interest expense decreased $ 219,000 , or 6.3 % , in 2014 compared to 2013. the decrease was primarily due to lower rates paid on interest-bearing liabilities as the result of reduced market rates and an improved mix of interest-bearing liabilities . the provision for loan losses totaled $ 2.4 million in 2014 , 35.3 % lower than the $ 3.7 million recorded in 2013. at december 31 , 2014 , the company 's ratio of allowance for loan losses to total loans was 0.85 % , compared to 0.98 % at december 31 , 2013. the ratio of the allowance for loan losses to total originated loans was 1.04 % at december 31 , 2014 compared to 1.12 % at december 31 , 2013. net charge-offs for 2014 were $ 1.5 million , or 0.17 % of total loans , compared to $ 2.1 million , or 0.29 % , in 2013. noninterest income increased $ 505,000 , or 6.6 % , in 2014 compared to 2013. the increase was primarily the result of higher service fees and charges ( up $ 1.0 million ) and bank card fees ( up $ 447,000 ) due to the impact of the britton & koontz acquisition and increased customer transactions , which were partially offset by lower gains on sale of securities ( down $ 426,000 ) , gains on the sale of mortgage loans ( down $ 341,000 ) , and less accretion on the fdic asset ( down $ 186,000 ) . noninterest expense increased $ 8.6 million , or 25.8 % , in 2014 compared to 2013. the increase was primarily the result of higher compensation and benefits , data processing and communications , and occupancy expenses related to the britton & koontz acquisition . the company incurred $ 2.3 million in merger-related expenses during 2014. acquisition activity on february 14 , 2014 , the company completed its acquisition of britton & koontz the former holding company of britton & koontz bank of natchez , mississippi . shareholders of britton & koontz received $ 16.14 per share is cash , yielding an aggregate purchase price of $ 34,515,000. as a result of the acquisition , five former britton & koontz branches in west mississippi were added to the bank 's branch office network , net of two former britton & koontz banking offices that were closed or consolidated in march 2014. assets acquired from britton & koontz totaled $ 298.9 million , which included loans of $ 161.6 million , investment securities of $ 98.0 million and cash of $ 15.3 million . the bank also recorded a core deposit intangible asset of $ 3.0 million and goodwill of $ 43,000 relating to the acquisition , and assumed liabilities of $ 264.5 million , which included $ 216.6 million in deposits , $ 9.3 million in fhlb advances and $ 27.3 million in securities sold under repurchase agreements . on july 15 , 2011 , the company acquired gs financial corporation ( gsfc ) , the former holding company of guaranty of metairie , louisiana . shareholders of gsfc received $ 21.00 per share in cash , yielding an aggregate purchase price of $ 26,417,000. as a result of the acquisition , the four former guaranty branches in the greater new orleans area were added to the bank 's branch office network . assets acquired from gsfc totaled $ 256.7 million , which included loans of $ 182.4 million , investment securities of $ 46.5 million and cash of $ 9.3 million . the bank also recorded a core deposit intangible asset of $ 859,000 and goodwill of $ 296,000 relating to the acquisition of gsfc , and assumed liabilities of $ 230.6 million , which included $ 193.5 million in deposits and $ 34.7 million in fhlb advances . on march 12 , 2010 , the bank acquired certain assets and liabilities of the former statewide bank , a full-service community bank formerly headquartered in covington , louisiana , from the fdic . as a result of the statewide acquisition , the bank 's branch office network was expanded to include six branches in the northshore ( of lake pontchartrain ) region of louisiana . assets acquired in the statewide transaction totaled $ 188.0 million , which included loans of $ 110.4 million , investment securities of $ 24.8 million and cash of $ 11.6 million . in addition , the bank recorded a fdic asset , representing the portion of estimated losses covered by loss sharing agreements between the bank and the fdic , of $ 34.4 million . the loss sharing agreements between the bank and the fdic afford us significant protection against future losses in the loan portfolio ( covered loans ) and repossessed assets ( collectively referred to as covered assets ) acquired in the statewide transaction . the bank also 21 recorded a core deposit intangible asset of $ 1.4 million and goodwill of $ 560,000 relating to the statewide acquisition , and assumed liabilities of $ 223.9 million , which included $ 206.9 million in deposits and $ 16.8 million in fhlb advances . critical accounting policies the accounting and financial reporting policies of the company conform to generally accepted accounting principles in the united states ( gaap ) and to general practices within the banking industry . accordingly , the financial statements require certain estimates , judgments and assumptions , which are believed to be reasonable , based upon the information available . these estimates and assumptions affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the periods presented . the following accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results . story_separator_special_tag the following table summarizes the changes in the carrying amount of covered loans , net of the allowance for losses on covered loans , and accretable yield on those loans for the years ended december 31 , 2014 , 2013 , 2012 , 2011 and 2010. replace_table_token_9_th in addition to covered loans , our covered assets included $ 1.6 million , $ 3.2 million , $ 2.7 million , $ 6.1 million and $ 5.7 million , respectively , of repossessed assets at december 31 , 2014 , 2013 , 2012 , 2011 and 2010. loan quality  one of management 's key objectives has been , and continues to be , maintaining a high level of asset quality . in addition to maintaining credit standards for new loan originations , we proactively monitor loans and collection and workout processes of delinquent or problem loans . when a borrower fails to make a scheduled payment , we attempt to cure the deficiency by making personal contact with the borrower . initial contacts are generally made within 10 days after the date the payment is due . in most cases , deficiencies are promptly resolved . if the delinquency continues , late charges are assessed and additional efforts are made to collect the deficiency . all loans which are designated as special mention ,  classified or which are delinquent 90 days or more are reported to the board of directors of the bank monthly . for loans where the collection of principal or interest payments is doubtful , the accrual of interest income ceases . it is our policy , with certain limited exceptions , to discontinue accruing interest and reverse any interest accrued on any loan which is 90 days or more past due . on occasion , this action may be taken earlier if the financial condition of the borrower raises significant concern with regard to his/her ability to service the debt in accordance with the terms of the loan agreement . interest income is not accrued on these loans until the borrower 's financial condition and payment record demonstrate an ability to service the debt . an impaired loan generally is one for which it is probable , based on current information , that the lender will not collect all the amounts due under the contractual terms of the loan . large groups of smaller balance , homogeneous loans are collectively evaluated for impairment . loans collectively evaluated for impairment include smaller balance commercial loans , residential real estate loans and consumer loans . these loans are 26 evaluated as a group because they have similar characteristics and performance experience . larger commercial real estate , multi-family residential , construction and land loans and commercial and industrial loans are individually evaluated for impairment . third party property valuations are obtained at the time of origination for real estate secured loans . when a determination is made that a loan has deteriorated to the point of becoming a problem loan , updated valuations may be ordered to help determine if there is impairment , which may lead to a recommendation for partial charge off or appropriate allowance allocation . property valuations are ordered through , and are reviewed by , an appraisal officer . the company typically orders an as is valuation for collateral property if the loan is in a criticized loan classification . the board of directors is provided with monthly reports on impaired loans . as of december 31 , 2014 and 2013 , impaired loans , loans individually evaluated for impairment , excluding acquired loans , amounted to $ 2.0 million and $ 2.6 million , respectively . as of december 31 , 2014 and 2013 , substandard loans , excluding acquired loans , amounted to $ 7.2 million and $ 13.5 million , respectively . the amount of the allowance for loan losses allocated to originated impaired or substandard loans totaled $ 140,000 and $ 482,000 as of december 31 , 2014 and 2013 , respectively . there were no assets classified as doubtful or loss as of december 31 , 2014 and 2013. federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets . we have incorporated an internal asset classification system , substantially consistent with federal banking regulations , as a part of our credit monitoring system . federal banking regulations set forth a classification scheme for problem and potential problem assets as substandard ,  doubtful or loss assets . an asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged , if any . substandard assets include those characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected . assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full ,  on the basis of currently existing facts , conditions and values , highly questionable and improbable. assets classified as loss are those considered uncollectible and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted . a savings institution 's determination as to the classification of its assets and the amount of its valuation allowances is subject to review by federal bank regulators which can order the establishment of additional general or specific loss allowances . the federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses . the policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines . generally , the policy statement recommends that institutions have

liquidity and capital resources our primary sources of funds are from deposits , amortization of loans , loan prepayments and the maturity of loans , investment securities and other investments and other funds provided from operations . while scheduled payments from the amortization of loans and investment securities and maturing investment securities are relatively predictable sources of funds , deposit flows and loan prepayments can be greatly influenced by general interest rates , economic conditions and competition . we also maintain excess funds in short-term , interest-bearing assets that provide additional liquidity . as of december 31 , 2014 , our cash and cash equivalents totaled $ 29.1 million . in addition , as of such date , our available for sale investment securities totaled $ 174.8 million . 38 we use our liquidity to fund existing and future loan commitments , to fund maturing certificates of deposit and demand deposit withdrawals , to invest in other interest-earning assets , and to meet operating expenses . as of december 31 , 2014 , we had certificates of deposit maturing within the next 12 months totaling $ 151.4 million . based upon historical experience , we anticipate that the majority of the maturing certificates of deposit will be redeposited with us in certificates of deposit or other deposit accounts . in addition to cash flows from loan and securities payments and prepayments as well as from sales of available for sale securities , we have significant borrowing capacity available to fund liquidity needs . in recent years , we have utilized borrowings as a cost efficient addition to deposits as a source of funds . our borrowings consist of advances from the fhlb , of which we are a member . under terms of the collateral agreement with the fhlb , we may pledge residential mortgage loans and mortgage-backed securities as well as our stock in the fhlb as collateral for such advances . for the year ended december 31 , 2014 , the average balance of our outstanding fhlb advances was $ 94.5 million .


 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 our primary sources of funds are from deposits , amortization of loans , loan prepayments and the maturity of loans , investment securities and other investments and other funds provided from operations . while scheduled payments from the amortization of loans and investment securities and maturing investment securities are relatively predictable sources of funds , deposit flows and loan prepayments can be greatly influenced by general interest rates , economic conditions and competition . we also maintain excess funds in short-term , interest-bearing assets that provide additional liquidity . as of december 31 , 2014 , our cash and cash equivalents totaled $ 29.1 million . in addition , as of such date , our available for sale investment securities totaled $ 174.8 million . 38 we use our liquidity to fund existing and future loan commitments , to fund maturing certificates of deposit and demand deposit withdrawals , to invest in other interest-earning assets , and to meet operating expenses . as of december 31 , 2014 , we had certificates of deposit maturing within the next 12 months totaling $ 151.4 million . based upon historical experience , we anticipate that the majority of the maturing certificates of deposit will be redeposited with us in certificates of deposit or other deposit accounts . in addition to cash flows from loan and securities payments and prepayments as well as from sales of available for sale securities , we have significant borrowing capacity available to fund liquidity needs . in recent years , we have utilized borrowings as a cost efficient addition to deposits as a source of funds . our borrowings consist of advances from the fhlb , of which we are a member . under terms of the collateral agreement with the fhlb , we may pledge residential mortgage loans and mortgage-backed securities as well as our stock in the fhlb as collateral for such advances . for the year ended december 31 , 2014 , the average balance of our outstanding fhlb advances was $ 94.5 million .
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 Suspicious Activity Report : interest expense decreased $ 219,000 , or 6.3 % , in 2014 compared to 2013. the decrease was primarily due to lower rates paid on interest-bearing liabilities as the result of reduced market rates and an improved mix of interest-bearing liabilities . the provision for loan losses totaled $ 2.4 million in 2014 , 35.3 % lower than the $ 3.7 million recorded in 2013. at december 31 , 2014 , the company 's ratio of allowance for loan losses to total loans was 0.85 % , compared to 0.98 % at december 31 , 2013. the ratio of the allowance for loan losses to total originated loans was 1.04 % at december 31 , 2014 compared to 1.12 % at december 31 , 2013. net charge-offs for 2014 were $ 1.5 million , or 0.17 % of total loans , compared to $ 2.1 million , or 0.29 % , in 2013. noninterest income increased $ 505,000 , or 6.6 % , in 2014 compared to 2013. the increase was primarily the result of higher service fees and charges ( up $ 1.0 million ) and bank card fees ( up $ 447,000 ) due to the impact of the britton & koontz acquisition and increased customer transactions , which were partially offset by lower gains on sale of securities ( down $ 426,000 ) , gains on the sale of mortgage loans ( down $ 341,000 ) , and less accretion on the fdic asset ( down $ 186,000 ) . noninterest expense increased $ 8.6 million , or 25.8 % , in 2014 compared to 2013. the increase was primarily the result of higher compensation and benefits , data processing and communications , and occupancy expenses related to the britton & koontz acquisition . the company incurred $ 2.3 million in merger-related expenses during 2014. acquisition activity on february 14 , 2014 , the company completed its acquisition of britton & koontz the former holding company of britton & koontz bank of natchez , mississippi . shareholders of britton & koontz received $ 16.14 per share is cash , yielding an aggregate purchase price of $ 34,515,000. as a result of the acquisition , five former britton & koontz branches in west mississippi were added to the bank 's branch office network , net of two former britton & koontz banking offices that were closed or consolidated in march 2014. assets acquired from britton & koontz totaled $ 298.9 million , which included loans of $ 161.6 million , investment securities of $ 98.0 million and cash of $ 15.3 million . the bank also recorded a core deposit intangible asset of $ 3.0 million and goodwill of $ 43,000 relating to the acquisition , and assumed liabilities of $ 264.5 million , which included $ 216.6 million in deposits , $ 9.3 million in fhlb advances and $ 27.3 million in securities sold under repurchase agreements . on july 15 , 2011 , the company acquired gs financial corporation ( gsfc ) , the former holding company of guaranty of metairie , louisiana . shareholders of gsfc received $ 21.00 per share in cash , yielding an aggregate purchase price of $ 26,417,000. as a result of the acquisition , the four former guaranty branches in the greater new orleans area were added to the bank 's branch office network . assets acquired from gsfc totaled $ 256.7 million , which included loans of $ 182.4 million , investment securities of $ 46.5 million and cash of $ 9.3 million . the bank also recorded a core deposit intangible asset of $ 859,000 and goodwill of $ 296,000 relating to the acquisition of gsfc , and assumed liabilities of $ 230.6 million , which included $ 193.5 million in deposits and $ 34.7 million in fhlb advances . on march 12 , 2010 , the bank acquired certain assets and liabilities of the former statewide bank , a full-service community bank formerly headquartered in covington , louisiana , from the fdic . as a result of the statewide acquisition , the bank 's branch office network was expanded to include six branches in the northshore ( of lake pontchartrain ) region of louisiana . assets acquired in the statewide transaction totaled $ 188.0 million , which included loans of $ 110.4 million , investment securities of $ 24.8 million and cash of $ 11.6 million . in addition , the bank recorded a fdic asset , representing the portion of estimated losses covered by loss sharing agreements between the bank and the fdic , of $ 34.4 million . the loss sharing agreements between the bank and the fdic afford us significant protection against future losses in the loan portfolio ( covered loans ) and repossessed assets ( collectively referred to as covered assets ) acquired in the statewide transaction . the bank also 21 recorded a core deposit intangible asset of $ 1.4 million and goodwill of $ 560,000 relating to the statewide acquisition , and assumed liabilities of $ 223.9 million , which included $ 206.9 million in deposits and $ 16.8 million in fhlb advances . critical accounting policies the accounting and financial reporting policies of the company conform to generally accepted accounting principles in the united states ( gaap ) and to general practices within the banking industry . accordingly , the financial statements require certain estimates , judgments and assumptions , which are believed to be reasonable , based upon the information available . these estimates and assumptions affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the periods presented . the following accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results . story_separator_special_tag the following table summarizes the changes in the carrying amount of covered loans , net of the allowance for losses on covered loans , and accretable yield on those loans for the years ended december 31 , 2014 , 2013 , 2012 , 2011 and 2010. replace_table_token_9_th in addition to covered loans , our covered assets included $ 1.6 million , $ 3.2 million , $ 2.7 million , $ 6.1 million and $ 5.7 million , respectively , of repossessed assets at december 31 , 2014 , 2013 , 2012 , 2011 and 2010. loan quality  one of management 's key objectives has been , and continues to be , maintaining a high level of asset quality . in addition to maintaining credit standards for new loan originations , we proactively monitor loans and collection and workout processes of delinquent or problem loans . when a borrower fails to make a scheduled payment , we attempt to cure the deficiency by making personal contact with the borrower . initial contacts are generally made within 10 days after the date the payment is due . in most cases , deficiencies are promptly resolved . if the delinquency continues , late charges are assessed and additional efforts are made to collect the deficiency . all loans which are designated as special mention ,  classified or which are delinquent 90 days or more are reported to the board of directors of the bank monthly . for loans where the collection of principal or interest payments is doubtful , the accrual of interest income ceases . it is our policy , with certain limited exceptions , to discontinue accruing interest and reverse any interest accrued on any loan which is 90 days or more past due . on occasion , this action may be taken earlier if the financial condition of the borrower raises significant concern with regard to his/her ability to service the debt in accordance with the terms of the loan agreement . interest income is not accrued on these loans until the borrower 's financial condition and payment record demonstrate an ability to service the debt . an impaired loan generally is one for which it is probable , based on current information , that the lender will not collect all the amounts due under the contractual terms of the loan . large groups of smaller balance , homogeneous loans are collectively evaluated for impairment . loans collectively evaluated for impairment include smaller balance commercial loans , residential real estate loans and consumer loans . these loans are 26 evaluated as a group because they have similar characteristics and performance experience . larger commercial real estate , multi-family residential , construction and land loans and commercial and industrial loans are individually evaluated for impairment . third party property valuations are obtained at the time of origination for real estate secured loans . when a determination is made that a loan has deteriorated to the point of becoming a problem loan , updated valuations may be ordered to help determine if there is impairment , which may lead to a recommendation for partial charge off or appropriate allowance allocation . property valuations are ordered through , and are reviewed by , an appraisal officer . the company typically orders an as is valuation for collateral property if the loan is in a criticized loan classification . the board of directors is provided with monthly reports on impaired loans . as of december 31 , 2014 and 2013 , impaired loans , loans individually evaluated for impairment , excluding acquired loans , amounted to $ 2.0 million and $ 2.6 million , respectively . as of december 31 , 2014 and 2013 , substandard loans , excluding acquired loans , amounted to $ 7.2 million and $ 13.5 million , respectively . the amount of the allowance for loan losses allocated to originated impaired or substandard loans totaled $ 140,000 and $ 482,000 as of december 31 , 2014 and 2013 , respectively . there were no assets classified as doubtful or loss as of december 31 , 2014 and 2013. federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets . we have incorporated an internal asset classification system , substantially consistent with federal banking regulations , as a part of our credit monitoring system . federal banking regulations set forth a classification scheme for problem and potential problem assets as substandard ,  doubtful or loss assets . an asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged , if any . substandard assets include those characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected . assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full ,  on the basis of currently existing facts , conditions and values , highly questionable and improbable. assets classified as loss are those considered uncollectible and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted . a savings institution 's determination as to the classification of its assets and the amount of its valuation allowances is subject to review by federal bank regulators which can order the establishment of additional general or specific loss allowances . the federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses . the policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines . generally , the policy statement recommends that institutions have

