On November 1, 2017, of the transactions contemplated by the Agreement and Plan of Merger and Reorganization dated as of June 9, 2017, by and between First South Bancorp Inc. and Carolina Financial Corporation. Pursuant to the Merger Agreement, on November 1, 2017, the First South Bancorp Inc. merged with and into CARO, with CARO as the surviving corporation in the Merger. Immediately following the consummation of the Merger, First South Bank, a wholly owned subsidiary of the First South Bancorp Inc., merged with and into CresCom Bank, a wholly owned subsidiary of CARO, with CresCom Bank as the surviving bank in the Bank Merger. The directors of CARO in office immediately prior to the Merger will serve as directors of the surviving corporation. In addition, CARO has appointed Frederick N. Holscher and Lindsey A. Crisp, each of whom was a member of the First South Bancorp Inc.'s board of directors, to the board of directors of the surviving corporation.