accounting principles , policies and guidelines , and changes in the assumptions used in making such forward-looking statements . in addition , the factors described under `` risk factors `` in item 1a of this annual report on form 10-k , may result in these differences . you should carefully review all of these factors , and you should be aware that there may be other factors that could cause these differences . these forward-looking statements were based on information , plans and estimates at the date of this annual report , and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors , new information , future events or other changes . although the company believes that the expectations reflected in such forward-looking statements are reasonable , actual results may differ materially from the results discussed in these forward-looking statements . readers are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date hereof . the company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events . readers are also urged to carefully review and consider the various disclosures made by the company , which attempt to advise interested parties of the factors that affect the company 's business . critical accounting policies management 's discussion and analysis of the company 's financial condition and results of operations is based on the consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of such financial statements requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses and related disclosure of contingent assets and liabilities . on an ongoing basis , management evaluates its estimates , including those related to the allowance for loan losses , goodwill , the valuation of mortgage servicing rights , and other-than-temporary impairment on securities . management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis in making judgments about the carrying values of assets that are not readily apparent from the first bancorp - 2013 form 10-k - page 24 other sources . actual results could differ from the amounts derived from management 's estimates and assumptions under different assumptions or conditions . allowance for loan losses . management believes the allowance for loan losses requires the most significant estimates and assumptions used in the preparation of the consolidated financial statements . the allowance for loan losses is based on management 's evaluation of the level of the allowance required in relation to the estimated loss exposure in the loan portfolio . management believes the allowance for loan losses is a significant estimate and therefore regularly evaluates it to determine the appropriate level by taking into consideration factors such as prior loan loss experience , the character and size of the loan portfolio , business and economic conditions and management 's estimation of potential losses . the use of different estimates or assumptions could produce different provisions for loan losses . goodwill . management utilizes numerous techniques to estimate the value of various assets held by the company , including methods to determine the appropriate carrying value of goodwill as required under financial accounting standards board ( `` fasb `` ) accounting standards codification ( `` asc `` ) topic 350 `` intangibles – goodwill and other . `` goodwill from purchase acquisitions is subject to ongoing periodic evaluation for impairment . mortgage servicing rights . the valuation of mortgage servicing rights is a critical accounting policy which requires significant estimates and assumptions . the bank often sells mortgage loans it originates and retains the ongoing servicing of such loans , receiving a fee for these services , generally 0.25 % of the outstanding balance of the loan per annum . mortgage servicing rights are recognized at fair value when they are acquired through the sale of loans , and are reported in other assets . they are amortized into non-interest income in proportion to , and over the period of , the estimated future net servicing income of the underlying financial assets . the rights are subsequently carried at the lower of amortized cost or fair value . management uses an independent firm which specializes in the valuation of mortgage servicing rights to determine the fair value . the most important assumption is the anticipated loan prepayment rate , and increases in prepayment speed results in lower valuations of mortgage servicing rights . the valuation also includes an evaluation for impairment based upon the fair value of the rights , which can vary depending upon current interest rates and prepayment expectations , as compared to amortized cost . impairment is determined by stratifying rights by predominant characteristics , such as interest rates and terms . the use of different assumptions could produce a different valuation . all of the assumptions are based on standards the company believes would be utilized by market participants in valuing mortgage servicing rights and are consistently derived and or benchmarked against independent public sources . other-than-temporary impairment on securities . one of the significant estimates related to investment securities is the evaluation of other-than-temporary impairments . the evaluation of securities for other-than-temporary impairments is a quantitative and qualitative process , which is subject to risks and uncertainties and is intended to determine whether declines in the fair value of investments should be recognized in current period earnings . the risks and uncertainties include changes in general economic conditions , the issuer 's financial condition and or future prospects , the effects of changes in interest rates or credit spreads and the expected recovery period of unrealized losses . story_separator_special_tag the company 's efficiency ratio – a benchmark measure of the amount spent to generate a dollar of income – was 55.44 % in 2013 compared to 67.18 % for the bank 's peer group , on average . in 2012 , the company 's efficiency ratio was 51.01 % compared to 66.37 % for the bank 's peer group , on average . investment management and fiduciary activities as of december 31 , 2013 , first advisors , the bank 's private banking and investment management division , had assets under management with a market value of $ 700.8 million , consisting of 845 trust accounts , estate accounts , agency accounts , and self-directed individual retirement accounts . this compares to december 31 , 2012 , when 834 accounts with a market value of $ 651.3 million were under management . assets and asset quality total assets of $ 1.464 billion increased 3.5 % or $ 49.0 million in 2013 from $ 1.415 billion at december 31 , 2012 . the investment portfolio increased $ 39.6 million or 8.8 % over december 31 , 2012 , and the loan portfolio increased $ 7.1 million or 0.8 % . year-over-year , average assets were up $ 16.0 million in 2013 over 2012 . average loans in 2013 were $ 8.2 million lower than in 2012 , but average investments in 2013 were $ 14.0 million higher than in 2012 . credit quality improved significantly in 2013 . non-performing assets to total assets stood at 1.44 % at december 31 , 2013 , well below 1.89 % of total assets at december 31 , 2012 and 2.32 % of total assets at december 31 , 2011 . in management 's opinion , the company 's long-standing approach to working with borrowers and ethical loan underwriting standards helps alleviate some of the payment problems on customers ' loans and in the end minimizes actual loan losses . the first bancorp - 2013 form 10-k - page 31 net chargeoffs in 2013 were $ 5.2 million or 0.60 % of average loans outstanding . this compares to net chargeoffs in 2012 of $ 8.3 million or 0.95 % of average loans outstanding and net charge offs for our ubpr peer group in 2013 of 0.26 % of average assets . residential real estate term loans represent 43.0 % of the total loan portfolio , and this loan category generally has a lower level of losses in comparison to other loan types . in 2013 , the loss ratio for residential mortgages was 0.30 % compared to 0.60 % for the entire loan portfolio . the company does not have a credit card portfolio or offer dealer consumer loans which generally carry more risk and therefore higher losses . the allowance for loan losses ended the year at $ 11.5 million and stood at 1.31 % of total loans outstanding compared to $ 12.5 million and 1.44 % of total loans outstanding at december 31 , 2012 . a $ 4.2 million provision for losses was made in 2013 and net charge offs totaled $ 5.2 million , resulting in the allowance for loan losses decreasing $ 986,000 or 7.9 % from december 31 , 2012 . management believes the allowance for loan losses is appropriate as of december 31 , 2013. in management 's opinion , the level of the provision for loan losses in 2013 was directionally consistent with the improvement in overall credit quality of our loan portfolio and corresponding levels of nonperforming loans , as well as with the performance of the national and local economies , current levels of unemployment and the outlook for economic recovery continuing for some time to come . investment activities during 2013 , the investment portfolio increased 8.8 % to end the year at $ 489.0 million compared to $ 449.4 million at december 31 , 2012 . average investments in 2013 were $ 14.0 million higher than in 2012 . as of december 31 , 2013 , mortgage-backed securities had a carrying value of $ 213.4 million and a fair value of $ 213.5 million . of this total , securities with a fair value of $ 133.2 million or 62.4 % of the mortgage-backed portfolio were issued by the government national mortgage association and securities with a fair value of $ 80.3 million or 37.6 % of the mortgage-backed portfolio were issued by the federal home loan mortgage corporation and the federal national mortgage association . the company 's investment securities are classified into two categories : securities available for sale and securities to be held to maturity . securities available for sale consist primarily of debt securities which management intends to hold for indefinite periods of time . they may be used as part of the company 's funds management strategy , and may be sold in response to changes in interest rates , prepayment risk and liquidity needs , to increase capital ratios , or for other similar reasons . securities to be held to maturity consist primarily of debt securities that the company has acquired solely for long-term investment purposes , rather than for trading or future sale . for securities to be categorized as held to maturity , management must have the intent and the company must have the ability to hold such investments until their respective maturity dates . the company does not hold trading account securities . all investment securities are managed in accordance with a written investment policy adopted by the board of directors . it is the company 's general policy that investments for either portfolio be limited to government debt obligations , time deposits , and corporate bonds or commercial paper with one of the three highest ratings given by a nationally recognized rating agency . the portfolio is currently invested primarily in u.s. government sponsored agency securities and tax-exempt obligations of states and political subdivisions . the individual securities have been

capital resources shareholders ' equity as of december 31 , 2013 was $ 146.1 million , compared to $ 156.3 million as of december 31 , 2012 . the decline in 2013 was attributable to the unrealized loss on securities available for sale as a result of changes in the u.s. treasury yield curve . capital at december 31 , 2013 was sufficient to meet the requirements of regulatory authorities . leverage capital of the company , or total shareholders ' equity divided by average total assets for the current quarter less goodwill and any net unrealized gain or loss on securities available for sale and postretirement benefits , stood at 8.67 % on december 31 , 2013 and 8.46 % at december 31 , 2012 . to be rated `` well-capitalized '' , regulatory requirements call for a minimum leverage capital ratio the first bancorp - 2013 form 10-k - page 49 of 5.00 % . at december 31 , 2013 , the company had tier-one risk-based capital of 14.78 % and tier-two risk-based capital of 16.03 % , versus 14.80 % and 16.05 % , respectively , at december 31 , 2012 . to be rated `` well-capitalized '' , regulatory requirements call for minimum tier-one and tier-two risk-based capital ratios of 6.00 % and 10.00 % , respectively . the company 's actual levels of capitalization were comfortably above the standards to be rated `` well-capitalized '' by regulatory authorities . during 2013 , the company declared cash dividends of $ 0.195 per share in the first three quarters and $ 0.20 in the fourth quarter or $ 0.785 per share for the year .


 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.
     ```capital resources shareholders ' equity as of december 31 , 2013 was $ 146.1 million , compared to $ 156.3 million as of december 31 , 2012 . the decline in 2013 was attributable to the unrealized loss on securities available for sale as a result of changes in the u.s. treasury yield curve . capital at december 31 , 2013 was sufficient to meet the requirements of regulatory authorities . leverage capital of the company , or total shareholders ' equity divided by average total assets for the current quarter less goodwill and any net unrealized gain or loss on securities available for sale and postretirement benefits , stood at 8.67 % on december 31 , 2013 and 8.46 % at december 31 , 2012 . to be rated `` well-capitalized '' , regulatory requirements call for a minimum leverage capital ratio the first bancorp - 2013 form 10-k - page 49 of 5.00 % . at december 31 , 2013 , the company had tier-one risk-based capital of 14.78 % and tier-two risk-based capital of 16.03 % , versus 14.80 % and 16.05 % , respectively , at december 31 , 2012 . to be rated `` well-capitalized '' , regulatory requirements call for minimum tier-one and tier-two risk-based capital ratios of 6.00 % and 10.00 % , respectively . the company 's actual levels of capitalization were comfortably above the standards to be rated `` well-capitalized '' by regulatory authorities . during 2013 , the company declared cash dividends of $ 0.195 per share in the first three quarters and $ 0.20 in the fourth quarter or $ 0.785 per share for the year .
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 Suspicious Activity Report : accounting principles , policies and guidelines , and changes in the assumptions used in making such forward-looking statements . in addition , the factors described under `` risk factors `` in item 1a of this annual report on form 10-k , may result in these differences . you should carefully review all of these factors , and you should be aware that there may be other factors that could cause these differences . these forward-looking statements were based on information , plans and estimates at the date of this annual report , and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors , new information , future events or other changes . although the company believes that the expectations reflected in such forward-looking statements are reasonable , actual results may differ materially from the results discussed in these forward-looking statements . readers are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date hereof . the company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events . readers are also urged to carefully review and consider the various disclosures made by the company , which attempt to advise interested parties of the factors that affect the company 's business . critical accounting policies management 's discussion and analysis of the company 's financial condition and results of operations is based on the consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of such financial statements requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses and related disclosure of contingent assets and liabilities . on an ongoing basis , management evaluates its estimates , including those related to the allowance for loan losses , goodwill , the valuation of mortgage servicing rights , and other-than-temporary impairment on securities . management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis in making judgments about the carrying values of assets that are not readily apparent from the first bancorp - 2013 form 10-k - page 24 other sources . actual results could differ from the amounts derived from management 's estimates and assumptions under different assumptions or conditions . allowance for loan losses . management believes the allowance for loan losses requires the most significant estimates and assumptions used in the preparation of the consolidated financial statements . the allowance for loan losses is based on management 's evaluation of the level of the allowance required in relation to the estimated loss exposure in the loan portfolio . management believes the allowance for loan losses is a significant estimate and therefore regularly evaluates it to determine the appropriate level by taking into consideration factors such as prior loan loss experience , the character and size of the loan portfolio , business and economic conditions and management 's estimation of potential losses . the use of different estimates or assumptions could produce different provisions for loan losses . goodwill . management utilizes numerous techniques to estimate the value of various assets held by the company , including methods to determine the appropriate carrying value of goodwill as required under financial accounting standards board ( `` fasb `` ) accounting standards codification ( `` asc `` ) topic 350 `` intangibles – goodwill and other . `` goodwill from purchase acquisitions is subject to ongoing periodic evaluation for impairment . mortgage servicing rights . the valuation of mortgage servicing rights is a critical accounting policy which requires significant estimates and assumptions . the bank often sells mortgage loans it originates and retains the ongoing servicing of such loans , receiving a fee for these services , generally 0.25 % of the outstanding balance of the loan per annum . mortgage servicing rights are recognized at fair value when they are acquired through the sale of loans , and are reported in other assets . they are amortized into non-interest income in proportion to , and over the period of , the estimated future net servicing income of the underlying financial assets . the rights are subsequently carried at the lower of amortized cost or fair value . management uses an independent firm which specializes in the valuation of mortgage servicing rights to determine the fair value . the most important assumption is the anticipated loan prepayment rate , and increases in prepayment speed results in lower valuations of mortgage servicing rights . the valuation also includes an evaluation for impairment based upon the fair value of the rights , which can vary depending upon current interest rates and prepayment expectations , as compared to amortized cost . impairment is determined by stratifying rights by predominant characteristics , such as interest rates and terms . the use of different assumptions could produce a different valuation . all of the assumptions are based on standards the company believes would be utilized by market participants in valuing mortgage servicing rights and are consistently derived and or benchmarked against independent public sources . other-than-temporary impairment on securities . one of the significant estimates related to investment securities is the evaluation of other-than-temporary impairments . the evaluation of securities for other-than-temporary impairments is a quantitative and qualitative process , which is subject to risks and uncertainties and is intended to determine whether declines in the fair value of investments should be recognized in current period earnings . the risks and uncertainties include changes in general economic conditions , the issuer 's financial condition and or future prospects , the effects of changes in interest rates or credit spreads and the expected recovery period of unrealized losses . story_separator_special_tag the company 's efficiency ratio – a benchmark measure of the amount spent to generate a dollar of income – was 55.44 % in 2013 compared to 67.18 % for the bank 's peer group , on average . in 2012 , the company 's efficiency ratio was 51.01 % compared to 66.37 % for the bank 's peer group , on average . investment management and fiduciary activities as of december 31 , 2013 , first advisors , the bank 's private banking and investment management division , had assets under management with a market value of $ 700.8 million , consisting of 845 trust accounts , estate accounts , agency accounts , and self-directed individual retirement accounts . this compares to december 31 , 2012 , when 834 accounts with a market value of $ 651.3 million were under management . assets and asset quality total assets of $ 1.464 billion increased 3.5 % or $ 49.0 million in 2013 from $ 1.415 billion at december 31 , 2012 . the investment portfolio increased $ 39.6 million or 8.8 % over december 31 , 2012 , and the loan portfolio increased $ 7.1 million or 0.8 % . year-over-year , average assets were up $ 16.0 million in 2013 over 2012 . average loans in 2013 were $ 8.2 million lower than in 2012 , but average investments in 2013 were $ 14.0 million higher than in 2012 . credit quality improved significantly in 2013 . non-performing assets to total assets stood at 1.44 % at december 31 , 2013 , well below 1.89 % of total assets at december 31 , 2012 and 2.32 % of total assets at december 31 , 2011 . in management 's opinion , the company 's long-standing approach to working with borrowers and ethical loan underwriting standards helps alleviate some of the payment problems on customers ' loans and in the end minimizes actual loan losses . the first bancorp - 2013 form 10-k - page 31 net chargeoffs in 2013 were $ 5.2 million or 0.60 % of average loans outstanding . this compares to net chargeoffs in 2012 of $ 8.3 million or 0.95 % of average loans outstanding and net charge offs for our ubpr peer group in 2013 of 0.26 % of average assets . residential real estate term loans represent 43.0 % of the total loan portfolio , and this loan category generally has a lower level of losses in comparison to other loan types . in 2013 , the loss ratio for residential mortgages was 0.30 % compared to 0.60 % for the entire loan portfolio . the company does not have a credit card portfolio or offer dealer consumer loans which generally carry more risk and therefore higher losses . the allowance for loan losses ended the year at $ 11.5 million and stood at 1.31 % of total loans outstanding compared to $ 12.5 million and 1.44 % of total loans outstanding at december 31 , 2012 . a $ 4.2 million provision for losses was made in 2013 and net charge offs totaled $ 5.2 million , resulting in the allowance for loan losses decreasing $ 986,000 or 7.9 % from december 31 , 2012 . management believes the allowance for loan losses is appropriate as of december 31 , 2013. in management 's opinion , the level of the provision for loan losses in 2013 was directionally consistent with the improvement in overall credit quality of our loan portfolio and corresponding levels of nonperforming loans , as well as with the performance of the national and local economies , current levels of unemployment and the outlook for economic recovery continuing for some time to come . investment activities during 2013 , the investment portfolio increased 8.8 % to end the year at $ 489.0 million compared to $ 449.4 million at december 31 , 2012 . average investments in 2013 were $ 14.0 million higher than in 2012 . as of december 31 , 2013 , mortgage-backed securities had a carrying value of $ 213.4 million and a fair value of $ 213.5 million . of this total , securities with a fair value of $ 133.2 million or 62.4 % of the mortgage-backed portfolio were issued by the government national mortgage association and securities with a fair value of $ 80.3 million or 37.6 % of the mortgage-backed portfolio were issued by the federal home loan mortgage corporation and the federal national mortgage association . the company 's investment securities are classified into two categories : securities available for sale and securities to be held to maturity . securities available for sale consist primarily of debt securities which management intends to hold for indefinite periods of time . they may be used as part of the company 's funds management strategy , and may be sold in response to changes in interest rates , prepayment risk and liquidity needs , to increase capital ratios , or for other similar reasons . securities to be held to maturity consist primarily of debt securities that the company has acquired solely for long-term investment purposes , rather than for trading or future sale . for securities to be categorized as held to maturity , management must have the intent and the company must have the ability to hold such investments until their respective maturity dates . the company does not hold trading account securities . all investment securities are managed in accordance with a written investment policy adopted by the board of directors . it is the company 's general policy that investments for either portfolio be limited to government debt obligations , time deposits , and corporate bonds or commercial paper with one of the three highest ratings given by a nationally recognized rating agency . the portfolio is currently invested primarily in u.s. government sponsored agency securities and tax-exempt obligations of states and political subdivisions . the individual securities have been

