NOTE 3: ACQUISITIONS Acquisition of AloStar Bank of Commerce On September 30, 2017, State Bank completed its acquisition of AloStar Bank of Commerce ("AloStar"). State Bank Interim Corp., a wholly-owned subsidiary of State Bank, merged with and into AloStar, immediately followed by the merger of AloStar with and into State Bank. Under the terms of the merger agreement, each share of AloStar common stock was converted into the right to receive $24.26 in cash. Total consideration paid was approximately $195.0 million and the final merger consideration was distributed in October 2017. The merger of AloStar was accounted for under the acquisition method of accounting. Assets acquired, liabilities assumed and consideration exchanged were recorded at their respective acquisition date fair values. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values becomes available. Goodwill of $7.1 million was generated from the acquisition, all of which is expected to be deductible for income tax purposes. The following table summarizes the assets acquired and liabilities assumed and the consideration payable by the Company at the acquisition date (dollars in thousands) : As Recorded by AloStar Bank of Commerce Fair Value Adjustments As Recorded by the Company Assets Cash and cash equivalents $ 91,571 $  $ 91,571 Investment securities available-for-sale 76,436 (195 ) (a) 76,241 Loans, net 728,319 (9,763 ) (b) 718,556 Core deposit intangible  856 (c) 856 Premises and equipment, net 507  507 Other assets 11,430 2,233 (d) 13,663 Total assets acquired $ 908,263 $ (6,869 ) $ 901,394 Liabilities Deposits: Noninterest-bearing $ 102,653 $  $ 102,653 Interest-bearing 603,069 (121 ) (e) 602,948 Total deposits 705,722 (121 ) 705,601 Other liabilities 7,912  7,912 Total liabilities assumed 713,634 (121 ) 713,513 Net identifiable assets acquired over liabilities assumed $ 194,629 $ (6,748 ) $ 187,881 Goodwill $  $ 7,088 $ 7,088 Net assets acquired over liabilities assumed $ 194,629 $ 340 $ 194,969 Consideration: Cash consideration payable 194,969 Fair value of total consideration transferred $ 194,969 Explanation of fair value adjustments (a) Adjustment reflects the loss on certain securities that were sold immediately following the closing that was deemed to be a more accurate representation of fair value. (b) Adjustment reflects the fair value adjustment based on the State Bank's evaluation of the acquired loan portfolio and includes the adjustment to eliminate the recorded allowance for loan and lease losses. (c) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible. (d) Adjustment reflects the fair value adjustment based on State Bank's evaluation of acquired other assets. (e) Adjustment reflects the fair value adjustment based on State Bank's evaluation of acquired deposits. The following table presents certain pro forma information as if AloStar had been acquired on January 1, 2017 (dollars in thousands, except per share amounts) . These results combine the historical results of AloStar in the Company's consolidated statements of income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2017. Merger-related costs are not included in the pro forma statements below. Nine Months Ended September 30 2018 2017 Pro Forma Pro Forma Net interest income $ 169,571 $ 166,354 Net income 55,865 48,387 Earnings per share: Basic $ 1.43 $ 1.24 Diluted 1.43 1.24 The following is a summary of the purchased credit impaired loans acquired in the AloStar transaction on September 30, 2017 (dollars in thousands) : Purchased Credit Impaired Loans Contractually required principal and interest at acquisition $ 108,308 Contractual cash flows not expected to be collected (nonaccretable difference) (19,093 ) Expected cash flows at acquisition 89,215 Accretable difference (11,664 ) Basis in acquired loans at acquisition - estimated fair value $ 77,551 On September 30, 2017, the fair value of the purchased non-credit impaired loans acquired in the AloStar transaction was $641.0 million . The gross contractual amounts receivable of the purchased non-credit impaired loans at acquisition was $707.0 million , of which $9.3 million was the amount of contractual cash flows not expected to be collected.