the negative provision in each period was also impacted by other recoveries from our collection efforts and a continual decline in our historical charge-off levels from prior years . we do not expect a similar level of negative provision for loan losses in 2016 . - 25 - we had our third consecutive full year of net recoveries in 2015. the following table reflects the provision for loan losses for the past five years along with certain metrics that impact the determination of the level of the provision for loan losses . replace_table_token_14_th during the economic downturn in 2008 and 2009 , the state of michigan entered into a recession earlier than the rest of the country and experienced heavy job loss as a result of the concentration the state has related to the automotive industry . our market areas of grand rapids and holland fared better than the state as a whole , but nevertheless the impact of our local economy on our results was profound . the recession and job loss impacted housing values , commercial real estate values and consumer activity . improvement has been evident during the past several years . the state 's unemployment rate at the end of 2015 was 5.1 % , down dramatically from 15.2 % in june 2009. the grand rapids and holland area unemployment rate was 3.0 % at the end of 2015. residential housing values and commercial real estate property values decreased significantly during the recession , but have shown signs of stabilization , with some of our newer appraisals tending to reflect values at or above prior year values . it also appears that the housing market in our primary market area has stabilized and is now improving . in the grand rapids market during 2015 , there were 10 % more living unit starts than in 2014. similarly , in the holland-grand haven/lakeshore region , there were 11 % more living unit starts in 2015 than in 2014. these improvements are on top of improved results in 2014 over 2013. also , these markets are now also seeing significant activity in duplex , condominium and apartment starts after years of virtually no activity . in years immediately following the recession , we diversified our loan portfolio structure by de-emphasizing commercial real estate loans . however , in 2014 , we began cautiously increasing commercial real estate loans along with commercial and industrial loans , residential mortgages and other consumer loans . commercial real estate loans have increased from $ 472.3 million at december 31 , 2013 to $ 490.5 million at december 31 , 2014 and $ 508.7 million at december 31 , 2015. commercial and industrial loans have increased from $ 274.1 million at december 31 , 2013 to $ 327.7 million at december 31 , 2014 and $ 377.3 million at december 31 , 2015. consumer loans have increased from $ 295.9 million at december 31 , 2013 to totaling $ 300.3 million at december 31 , 2014 and $ 312.0 million at december 31 , 2015. with our improved financial condition , successful capital raise in 2011 , and retained earnings growth , our focus has shifted to high quality loan portfolio growth . we experienced strong commercial loan growth in the fourth quarter of 2014 and throughout 2015 and believe we are positioned for continued growth in 2016. results of operations summary : net income was $ 12.8 million ( $ 18.4 million on a pretax basis ) for 2015 , compared to net income of $ 10.5 million ( $ 15.0 million on a pretax basis ) for 2014 and $ 9.5 million ( $ 13.8 million on a pretax basis ) for 2013. earnings ( loss ) per common share on a diluted basis was $ 0.38 for 2015 , $ 0.31 for 2014 and $ ( 0.29 ) for 2013. earnings ( loss ) per share for 2013 was affected by a one-time , non-cash reduction to net income available to common shares of $ 17.6 million representing the impact of the preferred stock exchange completed on december 30 , 2013. earnings in each period were positively impacted by negative provisions for loan losses ( $ 3.5 million in 2015 , $ 3.4 million in 2014 and $ 4.3 million in 2013 ) . these negative provisions resulted from reduced levels of nonperforming loans , improved asset quality and reduced levels of chargeoffs . these items are discussed more fully below . we continued our improvement in nonperforming asset expenses in 2015. costs associated with nonperforming assets were $ 3.0 million in 2015 , compared to $ 3.1 million in 2014 and $ 5.5 million in 2013. lost interest from nonperforming assets decreased to approximately $ 1.4 million for 2015 , compared to $ 1.9 million for 2014 and $ 2.4 million for 2013. each of these items are discussed more fully below . - 26 - net interest income : net interest income totaled $ 44.1 million during 2015 , compared to $ 41.4 million during 2014 and $ 41.3 million in 2013. the increase in net interest income during 2015 compared to 2014 was our second straight year with an increase in core net interest income , following several years of declining net interest income . this increase was due to an increase in average earning assets of $ 129.4 million from $ 1.35 billion in 2014 to $ 1.48 billion in 2015. our net interest income as a percentage of average interest-earning assets ( i.e . `` net interest margin `` or `` margin `` ) decreased by 6 basis points compared to 2014. as is customary in the banking industry , interest income on tax-exempt securities is adjusted in the computation of the yield on tax-exempt securities and net interest margin using a 35 % tax rate to report these items on a fully taxable equivalent basis . story_separator_special_tag at december 31 , 2012 , we concluded that the valuation allowance was no longer required and the $ 18.9 million valuation allowance was reversed . our effective tax rate was 31 % for 2015 30 % for 2014 and 31 % for 2013. financial condition summary : since the economic recession in 2008 and 2009 , we had been focused on improving our loan portfolio , reducing exposure in higher loan concentration types , building our investment portfolio , and improving our financial condition through diversification of credit risk , improved capital ratios , and reduced reliance on non-core funding . we experienced positive results in each of these areas over the past several years . with the success in strengthening our financial condition , we have turned our focus more recently to achieving high quality loan portfolio growth . total assets were $ 1.730 billion at december 31 , 2015 , an increase of $ 145.8 million from $ 1.584 billion at december 31 , 2014. this change reflected increases of $ 52.0 million in cash and cash equivalents , $ 4.9 million in securities available for sale , $ 20.3 million in securities held to maturity and $ 79.4 million in our loan portfolio , partially offset by decreases of $ 10.7 million in other real estate owned and $ 3.4 million in net deferred tax asset . total deposits increased by $ 129.2 million and other borrowed funds were up by $ 8.1 million at december 31 , 2015 compared to december 31 , 2014 . - 32 - total shareholders ' equity increased by $ 9.5 million from december 31 , 2014 to december 31 , 2015. shareholders ' equity was increased by $ 12.8 million of net income in 2015 , partially offset by cash dividends of $ 3.7 million , or $ 0.11 per share . shareholders ' equity was also increased by $ 286,000 in 2015 as a result of a swing in other comprehensive income due to the effect of interest rate movement on the fair value of our available for sale securities portfolio . as of december 31 , 2015 , the bank was categorized as “ well capitalized ” under applicable regulatory guidelines . story_separator_special_tag 0px ; background-color : # 000000 `` / > the following table shows our loan origination activity for portfolio loans during 2015 , broken out by loan type and also shows average originated loan size ( dollars in thousands ) : replace_table_token_22_th our loan portfolio is reviewed regularly by our senior management , our loan officers , and an internal loan review team that is independent of our loan originators and credit administration . an administrative loan committee consisting of senior management and seasoned lending and collections personnel meets monthly to manage our internal watch list and proactively manage high risk loans . when reasonable doubt exists concerning collectability of interest or principal of one of our loans , the loan is placed in nonaccrual status . any interest previously accrued but not collected is reversed and charged against current earnings . nonperforming assets are comprised of nonperforming loans , foreclosed assets and repossessed assets . at december 31 , 2015 , nonperforming assets totaled $ 18.3 million compared to $ 36.7 million at december 31 , 2014. additions to other real estate owned in 2015 were $ 2.5 million , compared to $ 4.9 million in 2014. based on the loans currently in their redemption period , we expect there to be fewer additions to other real estate owned in 2016 than there were in 2015. proceeds from sales of foreclosed properties were $ 11.5 million in 2015 , resulting in a net realized loss on sale of $ 926,000. proceeds from sales of foreclosed properties were $ 12.5 million in 2014 resulting in a net realized gain of $ 624,000. we expect the level of sales of foreclosed properties in 2016 to be lower than the levels experienced in 2015. nonperforming loans include loans on nonaccrual status and loans delinquent more than 90 days but still accruing . as of december 31 , 2015 , nonperforming loans totaled $ 756,000 , or 0.06 % of total portfolio loans , compared to $ 8.4 million , or 0.75 % of total portfolio loans , at december 31 , 2014. loans for development or sale of 1-4 family residential properties comprised approximately $ 195,000 , or 25.8 % of total nonperforming loans , at december 31 , 2015 compared to $ 245,000 , or 2.9 % of total nonperforming loans , at december 31 , 2014. the remaining balance of nonperforming loans at december 31 , 2015 consisted of $ 330,000 of commercial real estate loans secured by various types of non-residential real estate , $ 174,000 of commercial and industrial loans , and $ 57,000 of consumer and residential mortgage loans . foreclosed and repossessed assets include assets acquired in settlement of loans . foreclosed assets totaled $ 17.6 million at december 31 , 2015 and $ 28.2 million at december 31 , 2014. of this balance at december 31 , 2015 , there were 48 commercial real estate properties totaling approximately $ 16.6 million . the remaining balance was comprised of 10 residential properties totaling approximately $ 1.0 million . one commercial real estate property comprised $ 4.0 million , or 23 % , of total other real estate owned at december 31 , 2015. all properties acquired through or in lieu of foreclosure are initially transferred at their fair value less estimated costs to sell and then evaluated monthly for impairment after transfer using a lower of cost or market approach . updated property valuations are obtained at least annually on all foreclosed assets . - 35 - at december 31 , 2015 , our foreclosed asset portfolio had a weighted average age held in portfolio of 3.87 years . below is a breakout of our foreclosed asset portfolio at december

cash and cash equivalents : our cash and cash equivalents , which include federal funds sold and short-term investments , were $ 181.5 million at december 31 , 2015 compared to $ 129.5 million at december 31 , 2014. this $ 52.0 million increase was a result of deposit growth exceeding loan growth during 2015 and a seasonal increase in deposits at year end . interest-bearing time deposits with other financial institutions : we opened two time deposit accounts with our primary correspondent bank in the first quarter of 2013 , each in equal amounts totaling $ 25.0 million . one of these deposits matured in march 2014 and the other matured in september 2014. we opened another time deposit of $ 20.0 million in the first quarter of 2014 which matures in february 2016. these time deposits provide a higher interest rate than federal funds sold or other short-term investments . securities : securities available for sale were $ 166.8 million at december 31 , 2015 compared to $ 161.9 million at december 31 , 2014. the balance at december 31 , 2015 primarily consisted of u.s. agency securities , agency mortgage backed securities and various municipal investments . our held to maturity portfolio increased from $ 31.6 million at december 31 , 2014 to $ 51.9 million at december 31 , 2015. our held to maturity portfolio is comprised of state and municipal bonds . portfolio loans and asset quality : total portfolio loans increased by $ 79.4 million to $ 1.20 billion at december 31 , 2015 compared to $ 1.12 billion at december 31 , 2014. during 2015 , our commercial portfolio increased by $ 67.8 million , while our residential portfolio increased by $ 19.7 million and our consumer portfolio decreased by $ 8.1 million . the volume of residential mortgage loans originated for sale in 2015 increased compared to 2014 due to the mortgage rate environment and our increase in the number of residential mortgage lenders .


 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.
     ```cash and cash equivalents : our cash and cash equivalents , which include federal funds sold and short-term investments , were $ 181.5 million at december 31 , 2015 compared to $ 129.5 million at december 31 , 2014. this $ 52.0 million increase was a result of deposit growth exceeding loan growth during 2015 and a seasonal increase in deposits at year end . interest-bearing time deposits with other financial institutions : we opened two time deposit accounts with our primary correspondent bank in the first quarter of 2013 , each in equal amounts totaling $ 25.0 million . one of these deposits matured in march 2014 and the other matured in september 2014. we opened another time deposit of $ 20.0 million in the first quarter of 2014 which matures in february 2016. these time deposits provide a higher interest rate than federal funds sold or other short-term investments . securities : securities available for sale were $ 166.8 million at december 31 , 2015 compared to $ 161.9 million at december 31 , 2014. the balance at december 31 , 2015 primarily consisted of u.s. agency securities , agency mortgage backed securities and various municipal investments . our held to maturity portfolio increased from $ 31.6 million at december 31 , 2014 to $ 51.9 million at december 31 , 2015. our held to maturity portfolio is comprised of state and municipal bonds . portfolio loans and asset quality : total portfolio loans increased by $ 79.4 million to $ 1.20 billion at december 31 , 2015 compared to $ 1.12 billion at december 31 , 2014. during 2015 , our commercial portfolio increased by $ 67.8 million , while our residential portfolio increased by $ 19.7 million and our consumer portfolio decreased by $ 8.1 million . the volume of residential mortgage loans originated for sale in 2015 increased compared to 2014 due to the mortgage rate environment and our increase in the number of residential mortgage lenders .
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 Suspicious Activity Report : the negative provision in each period was also impacted by other recoveries from our collection efforts and a continual decline in our historical charge-off levels from prior years . we do not expect a similar level of negative provision for loan losses in 2016 . - 25 - we had our third consecutive full year of net recoveries in 2015. the following table reflects the provision for loan losses for the past five years along with certain metrics that impact the determination of the level of the provision for loan losses . replace_table_token_14_th during the economic downturn in 2008 and 2009 , the state of michigan entered into a recession earlier than the rest of the country and experienced heavy job loss as a result of the concentration the state has related to the automotive industry . our market areas of grand rapids and holland fared better than the state as a whole , but nevertheless the impact of our local economy on our results was profound . the recession and job loss impacted housing values , commercial real estate values and consumer activity . improvement has been evident during the past several years . the state 's unemployment rate at the end of 2015 was 5.1 % , down dramatically from 15.2 % in june 2009. the grand rapids and holland area unemployment rate was 3.0 % at the end of 2015. residential housing values and commercial real estate property values decreased significantly during the recession , but have shown signs of stabilization , with some of our newer appraisals tending to reflect values at or above prior year values . it also appears that the housing market in our primary market area has stabilized and is now improving . in the grand rapids market during 2015 , there were 10 % more living unit starts than in 2014. similarly , in the holland-grand haven/lakeshore region , there were 11 % more living unit starts in 2015 than in 2014. these improvements are on top of improved results in 2014 over 2013. also , these markets are now also seeing significant activity in duplex , condominium and apartment starts after years of virtually no activity . in years immediately following the recession , we diversified our loan portfolio structure by de-emphasizing commercial real estate loans . however , in 2014 , we began cautiously increasing commercial real estate loans along with commercial and industrial loans , residential mortgages and other consumer loans . commercial real estate loans have increased from $ 472.3 million at december 31 , 2013 to $ 490.5 million at december 31 , 2014 and $ 508.7 million at december 31 , 2015. commercial and industrial loans have increased from $ 274.1 million at december 31 , 2013 to $ 327.7 million at december 31 , 2014 and $ 377.3 million at december 31 , 2015. consumer loans have increased from $ 295.9 million at december 31 , 2013 to totaling $ 300.3 million at december 31 , 2014 and $ 312.0 million at december 31 , 2015. with our improved financial condition , successful capital raise in 2011 , and retained earnings growth , our focus has shifted to high quality loan portfolio growth . we experienced strong commercial loan growth in the fourth quarter of 2014 and throughout 2015 and believe we are positioned for continued growth in 2016. results of operations summary : net income was $ 12.8 million ( $ 18.4 million on a pretax basis ) for 2015 , compared to net income of $ 10.5 million ( $ 15.0 million on a pretax basis ) for 2014 and $ 9.5 million ( $ 13.8 million on a pretax basis ) for 2013. earnings ( loss ) per common share on a diluted basis was $ 0.38 for 2015 , $ 0.31 for 2014 and $ ( 0.29 ) for 2013. earnings ( loss ) per share for 2013 was affected by a one-time , non-cash reduction to net income available to common shares of $ 17.6 million representing the impact of the preferred stock exchange completed on december 30 , 2013. earnings in each period were positively impacted by negative provisions for loan losses ( $ 3.5 million in 2015 , $ 3.4 million in 2014 and $ 4.3 million in 2013 ) . these negative provisions resulted from reduced levels of nonperforming loans , improved asset quality and reduced levels of chargeoffs . these items are discussed more fully below . we continued our improvement in nonperforming asset expenses in 2015. costs associated with nonperforming assets were $ 3.0 million in 2015 , compared to $ 3.1 million in 2014 and $ 5.5 million in 2013. lost interest from nonperforming assets decreased to approximately $ 1.4 million for 2015 , compared to $ 1.9 million for 2014 and $ 2.4 million for 2013. each of these items are discussed more fully below . - 26 - net interest income : net interest income totaled $ 44.1 million during 2015 , compared to $ 41.4 million during 2014 and $ 41.3 million in 2013. the increase in net interest income during 2015 compared to 2014 was our second straight year with an increase in core net interest income , following several years of declining net interest income . this increase was due to an increase in average earning assets of $ 129.4 million from $ 1.35 billion in 2014 to $ 1.48 billion in 2015. our net interest income as a percentage of average interest-earning assets ( i.e . `` net interest margin `` or `` margin `` ) decreased by 6 basis points compared to 2014. as is customary in the banking industry , interest income on tax-exempt securities is adjusted in the computation of the yield on tax-exempt securities and net interest margin using a 35 % tax rate to report these items on a fully taxable equivalent basis . story_separator_special_tag at december 31 , 2012 , we concluded that the valuation allowance was no longer required and the $ 18.9 million valuation allowance was reversed . our effective tax rate was 31 % for 2015 30 % for 2014 and 31 % for 2013. financial condition summary : since the economic recession in 2008 and 2009 , we had been focused on improving our loan portfolio , reducing exposure in higher loan concentration types , building our investment portfolio , and improving our financial condition through diversification of credit risk , improved capital ratios , and reduced reliance on non-core funding . we experienced positive results in each of these areas over the past several years . with the success in strengthening our financial condition , we have turned our focus more recently to achieving high quality loan portfolio growth . total assets were $ 1.730 billion at december 31 , 2015 , an increase of $ 145.8 million from $ 1.584 billion at december 31 , 2014. this change reflected increases of $ 52.0 million in cash and cash equivalents , $ 4.9 million in securities available for sale , $ 20.3 million in securities held to maturity and $ 79.4 million in our loan portfolio , partially offset by decreases of $ 10.7 million in other real estate owned and $ 3.4 million in net deferred tax asset . total deposits increased by $ 129.2 million and other borrowed funds were up by $ 8.1 million at december 31 , 2015 compared to december 31 , 2014 . - 32 - total shareholders ' equity increased by $ 9.5 million from december 31 , 2014 to december 31 , 2015. shareholders ' equity was increased by $ 12.8 million of net income in 2015 , partially offset by cash dividends of $ 3.7 million , or $ 0.11 per share . shareholders ' equity was also increased by $ 286,000 in 2015 as a result of a swing in other comprehensive income due to the effect of interest rate movement on the fair value of our available for sale securities portfolio . as of december 31 , 2015 , the bank was categorized as “ well capitalized ” under applicable regulatory guidelines . story_separator_special_tag 0px ; background-color : # 000000 `` / > the following table shows our loan origination activity for portfolio loans during 2015 , broken out by loan type and also shows average originated loan size ( dollars in thousands ) : replace_table_token_22_th our loan portfolio is reviewed regularly by our senior management , our loan officers , and an internal loan review team that is independent of our loan originators and credit administration . an administrative loan committee consisting of senior management and seasoned lending and collections personnel meets monthly to manage our internal watch list and proactively manage high risk loans . when reasonable doubt exists concerning collectability of interest or principal of one of our loans , the loan is placed in nonaccrual status . any interest previously accrued but not collected is reversed and charged against current earnings . nonperforming assets are comprised of nonperforming loans , foreclosed assets and repossessed assets . at december 31 , 2015 , nonperforming assets totaled $ 18.3 million compared to $ 36.7 million at december 31 , 2014. additions to other real estate owned in 2015 were $ 2.5 million , compared to $ 4.9 million in 2014. based on the loans currently in their redemption period , we expect there to be fewer additions to other real estate owned in 2016 than there were in 2015. proceeds from sales of foreclosed properties were $ 11.5 million in 2015 , resulting in a net realized loss on sale of $ 926,000. proceeds from sales of foreclosed properties were $ 12.5 million in 2014 resulting in a net realized gain of $ 624,000. we expect the level of sales of foreclosed properties in 2016 to be lower than the levels experienced in 2015. nonperforming loans include loans on nonaccrual status and loans delinquent more than 90 days but still accruing . as of december 31 , 2015 , nonperforming loans totaled $ 756,000 , or 0.06 % of total portfolio loans , compared to $ 8.4 million , or 0.75 % of total portfolio loans , at december 31 , 2014. loans for development or sale of 1-4 family residential properties comprised approximately $ 195,000 , or 25.8 % of total nonperforming loans , at december 31 , 2015 compared to $ 245,000 , or 2.9 % of total nonperforming loans , at december 31 , 2014. the remaining balance of nonperforming loans at december 31 , 2015 consisted of $ 330,000 of commercial real estate loans secured by various types of non-residential real estate , $ 174,000 of commercial and industrial loans , and $ 57,000 of consumer and residential mortgage loans . foreclosed and repossessed assets include assets acquired in settlement of loans . foreclosed assets totaled $ 17.6 million at december 31 , 2015 and $ 28.2 million at december 31 , 2014. of this balance at december 31 , 2015 , there were 48 commercial real estate properties totaling approximately $ 16.6 million . the remaining balance was comprised of 10 residential properties totaling approximately $ 1.0 million . one commercial real estate property comprised $ 4.0 million , or 23 % , of total other real estate owned at december 31 , 2015. all properties acquired through or in lieu of foreclosure are initially transferred at their fair value less estimated costs to sell and then evaluated monthly for impairment after transfer using a lower of cost or market approach . updated property valuations are obtained at least annually on all foreclosed assets . - 35 - at december 31 , 2015 , our foreclosed asset portfolio had a weighted average age held in portfolio of 3.87 years . below is a breakout of our foreclosed asset portfolio at december

