we recorded net income of $ 2.5 million for the year ended december 31 , 2014 , compared to a net loss of $ 301 thousand for the year ended december 31 , 2013. results during 2014 included a recapture of loan losses of $ 2.9 million whereas in 2013 , we recorded a $ 414 thousand provision for loan losses . during 2014 , we generated higher net interest income before recapture of loan losses , lower non-interest income and higher non-interest expense compared to 2013. results for 2013 included a gain of $ 1.2 million on the restructuring of the company 's senior debt as part of the recapitalization , as compared to a gain of $ 365 thousand in 2014 ; these gains were included in non-interest income . comparison of operating results for the years ended december 31 , 2014 and 2013 general our most significant source of income is net interest income , which is the difference between our interest income and our interest expense . generally , interest income is generated from our loans and investments ( interest-earning assets ) and interest expense is incurred from deposits and borrowings ( interest-bearing liabilities ) . typically , our results of operations are also affected by our provision for ( recapture of ) loan losses , non-interest income generated from service charges and fees on loan and deposit accounts , gains or losses on the sale of loans , reo and securities , non-interest expenses and income taxes . net income ( loss ) for the year ended december 31 , 2014 , we recorded net income of $ 2.5 million , or $ 0.11 earnings per diluted common share , compared to a net loss of $ 301 thousand , or $ 0.13 loss per diluted common share . the increase in net income was primarily due to a recapture of loan losses of $ 2.9 million during the year ended december 31 , 2014 , compared to a provision for loan losses of $ 414 thousand during the year ended december 31 , 2013. in addition , during 2014 we increased net interest income before recapture of loan losses by $ 759 thousand , or 7 % , over the amount generated in 2013 , and received a grant of $ 200 thousand from the u.s. department of the treasury 's community development financial institutions ( cdfi ) fund . offsetting most of these increases was a decrease in the amount of recognized gain on debt restructuring that was included in non-interest income ; in 2013 we reported $ 1.2 million of gain on the restructuring of the company 's senior debt as part of the recapitalization but only recognized $ 365 thousand of such gain in 2014. also , we incurred higher non-interest expense during 2014 compared to 2013. net interest income for the year ended december 31 , 2014 , net interest income before recapture of loan losses totaled $ 11.9 million , up $ 759 thousand , or 7 % , from $ 11.1 million of net interest income before provision for loan losses for the same period a year ago . the increase of $ 759 thousand in net interest income primarily resulted from a decrease of $ 513 thousand in interest expense on deposits , a decrease of $ 483 thousand in interest expense on borrowings and an increase of $ 100 thousand in interest income on securities and other sources , which were partially offset by a decrease of $ 337 thousand in interest income on loans . total interest income decreased $ 237 thousand , or 1 % , to $ 15.7 million for the year 2014 from $ 16.0 million for the year 2013. the decrease in interest income was primarily due to a $ 337 thousand 33 decrease in interest income on loans . the average yield on loans decreased 47 basis points from 5.90 % for the year 2013 to 5.43 % for the year 2014 , which decreased interest income by $ 1.3 million . the lower average loan yield on loans for the year 2014 was primarily due to payoffs of loans which carried a higher average yield than the average yield on total loans , and lower yields on loan originations as a result of the low interest rate environment . the decrease in loan yield was partially offset by an increase of $ 920 thousand in interest income resulting from an increase of $ 16.2 million in the average balance of loans receivable . during 2014 , we originated $ 95.5 million in multi-family loans with an average interest rate of 3.70 % . to supplement interest income , we purchased $ 8.6 million of mortgaged-backed securities and $ 1.9 million of u.s. government and federal agency securities in march 2014 with an average yield of 2.23 % , which resulted in a net increase in interest income attributable to securities of $ 64 thousand . total interest expense decreased $ 996 thousand , or 20 % , to $ 3.9 million for the year 2014 from $ 4.9 million for the year 2013. interest expense on deposits decreased $ 513 thousand primarily due to a 15 basis point decrease in the cost of deposits and a $ 19.2 million decline in the average balance of deposits . the decreases in the average balance and average cost of deposits reflected the maturities of certificates of deposit bearing higher rates . interest expense on fhlb advances decreased $ 105 thousand primarily due to a decrease of 16 basis points in the average cost of fhlb advances . the decrease in the average cost of fhlb advances was due to the maturities of $ 10.5 million of fhlb advances with an average interest rate of 3.54 % which were replaced by $ 17.0 million of new advances with an average interest rate of $ 1.26 % . story_separator_special_tag loan charge-offs during 2014 were $ 693 thousand compared to $ 2.8 million during 2013. charge-offs during 2014 were related to losses on impaired loans and consisted of charge-offs of $ 533 thousand on church loans , a charge-off of $ 133 thousand on a single family residential real estate loan , a charge-off of $ 18 thousand on a commercial loan and a charge-off of $ 9 thousand on a commercial real estate loan . in determining charge-offs we update our estimates of collateral values on npls by obtaining new appraisals at least every nine months . if the estimated fair value of the loan collateral less estimated selling costs is less than the recorded investment in the loan , a charge-off for the difference is recorded to reduce the loan to its estimated fair value , less estimated selling costs . therefore , certain losses inherent in our total npls are recognized periodically through charge-offs . the impact of updating these estimates of collateral value and recognizing any required charge-offs is to increase charge-offs and reduce the alll required on these loans . as of december 31 , 2014 , we had written down 70 % of our npls to estimated fair value less estimated selling costs . the remaining 30 % of our npls at december 31 , 2014 had specific reserves or were reported at cost because the fair value of collateral less estimated selling costs exceeded the recorded investment in the loan . 39 recoveries during 2014 totaled $ 1.9 million compared to $ 694 thousand during 2013. recoveries during 2014 were primarily due to payoffs of two non-accrual loans secured by church properties and two commercial loans which had been fully written off in late 2011 and due to a settlement of a loan which had been previously written down in exchange for property received in foreclosure , the fair value of which exceeded the cost basis of the related loan . impaired loans at december 31 , 2014 were $ 23.8 million , compared to $ 33.5 million at december 31 , 2013. specific reserves for impaired loans were $ 1.5 million , or 6.32 % of the aggregate impaired loan amount at december 31 , 2014 , compared to $ 2.2 million , or 6.53 % , at december 31 , 2013. excluding specific reserves for impaired loans , our coverage ratio ( general allowance as a percentage of total non-impaired loans ) was 2.68 % at december 31 , 2014 , compared to 3.56 % at december 31 , 2013. the decrease in our coverage ratio reflected a decline in our historical loss factors and the continued improvements in our asset quality . management believes that the alll is adequate to cover probable incurred losses in the loan portfolio as of december 31 , 2014 , but there can be no assurance that actual losses will not exceed the estimated amounts . in addition , the occ and the fdic periodically review the alll as an integral part of their examination process . these agencies may require an increase in the alll based on their judgments of the information available to them at the time of their examinations . real estate owned reo decreased slightly during 2014 but remained essentially flat at $ 2.1 million at the end of both 2014 and 2013. during 2014 , one multi-family and three church loans totaling $ 2.6 million were foreclosed and the properties securing the loans , with total fair values of $ 3.3 million , became reo . as part of our efforts to reduce non-performing assets , seven reo properties were sold during 2014 for net proceeds of $ 2.9 million and a net gain of $ 12 thousand . at december 31 , 2014 , the bank 's reo consisted of two church buildings . deposits deposits totaled $ 217.9 million at december 31 , 2014 , up $ 3.5 million from december 31 , 2013. during 2014 , certificates of deposit increased by $ 5.1 million and represented 62 % of total deposits at december 31 , 2014 , compared to 61 % of total deposits at december 31 , 2013. core deposits ( now , demand , money market and passbook accounts ) decreased by $ 1.6 million during 2014 and represented 38 % of total deposits at december 31 , 2014 , compared to 39 % of total deposits at december 31 , 2013. borrowings at december 31 , 2014 , total borrowings consisted of advances to the bank from the fhlb of $ 86.0 million and debentures issued by the company of $ 5.1 million . at december 31 , 2013 , borrowings consisted of advances from the fhlb of $ 79.5 million , debentures of $ 6.0 million and our modified senior debt of $ 2.9 million , which balance included the unamortized deferred gain on debt restructuring of $ 498 thousand . at december 31 , 2014 , advances from the fhlb increased by $ 6.5 million from $ 79.5 million , or 24 % of total assets , at year-end 2013 to $ 86.0 million , or 25 % of total assets , at year-end 2014. the weighted average cost of advances decreased 5 basis points from 2.49 % at december 31 , 2013 to 2.31 % at december 31 , 2014 primarily due to maturities of $ 10.5 million of fhlb advances with an average interest rate of 3.54 % and new advances totaling $ 17.0 million with an average interest rate of $ 1.26 % . amounts due pursuant to our debentures decreased by $ 900 thousand to $ 5.1 million at december 31 , 2014 from $ 6.0 million at december 31 , 2013 as we completed the modification of the debentures and related transactions on october 16 , 2014. senior debt decreased by $ 2.9 million during 2014 , as we repaid in full the $ 2.4 million outstanding

capital resources our principal subsidiary , broadway federal , must comply with capital standards established by the occ in the conduct of its business . failure to comply with such capital requirements may result in significant limitations on its business or other sanctions . we are not currently subject to separate holding company capital requirements , but by july 2015 the dodd-frank act will , among other things , impose specific capital requirements on us as a savings and loan holding company as well . these requirements must be no less than those to which federally insured depository institutions are currently subject . the current regulatory capital requirements and possible consequences of failure to maintain compliance are described in part i , item 1 `` business-regulation '' and in note 15 of the notes to consolidated financial statements . on november 14 , 2008 , the company issued 9,000 shares of the company 's fixed rate cumulative perpetual preferred stock , series d , having a liquidation preference of $ 1,000 per share , together with a ten-year warrant to purchase 183,175 shares of company common stock at $ 7.37 per share , to the u.s. treasury for gross proceeds of $ 9.0 million . the warrant was subsequently retired without cost because of our status as a certified community development financial institution . the sale of the series d preferred stock was made pursuant to the u.s. treasury 's tarp capital purchase program . on december 8 , 2009 , the company issued 6,000 shares of the company 's fixed rate cumulative perpetual preferred stock , series e , having a liquidation preference of $ 1,000 per share , to the u.s. treasury for gross proceeds of $ 6.0 million . the sale of the series e preferred stock was made pursuant to the u.s. treasury 's tarp capital purchase program .


 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 our principal subsidiary , broadway federal , must comply with capital standards established by the occ in the conduct of its business . failure to comply with such capital requirements may result in significant limitations on its business or other sanctions . we are not currently subject to separate holding company capital requirements , but by july 2015 the dodd-frank act will , among other things , impose specific capital requirements on us as a savings and loan holding company as well . these requirements must be no less than those to which federally insured depository institutions are currently subject . the current regulatory capital requirements and possible consequences of failure to maintain compliance are described in part i , item 1 `` business-regulation '' and in note 15 of the notes to consolidated financial statements . on november 14 , 2008 , the company issued 9,000 shares of the company 's fixed rate cumulative perpetual preferred stock , series d , having a liquidation preference of $ 1,000 per share , together with a ten-year warrant to purchase 183,175 shares of company common stock at $ 7.37 per share , to the u.s. treasury for gross proceeds of $ 9.0 million . the warrant was subsequently retired without cost because of our status as a certified community development financial institution . the sale of the series d preferred stock was made pursuant to the u.s. treasury 's tarp capital purchase program . on december 8 , 2009 , the company issued 6,000 shares of the company 's fixed rate cumulative perpetual preferred stock , series e , having a liquidation preference of $ 1,000 per share , to the u.s. treasury for gross proceeds of $ 6.0 million . the sale of the series e preferred stock was made pursuant to the u.s. treasury 's tarp capital purchase program .
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 Suspicious Activity Report : we recorded net income of $ 2.5 million for the year ended december 31 , 2014 , compared to a net loss of $ 301 thousand for the year ended december 31 , 2013. results during 2014 included a recapture of loan losses of $ 2.9 million whereas in 2013 , we recorded a $ 414 thousand provision for loan losses . during 2014 , we generated higher net interest income before recapture of loan losses , lower non-interest income and higher non-interest expense compared to 2013. results for 2013 included a gain of $ 1.2 million on the restructuring of the company 's senior debt as part of the recapitalization , as compared to a gain of $ 365 thousand in 2014 ; these gains were included in non-interest income . comparison of operating results for the years ended december 31 , 2014 and 2013 general our most significant source of income is net interest income , which is the difference between our interest income and our interest expense . generally , interest income is generated from our loans and investments ( interest-earning assets ) and interest expense is incurred from deposits and borrowings ( interest-bearing liabilities ) . typically , our results of operations are also affected by our provision for ( recapture of ) loan losses , non-interest income generated from service charges and fees on loan and deposit accounts , gains or losses on the sale of loans , reo and securities , non-interest expenses and income taxes . net income ( loss ) for the year ended december 31 , 2014 , we recorded net income of $ 2.5 million , or $ 0.11 earnings per diluted common share , compared to a net loss of $ 301 thousand , or $ 0.13 loss per diluted common share . the increase in net income was primarily due to a recapture of loan losses of $ 2.9 million during the year ended december 31 , 2014 , compared to a provision for loan losses of $ 414 thousand during the year ended december 31 , 2013. in addition , during 2014 we increased net interest income before recapture of loan losses by $ 759 thousand , or 7 % , over the amount generated in 2013 , and received a grant of $ 200 thousand from the u.s. department of the treasury 's community development financial institutions ( cdfi ) fund . offsetting most of these increases was a decrease in the amount of recognized gain on debt restructuring that was included in non-interest income ; in 2013 we reported $ 1.2 million of gain on the restructuring of the company 's senior debt as part of the recapitalization but only recognized $ 365 thousand of such gain in 2014. also , we incurred higher non-interest expense during 2014 compared to 2013. net interest income for the year ended december 31 , 2014 , net interest income before recapture of loan losses totaled $ 11.9 million , up $ 759 thousand , or 7 % , from $ 11.1 million of net interest income before provision for loan losses for the same period a year ago . the increase of $ 759 thousand in net interest income primarily resulted from a decrease of $ 513 thousand in interest expense on deposits , a decrease of $ 483 thousand in interest expense on borrowings and an increase of $ 100 thousand in interest income on securities and other sources , which were partially offset by a decrease of $ 337 thousand in interest income on loans . total interest income decreased $ 237 thousand , or 1 % , to $ 15.7 million for the year 2014 from $ 16.0 million for the year 2013. the decrease in interest income was primarily due to a $ 337 thousand 33 decrease in interest income on loans . the average yield on loans decreased 47 basis points from 5.90 % for the year 2013 to 5.43 % for the year 2014 , which decreased interest income by $ 1.3 million . the lower average loan yield on loans for the year 2014 was primarily due to payoffs of loans which carried a higher average yield than the average yield on total loans , and lower yields on loan originations as a result of the low interest rate environment . the decrease in loan yield was partially offset by an increase of $ 920 thousand in interest income resulting from an increase of $ 16.2 million in the average balance of loans receivable . during 2014 , we originated $ 95.5 million in multi-family loans with an average interest rate of 3.70 % . to supplement interest income , we purchased $ 8.6 million of mortgaged-backed securities and $ 1.9 million of u.s. government and federal agency securities in march 2014 with an average yield of 2.23 % , which resulted in a net increase in interest income attributable to securities of $ 64 thousand . total interest expense decreased $ 996 thousand , or 20 % , to $ 3.9 million for the year 2014 from $ 4.9 million for the year 2013. interest expense on deposits decreased $ 513 thousand primarily due to a 15 basis point decrease in the cost of deposits and a $ 19.2 million decline in the average balance of deposits . the decreases in the average balance and average cost of deposits reflected the maturities of certificates of deposit bearing higher rates . interest expense on fhlb advances decreased $ 105 thousand primarily due to a decrease of 16 basis points in the average cost of fhlb advances . the decrease in the average cost of fhlb advances was due to the maturities of $ 10.5 million of fhlb advances with an average interest rate of 3.54 % which were replaced by $ 17.0 million of new advances with an average interest rate of $ 1.26 % . story_separator_special_tag loan charge-offs during 2014 were $ 693 thousand compared to $ 2.8 million during 2013. charge-offs during 2014 were related to losses on impaired loans and consisted of charge-offs of $ 533 thousand on church loans , a charge-off of $ 133 thousand on a single family residential real estate loan , a charge-off of $ 18 thousand on a commercial loan and a charge-off of $ 9 thousand on a commercial real estate loan . in determining charge-offs we update our estimates of collateral values on npls by obtaining new appraisals at least every nine months . if the estimated fair value of the loan collateral less estimated selling costs is less than the recorded investment in the loan , a charge-off for the difference is recorded to reduce the loan to its estimated fair value , less estimated selling costs . therefore , certain losses inherent in our total npls are recognized periodically through charge-offs . the impact of updating these estimates of collateral value and recognizing any required charge-offs is to increase charge-offs and reduce the alll required on these loans . as of december 31 , 2014 , we had written down 70 % of our npls to estimated fair value less estimated selling costs . the remaining 30 % of our npls at december 31 , 2014 had specific reserves or were reported at cost because the fair value of collateral less estimated selling costs exceeded the recorded investment in the loan . 39 recoveries during 2014 totaled $ 1.9 million compared to $ 694 thousand during 2013. recoveries during 2014 were primarily due to payoffs of two non-accrual loans secured by church properties and two commercial loans which had been fully written off in late 2011 and due to a settlement of a loan which had been previously written down in exchange for property received in foreclosure , the fair value of which exceeded the cost basis of the related loan . impaired loans at december 31 , 2014 were $ 23.8 million , compared to $ 33.5 million at december 31 , 2013. specific reserves for impaired loans were $ 1.5 million , or 6.32 % of the aggregate impaired loan amount at december 31 , 2014 , compared to $ 2.2 million , or 6.53 % , at december 31 , 2013. excluding specific reserves for impaired loans , our coverage ratio ( general allowance as a percentage of total non-impaired loans ) was 2.68 % at december 31 , 2014 , compared to 3.56 % at december 31 , 2013. the decrease in our coverage ratio reflected a decline in our historical loss factors and the continued improvements in our asset quality . management believes that the alll is adequate to cover probable incurred losses in the loan portfolio as of december 31 , 2014 , but there can be no assurance that actual losses will not exceed the estimated amounts . in addition , the occ and the fdic periodically review the alll as an integral part of their examination process . these agencies may require an increase in the alll based on their judgments of the information available to them at the time of their examinations . real estate owned reo decreased slightly during 2014 but remained essentially flat at $ 2.1 million at the end of both 2014 and 2013. during 2014 , one multi-family and three church loans totaling $ 2.6 million were foreclosed and the properties securing the loans , with total fair values of $ 3.3 million , became reo . as part of our efforts to reduce non-performing assets , seven reo properties were sold during 2014 for net proceeds of $ 2.9 million and a net gain of $ 12 thousand . at december 31 , 2014 , the bank 's reo consisted of two church buildings . deposits deposits totaled $ 217.9 million at december 31 , 2014 , up $ 3.5 million from december 31 , 2013. during 2014 , certificates of deposit increased by $ 5.1 million and represented 62 % of total deposits at december 31 , 2014 , compared to 61 % of total deposits at december 31 , 2013. core deposits ( now , demand , money market and passbook accounts ) decreased by $ 1.6 million during 2014 and represented 38 % of total deposits at december 31 , 2014 , compared to 39 % of total deposits at december 31 , 2013. borrowings at december 31 , 2014 , total borrowings consisted of advances to the bank from the fhlb of $ 86.0 million and debentures issued by the company of $ 5.1 million . at december 31 , 2013 , borrowings consisted of advances from the fhlb of $ 79.5 million , debentures of $ 6.0 million and our modified senior debt of $ 2.9 million , which balance included the unamortized deferred gain on debt restructuring of $ 498 thousand . at december 31 , 2014 , advances from the fhlb increased by $ 6.5 million from $ 79.5 million , or 24 % of total assets , at year-end 2013 to $ 86.0 million , or 25 % of total assets , at year-end 2014. the weighted average cost of advances decreased 5 basis points from 2.49 % at december 31 , 2013 to 2.31 % at december 31 , 2014 primarily due to maturities of $ 10.5 million of fhlb advances with an average interest rate of 3.54 % and new advances totaling $ 17.0 million with an average interest rate of $ 1.26 % . amounts due pursuant to our debentures decreased by $ 900 thousand to $ 5.1 million at december 31 , 2014 from $ 6.0 million at december 31 , 2013 as we completed the modification of the debentures and related transactions on october 16 , 2014. senior debt decreased by $ 2.9 million during 2014 , as we repaid in full the $ 2.4 million outstanding

