loans accounted for under asc 310-30 are generally considered accruing and performing loans as the loans accrete interest income over the estimated life of the loan when cash flows are reasonably estimable . accordingly , acquired impaired loans that are contractually past due are still considered to be accruing and performing loans . if the timing and amount of future cash flows is not reasonably estimable , the loans may be classified as nonaccrual loans and the purchase price discount on those loans is not recorded as interest income until the timing and amount of future cash flows can be reasonably estimated . fdic loss sharing asset in conjunction with the fdic-assisted acquisitions , the bank entered into loss sharing agreements with the fdic . at the date of the acquisitions , the company elected to account for amounts receivable under the loss sharing agreements as a loss sharing asset in accordance with the business combinations topic of the fasb asc . subsequent to the acquisitions , the loss sharing asset is accounted for on the same basis as the related covered assets and is the present value of the cash flows the company expects to collect from the fdic under the loss sharing agreements . the difference between the present value and the undiscounted cash flows the company expects to collect from the fdic is accreted into noninterest income over the life of the fdic loss sharing asset . the fdic loss sharing asset is adjusted for any changes in expected cash flows based on the performance of the covered assets . any increases in cash flows of those covered assets over those expected will reduce the fdic loss sharing asset and any decreases in cash flows of the covered assets from those expected will increase the fdic loss sharing asset . increases and decreases to the fdic loss sharing asset are recorded as adjustments to noninterest income . valuation and recoverability of goodwill goodwill represented $ 109.6 million of our $ 4.26 billion in total assets and $ 706.9 million in total shareholders ' equity as of december 31 , 2010. the company has one , single reporting unit . we review goodwill for impairment annually , on september 30 th and also test for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount . such indicators may include , among others : a significant adverse change in legal factors or in the general business climate ; significant decline in our stock price and market capitalization ; unanticipated competition ; the testing for recoverability of a significant asset group within a reporting unit ; and an adverse action or assessment by a regulator . any adverse change in these factors could have a significant impact on the recoverability of goodwill and could have a material impact on our consolidated financial statements . when required , the goodwill impairment test involves a two-step process . we first test goodwill for impairment by comparing the fair value of the reporting unit with its carrying amount . if the fair value of the reporting unit exceeds the carrying amount of the reporting unit , goodwill is not deemed to be impaired , and no further testing is necessary . if the carrying amount of the reporting unit were to exceed the fair value of the reporting unit , we would perform a second test to measure the amount of impairment loss , if any . to measure the amount of any impairment loss , we would determine the implied fair value of goodwill in the same manner as if the reporting unit were being acquired in a business combination . specifically , we would allocate the fair value of the reporting unit to all of the assets and liabilities of the reporting unit in a hypothetical calculation that would determine the implied fair value of goodwill . if the implied fair value of goodwill is less than the recorded goodwill , we would record an impairment charge for the difference . 30 the accounting estimates related to our goodwill require us to make considerable assumptions about fair values . our assumptions regarding fair values require significant judgment about economic factors , industry factors and technology considerations , as well as our views regarding the growth and earnings prospects of the retail banking unit . changes in these judgments , either individually or collectively , may have a significant effect on the estimated fair values . based on the results of the annual goodwill impairment test , we determined that no goodwill impairment charges were required at september 30 , 2010. as of december 31 , 2010 we determined there were no events or circumstances which would more likely than not reduce the fair value of our reporting unit below its carrying amount . even though we determined that there was no goodwill impairment during 2010 , additional adverse changes in the operating environment for the financial services industry may result in a future impairment charge . please refer to note 11 to the consolidated financial statements in item 8. financial statements and supplementary data of this report for further discussion . 2010 overview consolidated net income applicable to common shareholders for 2010 was $ 25.8 million , or $ 0.72 per diluted common share , compared with a net loss of $ 8.4 million , or $ 0.38 per diluted common share , in 2009. net income ( loss ) applicable to common shareholders reflects net income ( loss ) less dividends on preferred stock related to the company 's participation in the u.s. department of the treasury 's capital purchase program . story_separator_special_tag million , or 275 % , as a result of the core deposit intangible recorded in conjunction with the two fdic assisted transactions . finally , legal and professional services expense increased $ 1.8 million as the company continues to incur significant expense while working toward the resolution of nonperforming and covered assets . other noninterest expense : the following table presents selected items of other noninterest expense and the related dollar and percentage change from period to period : replace_table_token_13_th ( 1 ) the amounts shown represent pass-through losses from our interests in certain low-income housing related limited partnerships . as a result of these interests we receive federal low-income housing tax credits available under the internal revenue code . for the year ended december 31 , 2010 , $ 511 thousand of such credits was taken as a reduction in our current period income tax expense . in addition , we recognized a tax benefit of $ 97 thousand associated with this investment expense during the twelve months ended december 31 , 2010. income tax for the years ended december 31 , 2010 , 2009 and 2008 we recorded an income tax provision of $ 2.3 million and income tax benefits of $ 9.0 million and $ 4.9 million , respectively . the effective tax rate was 7 % in 2010 and the effective tax benefit was 69 % in 2009 and 463 % in 2008. for additional information , see note 16 to the consolidated financial statements in item 8. financial statements and supplementary data of this report . our effective tax rate is less than our statutory rate of 36.02 % and continues to be much lower than our historical range of 24 % to 28 % primarily due to the amount of tax-exempt municipal securities held in the investment portfolio , tax exempt earnings on bank owned life insurance , and tax credits received on investments in affordable housing partnerships . 39 financial condition our total assets increased 33 % to $ 4.26 billion at december 31 , 2010 from $ 3.20 billion at december 31 , 2009. interest-earning deposits with bank balances increased $ 209.1 million . the inability to prepay advances without significant penalty from the federal home loan bank contributed to this increase . our investment portfolio increased 23 % or $ 143.8 million . this increase was primarily a result of investment security purchases in the fourth quarter of 2010. the loan portfolio increased 21 % or $ 423.9 million to $ 2.43 billion . the increase in the loan portfolio can be attributed to the two fdic-assisted transactions . excluding the acquired loans , the legacy portfolio declined $ 93.1 million due to a combination of loan payoffs , pay downs , reduced demand from qualified borrowers , and loan charge-offs . property , plant and equipment , net , increased $ 30.4 million , of which $ 21.9 million was related to the purchase of 18 branches from the fdic in connection with the acquisitions of columbia river bank and american marine bank . deposit balances increased $ 844.6 million or 34 % to $ 3.33 billion and borrowings increased 16 % to $ 145.0 million . the increase in borrowings is due to federal home loan bank advances assumed in conjunction with the two fdic assisted transactions . investment portfolio we invest in securities to generate revenues for the company , to manage liquidity while minimizing interest rate risk and to provide collateral for certain public deposits and short-term borrowings . the amortized cost amounts represent the company 's original cost for the investments , adjusted for accumulated amortization or accretion of any yield adjustments related to the security . the estimated fair values are the amounts we believe the securities could be sold for as of the dates indicated . as of december 31 , 2010 we had 75 available for sale securities in an unrealized loss position . based on past experience with these types of securities and our own financial performance , we do not intend to sell any impaired securities nor does available evidence suggest it is more likely than not that management will be required to sell any impaired securities before the recovery of the amortized cost basis . we review these investments for other-than-temporary impairment on an ongoing basis . purchases during 2010 totaled $ 179.3 million while maturities and repayments and sales totaled $ 92.8 million compared to purchases of $ 162.4 million and maturities and repayments of $ 67.7 million during 2009. at december 31 , 2010 u.s. government agency and government-sponsored enterprise mortgage-backed securities ( mbs ) and collateralized mortgage obligations ( cmo ) comprised 67 % of our investment portfolio and state and municipal securities were 33 % . our entire investment portfolio is categorized as available for sale and carried on our balance sheet at fair value . the average duration of our investment portfolio was approximately 3 years and 11 months at december 31 , 2010. for further information on our investment portfolio see note 5 of the consolidated financial statements in item 8. financial statements and supplementary data of this report . 40 the following table presents the contractual maturities and weighted average yield of our investment portfolio : securities available for sale replace_table_token_14_th ( 1 ) the maturities reported for mortgage-backed securities collateralized mortgage obligations are based on contractual maturities and principal amortization . ( 2 ) yields on fully taxable equivalent basis , based on a marginal tax rate of 35 % . fhlb stock as a condition of membership in the federal home loan bank of seattle ( fhlb ) , the company is required to purchase and hold a certain amount of fhlb stock . our stock purchase requirement is based , in part , upon the outstanding principal balance of advances from the fhlb and is calculated in accordance with the capital plan of the fhlb . our fhlb stock

liquidity and sources of funds in general , our primary sources of funds are net income , loan repayments , maturities and principal payments on investment securities , customer deposits , advances from the fhlb and frb , securities repurchase agreements and other borrowings . these funds are used to make loans , purchase investments , meet deposit withdrawals and maturing liabilities and cover operational expenses . scheduled loan repayments and core deposits have proved to be a relatively stable source of funds while other deposit inflows and unscheduled loan prepayments are influenced by interest rate levels , competition and general economic conditions . we manage liquidity through monitoring sources and uses of funds on a daily basis and had unused credit lines with the fhlb and the federal reserve bank of $ 402.0 million and $ 449.4 million , respectively , at december 31 , 2010 , that are available to us as a supplemental funding source . the holding company 's sources of funds are dividends from its banking subsidiary which are used to fund dividends to common and preferred shareholders and cover operating expenses . capital expenditures capital expenditures are anticipated to be approximately $ 5.6 million during 2011. see the statement of cash flows of the consolidated financial statements in item 8. financial statements and supplementary data of this report for additional information regarding our sources and uses of funds during 2010 , 2009 and 2008. capital our shareholders ' equity increased to $ 706.9 million at december 31 , 2010 , from $ 528.1 million at december 31 , 2009. shareholders ' equity was 16.61 % and 16.50 % of total assets at december 31 , 2010 and 2009. preferred stock . on august 11 , 2010 , the company redeemed all 76,898 shares of fixed rate cumulative perpetual preferred stock , series a ( preferred stock ) originally issued to the u.s. department of treasury ( the treasury ) on november 21 , 2008 for approximately $ 76.9 million in capital under its capital purchase program ( cpp ) .


 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 sources of funds in general , our primary sources of funds are net income , loan repayments , maturities and principal payments on investment securities , customer deposits , advances from the fhlb and frb , securities repurchase agreements and other borrowings . these funds are used to make loans , purchase investments , meet deposit withdrawals and maturing liabilities and cover operational expenses . scheduled loan repayments and core deposits have proved to be a relatively stable source of funds while other deposit inflows and unscheduled loan prepayments are influenced by interest rate levels , competition and general economic conditions . we manage liquidity through monitoring sources and uses of funds on a daily basis and had unused credit lines with the fhlb and the federal reserve bank of $ 402.0 million and $ 449.4 million , respectively , at december 31 , 2010 , that are available to us as a supplemental funding source . the holding company 's sources of funds are dividends from its banking subsidiary which are used to fund dividends to common and preferred shareholders and cover operating expenses . capital expenditures capital expenditures are anticipated to be approximately $ 5.6 million during 2011. see the statement of cash flows of the consolidated financial statements in item 8. financial statements and supplementary data of this report for additional information regarding our sources and uses of funds during 2010 , 2009 and 2008. capital our shareholders ' equity increased to $ 706.9 million at december 31 , 2010 , from $ 528.1 million at december 31 , 2009. shareholders ' equity was 16.61 % and 16.50 % of total assets at december 31 , 2010 and 2009. preferred stock . on august 11 , 2010 , the company redeemed all 76,898 shares of fixed rate cumulative perpetual preferred stock , series a ( preferred stock ) originally issued to the u.s. department of treasury ( the treasury ) on november 21 , 2008 for approximately $ 76.9 million in capital under its capital purchase program ( cpp ) .
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 Suspicious Activity Report : loans accounted for under asc 310-30 are generally considered accruing and performing loans as the loans accrete interest income over the estimated life of the loan when cash flows are reasonably estimable . accordingly , acquired impaired loans that are contractually past due are still considered to be accruing and performing loans . if the timing and amount of future cash flows is not reasonably estimable , the loans may be classified as nonaccrual loans and the purchase price discount on those loans is not recorded as interest income until the timing and amount of future cash flows can be reasonably estimated . fdic loss sharing asset in conjunction with the fdic-assisted acquisitions , the bank entered into loss sharing agreements with the fdic . at the date of the acquisitions , the company elected to account for amounts receivable under the loss sharing agreements as a loss sharing asset in accordance with the business combinations topic of the fasb asc . subsequent to the acquisitions , the loss sharing asset is accounted for on the same basis as the related covered assets and is the present value of the cash flows the company expects to collect from the fdic under the loss sharing agreements . the difference between the present value and the undiscounted cash flows the company expects to collect from the fdic is accreted into noninterest income over the life of the fdic loss sharing asset . the fdic loss sharing asset is adjusted for any changes in expected cash flows based on the performance of the covered assets . any increases in cash flows of those covered assets over those expected will reduce the fdic loss sharing asset and any decreases in cash flows of the covered assets from those expected will increase the fdic loss sharing asset . increases and decreases to the fdic loss sharing asset are recorded as adjustments to noninterest income . valuation and recoverability of goodwill goodwill represented $ 109.6 million of our $ 4.26 billion in total assets and $ 706.9 million in total shareholders ' equity as of december 31 , 2010. the company has one , single reporting unit . we review goodwill for impairment annually , on september 30 th and also test for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount . such indicators may include , among others : a significant adverse change in legal factors or in the general business climate ; significant decline in our stock price and market capitalization ; unanticipated competition ; the testing for recoverability of a significant asset group within a reporting unit ; and an adverse action or assessment by a regulator . any adverse change in these factors could have a significant impact on the recoverability of goodwill and could have a material impact on our consolidated financial statements . when required , the goodwill impairment test involves a two-step process . we first test goodwill for impairment by comparing the fair value of the reporting unit with its carrying amount . if the fair value of the reporting unit exceeds the carrying amount of the reporting unit , goodwill is not deemed to be impaired , and no further testing is necessary . if the carrying amount of the reporting unit were to exceed the fair value of the reporting unit , we would perform a second test to measure the amount of impairment loss , if any . to measure the amount of any impairment loss , we would determine the implied fair value of goodwill in the same manner as if the reporting unit were being acquired in a business combination . specifically , we would allocate the fair value of the reporting unit to all of the assets and liabilities of the reporting unit in a hypothetical calculation that would determine the implied fair value of goodwill . if the implied fair value of goodwill is less than the recorded goodwill , we would record an impairment charge for the difference . 30 the accounting estimates related to our goodwill require us to make considerable assumptions about fair values . our assumptions regarding fair values require significant judgment about economic factors , industry factors and technology considerations , as well as our views regarding the growth and earnings prospects of the retail banking unit . changes in these judgments , either individually or collectively , may have a significant effect on the estimated fair values . based on the results of the annual goodwill impairment test , we determined that no goodwill impairment charges were required at september 30 , 2010. as of december 31 , 2010 we determined there were no events or circumstances which would more likely than not reduce the fair value of our reporting unit below its carrying amount . even though we determined that there was no goodwill impairment during 2010 , additional adverse changes in the operating environment for the financial services industry may result in a future impairment charge . please refer to note 11 to the consolidated financial statements in item 8. financial statements and supplementary data of this report for further discussion . 2010 overview consolidated net income applicable to common shareholders for 2010 was $ 25.8 million , or $ 0.72 per diluted common share , compared with a net loss of $ 8.4 million , or $ 0.38 per diluted common share , in 2009. net income ( loss ) applicable to common shareholders reflects net income ( loss ) less dividends on preferred stock related to the company 's participation in the u.s. department of the treasury 's capital purchase program . story_separator_special_tag million , or 275 % , as a result of the core deposit intangible recorded in conjunction with the two fdic assisted transactions . finally , legal and professional services expense increased $ 1.8 million as the company continues to incur significant expense while working toward the resolution of nonperforming and covered assets . other noninterest expense : the following table presents selected items of other noninterest expense and the related dollar and percentage change from period to period : replace_table_token_13_th ( 1 ) the amounts shown represent pass-through losses from our interests in certain low-income housing related limited partnerships . as a result of these interests we receive federal low-income housing tax credits available under the internal revenue code . for the year ended december 31 , 2010 , $ 511 thousand of such credits was taken as a reduction in our current period income tax expense . in addition , we recognized a tax benefit of $ 97 thousand associated with this investment expense during the twelve months ended december 31 , 2010. income tax for the years ended december 31 , 2010 , 2009 and 2008 we recorded an income tax provision of $ 2.3 million and income tax benefits of $ 9.0 million and $ 4.9 million , respectively . the effective tax rate was 7 % in 2010 and the effective tax benefit was 69 % in 2009 and 463 % in 2008. for additional information , see note 16 to the consolidated financial statements in item 8. financial statements and supplementary data of this report . our effective tax rate is less than our statutory rate of 36.02 % and continues to be much lower than our historical range of 24 % to 28 % primarily due to the amount of tax-exempt municipal securities held in the investment portfolio , tax exempt earnings on bank owned life insurance , and tax credits received on investments in affordable housing partnerships . 39 financial condition our total assets increased 33 % to $ 4.26 billion at december 31 , 2010 from $ 3.20 billion at december 31 , 2009. interest-earning deposits with bank balances increased $ 209.1 million . the inability to prepay advances without significant penalty from the federal home loan bank contributed to this increase . our investment portfolio increased 23 % or $ 143.8 million . this increase was primarily a result of investment security purchases in the fourth quarter of 2010. the loan portfolio increased 21 % or $ 423.9 million to $ 2.43 billion . the increase in the loan portfolio can be attributed to the two fdic-assisted transactions . excluding the acquired loans , the legacy portfolio declined $ 93.1 million due to a combination of loan payoffs , pay downs , reduced demand from qualified borrowers , and loan charge-offs . property , plant and equipment , net , increased $ 30.4 million , of which $ 21.9 million was related to the purchase of 18 branches from the fdic in connection with the acquisitions of columbia river bank and american marine bank . deposit balances increased $ 844.6 million or 34 % to $ 3.33 billion and borrowings increased 16 % to $ 145.0 million . the increase in borrowings is due to federal home loan bank advances assumed in conjunction with the two fdic assisted transactions . investment portfolio we invest in securities to generate revenues for the company , to manage liquidity while minimizing interest rate risk and to provide collateral for certain public deposits and short-term borrowings . the amortized cost amounts represent the company 's original cost for the investments , adjusted for accumulated amortization or accretion of any yield adjustments related to the security . the estimated fair values are the amounts we believe the securities could be sold for as of the dates indicated . as of december 31 , 2010 we had 75 available for sale securities in an unrealized loss position . based on past experience with these types of securities and our own financial performance , we do not intend to sell any impaired securities nor does available evidence suggest it is more likely than not that management will be required to sell any impaired securities before the recovery of the amortized cost basis . we review these investments for other-than-temporary impairment on an ongoing basis . purchases during 2010 totaled $ 179.3 million while maturities and repayments and sales totaled $ 92.8 million compared to purchases of $ 162.4 million and maturities and repayments of $ 67.7 million during 2009. at december 31 , 2010 u.s. government agency and government-sponsored enterprise mortgage-backed securities ( mbs ) and collateralized mortgage obligations ( cmo ) comprised 67 % of our investment portfolio and state and municipal securities were 33 % . our entire investment portfolio is categorized as available for sale and carried on our balance sheet at fair value . the average duration of our investment portfolio was approximately 3 years and 11 months at december 31 , 2010. for further information on our investment portfolio see note 5 of the consolidated financial statements in item 8. financial statements and supplementary data of this report . 40 the following table presents the contractual maturities and weighted average yield of our investment portfolio : securities available for sale replace_table_token_14_th ( 1 ) the maturities reported for mortgage-backed securities collateralized mortgage obligations are based on contractual maturities and principal amortization . ( 2 ) yields on fully taxable equivalent basis , based on a marginal tax rate of 35 % . fhlb stock as a condition of membership in the federal home loan bank of seattle ( fhlb ) , the company is required to purchase and hold a certain amount of fhlb stock . our stock purchase requirement is based , in part , upon the outstanding principal balance of advances from the fhlb and is calculated in accordance with the capital plan of the fhlb . our fhlb stock

