the evaluation takes into consideration such factors as changes in the nature and size of the loan and lease portfolio , overall portfolio quality , specific problem loans and leases , and current economic conditions which may affect the borrowers ' ability to pay . the evaluation also analyzes historical losses by loan and lease category , and considers the resulting loss rates when determining the reserves on current loan and lease total amounts . loss estimates for specified problem loans and leases are also detailed . all of the factors considered in the analysis of the adequacy of the allowance for loan and lease losses may be subject to change . to the extent actual outcomes differ from management estimates , additional provisions for loan and lease losses may be required that would adversely impact earnings in future periods . loans and leases are considered impaired when , based on current information and events , it is probable that lakeland will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement , including scheduled principal and interest payments . impairment is measured based on the present value of expected cash flows discounted at the loan 's effective interest rate , except that as a practical expedient , a creditor may measure impairment based on a loan 's observable market price , or the fair value of the collateral if the loan is collateral-dependent . regardless of the measurement method , a creditor must measure impairment based on the fair value of the collateral when the creditor determines that foreclosure is probable . most of lakeland 's impaired loans are collateral-dependent . lakeland groups impaired commercial loans under $ 250,000 into a homogeneous pool and collectively evaluates them . interest received on impaired loans and leases may be recorded as interest income . however , if management is not reasonably certain that an impaired loan and lease will be repaid in full , or if a specific time frame to resolve full collection can not yet be reasonably determined , all payments received are recorded as reductions of principal . fair value measurements and fair value of financial instruments . fair values of financial instruments are volatile and may be influenced by a number of factors , including market interest rates , prepayment speeds , discount rates , credit ratings and yield curves . fair values for investment securities are based on quoted market prices , where available . if quoted market prices are not available , fair values are based on the quoted prices of similar instruments or an estimate of fair value by using a range of fair value estimates in the market place as a result of the illiquid market specific to the type of security . when the fair value of a security is below its amortized cost , and depending on the length of time the condition exists and the extent the fair value is below amortized cost , additional analysis is performed to determine whether an other-than-temporary impairment condition exists . available-for-sale and held-to-maturity securities are analyzed quarterly for possible other-than-temporary impairment . the analysis considers ( i ) the length of time and the extent to which the fair value has been less than cost , ( ii ) the financial condition and near-term prospects of the issuer , and ( iii ) the intent and ability of the company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value . often , the information available to conduct these assessments is limited and rapidly changing , making estimates of fair value subject to judgment . if actual information or conditions are different than estimated , the extent of the impairment of the security may be different than previously estimated , which could have a material effect on the company 's results of operations and financial condition . income taxes . the company accounts for income taxes under the asset and liability method of accounting for income taxes . deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse . deferred tax expense is the result of changes in deferred tax assets and liabilities . the principal types of differences between assets and liabilities for financial statement and tax return purposes are allowance for loan and lease losses , core deposit intangible , deferred loan costs and deferred compensation . the company evaluates tax positions that may be uncertain using a recognition threshold of more-likely-than-not , and a measurement attribute for all tax positions taken or expected to be taken on a tax return , in order -27- for those tax positions to be recognized in the financial statements . additional information regarding the company 's uncertain tax positions is set forth in note 9 to the notes to the audited consolidated financial statements contained herein . goodwill and other identifiable intangible assets . the company reviews goodwill for impairment annually as of november 30 or when circumstances indicate a potential for impairment at the reporting unit level . u.s. gaap requires at least an annual review of the fair value of a reporting unit that has goodwill in order to determine if it is more likely than not ( that is , a likelihood of more than 50 % ) that the fair value of a reporting unit is less than its carrying amount , including goodwill . if this qualitative test determines it is unlikely ( less than 50 % probability ) the carrying value of the reporting unit is less than its fair value , then the company does not have to perform a step one impairment test . story_separator_special_tag in 2012 , the company 's efficiency ratio on a tax equivalent basis was 58.33 % compared to 56.87 % in 2011 as a result of an increase in adjusted expenses and decline in revenue . the efficiency ratio was 56.4 % in 2010. replace_table_token_7_th income taxes the company 's effective income tax rate was 31.7 % , 30.5 % and 34.5 % , in the years ended december 31 , 2012 , 2011 and 2010 , respectively . the effective tax rate increased from 30.5 % in 2011 to 31.7 % in 2012 as a result of increased earnings and because of a reduction of tax advantaged items as a percent of pre-tax income . tax advantaged items include interest income on tax-exempt securities and income on bank owned life insurance . the company 's lower effective tax rate of 30.5 % in 2011 compared to 2010 was driven by increased tax benefits attributable to the real estate investment trust ( reit ) subsidiary established in december 2010. financial condition total assets increased from $ 2.83 billion on december 31 , 2011 to $ 2.92 billion on december 31 , 2012 , an increase of $ 92.8 million , or 3 % . total assets at year-end 2011 increased $ 33.3 million or 1 % from year-end 2010. loans and leases lakeland primarily serves northern new jersey and the surrounding areas . its equipment finance division serves a broader market with a primary focus on the northeast . all of its borrowers are u.s. residents or entities . gross loans and leases totaling $ 2.15 billion as of december 31 , 2012 , increased $ 105.9 million or 5 % compared to 2011. the increase in gross loans and leases is due primarily to increases in commercial loans secured by real estate and residential mortgages , which was partially offset by a decrease in real estate construction loans . commercial loans secured by real estate increased from $ 1.01 billion in 2011 to $ 1.13 billion -33- in 2012 , an increase of $ 112.2 million , or 11 % . residential mortgages at $ 423.3 million increased $ 17.0 million or 4 % compared to 2011. real estate construction loans , which include commercial construction loans , at $ 46.3 million decreased $ 32.9 million or 42 % . total loans and leases at $ 2.04 billion as of december , 31 2011 increased $ 29.0 million , or 1 % compared to december 31 , 2010 primarily due to increases in commercial loans secured by real estate and commercial and industrial loans , which increased $ 42.7 million and $ 15.7 million , respectively , partially offset by a $ 38.3 million decline in leases , including leases held for sale . the following table sets forth the classification of lakeland 's gross loans and leases by major category as of december 31 for each of the last five years : replace_table_token_8_th at december 31 , 2012 , there were no concentrations of loans or leases exceeding 10 % of total loans and leases outstanding other than loans that are secured by real estate . loan concentrations are considered to exist when there are amounts loaned to a multiple number of borrowers engaged in similar activities which would cause them to be similarly impacted by economic or other related conditions . the following table sets forth maturities and sensitivity to changes in interest rates in commercial loans in the company 's loan portfolio at december 31 , 2012 : replace_table_token_9_th risk elements commercial loans and leases are placed on a non-accrual status with all accrued interest and unpaid interest reversed if ( a ) because of the deterioration in the financial position of the borrower they are maintained on a cash basis ( which means payments are applied when and as received rather than on a regularly scheduled basis ) , ( b ) payment in full of interest or principal is not expected , or ( c ) principal and interest have been in default for a -34- period of 90 days or more unless the obligation is both well-secured and in process of collection . residential mortgage loans are placed on non-accrual status at the time principal and interest have been in default for a period of 90 days or more , except where there exists sufficient collateral to cover the defaulted principal and interest payments , and management 's knowledge of the specific circumstances warrant continued accrual . consumer loans are generally placed on non-accrual status and reviewed for charge-off when principal and interest payments are four months in arrears unless the obligations are well-secured and in the process of collection . interest thereafter on such charged-off consumer loans is taken into income when received only after full recovery of principal . as a general rule , a non-accrual asset may be restored to accrual status when none of its principal or interest is due and unpaid , satisfactory payments have been received for a sustained period ( usually six months ) , or when it otherwise becomes well-secured and in the process of collection . the following schedule sets forth certain information regarding lakeland 's non-accrual ( including troubled debt restructurings that are on non-accrual ) and past due loans and leases and other real estate owned and other repossessed assets as of december 31 , for each of the last five years : replace_table_token_10_th non-accrual loans and leases decreased to $ 28.0 million on december 31 , 2012 from $ 49.0 million at december 31 , 2011. non-performing assets decreased in all categories . commercial secured by real estate ; commercial , industrial and other ; construction real estate and residential mortgages decreased $ 6.1 million , $ 3.1 million , $ 8.4 million and $ 2.9 million , respectively . commercial loan non-accruals included 5 loan relationships between $ 500,000 and $ 1.0 million totaling $ 3.4 million , and 5

capital resources stockholders ' equity increased from $ 259.8 million on december 31 , 2011 to $ 280.9 million on december 31 , 2012. the increase in stockholders ' equity from december 31 , 2011 to december 31 , 2012 was primarily due to $ 21.7 million in net income and the company 's sale of an aggregate of 2,667,253 shares of common stock at $ 9.65 per share , which resulted in net proceeds of $ 25.0 million . partially offsetting net income and the sale of common stock was the $ 19.0 million redemption of preferred stock , the warrant repurchase totaling $ 2.8 million and payment of dividends on common and preferred stock of $ 5.9 million . for more information on the redemption of preferred stock , please see note 7 in notes to the consolidated financial statements in this annual report on form 10-k. -44- book value per common share ( total common stockholders ' equity divided by the number of shares outstanding ) increased from $ 8.99 on december 31 , 2011 to $ 9.45 on december 31 , 2012 primarily as a result of net income and the company 's sale of common stock as previously mentioned . book value per common share was $ 8.40 on december 31 , 2010. tangible book value per share increased from $ 5.75 on december 31 , 2011 to $ 6.52 on december 31 , 2012. for more information see non-gaap financial measures. the fdic 's risk-based capital policy statement imposes a minimum capital standard on insured banks . the minimum ratio of risk-based capital to risk-weighted assets ( including certain off-balance sheet items , such as standby letters of credit ) is 8 % . at least half of the total capital is to be comprised of common stock equity and qualifying perpetual preferred stock , less goodwill ( tier i capital ) . the remainder ( tier ii capital ) may consist of mandatory convertible debt securities , qualifying subordinated debt , other preferred stock and a portion of the allowance for loan and lease losses .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```capital resources stockholders ' equity increased from $ 259.8 million on december 31 , 2011 to $ 280.9 million on december 31 , 2012. the increase in stockholders ' equity from december 31 , 2011 to december 31 , 2012 was primarily due to $ 21.7 million in net income and the company 's sale of an aggregate of 2,667,253 shares of common stock at $ 9.65 per share , which resulted in net proceeds of $ 25.0 million . partially offsetting net income and the sale of common stock was the $ 19.0 million redemption of preferred stock , the warrant repurchase totaling $ 2.8 million and payment of dividends on common and preferred stock of $ 5.9 million . for more information on the redemption of preferred stock , please see note 7 in notes to the consolidated financial statements in this annual report on form 10-k. -44- book value per common share ( total common stockholders ' equity divided by the number of shares outstanding ) increased from $ 8.99 on december 31 , 2011 to $ 9.45 on december 31 , 2012 primarily as a result of net income and the company 's sale of common stock as previously mentioned . book value per common share was $ 8.40 on december 31 , 2010. tangible book value per share increased from $ 5.75 on december 31 , 2011 to $ 6.52 on december 31 , 2012. for more information see non-gaap financial measures. the fdic 's risk-based capital policy statement imposes a minimum capital standard on insured banks . the minimum ratio of risk-based capital to risk-weighted assets ( including certain off-balance sheet items , such as standby letters of credit ) is 8 % . at least half of the total capital is to be comprised of common stock equity and qualifying perpetual preferred stock , less goodwill ( tier i capital ) . the remainder ( tier ii capital ) may consist of mandatory convertible debt securities , qualifying subordinated debt , other preferred stock and a portion of the allowance for loan and lease losses .
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 Suspicious Activity Report : the evaluation takes into consideration such factors as changes in the nature and size of the loan and lease portfolio , overall portfolio quality , specific problem loans and leases , and current economic conditions which may affect the borrowers ' ability to pay . the evaluation also analyzes historical losses by loan and lease category , and considers the resulting loss rates when determining the reserves on current loan and lease total amounts . loss estimates for specified problem loans and leases are also detailed . all of the factors considered in the analysis of the adequacy of the allowance for loan and lease losses may be subject to change . to the extent actual outcomes differ from management estimates , additional provisions for loan and lease losses may be required that would adversely impact earnings in future periods . loans and leases are considered impaired when , based on current information and events , it is probable that lakeland will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement , including scheduled principal and interest payments . impairment is measured based on the present value of expected cash flows discounted at the loan 's effective interest rate , except that as a practical expedient , a creditor may measure impairment based on a loan 's observable market price , or the fair value of the collateral if the loan is collateral-dependent . regardless of the measurement method , a creditor must measure impairment based on the fair value of the collateral when the creditor determines that foreclosure is probable . most of lakeland 's impaired loans are collateral-dependent . lakeland groups impaired commercial loans under $ 250,000 into a homogeneous pool and collectively evaluates them . interest received on impaired loans and leases may be recorded as interest income . however , if management is not reasonably certain that an impaired loan and lease will be repaid in full , or if a specific time frame to resolve full collection can not yet be reasonably determined , all payments received are recorded as reductions of principal . fair value measurements and fair value of financial instruments . fair values of financial instruments are volatile and may be influenced by a number of factors , including market interest rates , prepayment speeds , discount rates , credit ratings and yield curves . fair values for investment securities are based on quoted market prices , where available . if quoted market prices are not available , fair values are based on the quoted prices of similar instruments or an estimate of fair value by using a range of fair value estimates in the market place as a result of the illiquid market specific to the type of security . when the fair value of a security is below its amortized cost , and depending on the length of time the condition exists and the extent the fair value is below amortized cost , additional analysis is performed to determine whether an other-than-temporary impairment condition exists . available-for-sale and held-to-maturity securities are analyzed quarterly for possible other-than-temporary impairment . the analysis considers ( i ) the length of time and the extent to which the fair value has been less than cost , ( ii ) the financial condition and near-term prospects of the issuer , and ( iii ) the intent and ability of the company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value . often , the information available to conduct these assessments is limited and rapidly changing , making estimates of fair value subject to judgment . if actual information or conditions are different than estimated , the extent of the impairment of the security may be different than previously estimated , which could have a material effect on the company 's results of operations and financial condition . income taxes . the company accounts for income taxes under the asset and liability method of accounting for income taxes . deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse . deferred tax expense is the result of changes in deferred tax assets and liabilities . the principal types of differences between assets and liabilities for financial statement and tax return purposes are allowance for loan and lease losses , core deposit intangible , deferred loan costs and deferred compensation . the company evaluates tax positions that may be uncertain using a recognition threshold of more-likely-than-not , and a measurement attribute for all tax positions taken or expected to be taken on a tax return , in order -27- for those tax positions to be recognized in the financial statements . additional information regarding the company 's uncertain tax positions is set forth in note 9 to the notes to the audited consolidated financial statements contained herein . goodwill and other identifiable intangible assets . the company reviews goodwill for impairment annually as of november 30 or when circumstances indicate a potential for impairment at the reporting unit level . u.s. gaap requires at least an annual review of the fair value of a reporting unit that has goodwill in order to determine if it is more likely than not ( that is , a likelihood of more than 50 % ) that the fair value of a reporting unit is less than its carrying amount , including goodwill . if this qualitative test determines it is unlikely ( less than 50 % probability ) the carrying value of the reporting unit is less than its fair value , then the company does not have to perform a step one impairment test . story_separator_special_tag in 2012 , the company 's efficiency ratio on a tax equivalent basis was 58.33 % compared to 56.87 % in 2011 as a result of an increase in adjusted expenses and decline in revenue . the efficiency ratio was 56.4 % in 2010. replace_table_token_7_th income taxes the company 's effective income tax rate was 31.7 % , 30.5 % and 34.5 % , in the years ended december 31 , 2012 , 2011 and 2010 , respectively . the effective tax rate increased from 30.5 % in 2011 to 31.7 % in 2012 as a result of increased earnings and because of a reduction of tax advantaged items as a percent of pre-tax income . tax advantaged items include interest income on tax-exempt securities and income on bank owned life insurance . the company 's lower effective tax rate of 30.5 % in 2011 compared to 2010 was driven by increased tax benefits attributable to the real estate investment trust ( reit ) subsidiary established in december 2010. financial condition total assets increased from $ 2.83 billion on december 31 , 2011 to $ 2.92 billion on december 31 , 2012 , an increase of $ 92.8 million , or 3 % . total assets at year-end 2011 increased $ 33.3 million or 1 % from year-end 2010. loans and leases lakeland primarily serves northern new jersey and the surrounding areas . its equipment finance division serves a broader market with a primary focus on the northeast . all of its borrowers are u.s. residents or entities . gross loans and leases totaling $ 2.15 billion as of december 31 , 2012 , increased $ 105.9 million or 5 % compared to 2011. the increase in gross loans and leases is due primarily to increases in commercial loans secured by real estate and residential mortgages , which was partially offset by a decrease in real estate construction loans . commercial loans secured by real estate increased from $ 1.01 billion in 2011 to $ 1.13 billion -33- in 2012 , an increase of $ 112.2 million , or 11 % . residential mortgages at $ 423.3 million increased $ 17.0 million or 4 % compared to 2011. real estate construction loans , which include commercial construction loans , at $ 46.3 million decreased $ 32.9 million or 42 % . total loans and leases at $ 2.04 billion as of december , 31 2011 increased $ 29.0 million , or 1 % compared to december 31 , 2010 primarily due to increases in commercial loans secured by real estate and commercial and industrial loans , which increased $ 42.7 million and $ 15.7 million , respectively , partially offset by a $ 38.3 million decline in leases , including leases held for sale . the following table sets forth the classification of lakeland 's gross loans and leases by major category as of december 31 for each of the last five years : replace_table_token_8_th at december 31 , 2012 , there were no concentrations of loans or leases exceeding 10 % of total loans and leases outstanding other than loans that are secured by real estate . loan concentrations are considered to exist when there are amounts loaned to a multiple number of borrowers engaged in similar activities which would cause them to be similarly impacted by economic or other related conditions . the following table sets forth maturities and sensitivity to changes in interest rates in commercial loans in the company 's loan portfolio at december 31 , 2012 : replace_table_token_9_th risk elements commercial loans and leases are placed on a non-accrual status with all accrued interest and unpaid interest reversed if ( a ) because of the deterioration in the financial position of the borrower they are maintained on a cash basis ( which means payments are applied when and as received rather than on a regularly scheduled basis ) , ( b ) payment in full of interest or principal is not expected , or ( c ) principal and interest have been in default for a -34- period of 90 days or more unless the obligation is both well-secured and in process of collection . residential mortgage loans are placed on non-accrual status at the time principal and interest have been in default for a period of 90 days or more , except where there exists sufficient collateral to cover the defaulted principal and interest payments , and management 's knowledge of the specific circumstances warrant continued accrual . consumer loans are generally placed on non-accrual status and reviewed for charge-off when principal and interest payments are four months in arrears unless the obligations are well-secured and in the process of collection . interest thereafter on such charged-off consumer loans is taken into income when received only after full recovery of principal . as a general rule , a non-accrual asset may be restored to accrual status when none of its principal or interest is due and unpaid , satisfactory payments have been received for a sustained period ( usually six months ) , or when it otherwise becomes well-secured and in the process of collection . the following schedule sets forth certain information regarding lakeland 's non-accrual ( including troubled debt restructurings that are on non-accrual ) and past due loans and leases and other real estate owned and other repossessed assets as of december 31 , for each of the last five years : replace_table_token_10_th non-accrual loans and leases decreased to $ 28.0 million on december 31 , 2012 from $ 49.0 million at december 31 , 2011. non-performing assets decreased in all categories . commercial secured by real estate ; commercial , industrial and other ; construction real estate and residential mortgages decreased $ 6.1 million , $ 3.1 million , $ 8.4 million and $ 2.9 million , respectively . commercial loan non-accruals included 5 loan relationships between $ 500,000 and $ 1.0 million totaling $ 3.4 million , and 5

