( see “ factors that may affect our performance . ” ) critical accounting policies the following discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements and the notes thereto , which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these consolidated financial statements requires us to make a number of estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements . on an ongoing basis , we evaluate our estimates and assumptions based upon historical experience and various factors and circumstances . we believe that our estimates and assumptions are reasonable under the circumstances . however , actual results may differ significantly from these estimates and assumptions that could have a material effect on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods . securities . currently , we classify securities as either trading , available-for-sale or held-to-maturity . trading securities are those securities for which we have elected fair value accounting . trading securities are recorded at fair value with changes in fair value recorded in earnings each period . securities available-for-sale are reported at estimated fair value , with unrealized gains and losses , net of the related tax effects , excluded from operations and reported as a separate component of accumulated other comprehensive income or loss . the fair values of securities traded in active markets are obtained from market quotes . if quoted prices in active markets are not available , we determine the fair values by utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets . to determine the performance of the underlying mortgage loan pools , we consider where appropriate borrower prepayments , defaults , and loss severities based on a number of macroeconomic factors , including housing price changes , unemployment rates , interest rates and borrower attributes such as credit score and loan documentation at the time of origination . we input for each security our projections of monthly default rates , loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of the security to determine the expected cash flows . the projections of default rates are derived by the company from the historic default rate observed in the pool of loans collateralizing the security , increased by ( or decreased by ) the forecasted increase or decrease in the national unemployment rate . the projections of loss severity rates are derived by the company from the historic loss severity rate observed in the pool of loans , increased by ( or decreased by ) the forecasted decrease or increase in the national home price appreciation ( hpa ) index . to determine the discount rates used to compute the present value of the expected cash flows for these non-agency mbs securities , we separate the securities by the borrower characteristics in the underlying pool . for example , non-agency rmbs “ prime ” securities generally have borrowers with higher fico scores and better documentation of income . “ alt-a ” securities generally have borrowers with lower fico and less documentation of income . “ pay-option arms ” are alt-a securities 27 with borrowers that tend to pay the least amount of principal ( or increase their loan balance through negative amortization ) . separate discount rates are calculated for prime , alt-a and pay-option arm non-agency mbs securities using market-participant assumptions for risk , capital and return on equity . securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at amortized cost . amortization of purchase premiums and accretion of discounts on securities are recorded as yield adjustments on such securities using the effective interest method . the specific identification method is used for purposes of determining cost in computing realized gains and losses on investment securities sold . at each reporting date , we monitor our available-for-sale and held-to-maturity securities for other-than-temporary impairment . the company measures its debt securities in an unrealized loss position at the end of the reporting period for other-than-temporary impairment by comparing the present value of the cash flows currently expected to be collected from the security with its amortized cost basis . if the calculated present value is lower than the amortized cost , the difference is the credit component of an other-than-temporary impairment of its debt securities . the excess of the present value over the fair value of the security ( if any ) is the noncredit component of the impairment , only if the company does not intend to sell the security and will not be required to sell the security before recovery of its amortized cost basis . the credit component of the other-than-temporary-impairment is recorded as a loss in earnings and the noncredit component is recorded as a charge to other comprehensive income , net of the related income tax benefit . for non-agency rmbs we determine the cash flow expected to be collected and calculate the present value for purposes of testing for other-than-temporary impairment , by utilizing the same industry-standard tool and the same cash flows as those calculated for fair values ( discussed above ) . we compute cash flows based upon the underlying mortgage loan pools and our estimates of prepayments , defaults , and loss severities . we input our projections for the underlying mortgages for the remaining life of the security to determine the expected cash flows . story_separator_special_tag provision for loan losses was $ 5.8 million for the fiscal year ended june 30 , 2011 and $ 5.8 million for fiscal 2010. the provisions are made to maintain our allowance for loan losses at levels which management believes to be adequate . the assessment of the adequacy of our allowance for loan losses is based upon a number of quantitative and qualitative factors , including levels and trends of past due and nonaccrual loans , loss history and changes in the volume and mix of loans and collateral values . see “ asset quality and allowance for loan loss ” for discussion of our allowance for loan loss and the related loss provisions . non-interest income . the following table sets forth information regarding our non-interest income : replace_table_token_25_th non-interest income totaled $ 8.0 million for the fiscal year ended june 30 , 2011 compared to non-interest income of $ 8.3 million for fiscal 2010. realized gains on securities decreased by $ 10.6 million in fiscal 2011 mainly from the slower selling of mortgage backed securities compared to fiscal 2010. the decrease of $ 6.2 million in unrealized loss on securities in fiscal 2011 was primarily the result of a decrease of $ 4.5 million in net other-than-temporary impairment ( otti ) loss offset by a fair value improvement of $ 1.7 million on collateralized debt obligations ( cdo 's ) . other activity included in total non-interest income is the increase in mortgage banking income in fiscal 2011 over fiscal 2010 of $ 3.0 million or 179.3 % , due to our increased focus on originating single family and multifamily loans for sale . increased prepayment penalty income of $ 1.0 million in fiscal 2011 was generally the result of specialty consumer loans . 34 non-interest expense . the following table sets forth information regarding our non-interest expense : replace_table_token_26_th non-interest expense totaled $ 26.5 million for the fiscal year ended june 30 , 2011 , an increase of $ 9.3 million compared to fiscal 2010. salaries , employee benefits and stock-based compensation increased $ 7.2 million in fiscal 2011 due to increased staffing . we grew to 173 employees at june 30 , 2011 , up from 90 at the end of fiscal 2010 , primarily due to growth in our lending businesses . professional services , which include accounting and legal fees , increased $ 0.6 million in fiscal 2011 compared to 2010. the increase in professional services was primarily due to contract underwriters , legal fees on loan collection and foreclosure matters . advertising and promotion expense increased $ 0.6 million , primarily due to increased reliance on third party efforts connected to the single family mortgages and an increase in multifamily advertising . fdic and ots regulatory fees increased by $ 0.5 million in fiscal 2011 , primarily due to the growth in deposits . real estate owned , repossessed rv losses and collection expenses decreased by $ 1.1 million due to the management and disposition of loan collateral . other general and administrative costs increased $ 0.7 million in fiscal 2011 relative to the increase in deposit and loan activity as well as the number of staff . income tax expense . income tax expense was $ 13.6 million for the fiscal year ended june 30 , 2011 compared to $ 14.8 million for fiscal 2010. our effective tax rates were 39.78 % and 41.11 % for the fiscal year ended june 30 , 2011 and 2010 , respectively . comparison of financial condition at june 30 , 2012 and june 30 , 2011 our total assets increased $ 446.7 million , or 23.0 % , to $ 2,386.8 million , as of june 30 , 2012 , up from $ 1,940.1 million at june 30 , 2011. the loan portfolio increased a net $ 395.5 million , primarily from portfolio loan originations of $ 732.8 million less principal repayments of $ 278.2 million . loans held for sale increased $ 59.1 million and investment securities decreased $ 38.3 million as principal repayments exceeded new security investments . total liabilities increased by $ 387.9 million or 21.6 % , to $ 2,180.2 million at june 30 , 2012 , up from $ 1,792.3 million at june 30 , 2011. the increase in total liabilities resulted primarily from growth in demand , savings and time deposits of $ 274.8 million and growth in fhlb borrowings of $ 117.0 million . stockholders ' equity increased by $ 58.8 million , or 39.8 % , to $ 206.6 million at june 30 , 2012 , up from $ 147.8 million at june 30 , 2011. the increase was primarily the result of $ 29.5 million in net income for the fiscal year , the net issuance of preferred stock of $ 19.5 million and the net issuance of common stock of $ 13.3 million . 35 asset quality and allowance for loan loss non-performing loans and foreclosed assets or “ non-performing assets ” consisted of the following : replace_table_token_27_th our non-performing assets decreased $ 0.9 million to $ 18.3 million or 0.77 % of assets at june 30 , 2012 compared to $ 19.2 million or 0.99 % of assets at june 30 , 2011. the decrease in non-performing assets during fiscal 2012 was composed of a decrease in foreclosed real estate and repossessed vehicles of $ 8.4 million , offset by an increase in non-performing loans of $ 7.5 million . the increase in non-performing assets during fiscal 2011 was composed of a decrease in non-performing loans of $ 2.1 million , offset by an increase in foreclosed real estate and repossessed vehicles of $ 6.9 million . the increase in non-performing loans as a percent of total loans is the result of one multifamily loan and 14 single family loans . foreclosed real estate and repossessed vehicles were reduced through the management and disposition of collateral . approximately 23.09 % of our non-performing

liquidity and capital resources liquidity . our sources of liquidity include deposits , borrowings , payments and maturities of outstanding loans , sales of loans , maturities or gains on sales of investment securities and other short-term investments . while scheduled loan payments and maturing investment securities and short-term investments are relatively predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally invest excess funds in overnight deposits and other short-term interest-earning assets . we use cash generated through retail deposits , our largest funding source , to offset the cash utilized in lending and investing activities . our short-term interest-earning investment securities are also used to provide liquidity for lending and other operational requirements . as an additional source of funds , we have three credit agreements . bofi federal bank can borrow up to 40 % of its total assets from the fhlb . borrowings are collateralized by pledging certain mortgage loans and investment securities to the fhlb . based on loans and securities pledged at june 30 , 2012 , we had a total borrowing availability of approximately $ 873.6 million , of which $ 422.0 million was outstanding with $ 451.6 million available immediately and $ 38.1 million available with additional collateral . the bank can also borrow from the discount window at the frb . frb borrowings are collateralized by consumer loans and mortgage-backed securities pledged to the frb . based on loans and securities pledged at june 30 , 2012 , we had a total borrowing capacity of approximately $ 74.2 million , all of which was available for use . at june 30 , 2012 , we also had $ 20.0 million in unsecured fed funds purchase lines with two major banks under which there were no borrowings outstanding .


 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 and capital resources liquidity . our sources of liquidity include deposits , borrowings , payments and maturities of outstanding loans , sales of loans , maturities or gains on sales of investment securities and other short-term investments . while scheduled loan payments and maturing investment securities and short-term investments are relatively predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally invest excess funds in overnight deposits and other short-term interest-earning assets . we use cash generated through retail deposits , our largest funding source , to offset the cash utilized in lending and investing activities . our short-term interest-earning investment securities are also used to provide liquidity for lending and other operational requirements . as an additional source of funds , we have three credit agreements . bofi federal bank can borrow up to 40 % of its total assets from the fhlb . borrowings are collateralized by pledging certain mortgage loans and investment securities to the fhlb . based on loans and securities pledged at june 30 , 2012 , we had a total borrowing availability of approximately $ 873.6 million , of which $ 422.0 million was outstanding with $ 451.6 million available immediately and $ 38.1 million available with additional collateral . the bank can also borrow from the discount window at the frb . frb borrowings are collateralized by consumer loans and mortgage-backed securities pledged to the frb . based on loans and securities pledged at june 30 , 2012 , we had a total borrowing capacity of approximately $ 74.2 million , all of which was available for use . at june 30 , 2012 , we also had $ 20.0 million in unsecured fed funds purchase lines with two major banks under which there were no borrowings outstanding .
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 Suspicious Activity Report : ( see “ factors that may affect our performance . ” ) critical accounting policies the following discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements and the notes thereto , which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these consolidated financial statements requires us to make a number of estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements . on an ongoing basis , we evaluate our estimates and assumptions based upon historical experience and various factors and circumstances . we believe that our estimates and assumptions are reasonable under the circumstances . however , actual results may differ significantly from these estimates and assumptions that could have a material effect on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods . securities . currently , we classify securities as either trading , available-for-sale or held-to-maturity . trading securities are those securities for which we have elected fair value accounting . trading securities are recorded at fair value with changes in fair value recorded in earnings each period . securities available-for-sale are reported at estimated fair value , with unrealized gains and losses , net of the related tax effects , excluded from operations and reported as a separate component of accumulated other comprehensive income or loss . the fair values of securities traded in active markets are obtained from market quotes . if quoted prices in active markets are not available , we determine the fair values by utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets . to determine the performance of the underlying mortgage loan pools , we consider where appropriate borrower prepayments , defaults , and loss severities based on a number of macroeconomic factors , including housing price changes , unemployment rates , interest rates and borrower attributes such as credit score and loan documentation at the time of origination . we input for each security our projections of monthly default rates , loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of the security to determine the expected cash flows . the projections of default rates are derived by the company from the historic default rate observed in the pool of loans collateralizing the security , increased by ( or decreased by ) the forecasted increase or decrease in the national unemployment rate . the projections of loss severity rates are derived by the company from the historic loss severity rate observed in the pool of loans , increased by ( or decreased by ) the forecasted decrease or increase in the national home price appreciation ( hpa ) index . to determine the discount rates used to compute the present value of the expected cash flows for these non-agency mbs securities , we separate the securities by the borrower characteristics in the underlying pool . for example , non-agency rmbs “ prime ” securities generally have borrowers with higher fico scores and better documentation of income . “ alt-a ” securities generally have borrowers with lower fico and less documentation of income . “ pay-option arms ” are alt-a securities 27 with borrowers that tend to pay the least amount of principal ( or increase their loan balance through negative amortization ) . separate discount rates are calculated for prime , alt-a and pay-option arm non-agency mbs securities using market-participant assumptions for risk , capital and return on equity . securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at amortized cost . amortization of purchase premiums and accretion of discounts on securities are recorded as yield adjustments on such securities using the effective interest method . the specific identification method is used for purposes of determining cost in computing realized gains and losses on investment securities sold . at each reporting date , we monitor our available-for-sale and held-to-maturity securities for other-than-temporary impairment . the company measures its debt securities in an unrealized loss position at the end of the reporting period for other-than-temporary impairment by comparing the present value of the cash flows currently expected to be collected from the security with its amortized cost basis . if the calculated present value is lower than the amortized cost , the difference is the credit component of an other-than-temporary impairment of its debt securities . the excess of the present value over the fair value of the security ( if any ) is the noncredit component of the impairment , only if the company does not intend to sell the security and will not be required to sell the security before recovery of its amortized cost basis . the credit component of the other-than-temporary-impairment is recorded as a loss in earnings and the noncredit component is recorded as a charge to other comprehensive income , net of the related income tax benefit . for non-agency rmbs we determine the cash flow expected to be collected and calculate the present value for purposes of testing for other-than-temporary impairment , by utilizing the same industry-standard tool and the same cash flows as those calculated for fair values ( discussed above ) . we compute cash flows based upon the underlying mortgage loan pools and our estimates of prepayments , defaults , and loss severities . we input our projections for the underlying mortgages for the remaining life of the security to determine the expected cash flows . story_separator_special_tag provision for loan losses was $ 5.8 million for the fiscal year ended june 30 , 2011 and $ 5.8 million for fiscal 2010. the provisions are made to maintain our allowance for loan losses at levels which management believes to be adequate . the assessment of the adequacy of our allowance for loan losses is based upon a number of quantitative and qualitative factors , including levels and trends of past due and nonaccrual loans , loss history and changes in the volume and mix of loans and collateral values . see “ asset quality and allowance for loan loss ” for discussion of our allowance for loan loss and the related loss provisions . non-interest income . the following table sets forth information regarding our non-interest income : replace_table_token_25_th non-interest income totaled $ 8.0 million for the fiscal year ended june 30 , 2011 compared to non-interest income of $ 8.3 million for fiscal 2010. realized gains on securities decreased by $ 10.6 million in fiscal 2011 mainly from the slower selling of mortgage backed securities compared to fiscal 2010. the decrease of $ 6.2 million in unrealized loss on securities in fiscal 2011 was primarily the result of a decrease of $ 4.5 million in net other-than-temporary impairment ( otti ) loss offset by a fair value improvement of $ 1.7 million on collateralized debt obligations ( cdo 's ) . other activity included in total non-interest income is the increase in mortgage banking income in fiscal 2011 over fiscal 2010 of $ 3.0 million or 179.3 % , due to our increased focus on originating single family and multifamily loans for sale . increased prepayment penalty income of $ 1.0 million in fiscal 2011 was generally the result of specialty consumer loans . 34 non-interest expense . the following table sets forth information regarding our non-interest expense : replace_table_token_26_th non-interest expense totaled $ 26.5 million for the fiscal year ended june 30 , 2011 , an increase of $ 9.3 million compared to fiscal 2010. salaries , employee benefits and stock-based compensation increased $ 7.2 million in fiscal 2011 due to increased staffing . we grew to 173 employees at june 30 , 2011 , up from 90 at the end of fiscal 2010 , primarily due to growth in our lending businesses . professional services , which include accounting and legal fees , increased $ 0.6 million in fiscal 2011 compared to 2010. the increase in professional services was primarily due to contract underwriters , legal fees on loan collection and foreclosure matters . advertising and promotion expense increased $ 0.6 million , primarily due to increased reliance on third party efforts connected to the single family mortgages and an increase in multifamily advertising . fdic and ots regulatory fees increased by $ 0.5 million in fiscal 2011 , primarily due to the growth in deposits . real estate owned , repossessed rv losses and collection expenses decreased by $ 1.1 million due to the management and disposition of loan collateral . other general and administrative costs increased $ 0.7 million in fiscal 2011 relative to the increase in deposit and loan activity as well as the number of staff . income tax expense . income tax expense was $ 13.6 million for the fiscal year ended june 30 , 2011 compared to $ 14.8 million for fiscal 2010. our effective tax rates were 39.78 % and 41.11 % for the fiscal year ended june 30 , 2011 and 2010 , respectively . comparison of financial condition at june 30 , 2012 and june 30 , 2011 our total assets increased $ 446.7 million , or 23.0 % , to $ 2,386.8 million , as of june 30 , 2012 , up from $ 1,940.1 million at june 30 , 2011. the loan portfolio increased a net $ 395.5 million , primarily from portfolio loan originations of $ 732.8 million less principal repayments of $ 278.2 million . loans held for sale increased $ 59.1 million and investment securities decreased $ 38.3 million as principal repayments exceeded new security investments . total liabilities increased by $ 387.9 million or 21.6 % , to $ 2,180.2 million at june 30 , 2012 , up from $ 1,792.3 million at june 30 , 2011. the increase in total liabilities resulted primarily from growth in demand , savings and time deposits of $ 274.8 million and growth in fhlb borrowings of $ 117.0 million . stockholders ' equity increased by $ 58.8 million , or 39.8 % , to $ 206.6 million at june 30 , 2012 , up from $ 147.8 million at june 30 , 2011. the increase was primarily the result of $ 29.5 million in net income for the fiscal year , the net issuance of preferred stock of $ 19.5 million and the net issuance of common stock of $ 13.3 million . 35 asset quality and allowance for loan loss non-performing loans and foreclosed assets or “ non-performing assets ” consisted of the following : replace_table_token_27_th our non-performing assets decreased $ 0.9 million to $ 18.3 million or 0.77 % of assets at june 30 , 2012 compared to $ 19.2 million or 0.99 % of assets at june 30 , 2011. the decrease in non-performing assets during fiscal 2012 was composed of a decrease in foreclosed real estate and repossessed vehicles of $ 8.4 million , offset by an increase in non-performing loans of $ 7.5 million . the increase in non-performing assets during fiscal 2011 was composed of a decrease in non-performing loans of $ 2.1 million , offset by an increase in foreclosed real estate and repossessed vehicles of $ 6.9 million . the increase in non-performing loans as a percent of total loans is the result of one multifamily loan and 14 single family loans . foreclosed real estate and repossessed vehicles were reduced through the management and disposition of collateral . approximately 23.09 % of our non-performing

