at december 31 , 2017 , consumer loans represented 27.0 % of the company 's total gross loan portfolio , down from 28.9 % at december 31 , 2016 , as real estate loan originations have increased at a faster pace than consumer loan originations during the year ended december 31 , 2017. indirect home improvement lending is dependent on the bank 's relationships with home improvement contractors and dealers . the company funded $ 92.8 million , or approximately 6,000 loans during the year ended december 31 , 2017 , 65 using its indirect home improvement contractor/dealer network located throughout washington , oregon , california , idaho , and colorado with six contractor/dealers responsible for 56.7 % of the funded loans dollar volume . see “ item 1a . risk factors - our business could suffer if we are unsuccessful in making , continuing and growing relationships with home improvement contractors and dealers ” of this form 10‑k . since 2012 , the company has had an emphasis on diversifying lending products by expanding commercial real estate , commercial business and residential lending , while maintaining the current size of the consumer loan portfolio . the company 's lending strategies are intended to take advantage of : ( 1 ) historical strength in indirect consumer lending , ( 2 ) recent market consolidation that has created new lending opportunities and the availability of experienced bankers , and ( 3 ) strength in relationship lending . retail deposits will continue to serve as an important funding source . see “ item 1. business : lending activities ” and “ item 1a . risk factors - risks related to our business ” of this form 10‑k . recently , improvements in the economy , employment rates , stronger real estate prices , and a general lack of new housing inventory has resulted in our significantly increasing originations of construction loans for properties located in our market areas . we anticipate that construction and development lending will continue to be a strong element of our total loan portfolio in future periods . we will continue to take a disciplined approach in our construction and development lending by concentrating our efforts on loans to builders and developers in our market areas known to us . originations of construction and development loans increased to $ 123.3 million in 2017 from $ 73.7 million in 2016. these short term loans typically mature in six to twelve months . in addition , the funding is usually not fully disbursed at origination , thereby reducing our net loans receivable in the short term . at december 31 , 2017 , outstanding construction and development loans totaled $ 143.1 million , or 18.5 % , of the gross loan portfolio and consisted of loans for residential and commercial construction projects , primarily for vertical construction and $ 11.5 million of land acquisition and development loans . total committed , including unfunded construction and development loans at december 31 , 2017 , was $ 222.0 million as compared to $ 154.3 million at december 31 , 2016. the company is significantly affected by prevailing economic conditions , as well as government policies and regulations concerning , among other things , monetary and fiscal affairs . deposit flows are influenced by a number of factors , including interest rates paid on time deposits , other investments , account maturities , and the overall level of personal income and savings . lending activities are influenced by the demand for funds , the number and quality of lenders , and regional economic cycles . sources of funds for lending activities include primarily deposits , including brokered deposits , borrowings , payments on loans and income provided from operations . the company 's earnings are primarily dependent upon net interest income , the difference between interest income and interest expense . interest income is a function of the balances of loans and investments outstanding during a given period and the yield earned on these loans and investments . interest expense is a function of the amount of deposits and borrowings outstanding during the same period and interest rates paid on these deposits and borrowings . another significant influence on the company 's earnings is fee income from mortgage banking activities . the company 's earnings are also affected by the provision for loan losses , service charges and fees , gains from sales of assets , operating expenses and income taxes . critical accounting policies and estimates certain of the company 's accounting policies are important to the portrayal of the company 's financial condition , since they require management to make difficult , complex or subjective judgments , some of which may relate to matters that are inherently uncertain . estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances . facts and circumstances which could affect these judgments include , but are not limited to , changes in interest rates , changes in the performance of the economy and changes in the financial condition of borrowers . management believes that its critical accounting policies include determining the allowance for loan losses , the fair value of servicing rights , derivatives and hedging activity , and the accounting for deferred income taxes . the company 's accounting policies are discussed in detail in note 1 of the notes to consolidated financial statements included in “ item 8. financial statements and supplementary data ” of this form 10‑k . allowance for loan loss . the allowance for loan losses is the amount estimated by management as necessary to cover probable losses inherent in the loan portfolio at the balance sheet date . the allowance is established through the provision for loan losses , which is charged to income . a high degree of judgment is necessary when determining the 66 amount of the allowance for loan losses . story_separator_special_tag , online certificates of deposit , and public funds , increased $ 6.3 million , or 10.5 % , to $ 66.5 million , at december 31 , 2017 , compared to $ 60.2 million at december 31 , 2016. management remains focused on growth in lower cost relationship-based deposits to fund long-term asset growth . at december 31 , 2017 , borrowings decreased $ 5.1 million , or 40.6 % , to $ 7.5 million from $ 12.7 million at december 31 , 2016 , primarily due to the repayment of fhlb fixed rate advances . stockholders ' equity . total stockholders ' equity increased $ 41.0 million , or 50.6 % , to $ 122.0 million at december 31 , 2017 , from $ 81.0 million at december 31 , 2016. the increase in stockholders ' equity was primarily from net proceeds of $ 25.6 million from an underwritten public offering completed in the third quarter of 2017 and net income of $ 14.1 million . book value per common share was $ 34.47 at december 31 , 2017 , compared to $ 28.32 at december 31 , 2016 . 70 average balances , interest and average yields/cost the following table sets forth for the periods indicated , information regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities , resultant yields , interest rate spread , net interest margin ( otherwise known as net yield on interest-earning assets ) , and the ratio of average interest-earning assets to average interest-bearing liabilities . also presented is the weighted average yield on interest-earning assets , rates paid on interest-bearing liabilities and the resultant spread at december 31 , 2017. income and all average balances are monthly average balances . non-accruing loans have been included in the table as loans carrying a zero yield . replace_table_token_27_th ( 1 ) the average loans receivable , net balances include non-accruing loans . 71 rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities . it distinguishes between the changes related to outstanding balances and that due to the changes in interest rates . for each category of interest-earning assets and interest-bearing liabilities , information is provided on changes attributable to ( i ) changes in volume ( i.e . , changes in volume multiplied by old rate ) and ( ii ) changes in rate ( i.e . , changes in rate multiplied by old volume ) . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately to the change due to volume and the change due to rate . replace_table_token_28_th ( 1 ) the average loans receivable , net balances include non-accruing loans . comparison of results of operations for the years ended december 31 , 2017 and 201 6 general . net income for the year ended december 31 , 2017 , increased $ 3.6 million , or 34.2 % , to $ 14.1 million , from $ 10.5 million for the year ended december 31 , 2016. the increase in net income was primarily a result of an $ 8.2 million , or 21.5 % increase in interest income , a $ 1.7 million reduction in the provision for loan losses , and a $ 505,000 , or 2.1 % increase in noninterest income , partially offset by a $ 5.1 million , or 13.0 % increase in noninterest expense , an $ 890,000 , or 15.9 % increase in the provision for income tax expense , and a $ 770,000 , or 18.5 % increase in interest expense . net interest income . net interest income increased $ 7.4 million , or 21.8 % , to $ 41.2 million for the year ended december 31 , 2017 , from $ 33.9 million for the year ended december 31 , 2016. the increase in net interest income was primarily attributable to a $ 7.7 million , or 21.5 % increase in loan receivable interest income resulting from a $ 130.6 million increase in average loans receivable , net and loans held for sale over the last year , and a $ 476,000 , or 21.2 % increase in interest and dividends on investment securities , and cash and cash equivalents , partially offset by a $ 770,000 or 18.5 % increase in total interest expense . the net interest margin ( “ nim ” ) increased 22 basis points to 4.65 % for the year ended december 31 , 2017 , from 4.43 % for the same period last year . the increased nim reflects continued growth in higher yielding loans , and reductions in securities afs and cash and cash equivalents . the average cost of funds for total interest-bearing liabilities increased 72 two basis points to 0.76 % for the year ended december 31 , 2017 , from 0.74 % for the year ended december 31 , 2016. management remains focused on matching deposit duration with the duration of earning assets where appropriate . interest income . interest income for the year ended december 31 , 2017 , increased $ 8.2 million , or 21.5 % , to $ 46.2 million , from $ 38.0 million for the year ended december 31 , 2016. the increase during the year was primarily attributable to an increase in the average balance of loans receivable , net and loans held for sale to $ 749.2 million for the year ended december 31 , 2017 , compared to $ 618.6 million for the year ended december 31 , 2016 , and a 24 basis point increase in the average yield on interest-earning assets to 5.21 % during the year ended december 31 , 2017 , from 4.97 % for the prior year

liquidity management maintains a liquidity position that it believes will adequately provide funding for loan demand and deposit runoff that may occur in the normal course of business . the company relies on a number of different sources in order to meet potential liquidity demands . the primary sources are increases in deposit accounts , fhlb advances , 77 purchases of fed funds , sale of securities available-for-sale , cash flows from loan payments , sales of one-to-four-family loans held for sale , and maturing securities . at december 31 , 2017 , the bank 's total borrowing capacity was $ 209.7 million with the fhlb of des moines , with unused borrowing capacity of $ 201.0 million at that date . the fhlb borrowing limit is based on certain categories of loans , primarily real estate loans that qualify as collateral for fhlb advances . at december 31 , 2017 , the bank held approximately $ 318.5 million in loans that qualify as collateral for fhlb advances . in addition to the availability of liquidity from the fhlb of des moines , the bank maintained a short-term borrowing line with the federal reserve bank , with a current limit of $ 99.1 million , and a combined credit limit of $ 43.0 million in written fed funds lines of credit through correspondent banking relationships as of december 31 , 2017. the federal reserve bank borrowing limit is based on certain categories ofloans , primarily consumer loans that qualify as collateral for federal reserve bank line of credit .


 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 management maintains a liquidity position that it believes will adequately provide funding for loan demand and deposit runoff that may occur in the normal course of business . the company relies on a number of different sources in order to meet potential liquidity demands . the primary sources are increases in deposit accounts , fhlb advances , 77 purchases of fed funds , sale of securities available-for-sale , cash flows from loan payments , sales of one-to-four-family loans held for sale , and maturing securities . at december 31 , 2017 , the bank 's total borrowing capacity was $ 209.7 million with the fhlb of des moines , with unused borrowing capacity of $ 201.0 million at that date . the fhlb borrowing limit is based on certain categories of loans , primarily real estate loans that qualify as collateral for fhlb advances . at december 31 , 2017 , the bank held approximately $ 318.5 million in loans that qualify as collateral for fhlb advances . in addition to the availability of liquidity from the fhlb of des moines , the bank maintained a short-term borrowing line with the federal reserve bank , with a current limit of $ 99.1 million , and a combined credit limit of $ 43.0 million in written fed funds lines of credit through correspondent banking relationships as of december 31 , 2017. the federal reserve bank borrowing limit is based on certain categories ofloans , primarily consumer loans that qualify as collateral for federal reserve bank line of credit .
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 Suspicious Activity Report : at december 31 , 2017 , consumer loans represented 27.0 % of the company 's total gross loan portfolio , down from 28.9 % at december 31 , 2016 , as real estate loan originations have increased at a faster pace than consumer loan originations during the year ended december 31 , 2017. indirect home improvement lending is dependent on the bank 's relationships with home improvement contractors and dealers . the company funded $ 92.8 million , or approximately 6,000 loans during the year ended december 31 , 2017 , 65 using its indirect home improvement contractor/dealer network located throughout washington , oregon , california , idaho , and colorado with six contractor/dealers responsible for 56.7 % of the funded loans dollar volume . see “ item 1a . risk factors - our business could suffer if we are unsuccessful in making , continuing and growing relationships with home improvement contractors and dealers ” of this form 10‑k . since 2012 , the company has had an emphasis on diversifying lending products by expanding commercial real estate , commercial business and residential lending , while maintaining the current size of the consumer loan portfolio . the company 's lending strategies are intended to take advantage of : ( 1 ) historical strength in indirect consumer lending , ( 2 ) recent market consolidation that has created new lending opportunities and the availability of experienced bankers , and ( 3 ) strength in relationship lending . retail deposits will continue to serve as an important funding source . see “ item 1. business : lending activities ” and “ item 1a . risk factors - risks related to our business ” of this form 10‑k . recently , improvements in the economy , employment rates , stronger real estate prices , and a general lack of new housing inventory has resulted in our significantly increasing originations of construction loans for properties located in our market areas . we anticipate that construction and development lending will continue to be a strong element of our total loan portfolio in future periods . we will continue to take a disciplined approach in our construction and development lending by concentrating our efforts on loans to builders and developers in our market areas known to us . originations of construction and development loans increased to $ 123.3 million in 2017 from $ 73.7 million in 2016. these short term loans typically mature in six to twelve months . in addition , the funding is usually not fully disbursed at origination , thereby reducing our net loans receivable in the short term . at december 31 , 2017 , outstanding construction and development loans totaled $ 143.1 million , or 18.5 % , of the gross loan portfolio and consisted of loans for residential and commercial construction projects , primarily for vertical construction and $ 11.5 million of land acquisition and development loans . total committed , including unfunded construction and development loans at december 31 , 2017 , was $ 222.0 million as compared to $ 154.3 million at december 31 , 2016. the company is significantly affected by prevailing economic conditions , as well as government policies and regulations concerning , among other things , monetary and fiscal affairs . deposit flows are influenced by a number of factors , including interest rates paid on time deposits , other investments , account maturities , and the overall level of personal income and savings . lending activities are influenced by the demand for funds , the number and quality of lenders , and regional economic cycles . sources of funds for lending activities include primarily deposits , including brokered deposits , borrowings , payments on loans and income provided from operations . the company 's earnings are primarily dependent upon net interest income , the difference between interest income and interest expense . interest income is a function of the balances of loans and investments outstanding during a given period and the yield earned on these loans and investments . interest expense is a function of the amount of deposits and borrowings outstanding during the same period and interest rates paid on these deposits and borrowings . another significant influence on the company 's earnings is fee income from mortgage banking activities . the company 's earnings are also affected by the provision for loan losses , service charges and fees , gains from sales of assets , operating expenses and income taxes . critical accounting policies and estimates certain of the company 's accounting policies are important to the portrayal of the company 's financial condition , since they require management to make difficult , complex or subjective judgments , some of which may relate to matters that are inherently uncertain . estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances . facts and circumstances which could affect these judgments include , but are not limited to , changes in interest rates , changes in the performance of the economy and changes in the financial condition of borrowers . management believes that its critical accounting policies include determining the allowance for loan losses , the fair value of servicing rights , derivatives and hedging activity , and the accounting for deferred income taxes . the company 's accounting policies are discussed in detail in note 1 of the notes to consolidated financial statements included in “ item 8. financial statements and supplementary data ” of this form 10‑k . allowance for loan loss . the allowance for loan losses is the amount estimated by management as necessary to cover probable losses inherent in the loan portfolio at the balance sheet date . the allowance is established through the provision for loan losses , which is charged to income . a high degree of judgment is necessary when determining the 66 amount of the allowance for loan losses . story_separator_special_tag , online certificates of deposit , and public funds , increased $ 6.3 million , or 10.5 % , to $ 66.5 million , at december 31 , 2017 , compared to $ 60.2 million at december 31 , 2016. management remains focused on growth in lower cost relationship-based deposits to fund long-term asset growth . at december 31 , 2017 , borrowings decreased $ 5.1 million , or 40.6 % , to $ 7.5 million from $ 12.7 million at december 31 , 2016 , primarily due to the repayment of fhlb fixed rate advances . stockholders ' equity . total stockholders ' equity increased $ 41.0 million , or 50.6 % , to $ 122.0 million at december 31 , 2017 , from $ 81.0 million at december 31 , 2016. the increase in stockholders ' equity was primarily from net proceeds of $ 25.6 million from an underwritten public offering completed in the third quarter of 2017 and net income of $ 14.1 million . book value per common share was $ 34.47 at december 31 , 2017 , compared to $ 28.32 at december 31 , 2016 . 70 average balances , interest and average yields/cost the following table sets forth for the periods indicated , information regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities , resultant yields , interest rate spread , net interest margin ( otherwise known as net yield on interest-earning assets ) , and the ratio of average interest-earning assets to average interest-bearing liabilities . also presented is the weighted average yield on interest-earning assets , rates paid on interest-bearing liabilities and the resultant spread at december 31 , 2017. income and all average balances are monthly average balances . non-accruing loans have been included in the table as loans carrying a zero yield . replace_table_token_27_th ( 1 ) the average loans receivable , net balances include non-accruing loans . 71 rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities . it distinguishes between the changes related to outstanding balances and that due to the changes in interest rates . for each category of interest-earning assets and interest-bearing liabilities , information is provided on changes attributable to ( i ) changes in volume ( i.e . , changes in volume multiplied by old rate ) and ( ii ) changes in rate ( i.e . , changes in rate multiplied by old volume ) . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately to the change due to volume and the change due to rate . replace_table_token_28_th ( 1 ) the average loans receivable , net balances include non-accruing loans . comparison of results of operations for the years ended december 31 , 2017 and 201 6 general . net income for the year ended december 31 , 2017 , increased $ 3.6 million , or 34.2 % , to $ 14.1 million , from $ 10.5 million for the year ended december 31 , 2016. the increase in net income was primarily a result of an $ 8.2 million , or 21.5 % increase in interest income , a $ 1.7 million reduction in the provision for loan losses , and a $ 505,000 , or 2.1 % increase in noninterest income , partially offset by a $ 5.1 million , or 13.0 % increase in noninterest expense , an $ 890,000 , or 15.9 % increase in the provision for income tax expense , and a $ 770,000 , or 18.5 % increase in interest expense . net interest income . net interest income increased $ 7.4 million , or 21.8 % , to $ 41.2 million for the year ended december 31 , 2017 , from $ 33.9 million for the year ended december 31 , 2016. the increase in net interest income was primarily attributable to a $ 7.7 million , or 21.5 % increase in loan receivable interest income resulting from a $ 130.6 million increase in average loans receivable , net and loans held for sale over the last year , and a $ 476,000 , or 21.2 % increase in interest and dividends on investment securities , and cash and cash equivalents , partially offset by a $ 770,000 or 18.5 % increase in total interest expense . the net interest margin ( “ nim ” ) increased 22 basis points to 4.65 % for the year ended december 31 , 2017 , from 4.43 % for the same period last year . the increased nim reflects continued growth in higher yielding loans , and reductions in securities afs and cash and cash equivalents . the average cost of funds for total interest-bearing liabilities increased 72 two basis points to 0.76 % for the year ended december 31 , 2017 , from 0.74 % for the year ended december 31 , 2016. management remains focused on matching deposit duration with the duration of earning assets where appropriate . interest income . interest income for the year ended december 31 , 2017 , increased $ 8.2 million , or 21.5 % , to $ 46.2 million , from $ 38.0 million for the year ended december 31 , 2016. the increase during the year was primarily attributable to an increase in the average balance of loans receivable , net and loans held for sale to $ 749.2 million for the year ended december 31 , 2017 , compared to $ 618.6 million for the year ended december 31 , 2016 , and a 24 basis point increase in the average yield on interest-earning assets to 5.21 % during the year ended december 31 , 2017 , from 4.97 % for the prior year

