and 70 % of the outstanding shares of cornerstone common stock were exchanged for shares of the company 's common stock . the company issued 877,318 shares of common stock in the merger . critical accounting policies we have adopted various accounting policies that govern the application of accounting principles generally accepted in the united states and with general practices within the banking industry in the preparation of our financial statements . our significant accounting policies are described in the notes to our consolidated financial statements in this report . certain accounting policies involve significant judgments and assumptions by us that have a material impact on the carrying value of certain assets and liabilities . we consider these accounting policies to be critical accounting policies . the judgment and assumptions we use are based on historical experience and other factors , which we believe to be reasonable under the circumstances . because of the nature of the judgment and assumptions we make , actual results could differ from these judgments and estimates that could have a material impact on the carrying values of our assets and liabilities and our results of operations . allowance for loan losses we believe the allowance for loan losses is the critical accounting policy that requires the most significant judgment and estimates used in preparation of our consolidated financial statements . some of the more critical judgments supporting the amount of our allowance for loan losses include judgments about the credit worthiness of borrowers , the estimated value of the underlying collateral , the assumptions about cash flow , determination of loss factors for estimating credit losses , the impact of current events , and conditions , and other factors impacting the level of probable inherent losses . under different conditions or using different assumptions , the actual amount of credit losses incurred by us may be different from management 's estimates provided in our consolidated financial statements . refer to the portion of this discussion that addresses our allowance for loan losses for a more complete discussion of our processes and methodology for determining our allowance for loan losses . goodwill and other intangibles goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed . goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired . an impairment loss is recognized to the extent that the carrying amount exceeds the asset 's fair value . qualitative factors are assessed to first determine if it is more likely than not ( more than 50 % ) that the carrying value of goodwill is less than fair value . these qualitative factors include but are not limited to overall deterioration in general economic conditions , industry and market conditions , and overall financial performance . if determined that it is more likely than not that there has been a deterioration in the fair value of the carrying value than the first of a two-step process would be performed . the first step , used to identify potential impairment , involves comparing each reporting unit 's estimated fair value to its carrying value , including goodwill . if the estimated fair value of a reporting unit exceeds its carrying value , goodwill is considered not to be impaired . if the carrying value exceeds estimated fair value , there is an indication of potential impairment and the second step is performed to measure the amount of impairment . if required , the second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment . the implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination , by measuring the excess of the estimated fair value of the reporting unit , as determined in the first step , over the aggregate estimated fair values of the individual assets , liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination . if the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit , there is no impairment . if the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill , an impairment charge is recorded for the excess . an impairment loss can not exceed the carrying value of goodwill assigned to a reporting unit , and the loss establishes a new basis in the goodwill . subsequent reversal of goodwill impairment losses is not permitted . management has determined that the company has four reporting units ( see note 24 to the consolidated financial statements ) . story_separator_special_tag based on the many factors and assumptions used in simulating the effect of changes in interest rates , the following table estimates the hypothetical percentage change in net interest income at december 31 , 2017 and 2016 over the subsequent 12 months . at december 31 , 2017 , we are slightly liability sensitive over the first three month period and over the balance of a twelve month period are asset sensitive on a cumulative basis . as a result , our modeling reflects modest decline in our net interest income in a rising rate environment over the first twelve months . this negative impact of rising rates reverses and net interest income is favorably impacted over a twenty four month period . in a declining rate environment , the model reflects a decline in net interest income . this primarily results from the current level of interest rates being paid on our interest bearing transaction accounts as well as money market accounts . the interest rates on these accounts are at a level where they can not be repriced in proportion to the change in interest rates . the increase and decrease of 100 and 200 basis points , respectively , reflected in the table below assume a simultaneous and parallel change in interest rates along the entire yield curve . net interest income sensitivity replace_table_token_8_th 44 we perform a valuation analysis projecting future cash flows from assets and liabilities to determine the present value of equity ( “ pve ” ) over a range of changes in market interest rates . the sensitivity of pve to changes in interest rates is a measure of the sensitivity of earnings over a longer time horizon . at december 31 , 2017 and 2016 , the pve exposure in a plus 200 basis point increase in market interest rates was estimated to be ( 0.09 ) % and 0.78 % , respectively . provision and allowance for loan losses at december 31 , 2017 , the allowance for loan losses amounted to $ 5.8 million , or 0.90 % of loans ( excludes loans held for sale ) , as compared $ 5.2 million , or 0.95 % of loans , at december 31 , 2016. loans that were acquired in the acquisition of cornerstone in 2017 and savannah river in 2014 are accounted for under financial accounting standards board ( “ fasb ” ) accounting standard codification ( “ asc ” ) 310-30. these acquired loans are initially measured at fair value , which includes estimated future credit losses expected to be incurred over the life of the loans . the credit component on loans related to cash flows not expected to be collected is not subsequently accreted ( non-accretable difference ) into interest income . any remaining portion representing the excess of a loan 's or pool 's cash flows expected to be collected over the fair value is accreted ( accretable difference ) into interest income . subsequent to the acquisition date , increases in cash flows expected to be received in excess of the company 's initial estimates are reclassified from non-accretable difference to accretable difference and are accreted into interest income on a level-yield basis over the remaining life of the loan . decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses . during 2017 and 2016 , there were no adjustments to our initial estimates or impairments recorded on purchased loans . the recorded investment in loans acquired in the cornerstone and savannah river transactions at december 31 , 2017 and 2016 amounted to approximately $ 101.8 million and $ 57.1 million , respectively . december 31 , 2017 and 2016 , the credit component on loans attributable to these acquired loans was $ 1.5 million and $ 334 thousand , respectively . our provision for loan loss was $ 530 thousand for the year ended december 31 , 2017 , as compared to $ 774 thousand and $ 1.1 million for the years ended december 31 , 2016 and 2015 , respectively . the provision is made based on our assessment of general loan loss risk and asset quality . the allowance for loan losses represents an amount which we believe will be adequate to absorb probable losses on existing loans that may become uncollectible . our judgment as to the adequacy of the allowance for loan losses is based on a number of assumptions about future events , which we believe to be reasonable , but which may or may not prove to be accurate . our determination of the allowance for loan losses is based on evaluations of the collectability of loans , including consideration of factors such as the balance of impaired loans , the quality , mix , and size of our overall loan portfolio , economic conditions that may affect the borrower 's ability to repay , the amount and quality of collateral securing the loans , our historical loan loss experience , and a review of specific problem loans . we also consider subjective issues such as changes in the lending policies and procedures , changes in the local/national economy , changes in volume or type of credits , changes in volume/severity of problem loans , quality of loan review and board of director oversight and concentrations of credit . periodically , we adjust the amount of the allowance based on changing circumstances . we charge recognized losses to the allowance and add subsequent recoveries back to the allowance for loan losses . there can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period , especially considering the overall weakness in the commercial real estate market in our market areas . we perform an analysis quarterly to assess

liquidity management liquidity management involves monitoring sources and uses of funds in order to meet our day-to-day cash flow requirements while maximizing profits . liquidity represents our ability to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasing liabilities . liquidity management is made more complicated because different balance sheet components are subject to varying degrees of management control . for example , the timing of maturities of the investment portfolio is very predictable and subject to a high degree of control at the time investment decisions are made . however , net deposit inflows and outflows are far less predictable and are not subject to nearly the same degree of control . asset liquidity is provided by cash and assets which are readily marketable , or which can be pledged , or which will mature in the near future . liability liquidity is provided by access to core funding sources , principally the ability to generate customer deposits in our market area . in addition , liability liquidity is provided through the ability to borrow against approved lines of credit ( federal funds purchased ) from correspondent banks and to borrow on a secured basis through securities sold under agreements to repurchase . the bank is a member of the fhlb and has the ability to obtain advances for various periods of time .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity management liquidity management involves monitoring sources and uses of funds in order to meet our day-to-day cash flow requirements while maximizing profits . liquidity represents our ability to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasing liabilities . liquidity management is made more complicated because different balance sheet components are subject to varying degrees of management control . for example , the timing of maturities of the investment portfolio is very predictable and subject to a high degree of control at the time investment decisions are made . however , net deposit inflows and outflows are far less predictable and are not subject to nearly the same degree of control . asset liquidity is provided by cash and assets which are readily marketable , or which can be pledged , or which will mature in the near future . liability liquidity is provided by access to core funding sources , principally the ability to generate customer deposits in our market area . in addition , liability liquidity is provided through the ability to borrow against approved lines of credit ( federal funds purchased ) from correspondent banks and to borrow on a secured basis through securities sold under agreements to repurchase . the bank is a member of the fhlb and has the ability to obtain advances for various periods of time .
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 Suspicious Activity Report : we describe the various components of this noninterest income , as well as our noninterest expense , in the following discussion . the discussion and analysis also identifies significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements . we encourage you to read this discussion and analysis in conjunction with the financial statements and the related notes and the other statistical information also included in this report . 37 recent developments on october 20 , 2017 , we completed our acquisition of cornerstone bancorp ( “ cornerstone ” ) and its wholly-owned subsidiary , cornerstone national bank . under the terms of the merger agreement , cornerstone shareholders received either $ 11.00 in cash or 0.54 shares of the company 's common stock , or a combination thereof , for each share of cornerstone common stock they owned immediately prior to the merger , subject to the limitation that 30 % of the outstanding shares of cornerstone common stock were exchanged for cash and 70 % of the outstanding shares of cornerstone common stock were exchanged for shares of the company 's common stock . the company issued 877,318 shares of common stock in the merger . critical accounting policies we have adopted various accounting policies that govern the application of accounting principles generally accepted in the united states and with general practices within the banking industry in the preparation of our financial statements . our significant accounting policies are described in the notes to our consolidated financial statements in this report . certain accounting policies involve significant judgments and assumptions by us that have a material impact on the carrying value of certain assets and liabilities . we consider these accounting policies to be critical accounting policies . the judgment and assumptions we use are based on historical experience and other factors , which we believe to be reasonable under the circumstances . because of the nature of the judgment and assumptions we make , actual results could differ from these judgments and estimates that could have a material impact on the carrying values of our assets and liabilities and our results of operations . allowance for loan losses we believe the allowance for loan losses is the critical accounting policy that requires the most significant judgment and estimates used in preparation of our consolidated financial statements . some of the more critical judgments supporting the amount of our allowance for loan losses include judgments about the credit worthiness of borrowers , the estimated value of the underlying collateral , the assumptions about cash flow , determination of loss factors for estimating credit losses , the impact of current events , and conditions , and other factors impacting the level of probable inherent losses . under different conditions or using different assumptions , the actual amount of credit losses incurred by us may be different from management 's estimates provided in our consolidated financial statements . refer to the portion of this discussion that addresses our allowance for loan losses for a more complete discussion of our processes and methodology for determining our allowance for loan losses . goodwill and other intangibles goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed . goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired . an impairment loss is recognized to the extent that the carrying amount exceeds the asset 's fair value . qualitative factors are assessed to first determine if it is more likely than not ( more than 50 % ) that the carrying value of goodwill is less than fair value . these qualitative factors include but are not limited to overall deterioration in general economic conditions , industry and market conditions , and overall financial performance . if determined that it is more likely than not that there has been a deterioration in the fair value of the carrying value than the first of a two-step process would be performed . the first step , used to identify potential impairment , involves comparing each reporting unit 's estimated fair value to its carrying value , including goodwill . if the estimated fair value of a reporting unit exceeds its carrying value , goodwill is considered not to be impaired . if the carrying value exceeds estimated fair value , there is an indication of potential impairment and the second step is performed to measure the amount of impairment . if required , the second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment . the implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination , by measuring the excess of the estimated fair value of the reporting unit , as determined in the first step , over the aggregate estimated fair values of the individual assets , liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination . if the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit , there is no impairment . if the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill , an impairment charge is recorded for the excess . an impairment loss can not exceed the carrying value of goodwill assigned to a reporting unit , and the loss establishes a new basis in the goodwill . subsequent reversal of goodwill impairment losses is not permitted . management has determined that the company has four reporting units ( see note 24 to the consolidated financial statements ) . story_separator_special_tag based on the many factors and assumptions used in simulating the effect of changes in interest rates , the following table estimates the hypothetical percentage change in net interest income at december 31 , 2017 and 2016 over the subsequent 12 months . at december 31 , 2017 , we are slightly liability sensitive over the first three month period and over the balance of a twelve month period are asset sensitive on a cumulative basis . as a result , our modeling reflects modest decline in our net interest income in a rising rate environment over the first twelve months . this negative impact of rising rates reverses and net interest income is favorably impacted over a twenty four month period . in a declining rate environment , the model reflects a decline in net interest income . this primarily results from the current level of interest rates being paid on our interest bearing transaction accounts as well as money market accounts . the interest rates on these accounts are at a level where they can not be repriced in proportion to the change in interest rates . the increase and decrease of 100 and 200 basis points , respectively , reflected in the table below assume a simultaneous and parallel change in interest rates along the entire yield curve . net interest income sensitivity replace_table_token_8_th 44 we perform a valuation analysis projecting future cash flows from assets and liabilities to determine the present value of equity ( “ pve ” ) over a range of changes in market interest rates . the sensitivity of pve to changes in interest rates is a measure of the sensitivity of earnings over a longer time horizon . at december 31 , 2017 and 2016 , the pve exposure in a plus 200 basis point increase in market interest rates was estimated to be ( 0.09 ) % and 0.78 % , respectively . provision and allowance for loan losses at december 31 , 2017 , the allowance for loan losses amounted to $ 5.8 million , or 0.90 % of loans ( excludes loans held for sale ) , as compared $ 5.2 million , or 0.95 % of loans , at december 31 , 2016. loans that were acquired in the acquisition of cornerstone in 2017 and savannah river in 2014 are accounted for under financial accounting standards board ( “ fasb ” ) accounting standard codification ( “ asc ” ) 310-30. these acquired loans are initially measured at fair value , which includes estimated future credit losses expected to be incurred over the life of the loans . the credit component on loans related to cash flows not expected to be collected is not subsequently accreted ( non-accretable difference ) into interest income . any remaining portion representing the excess of a loan 's or pool 's cash flows expected to be collected over the fair value is accreted ( accretable difference ) into interest income . subsequent to the acquisition date , increases in cash flows expected to be received in excess of the company 's initial estimates are reclassified from non-accretable difference to accretable difference and are accreted into interest income on a level-yield basis over the remaining life of the loan . decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses . during 2017 and 2016 , there were no adjustments to our initial estimates or impairments recorded on purchased loans . the recorded investment in loans acquired in the cornerstone and savannah river transactions at december 31 , 2017 and 2016 amounted to approximately $ 101.8 million and $ 57.1 million , respectively . december 31 , 2017 and 2016 , the credit component on loans attributable to these acquired loans was $ 1.5 million and $ 334 thousand , respectively . our provision for loan loss was $ 530 thousand for the year ended december 31 , 2017 , as compared to $ 774 thousand and $ 1.1 million for the years ended december 31 , 2016 and 2015 , respectively . the provision is made based on our assessment of general loan loss risk and asset quality . the allowance for loan losses represents an amount which we believe will be adequate to absorb probable losses on existing loans that may become uncollectible . our judgment as to the adequacy of the allowance for loan losses is based on a number of assumptions about future events , which we believe to be reasonable , but which may or may not prove to be accurate . our determination of the allowance for loan losses is based on evaluations of the collectability of loans , including consideration of factors such as the balance of impaired loans , the quality , mix , and size of our overall loan portfolio , economic conditions that may affect the borrower 's ability to repay , the amount and quality of collateral securing the loans , our historical loan loss experience , and a review of specific problem loans . we also consider subjective issues such as changes in the lending policies and procedures , changes in the local/national economy , changes in volume or type of credits , changes in volume/severity of problem loans , quality of loan review and board of director oversight and concentrations of credit . periodically , we adjust the amount of the allowance based on changing circumstances . we charge recognized losses to the allowance and add subsequent recoveries back to the allowance for loan losses . there can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period , especially considering the overall weakness in the commercial real estate market in our market areas . we perform an analysis quarterly to assess

