on december 26 , 2013 , the frb approved the company 's request to pay outstanding cumulative dividends on its series a preferred stock . these deferred dividends were paid by the company on february 18 , 2014 . 15 index a summary of our results of operations and financial condition and select metrics is included in the following table : replace_table_token_3_th as a bank holding company , management focuses on key ratios in evaluating the company 's financial condition and results of operations . in the current economic environment , key ratios regarding asset credit quality and efficiency are more informative as to the financial condition of the company than those utilized in a more normal economic period such as return on equity and return on assets . asset quality for all banks and bank holding companies , asset quality plays a significant role in the overall financial condition of the institution and results of operations . the company measures asset quality in terms of nonaccrual loans as a percentage of gross loans , and net charge-offs as a percentage of average loans . net charge-offs are calculated as the difference between charged-off loans and recovery payments received on previously charged-off loans . the following table summarizes asset quality metrics : replace_table_token_4_th asset and deposit growth the ability to originate new loans and attract new deposits is fundamental to the company 's asset growth . the company 's assets and liabilities are comprised primarily of loans and deposits . total assets increased to $ 539.0 million at december 31 , 2013 from $ 532.1 million at december 31 , 2012. total loans including net deferred fees and unearned income increased by $ 12.8 million , or 2.9 % , to $ 462.0 million as of december 31 , 2013 compared to december 31 , 2012. total deposits increased slightly to $ 436.1 million as of december 31 , 2013 from $ 434.2 million as of december 31 , 2012 . 16 index results of operatons the following table sets forth a summary financial overview for the comparable years : replace_table_token_5_th 17 index interest rates and differentials the following table illustrates average yields on interest-earning assets and average rates on interest-bearing liabilities for the periods indicated : replace_table_token_6_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest income is the difference between the interest and fees earned on loans and investments and the interest expense paid on deposits and liabilities . the amount by which interest income will exceed interest expense depends on the volume or balance of earning assets compared to the volume or balance of interest-bearing deposits and liabilities and the interest rate earned on those interest-earning assets compared to the interest rate paid on those interest-bearing liabilities . net interest margin is computed by dividing net interest income by total average earning assets . it is used to measure the difference between the average rate of interest earned on assets and the average rate of interest that must be paid on liabilities used to fund those assets . to maintain its net interest margin , the company must manage the relationship between interest earned and paid . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . ( 4 ) certain amounts have been reclassified to conform to the current year presentation . 18 index replace_table_token_7_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest income is the difference between the interest and fees earned on loans and investments and the interest expense paid on deposits and liabilities . the amount by which interest income will exceed interest expense depends on the volume or balance of earning assets compared to the volume or balance of interest-bearing deposits and liabilities and the interest rate earned on those interest-earning assets compared to the interest rate paid on those interest-bearing liabilities .. net interest margin is computed by dividing net interest income by total average earning assets . it is used to measure the difference between the average rate of interest earned on assets and the average rate of interest that must be paid on liabilities used to fund those assets . to maintain its net interest margin , the company must manage the relationship between interest earned and paid . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . ( 4 ) certain amounts have been reclassified to conform to the current year presentation . 19 index the table below sets forth the relative impact on net interest income of changes in the volume of earning assets and interest-bearing liabilities and changes in rates earned and paid by the company on such assets and liabilities . for purposes of this table , nonaccrual loans have been included in the average loan balances . replace_table_token_8_th ( 1 ) changes due to both volume and rate have been allocated to volume changes . comparison of interest income , interest expense and net interest margin the company 's primary source of revenue is interest income . interest income for the year ended december 31 , 2013 was $ 27.9 million a decrease from $ 31.4 million and $ 36.5 million , respectively for the years ended december 31 , 2012 and 2011. the majority of the declines in interest income resulted from lower average earning assets and decreased yields in 2013 compared to 2012 and 2011. the decrease in average earning assets was the result of strategic planning to reduce the balance sheet and problem assets . the yield on interest-earning assets for 2013 compared to 2012 and 2011 decreased to 5.34 % mostly due to decreased yields on loans . story_separator_special_tag the loans are serviced internally and are originated under one of two programs : fixed rate loans written for terms of 10 to 25 years ; and adjustable rate loans written for a terms of 25 to 30 years with the initial interest rates fixed for the first 5 or 10 years and then adjusting annually subject to caps and floors . heloc the bank provides lines of credit collateralized by residential real estate , home equity lines of credit ( “ heloc ” ) , for consumer related purposes . typically , helocs are collateralized by a second deed of trust . the combined loan-to-value , first trust deed and second trust deed , are not to exceed 75 % on all new helocs . other installment loans installment loans consist of automobile and general-purpose loans made to individuals . 26 index the following table sets forth the amount of loans outstanding by type of loan as of december 31 , 2013 that were contractually due in one year or less , more than one year and less than five years , and more than five years based on remaining scheduled repayments of principal . lines of credit or other loans having no stated final maturity and no stated schedule of repayments are reported as due in one year or less . the tables also present an analysis of the rate structure for loans within the same maturity time periods . actual cash flows from these loans may differ materially from contractual maturities due to prepayment , refinancing or other factors . replace_table_token_14_th at december 31 , 2013 , total loans consisted of 77.8 % with floating rates and 22.2 % with fixed rates . the following table presents total gross loans based on remaining scheduled contractual repayments of principal as of the periods indicated : replace_table_token_15_th concentrations of lending activities the company 's lending activities are primarily driven by the customers served in the market areas where the company has branch offices in the central coast of california . the company monitors concentrations within five broad categories : geography , industry , product , call code , and collateral . the company grants manufactured housing , commercial , sba , construction , real estate and consumer loans to customers through branch offices located in the company 's primary markets . the company 's business is concentrated in these areas and the loan portfolio includes significant credit exposure to the manufactured housing and commercial real estate markets of these areas . as of december 31 , 2013 and 2012 , manufactured housing comprised 36.3 % and 38.3 % , respectively of total loans . the company performs a monthly analysis of the manufactured housing loan portfolio which includes weighted average and stratification of various components of credit quality , including loan-to-value , borrower fico score , loan maturity , debt-to-income ratio , loan amount , mobile home age , mobile home park and location . this concentration is somewhat mitigated by the fact that the portfolio consists of 1,786 individual borrowers as of december 31 , 2013 in over 50 mobile home parks . the bank analyzes these concentrations on a quarterly basis and reports the risk related to concentrations to the board of directors . management believes the systems in place coupled with the diversity of the portfolios are adequate to mitigate concentration risk . as of december 31 , 2013 and 2012 , commercial real estate loans accounted for approximately 30.1 % and 27.3 % of total loans , respectively . approximately 62.2 % and 59.1 % of these commercial real estate loans were owner-occupied at december 31 , 2013 and 2012 , respectively . substantially all of these loans are secured by first liens with an average loan to value ratios of 48.5 % and 47.8 % at december 31 , 2013 and 2012 , respectively . the company was within established policy limits at december 31 , 2013 and 2012 . 27 index interest reserves interest reserves are generally established at the time of the loan origination as an expense item in the budget for a construction and land development loan . the company 's practice is to monitor the construction , sales and or leasing progress to determine the feasibility of ongoing construction and development projects . if , at any time during the life of the loan , the project is determined not to be viable , the company discontinues the use of the interest reserve and may take appropriate action to protect its collateral position via renegotiation and or legal action as deemed appropriate . at december 31 , 2013 , the company had five loans with an outstanding balance of $ 5.7 million with available interest reserves of $ 0.1 million . impaired loans a loan is considered impaired when , based on current information ; it is probable that the company will be unable to collect the scheduled payments of principal and or interest under the contractual terms of the loan agreement . factors considered by management in determining impairment include payment status , collateral value and the probability of collecting scheduled principal and or interest payments . loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired . management determines the significance of payment delays or payment shortfalls on a case-by-case basis . when determining the possibility of impairment , management considers the circumstances surrounding the loan and the borrower , including the length of the delay , the reasons for the delay , the borrower 's prior payment record and the amount of the shortfall in relation to the principal and interest owed . for collateral-dependent loans , the company uses the fair value of collateral method to measure impairment . all other loans are measured for impairment based on the present value of future cash flows . impairment is measured on a loan-by-loan basis for all loans in the portfolio . a

liquidity liquidity is the ongoing ability to accommodate liability maturities and deposit withdrawals , fund asset growth and business operations , and meet contractual obligations through unconstrained access to funding at reasonable market rates . liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in our business operations or unanticipated events . the ability to have readily available funds sufficient to repay fully maturing liabilities is of primary importance to depositors , creditors and regulators . our liquidity , represented by cash and amounts due from banks , federal funds sold and non-pledged marketable securities , is a result of our operating , investing and financing activities and related cash flows . in order to ensure funds are available when necessary , on at least a quarterly basis , we project the amount of funds that will be required , and we strive to maintain relationships with a diversified customer base . liquidity requirements can also be met through short-term borrowings or the disposition of short-term assets . the company has federal funds borrowing lines at correspondent banks totaling $ 10 million . in addition , loans and securities are pledged to the fhlb providing $ 61.4 million in available borrowing capacity as of december 31 , 2013. loans and securities pledged to the frb discount window provided $ 123.9 million in borrowing capacity . as of december 31 , 2013 , there were no outstanding borrowings from the frb . 37 index the company has established policies as well as analytical tools to manage liquidity . proper liquidity management ensures that sufficient funds are available to meet normal operating demands in addition to unexpected customer demand for funds , such as high levels of deposit withdrawals or increased loan demand , in a timely and cost effective manner . the most important factor in the preservation of liquidity is maintaining public confidence that facilitates the retention and growth of core deposits . ultimately , public confidence is gained through profitable operations , sound credit quality and a strong capital position .


 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 liquidity is the ongoing ability to accommodate liability maturities and deposit withdrawals , fund asset growth and business operations , and meet contractual obligations through unconstrained access to funding at reasonable market rates . liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in our business operations or unanticipated events . the ability to have readily available funds sufficient to repay fully maturing liabilities is of primary importance to depositors , creditors and regulators . our liquidity , represented by cash and amounts due from banks , federal funds sold and non-pledged marketable securities , is a result of our operating , investing and financing activities and related cash flows . in order to ensure funds are available when necessary , on at least a quarterly basis , we project the amount of funds that will be required , and we strive to maintain relationships with a diversified customer base . liquidity requirements can also be met through short-term borrowings or the disposition of short-term assets . the company has federal funds borrowing lines at correspondent banks totaling $ 10 million . in addition , loans and securities are pledged to the fhlb providing $ 61.4 million in available borrowing capacity as of december 31 , 2013. loans and securities pledged to the frb discount window provided $ 123.9 million in borrowing capacity . as of december 31 , 2013 , there were no outstanding borrowings from the frb . 37 index the company has established policies as well as analytical tools to manage liquidity . proper liquidity management ensures that sufficient funds are available to meet normal operating demands in addition to unexpected customer demand for funds , such as high levels of deposit withdrawals or increased loan demand , in a timely and cost effective manner . the most important factor in the preservation of liquidity is maintaining public confidence that facilitates the retention and growth of core deposits . ultimately , public confidence is gained through profitable operations , sound credit quality and a strong capital position .
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 Suspicious Activity Report : on december 26 , 2013 , the frb approved the company 's request to pay outstanding cumulative dividends on its series a preferred stock . these deferred dividends were paid by the company on february 18 , 2014 . 15 index a summary of our results of operations and financial condition and select metrics is included in the following table : replace_table_token_3_th as a bank holding company , management focuses on key ratios in evaluating the company 's financial condition and results of operations . in the current economic environment , key ratios regarding asset credit quality and efficiency are more informative as to the financial condition of the company than those utilized in a more normal economic period such as return on equity and return on assets . asset quality for all banks and bank holding companies , asset quality plays a significant role in the overall financial condition of the institution and results of operations . the company measures asset quality in terms of nonaccrual loans as a percentage of gross loans , and net charge-offs as a percentage of average loans . net charge-offs are calculated as the difference between charged-off loans and recovery payments received on previously charged-off loans . the following table summarizes asset quality metrics : replace_table_token_4_th asset and deposit growth the ability to originate new loans and attract new deposits is fundamental to the company 's asset growth . the company 's assets and liabilities are comprised primarily of loans and deposits . total assets increased to $ 539.0 million at december 31 , 2013 from $ 532.1 million at december 31 , 2012. total loans including net deferred fees and unearned income increased by $ 12.8 million , or 2.9 % , to $ 462.0 million as of december 31 , 2013 compared to december 31 , 2012. total deposits increased slightly to $ 436.1 million as of december 31 , 2013 from $ 434.2 million as of december 31 , 2012 . 16 index results of operatons the following table sets forth a summary financial overview for the comparable years : replace_table_token_5_th 17 index interest rates and differentials the following table illustrates average yields on interest-earning assets and average rates on interest-bearing liabilities for the periods indicated : replace_table_token_6_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest income is the difference between the interest and fees earned on loans and investments and the interest expense paid on deposits and liabilities . the amount by which interest income will exceed interest expense depends on the volume or balance of earning assets compared to the volume or balance of interest-bearing deposits and liabilities and the interest rate earned on those interest-earning assets compared to the interest rate paid on those interest-bearing liabilities . net interest margin is computed by dividing net interest income by total average earning assets . it is used to measure the difference between the average rate of interest earned on assets and the average rate of interest that must be paid on liabilities used to fund those assets . to maintain its net interest margin , the company must manage the relationship between interest earned and paid . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . ( 4 ) certain amounts have been reclassified to conform to the current year presentation . 18 index replace_table_token_7_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest income is the difference between the interest and fees earned on loans and investments and the interest expense paid on deposits and liabilities . the amount by which interest income will exceed interest expense depends on the volume or balance of earning assets compared to the volume or balance of interest-bearing deposits and liabilities and the interest rate earned on those interest-earning assets compared to the interest rate paid on those interest-bearing liabilities .. net interest margin is computed by dividing net interest income by total average earning assets . it is used to measure the difference between the average rate of interest earned on assets and the average rate of interest that must be paid on liabilities used to fund those assets . to maintain its net interest margin , the company must manage the relationship between interest earned and paid . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . ( 4 ) certain amounts have been reclassified to conform to the current year presentation . 19 index the table below sets forth the relative impact on net interest income of changes in the volume of earning assets and interest-bearing liabilities and changes in rates earned and paid by the company on such assets and liabilities . for purposes of this table , nonaccrual loans have been included in the average loan balances . replace_table_token_8_th ( 1 ) changes due to both volume and rate have been allocated to volume changes . comparison of interest income , interest expense and net interest margin the company 's primary source of revenue is interest income . interest income for the year ended december 31 , 2013 was $ 27.9 million a decrease from $ 31.4 million and $ 36.5 million , respectively for the years ended december 31 , 2012 and 2011. the majority of the declines in interest income resulted from lower average earning assets and decreased yields in 2013 compared to 2012 and 2011. the decrease in average earning assets was the result of strategic planning to reduce the balance sheet and problem assets . the yield on interest-earning assets for 2013 compared to 2012 and 2011 decreased to 5.34 % mostly due to decreased yields on loans . story_separator_special_tag the loans are serviced internally and are originated under one of two programs : fixed rate loans written for terms of 10 to 25 years ; and adjustable rate loans written for a terms of 25 to 30 years with the initial interest rates fixed for the first 5 or 10 years and then adjusting annually subject to caps and floors . heloc the bank provides lines of credit collateralized by residential real estate , home equity lines of credit ( “ heloc ” ) , for consumer related purposes . typically , helocs are collateralized by a second deed of trust . the combined loan-to-value , first trust deed and second trust deed , are not to exceed 75 % on all new helocs . other installment loans installment loans consist of automobile and general-purpose loans made to individuals . 26 index the following table sets forth the amount of loans outstanding by type of loan as of december 31 , 2013 that were contractually due in one year or less , more than one year and less than five years , and more than five years based on remaining scheduled repayments of principal . lines of credit or other loans having no stated final maturity and no stated schedule of repayments are reported as due in one year or less . the tables also present an analysis of the rate structure for loans within the same maturity time periods . actual cash flows from these loans may differ materially from contractual maturities due to prepayment , refinancing or other factors . replace_table_token_14_th at december 31 , 2013 , total loans consisted of 77.8 % with floating rates and 22.2 % with fixed rates . the following table presents total gross loans based on remaining scheduled contractual repayments of principal as of the periods indicated : replace_table_token_15_th concentrations of lending activities the company 's lending activities are primarily driven by the customers served in the market areas where the company has branch offices in the central coast of california . the company monitors concentrations within five broad categories : geography , industry , product , call code , and collateral . the company grants manufactured housing , commercial , sba , construction , real estate and consumer loans to customers through branch offices located in the company 's primary markets . the company 's business is concentrated in these areas and the loan portfolio includes significant credit exposure to the manufactured housing and commercial real estate markets of these areas . as of december 31 , 2013 and 2012 , manufactured housing comprised 36.3 % and 38.3 % , respectively of total loans . the company performs a monthly analysis of the manufactured housing loan portfolio which includes weighted average and stratification of various components of credit quality , including loan-to-value , borrower fico score , loan maturity , debt-to-income ratio , loan amount , mobile home age , mobile home park and location . this concentration is somewhat mitigated by the fact that the portfolio consists of 1,786 individual borrowers as of december 31 , 2013 in over 50 mobile home parks . the bank analyzes these concentrations on a quarterly basis and reports the risk related to concentrations to the board of directors . management believes the systems in place coupled with the diversity of the portfolios are adequate to mitigate concentration risk . as of december 31 , 2013 and 2012 , commercial real estate loans accounted for approximately 30.1 % and 27.3 % of total loans , respectively . approximately 62.2 % and 59.1 % of these commercial real estate loans were owner-occupied at december 31 , 2013 and 2012 , respectively . substantially all of these loans are secured by first liens with an average loan to value ratios of 48.5 % and 47.8 % at december 31 , 2013 and 2012 , respectively . the company was within established policy limits at december 31 , 2013 and 2012 . 27 index interest reserves interest reserves are generally established at the time of the loan origination as an expense item in the budget for a construction and land development loan . the company 's practice is to monitor the construction , sales and or leasing progress to determine the feasibility of ongoing construction and development projects . if , at any time during the life of the loan , the project is determined not to be viable , the company discontinues the use of the interest reserve and may take appropriate action to protect its collateral position via renegotiation and or legal action as deemed appropriate . at december 31 , 2013 , the company had five loans with an outstanding balance of $ 5.7 million with available interest reserves of $ 0.1 million . impaired loans a loan is considered impaired when , based on current information ; it is probable that the company will be unable to collect the scheduled payments of principal and or interest under the contractual terms of the loan agreement . factors considered by management in determining impairment include payment status , collateral value and the probability of collecting scheduled principal and or interest payments . loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired . management determines the significance of payment delays or payment shortfalls on a case-by-case basis . when determining the possibility of impairment , management considers the circumstances surrounding the loan and the borrower , including the length of the delay , the reasons for the delay , the borrower 's prior payment record and the amount of the shortfall in relation to the principal and interest owed . for collateral-dependent loans , the company uses the fair value of collateral method to measure impairment . all other loans are measured for impairment based on the present value of future cash flows . impairment is measured on a loan-by-loan basis for all loans in the portfolio . a

