net loan recoveries of $ 61,000 in 2018 allowed choiceone to take a minimal provision for loan losses , compared to net charge-offs of $ 185,000 in 2017 which necessitated a provision expense of $ 485,000. a decline in noninterest income of $ 891,000 in 2018 compared to 2017 was primarily due to a nonrecurring gain of $ 908,000 on the sale of a portion of choiceone 's investment book of business that occurred in the fourth quarter of 2017. the increase of $ 1,127,000 in noninterest expense in 2018 compared to the prior year was primarily caused by higher salaries and benefits expense and other noninterest expense . dividends cash dividends of $ 5,806,000 or $ 1.40 per common share were declared in 2019 , compared to $ 2,572,000 or $ 0.71 per common share in 2018 and $ 2,317,000 or $ 0.64 per common share in 2017. dividends in 2019 included a special dividend of $ 0.60 per share paid on september 30 , 2019 in connection with the merger with county . the dividend yield on choiceone 's common stock was 4.38 % as of the end of 2019 , compared to 2.84 % in 2018 , and 2.86 % in 2017. the cash dividend payout as a percentage of net income was 81 % in 2019 , compared to 35 % in 2018 and 38 % in 2017. in addition , a 5 % stock dividend was paid on may 31 , 2018 , which caused $ 4,335,000 to be transferred from retained earnings to paid-in capital . a 5 % stock dividend was also paid on may 31 , 2017 and produced a transfer of $ 3,779,000 from retained earnings to paid-in capital . page | 23 table 1 – average balances and tax-equivalent interest rates replace_table_token_21_th ( 1 ) interest on nontaxable securities and loans has been adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets . the adjustment uses an incremental tax rate of 21 % for 2019 and 2018 and 34 % for 2017 . ( 2 ) interest on loans included net origination fees charged on loans of approximately $ 866,000 , $ 1,087,000 , and $ 1,003,000 in 2019 , 2018 , and 2017 , respectively . ( 3 ) interest on taxable securities includes dividends on federal home loan bank and federal reserve bank stock . ( 4 ) noninterest-earning assets include loans in nonaccrual status , which averaged approximately $ 2,965,000 , $ 1,266,000 , and $ 1,486,000 in 2019 , 2018 , and 2017 , respectively . page | 24 table 2 – changes in tax-equivalent net interest income replace_table_token_22_th ( 1 ) the volume variance is computed as the change in volume ( average balance ) multiplied by the previous year 's interest rate . the rate variance is computed as the change in interest rate multiplied by the previous year 's volume ( average balance ) . the change in interest due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . ( 2 ) interest on tax-exempt securities and loans has been adjusted to a fully tax-equivalent basis using an incremental tax rate of 21 % for 2019 and 2018 , and 34 % for 2017. net interest income the presentation of net interest income on a tax-equivalent basis is not in accordance with generally accepted accounting principles ( “ gaap ” ) , but is customary in the banking industry . this non-gaap measure ensures comparability of net interest income arising from both taxable and tax-exempt loans and investment securities . the adjustments to determine net interest income on a tax-equivalent basis were $ 408,000 , $ 398,000 and $ 548,000 for the years ended 2019 , 2018 and 2017 , respectively . these adjustments were computed using a 21 % federal income tax rate in 2019 and 2018 , and 34 % federal income tax rate in 2017. tax-equivalent net interest income increased $ 5,719,000 in 2019 compared to 2018. the increase was attributed to an increase of $ 177.7 million in average interest-earning assets , partially offset by the impact of a decline of 21 basis points in choiceone 's net interest spread . the reduction in the net interest spread resulted from an increase of 26 basis points in the average rate paid on interest-bearing liabilities , while the average rate earned on interest-earning assets increased 5 basis points . the average balance of loans increased $ 130.2 million in 2019 compared to 2018 , $ 105.8 million of which was due to lakestone loans which were included in the fourth quarter of 2019. the remaining growth was primarily from residential real estate loans , whose average balance increased $ 22.6 million in 2019 compared to 2018. in addition to the average balance growth , the average rate earned on loans increased 6 basis points in 2019 compared to 2018 as a result of higher general market interest rates and higher rates charged on new loan originations . tax-equivalent interest income on loans increased $ 6.8 million in 2019 compared to the prior year . the average balance of total securities grew $ 40.0 million in 2019 compared to the prior year . the inclusion of lakestone securities in the fourth quarter of 2019 caused an average balance increase of $ 45.0 million , while the average balance of choiceone bank securities was $ 5.0 million lower in 2019 than in 2018. the average balance growth and a minimal change in the average rate earned on securities caused interest income from securities to grow $ 1.1 million in 2019 compared to the prior year . story_separator_special_tag the loans are short-term in nature and are designed to provide funding for the time period between the loan origination and its subsequent sale in the secondary market . the balance of the lines of credit held by the banks was $ 51.0 million as of december 31 , 2019 and choiceone bank held $ 20.6 million as of december 31 , 2018. information regarding impaired loans can be found in note 3 to the consolidated financial statements included in this report . in addition to its review of the loan portfolio for impaired loans , management also monitors various nonperforming loans . nonperforming loans are comprised of ( 1 ) loans accounted for on a nonaccrual basis ; ( 2 ) loans , not included in nonaccrual loans , which are contractually past due 90 days or more as to interest or principal payments ; and ( 3 ) loans , not included in nonaccrual or past due 90 days or more , which are considered troubled debt restructurings . troubled debt restructurings consist of loans where the terms have been modified to assist the borrowers in making their payments . the modifications can include capitalization of interest onto the principal balance , reduction in interest rate , and extension of the loan term . the balances of these nonperforming loans as of december 31 were as follows : replace_table_token_27_th nonaccrual loans included $ 379,000 in agricultural loans , $ 776,000 in commercial and industrial loans , $ 16,000 in consumer loans , $ 2,185,000 in commercial real estate loans , and $ 1,331,000 in residential real estate loans as of december 31 , 2019. nonaccrual loans included $ 393,000 in agricultural loans , $ 62,000 in consumer loans , $ 123,000 in commercial real estate loans , and $ 954,000 in residential real estate loans as of december 31 , 2018. the primary reason for the increase in nonaccrual loans in 2019 was the movement of one large commercial relationship into nonaccrual status during the year . loans considered troubled debt restructurings which were not on a nonaccrual basis and were not 90 days or more past due as to principal or interest payments consisted of $ 391,000 in commercial real estate loans and $ 1,335,000 in residential real estate loans at december 31 , 2019 , compared to $ 19,000 in commercial and industrial loans , $ 14,000 in consumer loans , $ 500,000 in commercial real estate loans , and $ 1,721,000 in residential real estate loans at december 31 , 2018. management also maintains a list of loans that are not classified as nonperforming loans but where some concern exists as to the borrowers ' abilities to comply with the original loan terms . these loans totaled $ 14.0 million as of december 31 , 2019 , compared to $ 1.8 million as of december 31 , 2018. page | 30 deposits and other funding sources the company 's deposit balances as of december 31 were as follows : replace_table_token_28_th total deposits increased $ 577.6 million from december 31 , 2018 to december 31 , 2019 , of which $ 573.6 million was obtained from the merger with county . excluding deposits related to lakestone , noninterest-bearing and interest-bearing demand deposits grew a total of $ 11.2 million as the banks ' depositors valued the liquidity available in this deposit category . higher rates paid on local certificates of deposit in 2019 compared to 2018 as a result of rising general market interest rates helped to generate depositor interest in this category and contributed to the $ 18.3 million of growth during 2019 excluding lakestone deposits . brokered certificates of deposit decreased $ 32.1 million in 2019 as organic loan growth was minimal . federal funds purchased declined $ 4.8 million from december 31 , 2018 to december 31 , 2019 as overnight funding was replaced by local deposits growth . federal home loan bank advances increased $ 28.0 million in 2019 as advances were used to meet short term funding needs . choiceone bank 's blanket collateral agreement covering agricultural real estate loans and residential real estate loans and lakestone 's blanket collateral agreement covering commercial real estate loans and residential real estate loans were pledged against each bank 's outstanding advances at the end of 2019. approximately $ 78.6 million of additional advances were available as of december 31 , 2019 based on the collateral pledged by the banks . in 2020 , management will continue to focus its marketing efforts toward growth in local deposits . if local deposit growth is insufficient to support asset growth , management believes that advances from the fhlb and brokered certificates of deposit can address corresponding funding needs . shareholders ' equity total shareholders ' equity increased $ 111.7 million from december 31 , 2018 to december 31 , 2019. the merger with county caused $ 107.9 million of equity to be issued in consideration for county 's stock . the remaining growth in equity resulted from the retention of earnings in 2019 as net income exceeded dividends paid by $ 1.4 million . accumulated other comprehensive income increased by $ 2.2 million in 2019 principally as a result of available for sale securities moving from a net unrealized loss at the end of 2018 to a net unrealized gain as of the end of 2019. equity issuances net of shares repurchased also contributed $ 448,000 to equity during 2019. note 20 to the consolidated financial statements presents regulatory capital information for choiceone and the banks at the end of 2019 and choiceone and choiceone bank at the end of 2018. management will monitor these capital ratios during 2020 as they relate to asset growth and earnings retention . choiceone 's board of directors and management do not plan to allow capital to decrease below those levels necessary to be considered “ well capitalized ” by regulatory guidelines . at december 31 , 2019 , the

liquidity and interest rate risk net cash from operating activities was $ 9.2 million in 2019 compared to $ 10.0 million in 2018. net cash from investing activities was $ 36.4 million in 2019 compared to $ 43.9 million used in 2018. the increase was caused by higher net proceeds from sales of securities in 2019 compared to 2018 , limited net growth in loans in 2019 outside of lakestone loans added compared to more significant growth in 2018 , and cash received as a result of the merger with county . net cash flows from financing activities were a negative $ 5.7 million in 2019 compared to a positive $ 16.8 million in 2018. the change was caused by less growth in deposits in 2019 outside of lakestone deposits than the prior year and a decline in the balance of federal funds purchased in 2019 in contrast with an increase in 2018. this was partially offset by net proceeds from federal home loan bank advances in 2019 compared to net paydowns in 2018. choiceone 's primary market risk exposure occurs in the form of interest rate risk . liquidity risk also can have an impact but to a lesser extent . choiceone 's business is transacted in u.s. dollars with no foreign exchange risk exposure . agricultural loans comprise a relatively small portion of choiceone 's total assets . management believes that choiceone 's exposure to changes in commodity prices is insignificant . management believes that the current level of liquidity is sufficient to meet the banks ' normal operating needs . this belief is based upon the availability of deposits from both the local and national markets , maturities of securities , normal loan repayments , income retention , federal funds purchased lines of credit from correspondent banks , and advances available from the fhlb .


 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 interest rate risk net cash from operating activities was $ 9.2 million in 2019 compared to $ 10.0 million in 2018. net cash from investing activities was $ 36.4 million in 2019 compared to $ 43.9 million used in 2018. the increase was caused by higher net proceeds from sales of securities in 2019 compared to 2018 , limited net growth in loans in 2019 outside of lakestone loans added compared to more significant growth in 2018 , and cash received as a result of the merger with county . net cash flows from financing activities were a negative $ 5.7 million in 2019 compared to a positive $ 16.8 million in 2018. the change was caused by less growth in deposits in 2019 outside of lakestone deposits than the prior year and a decline in the balance of federal funds purchased in 2019 in contrast with an increase in 2018. this was partially offset by net proceeds from federal home loan bank advances in 2019 compared to net paydowns in 2018. choiceone 's primary market risk exposure occurs in the form of interest rate risk . liquidity risk also can have an impact but to a lesser extent . choiceone 's business is transacted in u.s. dollars with no foreign exchange risk exposure . agricultural loans comprise a relatively small portion of choiceone 's total assets . management believes that choiceone 's exposure to changes in commodity prices is insignificant . management believes that the current level of liquidity is sufficient to meet the banks ' normal operating needs . this belief is based upon the availability of deposits from both the local and national markets , maturities of securities , normal loan repayments , income retention , federal funds purchased lines of credit from correspondent banks , and advances available from the fhlb .
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 Suspicious Activity Report : net loan recoveries of $ 61,000 in 2018 allowed choiceone to take a minimal provision for loan losses , compared to net charge-offs of $ 185,000 in 2017 which necessitated a provision expense of $ 485,000. a decline in noninterest income of $ 891,000 in 2018 compared to 2017 was primarily due to a nonrecurring gain of $ 908,000 on the sale of a portion of choiceone 's investment book of business that occurred in the fourth quarter of 2017. the increase of $ 1,127,000 in noninterest expense in 2018 compared to the prior year was primarily caused by higher salaries and benefits expense and other noninterest expense . dividends cash dividends of $ 5,806,000 or $ 1.40 per common share were declared in 2019 , compared to $ 2,572,000 or $ 0.71 per common share in 2018 and $ 2,317,000 or $ 0.64 per common share in 2017. dividends in 2019 included a special dividend of $ 0.60 per share paid on september 30 , 2019 in connection with the merger with county . the dividend yield on choiceone 's common stock was 4.38 % as of the end of 2019 , compared to 2.84 % in 2018 , and 2.86 % in 2017. the cash dividend payout as a percentage of net income was 81 % in 2019 , compared to 35 % in 2018 and 38 % in 2017. in addition , a 5 % stock dividend was paid on may 31 , 2018 , which caused $ 4,335,000 to be transferred from retained earnings to paid-in capital . a 5 % stock dividend was also paid on may 31 , 2017 and produced a transfer of $ 3,779,000 from retained earnings to paid-in capital . page | 23 table 1 – average balances and tax-equivalent interest rates replace_table_token_21_th ( 1 ) interest on nontaxable securities and loans has been adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets . the adjustment uses an incremental tax rate of 21 % for 2019 and 2018 and 34 % for 2017 . ( 2 ) interest on loans included net origination fees charged on loans of approximately $ 866,000 , $ 1,087,000 , and $ 1,003,000 in 2019 , 2018 , and 2017 , respectively . ( 3 ) interest on taxable securities includes dividends on federal home loan bank and federal reserve bank stock . ( 4 ) noninterest-earning assets include loans in nonaccrual status , which averaged approximately $ 2,965,000 , $ 1,266,000 , and $ 1,486,000 in 2019 , 2018 , and 2017 , respectively . page | 24 table 2 – changes in tax-equivalent net interest income replace_table_token_22_th ( 1 ) the volume variance is computed as the change in volume ( average balance ) multiplied by the previous year 's interest rate . the rate variance is computed as the change in interest rate multiplied by the previous year 's volume ( average balance ) . the change in interest due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . ( 2 ) interest on tax-exempt securities and loans has been adjusted to a fully tax-equivalent basis using an incremental tax rate of 21 % for 2019 and 2018 , and 34 % for 2017. net interest income the presentation of net interest income on a tax-equivalent basis is not in accordance with generally accepted accounting principles ( “ gaap ” ) , but is customary in the banking industry . this non-gaap measure ensures comparability of net interest income arising from both taxable and tax-exempt loans and investment securities . the adjustments to determine net interest income on a tax-equivalent basis were $ 408,000 , $ 398,000 and $ 548,000 for the years ended 2019 , 2018 and 2017 , respectively . these adjustments were computed using a 21 % federal income tax rate in 2019 and 2018 , and 34 % federal income tax rate in 2017. tax-equivalent net interest income increased $ 5,719,000 in 2019 compared to 2018. the increase was attributed to an increase of $ 177.7 million in average interest-earning assets , partially offset by the impact of a decline of 21 basis points in choiceone 's net interest spread . the reduction in the net interest spread resulted from an increase of 26 basis points in the average rate paid on interest-bearing liabilities , while the average rate earned on interest-earning assets increased 5 basis points . the average balance of loans increased $ 130.2 million in 2019 compared to 2018 , $ 105.8 million of which was due to lakestone loans which were included in the fourth quarter of 2019. the remaining growth was primarily from residential real estate loans , whose average balance increased $ 22.6 million in 2019 compared to 2018. in addition to the average balance growth , the average rate earned on loans increased 6 basis points in 2019 compared to 2018 as a result of higher general market interest rates and higher rates charged on new loan originations . tax-equivalent interest income on loans increased $ 6.8 million in 2019 compared to the prior year . the average balance of total securities grew $ 40.0 million in 2019 compared to the prior year . the inclusion of lakestone securities in the fourth quarter of 2019 caused an average balance increase of $ 45.0 million , while the average balance of choiceone bank securities was $ 5.0 million lower in 2019 than in 2018. the average balance growth and a minimal change in the average rate earned on securities caused interest income from securities to grow $ 1.1 million in 2019 compared to the prior year . story_separator_special_tag the loans are short-term in nature and are designed to provide funding for the time period between the loan origination and its subsequent sale in the secondary market . the balance of the lines of credit held by the banks was $ 51.0 million as of december 31 , 2019 and choiceone bank held $ 20.6 million as of december 31 , 2018. information regarding impaired loans can be found in note 3 to the consolidated financial statements included in this report . in addition to its review of the loan portfolio for impaired loans , management also monitors various nonperforming loans . nonperforming loans are comprised of ( 1 ) loans accounted for on a nonaccrual basis ; ( 2 ) loans , not included in nonaccrual loans , which are contractually past due 90 days or more as to interest or principal payments ; and ( 3 ) loans , not included in nonaccrual or past due 90 days or more , which are considered troubled debt restructurings . troubled debt restructurings consist of loans where the terms have been modified to assist the borrowers in making their payments . the modifications can include capitalization of interest onto the principal balance , reduction in interest rate , and extension of the loan term . the balances of these nonperforming loans as of december 31 were as follows : replace_table_token_27_th nonaccrual loans included $ 379,000 in agricultural loans , $ 776,000 in commercial and industrial loans , $ 16,000 in consumer loans , $ 2,185,000 in commercial real estate loans , and $ 1,331,000 in residential real estate loans as of december 31 , 2019. nonaccrual loans included $ 393,000 in agricultural loans , $ 62,000 in consumer loans , $ 123,000 in commercial real estate loans , and $ 954,000 in residential real estate loans as of december 31 , 2018. the primary reason for the increase in nonaccrual loans in 2019 was the movement of one large commercial relationship into nonaccrual status during the year . loans considered troubled debt restructurings which were not on a nonaccrual basis and were not 90 days or more past due as to principal or interest payments consisted of $ 391,000 in commercial real estate loans and $ 1,335,000 in residential real estate loans at december 31 , 2019 , compared to $ 19,000 in commercial and industrial loans , $ 14,000 in consumer loans , $ 500,000 in commercial real estate loans , and $ 1,721,000 in residential real estate loans at december 31 , 2018. management also maintains a list of loans that are not classified as nonperforming loans but where some concern exists as to the borrowers ' abilities to comply with the original loan terms . these loans totaled $ 14.0 million as of december 31 , 2019 , compared to $ 1.8 million as of december 31 , 2018. page | 30 deposits and other funding sources the company 's deposit balances as of december 31 were as follows : replace_table_token_28_th total deposits increased $ 577.6 million from december 31 , 2018 to december 31 , 2019 , of which $ 573.6 million was obtained from the merger with county . excluding deposits related to lakestone , noninterest-bearing and interest-bearing demand deposits grew a total of $ 11.2 million as the banks ' depositors valued the liquidity available in this deposit category . higher rates paid on local certificates of deposit in 2019 compared to 2018 as a result of rising general market interest rates helped to generate depositor interest in this category and contributed to the $ 18.3 million of growth during 2019 excluding lakestone deposits . brokered certificates of deposit decreased $ 32.1 million in 2019 as organic loan growth was minimal . federal funds purchased declined $ 4.8 million from december 31 , 2018 to december 31 , 2019 as overnight funding was replaced by local deposits growth . federal home loan bank advances increased $ 28.0 million in 2019 as advances were used to meet short term funding needs . choiceone bank 's blanket collateral agreement covering agricultural real estate loans and residential real estate loans and lakestone 's blanket collateral agreement covering commercial real estate loans and residential real estate loans were pledged against each bank 's outstanding advances at the end of 2019. approximately $ 78.6 million of additional advances were available as of december 31 , 2019 based on the collateral pledged by the banks . in 2020 , management will continue to focus its marketing efforts toward growth in local deposits . if local deposit growth is insufficient to support asset growth , management believes that advances from the fhlb and brokered certificates of deposit can address corresponding funding needs . shareholders ' equity total shareholders ' equity increased $ 111.7 million from december 31 , 2018 to december 31 , 2019. the merger with county caused $ 107.9 million of equity to be issued in consideration for county 's stock . the remaining growth in equity resulted from the retention of earnings in 2019 as net income exceeded dividends paid by $ 1.4 million . accumulated other comprehensive income increased by $ 2.2 million in 2019 principally as a result of available for sale securities moving from a net unrealized loss at the end of 2018 to a net unrealized gain as of the end of 2019. equity issuances net of shares repurchased also contributed $ 448,000 to equity during 2019. note 20 to the consolidated financial statements presents regulatory capital information for choiceone and the banks at the end of 2019 and choiceone and choiceone bank at the end of 2018. management will monitor these capital ratios during 2020 as they relate to asset growth and earnings retention . choiceone 's board of directors and management do not plan to allow capital to decrease below those levels necessary to be considered “ well capitalized ” by regulatory guidelines . at december 31 , 2019 , the

