increase profitability through ongoing diversification of revenue streams : for the twelve months ended december 31 , 2018 , the company generated $ 16.6 million in revenue , or 33.3 percent of total operating revenue from fee-based products . these revenue sources include fees generated from saleable residential mortgage loans , retail deposit products , wealth management services , saleable business-based loans ( small business and farm service ) and the sale of our item processing subsidiary . for the twelve months ended december 31 , 2017 , the company generated $ 17.2 million in revenue from fee-based products , or 37.2 percent of total operating revenue . strengthen our penetration in all markets served : over our 116-year history of continuous operation in northwest ohio , we have established a significant presence in our traditional markets in defiance , fulton , paulding and williams counties in ohio . in our newer markets of bowling green , columbus , findlay , toledo ( ohio ) and ft. wayne ( indiana ) , our current market penetration is minimal but we believe our potential for growth is significant . we continue to seek to expand this presence and penetration in all of our markets . expand product utilization by new and existing customers : as of december 31 , 2018 , we served 29,562 households and provided 87,202 products and services to these households . our strategy is to continue to expand the scope of our relationship with each household via our dynamic “ on-boarding ” process . proactively identifying client needs is a key ingredient of our value proposition . as of december 31 , 2017 , we served 28,590 households and provided 83,593 products and services to these households . deliver gains in operational excellence : our management team believes that becoming and remaining a high-performance financial services company will depend upon seamlessly and consistently delivering operational excellence , as demonstrated by the company 's leadership in the origination and servicing of residential mortgage loans . as of december 31 , 2018 , the company serviced 7,586 residential mortgage loans with a principal balance of $ 1,084.7 million . as of december 31 , 2017 , the company serviced 7,051 loans with a principal balance of $ 994.9 million . sustain asset quality : as of december 31 , 2018 , the company 's asset quality metrics remained strong . specifically , total nonperforming assets were $ 4.0 million , or 0.40 percent of total assets . total delinquent loans at december 31 , 2018 were 0.65 percent of total loans . as of december 31 , 2017 , the company had total nonperforming assets of $ 3.9 million , or 0.44 percent of total assets . total delinquent loans at december 31 , 2017 were 0.42 percent of total loans . critical accounting policies the accounting and reporting policies of the company are in accordance with generally accepted accounting principles in the united states and conform to general practices within the banking industry . the company 's significant accounting policies are described in detail in the notes to the company 's consolidated financial statements for the years ended december 31 , 2018 and 2017. the preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions . the company 's financial position and results of operations can be affected by these estimates and assumptions and are integral to the understanding of reported results . critical accounting policies are those policies that management believes are the most important to the portrayal of the company 's financial condition and results , and they require management to make estimates that are difficult , subjective or complex . 30 allowance for loan losses : the allowance for loan losses provides coverage for probable losses inherent in the company 's loan portfolio . management evaluates the adequacy of the allowance for loan losses each quarter based on changes , if any , in the nature and amount of problem assets and associated collateral , underwriting activities , loan portfolio composition ( including product mix and geographic , industry or customer-specific concentrations ) , trends in loan performance , regulatory guidance and economic factors . this evaluation is inherently subjective , as it requires the use of significant management estimates . many factors can affect management 's estimates of specific and expected losses , including volatility of default probabilities , rating migrations , loss severity and economic and political conditions . the allowance is increased through provisions charged to operating earnings and reduced by net charge offs . the company determines the amount of the allowance based on relative risk characteristics of the loan portfolio . the allowance recorded for commercial loans is based on reviews of individual credit relationships and an analysis of the migration of commercial loans and actual loss experience . the allowance recorded for homogeneous consumer loans is based on an analysis of loan mix , risk characteristics of the portfolio , fraud loss and bankruptcy experiences , and historical losses , adjusted for current trends , for each homogeneous category or group of loans . the allowance for credit losses relating to impaired loans is based on each impaired loan 's observable market price , the collateral for certain collateral-dependent loans , or the discounted cash flows using the loan 's effective interest rate . regardless of the extent of the company 's analysis of customer performance , portfolio trends or risk management processes , certain inherent , but undetected , losses are probable within the loan portfolio . story_separator_special_tag the company 's 2017 results included a $ 1.7 million one-time reduction in tax expense due to the enactment in december 2017 of the tcja . state bank reported net income for 2018 of $ 12.9 million , which was up from the $ 12.3 million in net income in 2017. rdsi reported net income for 2018 of $ 0.1 million , compared to a net loss of $ 0.2 million reported for 2017. positive results for 2018 included loan growth of $ 75.3 million , and deposit growth of $ 73.0 million . the mortgage banking business line continues to contribute significant revenues , with residential real estate loan production of $ 342.1 million for the year , resulting in $ 6.9 million of revenue from gains on sale . the level of mortgage origination was up from the $ 315.8 million in 2017. the company 's loans serviced for others ended the year at $ 1,084.7 million , up from $ 994.9 million at december 31 , 2017. operating revenue was up compared to the prior year by $ 4.3 million , or 9.4 percent , due to higher margin income due to $ 75.3 million in balance sheet loan growth , in addition to the sale of our item processing business netted $ 0.4 million in revenue . net interest margin on a fully tax equivalent basis ( “ fte ” ) for 2018 was 3.95 percent , up 17 basis points from 2017. operating expense was up compared to the prior year by $ 3.3 million , or 10.4 percent , due to compensation and fringe benefit cost increases as a result of higher staffing levels . net charge offs for 2018 of $ 0.4 million resulted in a loan loss provision of $ 0.6 million , which was up from the $ 0.2 million of chargeoffs and $ 0.4 million of loan loss provision in 2017 . 33 results of operations replace_table_token_21_th net interest income net interest income years ended december 31 , ( $ in thousands ) 2018 2017 % change total net interest income $ 33,267 $ 28,386 17.2 % net interest income was $ 33.3 million for 2018 compared to $ 28.4 million for 2017 , an increase of $ 4.9 million or 17.2 percent . average earning assets increased to $ 845.7 million in 2018 , compared to $ 759.7 million in 2017 , an increase of $ 86.0 million or 11.3 percent due to higher loan volume . the consolidated 2018 full year net interest margin ( fte ) increased 17 basis points to 3.95 percent compared to 3.78 percent for the full year of 2017. provision for loan losses of $ 0.6 million was taken in 2018 compared to $ 0.4 million taken for 2017. the $ 0.2 million increase was due to the higher level of net charge offs . for 2018 , net charge offs totaled $ 0.4 million , or 0.05 percent of average loans . this charge off level was higher than 2017 , in which net charge offs were $ 0.2 million or 0.03 percent of average loans . replace_table_token_22_th total noninterest income was $ 16.6 million for 2018 compared to $ 17.2 million for 2017 , representing a decline of $ 0.6 million , or 3.5 percent , year-over-year . this decrease was driven by a 3.7 percent decrease in gains on sale of residential real estate loans and the sale of our item processing business . the company sold $ 260.7 million of originated mortgages into the secondary market , which allowed our serviced loan portfolio to grow to $ 1,084.7 million at december 31 , 2018 from $ 994.9 million at december 31 , 2017. the higher servicing balance of the portfolio led to the 9.1 percent increase in mortgage loan serving income . 34 replace_table_token_23_th total noninterest expense was $ 34.8 million for 2018 compared to $ 31.6 million for 2017 , representing a $ 3.2 million , or 10.4 percent , increase year-over-year . total full-time equivalent employees ended 2018 at 250 , which was up 10 from year end 2017. salaries and benefits were driven by higher personnel in small business lending , compliance and operations . marketing costs were higher due to expanded campaigns and higher sales staff needing support . our professional fees were higher due to greater regulatory requirements based on market capitalization thresholds and costs associated with the sale of the dcm division of rdsi . earnings summary – 2017 vs. 2016 net income for 2017 was $ 11.1 million , and net income available to common shareholders was $ 10.1 million , or $ 1.74 per diluted share , compared with net income of $ 8.8 million and net income available to common of $ 7.8 million , or $ 1.38 per diluted share , for 2016. the company 's 2017 results included a $ 1.7 million one-time reduction in tax expense due to the recently enacted tcja . state bank reported net income for 2017 of $ 12.3 million , which was up from the $ 9.7 million in net income in 2016. rdsi reported a net loss for 2017 of $ 0.2 million , compared to a net loss of $ 0.08 million reported for 2016. positive results for 2017 included loan growth of $ 52.2 million , and deposit growth of $ 56.5 million . the mortgage banking business line continued to contribute significant revenues , with residential real estate loan production of $ 315.8 million for the year , resulting in $ 7.1 million of revenue from gains on sale . the level of mortgage origination was down from the $ 382.8 million in 2016. the company 's loans serviced for others ended the year at $ 994.9 million , up from $ 899.7 million at december 31 , 2016. operating revenue was up compared to the prior year by $ 1.9 million , or 4.3 percent , due

liquidity liquidity relates primarily to the company 's ability to fund loan demand , meet deposit customers ' withdrawal requirements and provide for operating expenses . sources used to satisfy these needs consist of cash and due from banks , interest-bearing deposits in other financial institutions , securities available-for-sale , loans held for sale and borrowings from various sources . these assets , excluding the borrowings , are commonly referred to as liquid assets . liquid assets were $ 143.8 million at december 31 , 2018 , compared to $ 113.3 million at december 31 , 2017. the company 's commercial real estate , first mortgage residential , agricultural and multi-family mortgage portfolio of $ 579.9 million at december 31 , 2018 , can and is readily used to collateralize borrowings , which is an additional source of liquidity . management believes the company 's current liquidity level , without these borrowings , is sufficient to meet its current and anticipated liquidity needs . at december 31 , 2018 , all eligible commercial real estate , residential first , multi-family mortgage and agricultural loans were pledged under a federal home loan bank ( “ fhlb ” ) blanket lien . significant additional off-balance-sheet liquidity is available in the form of fhlb advances , unused federal funds lines from correspondent banks and the national certificate of deposit market . management expects the risk of changes in off-balance-sheet arrangements to be immaterial to earnings . based on the current collateralization requirements of the fhlb , approximately $ 98.9 million of additional borrowing capacity existed at december 31 , 2018. at december 31 , 2018 and 2017 , the company had $ 41.0 and $ 38.0 million in federal funds lines available , respectively .


 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 liquidity relates primarily to the company 's ability to fund loan demand , meet deposit customers ' withdrawal requirements and provide for operating expenses . sources used to satisfy these needs consist of cash and due from banks , interest-bearing deposits in other financial institutions , securities available-for-sale , loans held for sale and borrowings from various sources . these assets , excluding the borrowings , are commonly referred to as liquid assets . liquid assets were $ 143.8 million at december 31 , 2018 , compared to $ 113.3 million at december 31 , 2017. the company 's commercial real estate , first mortgage residential , agricultural and multi-family mortgage portfolio of $ 579.9 million at december 31 , 2018 , can and is readily used to collateralize borrowings , which is an additional source of liquidity . management believes the company 's current liquidity level , without these borrowings , is sufficient to meet its current and anticipated liquidity needs . at december 31 , 2018 , all eligible commercial real estate , residential first , multi-family mortgage and agricultural loans were pledged under a federal home loan bank ( “ fhlb ” ) blanket lien . significant additional off-balance-sheet liquidity is available in the form of fhlb advances , unused federal funds lines from correspondent banks and the national certificate of deposit market . management expects the risk of changes in off-balance-sheet arrangements to be immaterial to earnings . based on the current collateralization requirements of the fhlb , approximately $ 98.9 million of additional borrowing capacity existed at december 31 , 2018. at december 31 , 2018 and 2017 , the company had $ 41.0 and $ 38.0 million in federal funds lines available , respectively .
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 Suspicious Activity Report : increase profitability through ongoing diversification of revenue streams : for the twelve months ended december 31 , 2018 , the company generated $ 16.6 million in revenue , or 33.3 percent of total operating revenue from fee-based products . these revenue sources include fees generated from saleable residential mortgage loans , retail deposit products , wealth management services , saleable business-based loans ( small business and farm service ) and the sale of our item processing subsidiary . for the twelve months ended december 31 , 2017 , the company generated $ 17.2 million in revenue from fee-based products , or 37.2 percent of total operating revenue . strengthen our penetration in all markets served : over our 116-year history of continuous operation in northwest ohio , we have established a significant presence in our traditional markets in defiance , fulton , paulding and williams counties in ohio . in our newer markets of bowling green , columbus , findlay , toledo ( ohio ) and ft. wayne ( indiana ) , our current market penetration is minimal but we believe our potential for growth is significant . we continue to seek to expand this presence and penetration in all of our markets . expand product utilization by new and existing customers : as of december 31 , 2018 , we served 29,562 households and provided 87,202 products and services to these households . our strategy is to continue to expand the scope of our relationship with each household via our dynamic “ on-boarding ” process . proactively identifying client needs is a key ingredient of our value proposition . as of december 31 , 2017 , we served 28,590 households and provided 83,593 products and services to these households . deliver gains in operational excellence : our management team believes that becoming and remaining a high-performance financial services company will depend upon seamlessly and consistently delivering operational excellence , as demonstrated by the company 's leadership in the origination and servicing of residential mortgage loans . as of december 31 , 2018 , the company serviced 7,586 residential mortgage loans with a principal balance of $ 1,084.7 million . as of december 31 , 2017 , the company serviced 7,051 loans with a principal balance of $ 994.9 million . sustain asset quality : as of december 31 , 2018 , the company 's asset quality metrics remained strong . specifically , total nonperforming assets were $ 4.0 million , or 0.40 percent of total assets . total delinquent loans at december 31 , 2018 were 0.65 percent of total loans . as of december 31 , 2017 , the company had total nonperforming assets of $ 3.9 million , or 0.44 percent of total assets . total delinquent loans at december 31 , 2017 were 0.42 percent of total loans . critical accounting policies the accounting and reporting policies of the company are in accordance with generally accepted accounting principles in the united states and conform to general practices within the banking industry . the company 's significant accounting policies are described in detail in the notes to the company 's consolidated financial statements for the years ended december 31 , 2018 and 2017. the preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions . the company 's financial position and results of operations can be affected by these estimates and assumptions and are integral to the understanding of reported results . critical accounting policies are those policies that management believes are the most important to the portrayal of the company 's financial condition and results , and they require management to make estimates that are difficult , subjective or complex . 30 allowance for loan losses : the allowance for loan losses provides coverage for probable losses inherent in the company 's loan portfolio . management evaluates the adequacy of the allowance for loan losses each quarter based on changes , if any , in the nature and amount of problem assets and associated collateral , underwriting activities , loan portfolio composition ( including product mix and geographic , industry or customer-specific concentrations ) , trends in loan performance , regulatory guidance and economic factors . this evaluation is inherently subjective , as it requires the use of significant management estimates . many factors can affect management 's estimates of specific and expected losses , including volatility of default probabilities , rating migrations , loss severity and economic and political conditions . the allowance is increased through provisions charged to operating earnings and reduced by net charge offs . the company determines the amount of the allowance based on relative risk characteristics of the loan portfolio . the allowance recorded for commercial loans is based on reviews of individual credit relationships and an analysis of the migration of commercial loans and actual loss experience . the allowance recorded for homogeneous consumer loans is based on an analysis of loan mix , risk characteristics of the portfolio , fraud loss and bankruptcy experiences , and historical losses , adjusted for current trends , for each homogeneous category or group of loans . the allowance for credit losses relating to impaired loans is based on each impaired loan 's observable market price , the collateral for certain collateral-dependent loans , or the discounted cash flows using the loan 's effective interest rate . regardless of the extent of the company 's analysis of customer performance , portfolio trends or risk management processes , certain inherent , but undetected , losses are probable within the loan portfolio . story_separator_special_tag the company 's 2017 results included a $ 1.7 million one-time reduction in tax expense due to the enactment in december 2017 of the tcja . state bank reported net income for 2018 of $ 12.9 million , which was up from the $ 12.3 million in net income in 2017. rdsi reported net income for 2018 of $ 0.1 million , compared to a net loss of $ 0.2 million reported for 2017. positive results for 2018 included loan growth of $ 75.3 million , and deposit growth of $ 73.0 million . the mortgage banking business line continues to contribute significant revenues , with residential real estate loan production of $ 342.1 million for the year , resulting in $ 6.9 million of revenue from gains on sale . the level of mortgage origination was up from the $ 315.8 million in 2017. the company 's loans serviced for others ended the year at $ 1,084.7 million , up from $ 994.9 million at december 31 , 2017. operating revenue was up compared to the prior year by $ 4.3 million , or 9.4 percent , due to higher margin income due to $ 75.3 million in balance sheet loan growth , in addition to the sale of our item processing business netted $ 0.4 million in revenue . net interest margin on a fully tax equivalent basis ( “ fte ” ) for 2018 was 3.95 percent , up 17 basis points from 2017. operating expense was up compared to the prior year by $ 3.3 million , or 10.4 percent , due to compensation and fringe benefit cost increases as a result of higher staffing levels . net charge offs for 2018 of $ 0.4 million resulted in a loan loss provision of $ 0.6 million , which was up from the $ 0.2 million of chargeoffs and $ 0.4 million of loan loss provision in 2017 . 33 results of operations replace_table_token_21_th net interest income net interest income years ended december 31 , ( $ in thousands ) 2018 2017 % change total net interest income $ 33,267 $ 28,386 17.2 % net interest income was $ 33.3 million for 2018 compared to $ 28.4 million for 2017 , an increase of $ 4.9 million or 17.2 percent . average earning assets increased to $ 845.7 million in 2018 , compared to $ 759.7 million in 2017 , an increase of $ 86.0 million or 11.3 percent due to higher loan volume . the consolidated 2018 full year net interest margin ( fte ) increased 17 basis points to 3.95 percent compared to 3.78 percent for the full year of 2017. provision for loan losses of $ 0.6 million was taken in 2018 compared to $ 0.4 million taken for 2017. the $ 0.2 million increase was due to the higher level of net charge offs . for 2018 , net charge offs totaled $ 0.4 million , or 0.05 percent of average loans . this charge off level was higher than 2017 , in which net charge offs were $ 0.2 million or 0.03 percent of average loans . replace_table_token_22_th total noninterest income was $ 16.6 million for 2018 compared to $ 17.2 million for 2017 , representing a decline of $ 0.6 million , or 3.5 percent , year-over-year . this decrease was driven by a 3.7 percent decrease in gains on sale of residential real estate loans and the sale of our item processing business . the company sold $ 260.7 million of originated mortgages into the secondary market , which allowed our serviced loan portfolio to grow to $ 1,084.7 million at december 31 , 2018 from $ 994.9 million at december 31 , 2017. the higher servicing balance of the portfolio led to the 9.1 percent increase in mortgage loan serving income . 34 replace_table_token_23_th total noninterest expense was $ 34.8 million for 2018 compared to $ 31.6 million for 2017 , representing a $ 3.2 million , or 10.4 percent , increase year-over-year . total full-time equivalent employees ended 2018 at 250 , which was up 10 from year end 2017. salaries and benefits were driven by higher personnel in small business lending , compliance and operations . marketing costs were higher due to expanded campaigns and higher sales staff needing support . our professional fees were higher due to greater regulatory requirements based on market capitalization thresholds and costs associated with the sale of the dcm division of rdsi . earnings summary – 2017 vs. 2016 net income for 2017 was $ 11.1 million , and net income available to common shareholders was $ 10.1 million , or $ 1.74 per diluted share , compared with net income of $ 8.8 million and net income available to common of $ 7.8 million , or $ 1.38 per diluted share , for 2016. the company 's 2017 results included a $ 1.7 million one-time reduction in tax expense due to the recently enacted tcja . state bank reported net income for 2017 of $ 12.3 million , which was up from the $ 9.7 million in net income in 2016. rdsi reported a net loss for 2017 of $ 0.2 million , compared to a net loss of $ 0.08 million reported for 2016. positive results for 2017 included loan growth of $ 52.2 million , and deposit growth of $ 56.5 million . the mortgage banking business line continued to contribute significant revenues , with residential real estate loan production of $ 315.8 million for the year , resulting in $ 7.1 million of revenue from gains on sale . the level of mortgage origination was down from the $ 382.8 million in 2016. the company 's loans serviced for others ended the year at $ 994.9 million , up from $ 899.7 million at december 31 , 2016. operating revenue was up compared to the prior year by $ 1.9 million , or 4.3 percent , due

