NOTE 2  BUSINESS COMBINATIONS On November 1, 2017, the Company acquired all of the common stock of First South Bancorp, Inc., the holding company for First South Bank (First South). Under the terms of the merger agreement, each share of First South common stock was converted into the right to receive 0.5064 shares of the Companys common stock. The following table presents a summary of total consideration paid by the Company at the acquisition date (dollars in thousand). Common stock issued (4,822,540 shares at $36.85 per share) $ 177,711 Cash in lieu of fractional shares and fair value of stock options 983 Total consideration paid $ 178,694 The assets acquired and liabilities assumed from First South were recorded at their fair value as of the closing date of the merger. Fair values were 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 became available. Goodwill of $90.3 million was recorded at the time of the acquisition. The following table summarizes the consideration paid by the Company in the merger with First South and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. As Reported by Fair Value As Recorded by November 1, 2017 First South Adjustments the Company Assets (In thousands) Cash and cash equivalents $ 66,109  66,109 Securities available-for-sale 186,038  186,038 Federal Home Loan Bank stock 1,593  1,593 Loans held for sale 1,282  1,282 Loans receivable 783,779 (24,620 )(a) 759,159 Allowance for loan losses (9,495 ) 9,495 (b)  Premises and equipment 10,761 1,500 (c) 12,261 Foreclosed assets 1,922 (556 )(d) 1,366 Core deposit intangible 1,410 11,090 (e) 12,500 Deferred tax asset, net 3,961 238 (f) 4,199 Other assets 33,552 (3,417 )(g) 30,135 Total assets acquired $ 1,080,912 (6,270 ) 1,074,642 Liabilities Deposits $ 952,573 78 (h) 952,651 Borrowings 26,810 (1,439 )(i) 25,371 Other liabilities 8,515 (284 )(j) 8,231 Total liabilities assumed $ 987,898 (1,645 ) 986,253 Net identifiable assets acquired over liabilities assumed 88,389 Total consideration paid 178,694 Goodwill $ 90,305 Explanation of fair value adjustments: (a) Represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. (b) Reflects the elimination of First Souths historical allowance for loan losses. (c) Reflects fair value adjustments on acquired branch and administrative offices based on the Companys assessment. (d) Reflects the impact of acquisition accounting fair value adjustments. (e) Reflects the fair value adjustment to record the estimated core deposit intangible based on the Companys assessment. (f) Reflects the tax impact of acquisition accounting fair value adjustments. (g) Reflects the fair value adjustment based on the Companys evaluation of acquired other assets. (h) Represents the fair value adjustment due to interest rate factors. (i) Represents the fair value adjustment due to interest rate factors. (j) Reflects the fair value adjustment based on the Companys evaluation of acquired other liabilities. Acquisition of Greer Bancshares Incorporated On March 18, 2017, the Company completed its acquisition of Greer Bancshares Incorporated (Greer), the holding company for Greer State Bank. Under the terms of the merger agreement, each share of Greer common stock was converted into the right to receive $18.00 in cash or 0.782 shares of the Companys common stock, or a combination thereof, subject to certain limitations. The following table presents a summary of total consideration paid by the Company at the acquisition date (dollars in thousand). Common stock issued (1,789,523 shares at $30.30 per share) $ 54,223 Cash payments to common stockholders 4,422 Total consideration paid $ 58,645 The assets acquired and liabilities assumed from Greer were recorded at their fair value as of the closing date of the merger. Fair values were 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 became available. Goodwill of $33.0 million was recorded at the time of the acquisition. The following table summarizes the consideration paid by the Company in the merger with Greer and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. As Reported Fair Value As Recorded by March 18, 2017 by Greer Adjustments the Company Assets (In thousands) Cash and cash equivalents $ 42,187  42,187 Securities available for sale 121,374  121,374 Loans held for sale 105  105 Loans receivable 205,209 (10,559 )(a) 194,650 Allowance for loan losses (3,198 ) 3,198 (b)  Premises and equipment 3,928 4,202 (c) 8,130 Foreclosed assets 42  42 Core deposit intangible  4,480 (d) 4,480 Deferred tax asset, net 3,831 (1,434 )(e) 2,397 Other assets 11,367 (241 )(f) 11,126 Total assets acquired $ 384,845 (354 ) 384,491 Liabilities Deposits $ 310,866 200 (g) 311,066 Borrowings 43,712 (3,510 )(h) 40,202 Other liabilities 7,086 512 (i) 7,598 Total liabilities assumed $ 361,664 (2,798 ) 358,866 Net identifiable assets acquired over liabilities assumed 25,625 Total consideration paid 58,645 Goodwill $ 33,020 Explanation of fair value adjustments: (a) Adjustment represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. (b) Adjustment reflects the elimination of Greers historical allowance for loan losses. (c) Adjustment reflects fair value adjustments on acquired branch and administrative offices based on third party appraisals. (d) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Companys third party valuation report. (e) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. (f) Adjustment reflects the fair value adjustment based on the Companys evaluation of acquired other assets. (g) Adjustment represents the fair value adjustment due to interest rate factors. (h) Adjustment represents the fair value adjustment due to interest rate factors. (i) Adjustment reflects the fair value adjustment based on the Companys evaluation of acquired other liabilities.