these increases were offset partially by a decrease in securities held to maturity to $ 9.0 million at june 30 , 2011 from $ 12.1 million at june 30 , 2010 , reflecting maturities of these securities , and a decrease in prepaid fdic premiums to $ 488 at june 30 , 2011 from $ 734 thousand at june 30 , 2010. deposits increased $ 19.9 million , or 7.30 % , to $ 292.5 million at june 30 , 2011 from $ 272.6 million at june 30 , 2010. the increase in deposits reflected increases in certificates of deposit of $ 13.9 million , or 6.43 % , and money market deposits of $ 769 thousand , or 8.24 % , as depositors sought out lower-risk , fdic-insured investments at a well-capitalized institution . the increase in total deposits also reflected an increase in regular savings and other deposits to $ 34.0 million at june 30 , 2011 from $ 32.2 million at june 30 , 2010. we generally do not accept brokered deposits and no brokered deposits were accepted during the 12 months ended june 30 , 2011. we had no advances from the federal home loan bank of atlanta as of june 30 , 2011 or june 30 , 2010. we have credit available under a loan agreement with the federal home loan bank of atlanta in the amount of 11 % of total assets , or approximately $ 41.4 million at june 30 , 2011. total equity equaled $ 80.2 million at june 30 , 2011 , compared to $ 59.7 million at june 30 , 2010. the increase resulted from net income of $ 2.3 million for the year ended june 30 , 2011 and $ 17.3 million of net proceeds from our sale of common stock as a result of our mutual to stock conversion on january 13 , 2011. comparison of operating results for the years ended june 30 , 2011 and june 30 , 2010 general . net income decreased to $ 2.3 million for the year ended june 30 , 2011 from $ 2.6 million for the year ended june 30 , 2010. the decrease reflected an increase in noninterest expense to $ 6.6 for the year ended june 30 , 2011 from $ 4.6 million for the year ended june 30 , 2010 , primarily from an increase in charitable contribution expense of $ 1.6 million from $ 25 thousand for the year ended june 30 , 2010 and a decrease in noninterest income of $ 139 thousand , or 58.6 % , primarily due to a decrease of gains on sales of real estate owned of $ 122 thousand for the year ended june 30 , 2011 from the year ended june 30 , 2010. the increase in charitable contribution expense was related to the cash and common stock contributed to a charitable foundation of $ 1.7 million as part of our mutual to stock conversion . the increase in noninterest expenses and decrease in noninterest income was offset by an increase in net interest income of $ 1.2 million , or 13.10 % , to $ 10.3 million for the year ended june 30 , 2011 from $ 9.1 million for the year ended june 30 , 2010. interest income . interest income increased $ 158 thousand , or 1.05 % , to $ 15.2 million for the year ended june 30 , 2011 from $ 15.1 million for the year ended june 30 , 2010. the increase was due to an increase in the average balances of interest-earning assets to $ 350.5 million at june 30 , 2011 from $ 313.0 million at june 30 , 2010 , which more than offset the decline in the yield on interest-earning assets for the year ended june 30 , 2011 to 4.35 % from 4.82 % for the year ended june 30 , 2010. the 47 decline in the yield on interest-earning assets is a reflection of the declining interest rate environment during our fiscal year 2011. interest income on loans increased $ 82 thousand or 0.56 % , to $ 14.7 million for the year ended june 30 , 2011 from $ 14.6 million for the year ended june 30 , 2010 , reflecting growth in our loan portfolio , the average balance of which increased to $ 265.7 million for the year ended june 30 , 2011 from $ 261.9 million for the year ended june 30 , 2010. the growth in our loan portfolio more than offset the decrease in average yields to 5.53 % in fiscal year 2011 from 5.60 % in fiscal year 2010. the lower yields reflected a declining market interest rate environment during fiscal year 2011 from fiscal year 2010. interest income on investment securities increased to $ 474 thousand for the year ended june 30 , 2011 from $ 432 thousand for the year ended june 30 , 2010 , reflecting an increase in the average balances of securities to $ 15.9 million from $ 9.8 million for the years ended june 30 , 2011 and 2010 , respectively , which offset the decrease in the yield on such securities to 2.98 % for the same periods . interest expense . interest expense decreased $ 1.0 million , or 17.30 % , to $ 4.9 million for the year ended june 30 , 2011 from $ 5.9 million for the year ended june 30 , 2010. the decrease reflected a decrease in the average rate paid on deposits in fiscal year 2011 to 1.74 % from 2.30 % in fiscal year 2010 , which more than offset increases in the average balance of such deposits . story_separator_special_tag noninterest expense increased $ 2.0 million , or 43.90 % , to $ 6.6 million for the year ended june 30 , 2011 from $ 4.6 million for the year ended june 30 , 2010. the increase was primarily attributed to an increase in charitable contributions expense to $ 1.7 million for the year ended june 30 , 2011 from $ 25 thousand for the year ended june 30 , 2010 related to our contribution of $ 1.7 of cash and common stock issued to a charitable foundation formed in connection with our conversion . professional and supervisory fees increased $ 108 thousand , or 75.52 % , to $ 251 thousand for the year ended june 30 , 2011 from $ 143 thousand for the year ended june 30 , 2010. the increase in professional and supervisory fees is attributable to additional costs associated with being a public company . income tax expense . the provision for income taxes was $ 1.4 million for both the years ended june 30 , 2011 and june 30 , 2010. our effective tax rates for the years ended june 30 , 2011 and 2010 were 37.30 % and 35.20 % , respectively . the increase in effective tax rates resulted from changes in our overall rate of accruals for tax expense and the impact of permanent differences relative to pre-tax net income in each year . analysis of net interest income net interest income represents the difference between the income we earn on interest-earning assets and the interest expense we pay on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them . 49 the following tables set forth average balance sheets , average yields and costs , and certain other information at the dates and for the periods indicated . all average balances are daily average balances . non-accrual loans were included in the computation of average balances , but have been reflected in the tables as loans carrying a zero yield . the yields set forth below include the effect of deferred fees , discounts and premiums that are amortized or accreted to interest income . replace_table_token_20_th 50 rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities . information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to ( i ) changes attributable to changes in volume ( i.e . , changes in average balances multiplied by the prior-period average rate ) and ( ii ) changes attributable to rate ( i.e . , changes in average rate multiplied by prior-period average balances ) . 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_21_th replace_table_token_22_th management of market risk our most significant form of market risk is interest rate risk because , as a financial institution , the majority of our assets and liabilities are sensitive to changes in interest rates . therefore , a principal part of our operations is to manage interest rate risk and limit the exposure of our net interest income to changes in market interest rates . our board of directors is responsible for the review and oversight of our asset/liability strategies . the asset/liability committee of our board of directors meets monthly and is charged with developing an asset/liability management plan . our board of directors has established an asset/liability management committee , consisting of senior management . senior management meets daily to review pricing and liquidity needs and to assess our interest rate risk . this committee is responsible for evaluating the interest rate risk inherent in our assets and liabilities , for determining the level of risk that is appropriate , given our business strategy , operating environment , capital , liquidity and performance objectives , and for managing this risk consistent with the guidelines approved by our board of directors . 51 the techniques we are currently using to manage interest rate risk include : using pricing strategies in an effort to balance the proportions of 30-year and 15-year fixed rate loans in our portfolio ; maintaining a modest portfolio of adjustable-rate one- to four-family residential loans ; funding a portion of our operations with deposits with terms greater than one year ; focusing our business operations on local retail customers who value our community orientation and personal service and who may be somewhat less sensitive to interest rate changes than wholesale deposit customers ; and maintaining a strong capital position , which provides for a favorable level of interest-earning assets relative to interest-bearing liabilities . depending on market conditions , from time to time we place more emphasis on enhancing net interest margin rather than matching the interest rate sensitivity of our assets and liabilities . in particular , we believe that the increased net interest income resulting from a mismatch in the maturity of our assets and liabilities portfolios can , during periods of stable or declining interest rates , provide high enough returns to justify increased exposure to sudden and unexpected increases in interest rates . as a result of this philosophy , our results of operations and the economic value of our equity will remain vulnerable to increases in interest rates and to declines due to the difference between long- and short-term interest rates . an important measure of interest rate risk is the amount by which the net present value of an institution 's cash flow from assets , liabilities and off balance sheet items changes in the event of a range of assumed changes in market interest rates . we have utilized the office of thrift supervision net portfolio value model ( `` npv ``

liquidity and capital resources our primary sources of funds are deposits and the proceeds from principal and interest payments on loans and investment securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally manage the pricing of our deposits to be competitive within our market and to increase core deposit relationships . our cash flows are derived from operating activities , investing activities and financing activities . net cash flows provided by operating activities were $ 4.1 million for the year ended june 30 , 3011 and $ 2.3 million for the year ended june 30 , 2010. net cash flows provided by investing activities consisted primarily of disbursements for loan originations and the purchase of securities , offset by principal collections on loans , and proceeds from maturation and sales of securities . net cash flows used in investing activities were $ 29.9 million for the year ended june 30 , 2011 and $ 23.1 million for the year ended june 30 , 2010. net cash flows used in financing activities consisted entirely of activity in deposits , and , with respect to the year ended june 30 , 2011 , included proceeds of approximately $ 19.8 million from our offering of common stock . net cash flows provided by financing activities were $ 36.9 million and $ 19.9 million for the years ended june 30 , 2011 and 2010 , respectively . our most liquid assets are cash and short-term investments . the levels of these assets are dependent on our operating , financing , lending , and investing activities during any given period . at june 30 , 2011 and 2010 , cash and short-term investments totaled $ 60.8 million and $ 49.8 million , respectively . we may also utilize as sources of funds the sale of securities available-for-sale , federal funds purchased , federal home loan bank of atlanta advances and other borrowings .


 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 deposits and the proceeds from principal and interest payments on loans and investment securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally manage the pricing of our deposits to be competitive within our market and to increase core deposit relationships . our cash flows are derived from operating activities , investing activities and financing activities . net cash flows provided by operating activities were $ 4.1 million for the year ended june 30 , 3011 and $ 2.3 million for the year ended june 30 , 2010. net cash flows provided by investing activities consisted primarily of disbursements for loan originations and the purchase of securities , offset by principal collections on loans , and proceeds from maturation and sales of securities . net cash flows used in investing activities were $ 29.9 million for the year ended june 30 , 2011 and $ 23.1 million for the year ended june 30 , 2010. net cash flows used in financing activities consisted entirely of activity in deposits , and , with respect to the year ended june 30 , 2011 , included proceeds of approximately $ 19.8 million from our offering of common stock . net cash flows provided by financing activities were $ 36.9 million and $ 19.9 million for the years ended june 30 , 2011 and 2010 , respectively . our most liquid assets are cash and short-term investments . the levels of these assets are dependent on our operating , financing , lending , and investing activities during any given period . at june 30 , 2011 and 2010 , cash and short-term investments totaled $ 60.8 million and $ 49.8 million , respectively . we may also utilize as sources of funds the sale of securities available-for-sale , federal funds purchased , federal home loan bank of atlanta advances and other borrowings .
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 Suspicious Activity Report : these increases were offset partially by a decrease in securities held to maturity to $ 9.0 million at june 30 , 2011 from $ 12.1 million at june 30 , 2010 , reflecting maturities of these securities , and a decrease in prepaid fdic premiums to $ 488 at june 30 , 2011 from $ 734 thousand at june 30 , 2010. deposits increased $ 19.9 million , or 7.30 % , to $ 292.5 million at june 30 , 2011 from $ 272.6 million at june 30 , 2010. the increase in deposits reflected increases in certificates of deposit of $ 13.9 million , or 6.43 % , and money market deposits of $ 769 thousand , or 8.24 % , as depositors sought out lower-risk , fdic-insured investments at a well-capitalized institution . the increase in total deposits also reflected an increase in regular savings and other deposits to $ 34.0 million at june 30 , 2011 from $ 32.2 million at june 30 , 2010. we generally do not accept brokered deposits and no brokered deposits were accepted during the 12 months ended june 30 , 2011. we had no advances from the federal home loan bank of atlanta as of june 30 , 2011 or june 30 , 2010. we have credit available under a loan agreement with the federal home loan bank of atlanta in the amount of 11 % of total assets , or approximately $ 41.4 million at june 30 , 2011. total equity equaled $ 80.2 million at june 30 , 2011 , compared to $ 59.7 million at june 30 , 2010. the increase resulted from net income of $ 2.3 million for the year ended june 30 , 2011 and $ 17.3 million of net proceeds from our sale of common stock as a result of our mutual to stock conversion on january 13 , 2011. comparison of operating results for the years ended june 30 , 2011 and june 30 , 2010 general . net income decreased to $ 2.3 million for the year ended june 30 , 2011 from $ 2.6 million for the year ended june 30 , 2010. the decrease reflected an increase in noninterest expense to $ 6.6 for the year ended june 30 , 2011 from $ 4.6 million for the year ended june 30 , 2010 , primarily from an increase in charitable contribution expense of $ 1.6 million from $ 25 thousand for the year ended june 30 , 2010 and a decrease in noninterest income of $ 139 thousand , or 58.6 % , primarily due to a decrease of gains on sales of real estate owned of $ 122 thousand for the year ended june 30 , 2011 from the year ended june 30 , 2010. the increase in charitable contribution expense was related to the cash and common stock contributed to a charitable foundation of $ 1.7 million as part of our mutual to stock conversion . the increase in noninterest expenses and decrease in noninterest income was offset by an increase in net interest income of $ 1.2 million , or 13.10 % , to $ 10.3 million for the year ended june 30 , 2011 from $ 9.1 million for the year ended june 30 , 2010. interest income . interest income increased $ 158 thousand , or 1.05 % , to $ 15.2 million for the year ended june 30 , 2011 from $ 15.1 million for the year ended june 30 , 2010. the increase was due to an increase in the average balances of interest-earning assets to $ 350.5 million at june 30 , 2011 from $ 313.0 million at june 30 , 2010 , which more than offset the decline in the yield on interest-earning assets for the year ended june 30 , 2011 to 4.35 % from 4.82 % for the year ended june 30 , 2010. the 47 decline in the yield on interest-earning assets is a reflection of the declining interest rate environment during our fiscal year 2011. interest income on loans increased $ 82 thousand or 0.56 % , to $ 14.7 million for the year ended june 30 , 2011 from $ 14.6 million for the year ended june 30 , 2010 , reflecting growth in our loan portfolio , the average balance of which increased to $ 265.7 million for the year ended june 30 , 2011 from $ 261.9 million for the year ended june 30 , 2010. the growth in our loan portfolio more than offset the decrease in average yields to 5.53 % in fiscal year 2011 from 5.60 % in fiscal year 2010. the lower yields reflected a declining market interest rate environment during fiscal year 2011 from fiscal year 2010. interest income on investment securities increased to $ 474 thousand for the year ended june 30 , 2011 from $ 432 thousand for the year ended june 30 , 2010 , reflecting an increase in the average balances of securities to $ 15.9 million from $ 9.8 million for the years ended june 30 , 2011 and 2010 , respectively , which offset the decrease in the yield on such securities to 2.98 % for the same periods . interest expense . interest expense decreased $ 1.0 million , or 17.30 % , to $ 4.9 million for the year ended june 30 , 2011 from $ 5.9 million for the year ended june 30 , 2010. the decrease reflected a decrease in the average rate paid on deposits in fiscal year 2011 to 1.74 % from 2.30 % in fiscal year 2010 , which more than offset increases in the average balance of such deposits . story_separator_special_tag noninterest expense increased $ 2.0 million , or 43.90 % , to $ 6.6 million for the year ended june 30 , 2011 from $ 4.6 million for the year ended june 30 , 2010. the increase was primarily attributed to an increase in charitable contributions expense to $ 1.7 million for the year ended june 30 , 2011 from $ 25 thousand for the year ended june 30 , 2010 related to our contribution of $ 1.7 of cash and common stock issued to a charitable foundation formed in connection with our conversion . professional and supervisory fees increased $ 108 thousand , or 75.52 % , to $ 251 thousand for the year ended june 30 , 2011 from $ 143 thousand for the year ended june 30 , 2010. the increase in professional and supervisory fees is attributable to additional costs associated with being a public company . income tax expense . the provision for income taxes was $ 1.4 million for both the years ended june 30 , 2011 and june 30 , 2010. our effective tax rates for the years ended june 30 , 2011 and 2010 were 37.30 % and 35.20 % , respectively . the increase in effective tax rates resulted from changes in our overall rate of accruals for tax expense and the impact of permanent differences relative to pre-tax net income in each year . analysis of net interest income net interest income represents the difference between the income we earn on interest-earning assets and the interest expense we pay on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them . 49 the following tables set forth average balance sheets , average yields and costs , and certain other information at the dates and for the periods indicated . all average balances are daily average balances . non-accrual loans were included in the computation of average balances , but have been reflected in the tables as loans carrying a zero yield . the yields set forth below include the effect of deferred fees , discounts and premiums that are amortized or accreted to interest income . replace_table_token_20_th 50 rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities . information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to ( i ) changes attributable to changes in volume ( i.e . , changes in average balances multiplied by the prior-period average rate ) and ( ii ) changes attributable to rate ( i.e . , changes in average rate multiplied by prior-period average balances ) . 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_21_th replace_table_token_22_th management of market risk our most significant form of market risk is interest rate risk because , as a financial institution , the majority of our assets and liabilities are sensitive to changes in interest rates . therefore , a principal part of our operations is to manage interest rate risk and limit the exposure of our net interest income to changes in market interest rates . our board of directors is responsible for the review and oversight of our asset/liability strategies . the asset/liability committee of our board of directors meets monthly and is charged with developing an asset/liability management plan . our board of directors has established an asset/liability management committee , consisting of senior management . senior management meets daily to review pricing and liquidity needs and to assess our interest rate risk . this committee is responsible for evaluating the interest rate risk inherent in our assets and liabilities , for determining the level of risk that is appropriate , given our business strategy , operating environment , capital , liquidity and performance objectives , and for managing this risk consistent with the guidelines approved by our board of directors . 51 the techniques we are currently using to manage interest rate risk include : using pricing strategies in an effort to balance the proportions of 30-year and 15-year fixed rate loans in our portfolio ; maintaining a modest portfolio of adjustable-rate one- to four-family residential loans ; funding a portion of our operations with deposits with terms greater than one year ; focusing our business operations on local retail customers who value our community orientation and personal service and who may be somewhat less sensitive to interest rate changes than wholesale deposit customers ; and maintaining a strong capital position , which provides for a favorable level of interest-earning assets relative to interest-bearing liabilities . depending on market conditions , from time to time we place more emphasis on enhancing net interest margin rather than matching the interest rate sensitivity of our assets and liabilities . in particular , we believe that the increased net interest income resulting from a mismatch in the maturity of our assets and liabilities portfolios can , during periods of stable or declining interest rates , provide high enough returns to justify increased exposure to sudden and unexpected increases in interest rates . as a result of this philosophy , our results of operations and the economic value of our equity will remain vulnerable to increases in interest rates and to declines due to the difference between long- and short-term interest rates . an important measure of interest rate risk is the amount by which the net present value of an institution 's cash flow from assets , liabilities and off balance sheet items changes in the event of a range of assumed changes in market interest rates . we have utilized the office of thrift supervision net portfolio value model ( `` npv ``

