. for 2016 , the return on average equity was 9.72 % , compared to 4.97 % for 2015. the return on average assets was 1.07 % for 2016 and 0.54 % for 2015. the annualized return on average assets and return on average equity excluding merger related expenses were 1.09 % and 9.92 % in 2016 , compared to 0.87 % and 7.95 % in 2015 , respectively . the results for 2016 included $ 73 thousand in gains on sales of securities , compared to $ 94 thousand in 2015. in addition , 2016 results include $ 238 thousand in gains from the sale of land and buildings . on june 1 , 2016 , the bank completed the acquisition of bowers , and merged bowers with insurance , the bank 's wholly-owned insurance agency subsidiary . bowers will continue to operate out of its cortland , ohio location and will enhance the company 's current product lineup , and offer broader options of commercial , farm , home , and auto property/casualty insurance carriers to meet all the needs of all the company 's customers . the transaction involved both cash and 123,280 shares of stock totaling $ 3.2 million , including up to $ 1.2 million of future payments , contingent upon bowers meeting performance targets . goodwill of $ 1.8 million , which is recorded on the balance sheet , arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the companies . the goodwill was determined not to be deductible for income tax purposes . the fair value of other intangible assets of $ 1.6 million is related to client relationships , company name and noncompetition agreements . 30 on june 19 , 2015 , the company completed the acquisition of all outstanding stock of national bancshares corpora tion ( “ nboh ” ) , the parent company of first national bank of orrville ( “ first national bank ” ) . the transaction involved both cash and 7,262,955 shares of stock totaling $ 74.8 million . first national bank branches became branches of farmers bank . pursuant to the agreement , each shareholder of nboh received either $ 32.15 per share in cash or 4.034 shares of farmers ' common stock , subject to an overall limitation of 80 % of the shares of nboh being exchanged for stock and 20 % for cash . on october 1 , 2015 , the company completed the acquisition of tri-state 1st banc , inc. ( “ tri-state ” ) , the parent company of 1 st national community bank ( “ fncb ” ) . pursuant to the terms of the merger agreement , common shareholders of tri-state were entitled to receive 1.747 shares of farmers ' common stock , or $ 14.20 in cash , for each common share , without par value , of tri-state ( the “ tri-state common shares ” ) , subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of total consideration consisting of 75 % company common shares and 25 % cash . preferred shareholders of tri-state received $ 13.60 in cash for each share of series a preferred stock , without par value , of tri-state . total consideration actually paid was in the form of $ 3.6 million in cash and $ 10.7 million worth of the company 's stock on october 1 , 2015. net interest income net interest income , the principal source of the company 's earnings , represents the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities . for 2016 , taxable equivalent net interest income increased $ 18.8 million , or 36.3 % , from 2015. interest-earning assets averaged $ 1.761 billion during 2016 , increasing $ 398.6 million compared to 2015. the company 's interest-bearing liabilities increased 27.8 % from $ 1.057 billion in 2015 to $ 1.351 billion in 2016. the two previously mentioned acquisitions increased interest-earning assets by $ 647.5 million and interest-bearing liabilities by $ 605.5 million at their respective completion dates . the company finances its earning assets with a combination of interest-bearing and interest-free funds . the interest-bearing funds are composed of deposits , short-term borrowings and long-term debt . interest paid for the use of these funds is the second factor in the net interest income equation . interest-free funds , such as demand deposits and stockholders ' equity , require no interest expense and , therefore , contribute significantly to net interest income . the profit margin , or spread , on invested funds is a key performance measure . the company monitors two key performance indicators - net interest spread and net interest margin . the net interest spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities . the net interest spread in 2016 was 3.94 % , increasing from 3.72 % in 2015. the net interest margin represents the overall profit margin – net interest income as a percentage of total interest-earning assets . this performance indicator gives effect to interest earned for all investable funds including the substantial volume of interest-free funds . for 2016 , the net interest margin , measured on a fully taxable equivalent basis , increased to 4.01 % , compared to 3.81 % in 2015. the net interest margin , excluding the impact of amortization and accretion from the current year acquisitions , improved 19 basis points to 3.95 % for the year ended december 31 , 2016. the accretion added $ 98 thousand per month during 2016 and will continue over the next several years . the increase in net interest margin is largely a result of interest bearing liabilities repricing at lower rates and the shifting of assets from investment securities to higher interest income rates of loans . story_separator_special_tag farmers typically obtains an external appraisal to validate its internal collateral valuation as soon as is practical and adjusts the associated specific loss reserve , if necessary . 37 the rat io of the allowance for loan losses to non-performing loans at december 31 , 2016 improved to 132.83 % , compared to 85.96 % at december 31 , 2015. nonaccrual agricultural loans were the only category that increased during the year , from $ 73 thousand at decemb er 31 , 2015 to $ 686 thousand , or 0.53 % of total agricultural loans at december 31 , 2016. the balance in the allowance for loan losses increased in 2016 , with the increased loan portfolio size , to $ 10.9 million compared to $ 9.0 million in 2015. replace_table_token_14_th the company has forgone interest income of approximately $ 553 thousand from nonaccrual loans as of december 31 , 2016 that would have been earned , over the life of the loans , if all loans had performed in accordance with their original terms . net charge-offs as a percentage of average loans outstanding decreased from 0.23 % for 2015 to 0.15 % for 2016 as a result of the larger loan portfolio and improved loan quality . net charge-offs decreased from $ 2.2 million in 2015 to $ 2.0 million in 2016. each of the loan types experienced a decrease in gross charge-offs in comparing the two periods . the following table summarizes the company 's allocation of the allowance for loan losses for the past five years : replace_table_token_15_th the allowance allocated to each of the four loan categories should not be interpreted as an indication that charge-offs in 2017 will occur in the same proportions or that the allocation indicates future charge-off trends . the allowance allocated to the one-to-four family real estate loan category and the consumer loan category is based upon 38 the company 's allowance methodology for homogeneous loans , and increases and decreases in the balances of those portfolios . in previous years , the indirect installment loan category has represented the largest percentage of loan losses . the consumer loan category represents approximately 15.3 % of total loans and in 2016 , the net loan losses accounted for 69.4 % of the losses of the entire loan portfolio . for the commer cial loan category , which represents 17.2 % of the total loan portfolio , management relies on the bank 's internal loan review procedures and allocates accordingly based on loan classifications . the net charge-offs in the commercial real estate portfolio , w hich represents 37.4 % of the total portfolio , was $ 334 thousand for 2016. there were no loans other than those identified above , that management has known information about possible credit problems of borrowers and their ability to comply with the loan repayment terms . management is actively monitoring certain borrowers ' financial condition and loans which management wants to more closely monitor due to special circumstances . these loans and their potential loss exposure have been considered in management 's analysis of the adequacy of the allowance for loan losses . loan commitments and lines of credit in the normal course of business , the bank has extended various commitments for credit . commitments for mortgages , revolving lines of credit and letters of credit generally are extended for a period of one month up to one year . normally , no fees are charged on any unused portion , but an annual fee of two percent is charged for the issuance of a letter of credit . as of december 31 , 2016 , there were no concentrations of loans exceeding 10 % of total loans that are not disclosed as a category of loans . as of that date , there were also no other interest-earning assets that are either nonaccrual , past due , restructured or non-performing . investment securities the investment securities portfolio decreased $ 24.3 million in 2016. this decrease resulted from some maturing securities not being reinvested and used instead to fund loan portfolio growth . the company 's investment strategy is to maintain a diverse investment security portfolio with a higher concentration in mortgage-backed securities that are issued by u.s. government sponsored enterprises and tax-free municipal securities . farmers sold $ 11.5 million in securities in 2016 , resulting in net security gains of $ 73 thousand . farmers recognized market appreciation on faster paying mortgage-backed securities and lower rated municipal securities , and reinvested in new mortgage-backed securities and higher rated municipal securities to further diversify the securities portfolio . during 2014 , the company created the investments subsidiary to hold municipal securities and take advantage of more favorable tax treatment . at december 31 , 2016 , the investments entity had a balance of $ 76.9 million in municipal securities . farmers ' objective in managing the investment portfolio is to preserve and enhance corporate liquidity through investment in primarily short and intermediate term securities which are readily marketable and of the highest credit quality . in general , investment in securities is limited to those funds the bank feels it has in excess of funds used to satisfy loan demand and operating considerations . the volcker rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution , subject to certain exceptions . the bank does not engage in any of the trading activities or own any of the types of funds regulated by the volcker rule . mortgage-backed securities are created by the pooling of mortgages and issuance of a security . mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages . prepayment estimates for mortgage-backed securities are performed at purchase to ensure that prepayment assumptions are reasonable considering the underlying collateral for the mortgage-backed securities at issue and current mortgage interest rates and to determine the yield and

liquidity farmers maintains , in the opinion of management , liquidity sufficient to satisfy depositors ' requirements and meet the credit needs of customers . the company depends on its ability to maintain its market share of deposits as well as acquiring new funds . the company 's ability to attract deposits and borrow funds depends in large measure on its profitability , capitalization and overall financial condition . principal sources of liquidity include assets considered relatively liquid , such as short-term investment securities , federal funds sold and cash and due from banks . along with its liquid assets , farmers has additional sources of liquidity available which help to insure that adequate funds are available as needed . these other sources include , but are not limited to , loan repayments , the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at two major domestic banks . at december 31 , 2016 , farmers had not borrowed against these lines of credit . management feels that its liquidity position is more than adequate and will continue to monitor the position on a monthly basis . the company also has additional borrowing capacity with the fhlb , as well as access to the federal reserve discount window , which provides an additional source of funds . the company views its membership in the fhlb as a solid source of liquidity . as of december 31 , 2016 , the bank is eligible to borrow an additional $ 144 million from the fhlb under various fixed rate and variable rate credit facilities . advances outstanding from the fhlb at december 31 , 2016 amounted to $ 132.9 million . farmers ' primary investing activities are originating loans and purchasing securities .


 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 farmers maintains , in the opinion of management , liquidity sufficient to satisfy depositors ' requirements and meet the credit needs of customers . the company depends on its ability to maintain its market share of deposits as well as acquiring new funds . the company 's ability to attract deposits and borrow funds depends in large measure on its profitability , capitalization and overall financial condition . principal sources of liquidity include assets considered relatively liquid , such as short-term investment securities , federal funds sold and cash and due from banks . along with its liquid assets , farmers has additional sources of liquidity available which help to insure that adequate funds are available as needed . these other sources include , but are not limited to , loan repayments , the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at two major domestic banks . at december 31 , 2016 , farmers had not borrowed against these lines of credit . management feels that its liquidity position is more than adequate and will continue to monitor the position on a monthly basis . the company also has additional borrowing capacity with the fhlb , as well as access to the federal reserve discount window , which provides an additional source of funds . the company views its membership in the fhlb as a solid source of liquidity . as of december 31 , 2016 , the bank is eligible to borrow an additional $ 144 million from the fhlb under various fixed rate and variable rate credit facilities . advances outstanding from the fhlb at december 31 , 2016 amounted to $ 132.9 million . farmers ' primary investing activities are originating loans and purchasing securities .
```    
 Suspicious Activity Report : . for 2016 , the return on average equity was 9.72 % , compared to 4.97 % for 2015. the return on average assets was 1.07 % for 2016 and 0.54 % for 2015. the annualized return on average assets and return on average equity excluding merger related expenses were 1.09 % and 9.92 % in 2016 , compared to 0.87 % and 7.95 % in 2015 , respectively . the results for 2016 included $ 73 thousand in gains on sales of securities , compared to $ 94 thousand in 2015. in addition , 2016 results include $ 238 thousand in gains from the sale of land and buildings . on june 1 , 2016 , the bank completed the acquisition of bowers , and merged bowers with insurance , the bank 's wholly-owned insurance agency subsidiary . bowers will continue to operate out of its cortland , ohio location and will enhance the company 's current product lineup , and offer broader options of commercial , farm , home , and auto property/casualty insurance carriers to meet all the needs of all the company 's customers . the transaction involved both cash and 123,280 shares of stock totaling $ 3.2 million , including up to $ 1.2 million of future payments , contingent upon bowers meeting performance targets . goodwill of $ 1.8 million , which is recorded on the balance sheet , arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the companies . the goodwill was determined not to be deductible for income tax purposes . the fair value of other intangible assets of $ 1.6 million is related to client relationships , company name and noncompetition agreements . 30 on june 19 , 2015 , the company completed the acquisition of all outstanding stock of national bancshares corpora tion ( “ nboh ” ) , the parent company of first national bank of orrville ( “ first national bank ” ) . the transaction involved both cash and 7,262,955 shares of stock totaling $ 74.8 million . first national bank branches became branches of farmers bank . pursuant to the agreement , each shareholder of nboh received either $ 32.15 per share in cash or 4.034 shares of farmers ' common stock , subject to an overall limitation of 80 % of the shares of nboh being exchanged for stock and 20 % for cash . on october 1 , 2015 , the company completed the acquisition of tri-state 1st banc , inc. ( “ tri-state ” ) , the parent company of 1 st national community bank ( “ fncb ” ) . pursuant to the terms of the merger agreement , common shareholders of tri-state were entitled to receive 1.747 shares of farmers ' common stock , or $ 14.20 in cash , for each common share , without par value , of tri-state ( the “ tri-state common shares ” ) , subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of total consideration consisting of 75 % company common shares and 25 % cash . preferred shareholders of tri-state received $ 13.60 in cash for each share of series a preferred stock , without par value , of tri-state . total consideration actually paid was in the form of $ 3.6 million in cash and $ 10.7 million worth of the company 's stock on october 1 , 2015. net interest income net interest income , the principal source of the company 's earnings , represents the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities . for 2016 , taxable equivalent net interest income increased $ 18.8 million , or 36.3 % , from 2015. interest-earning assets averaged $ 1.761 billion during 2016 , increasing $ 398.6 million compared to 2015. the company 's interest-bearing liabilities increased 27.8 % from $ 1.057 billion in 2015 to $ 1.351 billion in 2016. the two previously mentioned acquisitions increased interest-earning assets by $ 647.5 million and interest-bearing liabilities by $ 605.5 million at their respective completion dates . the company finances its earning assets with a combination of interest-bearing and interest-free funds . the interest-bearing funds are composed of deposits , short-term borrowings and long-term debt . interest paid for the use of these funds is the second factor in the net interest income equation . interest-free funds , such as demand deposits and stockholders ' equity , require no interest expense and , therefore , contribute significantly to net interest income . the profit margin , or spread , on invested funds is a key performance measure . the company monitors two key performance indicators - net interest spread and net interest margin . the net interest spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities . the net interest spread in 2016 was 3.94 % , increasing from 3.72 % in 2015. the net interest margin represents the overall profit margin – net interest income as a percentage of total interest-earning assets . this performance indicator gives effect to interest earned for all investable funds including the substantial volume of interest-free funds . for 2016 , the net interest margin , measured on a fully taxable equivalent basis , increased to 4.01 % , compared to 3.81 % in 2015. the net interest margin , excluding the impact of amortization and accretion from the current year acquisitions , improved 19 basis points to 3.95 % for the year ended december 31 , 2016. the accretion added $ 98 thousand per month during 2016 and will continue over the next several years . the increase in net interest margin is largely a result of interest bearing liabilities repricing at lower rates and the shifting of assets from investment securities to higher interest income rates of loans . story_separator_special_tag farmers typically obtains an external appraisal to validate its internal collateral valuation as soon as is practical and adjusts the associated specific loss reserve , if necessary . 37 the rat io of the allowance for loan losses to non-performing loans at december 31 , 2016 improved to 132.83 % , compared to 85.96 % at december 31 , 2015. nonaccrual agricultural loans were the only category that increased during the year , from $ 73 thousand at decemb er 31 , 2015 to $ 686 thousand , or 0.53 % of total agricultural loans at december 31 , 2016. the balance in the allowance for loan losses increased in 2016 , with the increased loan portfolio size , to $ 10.9 million compared to $ 9.0 million in 2015. replace_table_token_14_th the company has forgone interest income of approximately $ 553 thousand from nonaccrual loans as of december 31 , 2016 that would have been earned , over the life of the loans , if all loans had performed in accordance with their original terms . net charge-offs as a percentage of average loans outstanding decreased from 0.23 % for 2015 to 0.15 % for 2016 as a result of the larger loan portfolio and improved loan quality . net charge-offs decreased from $ 2.2 million in 2015 to $ 2.0 million in 2016. each of the loan types experienced a decrease in gross charge-offs in comparing the two periods . the following table summarizes the company 's allocation of the allowance for loan losses for the past five years : replace_table_token_15_th the allowance allocated to each of the four loan categories should not be interpreted as an indication that charge-offs in 2017 will occur in the same proportions or that the allocation indicates future charge-off trends . the allowance allocated to the one-to-four family real estate loan category and the consumer loan category is based upon 38 the company 's allowance methodology for homogeneous loans , and increases and decreases in the balances of those portfolios . in previous years , the indirect installment loan category has represented the largest percentage of loan losses . the consumer loan category represents approximately 15.3 % of total loans and in 2016 , the net loan losses accounted for 69.4 % of the losses of the entire loan portfolio . for the commer cial loan category , which represents 17.2 % of the total loan portfolio , management relies on the bank 's internal loan review procedures and allocates accordingly based on loan classifications . the net charge-offs in the commercial real estate portfolio , w hich represents 37.4 % of the total portfolio , was $ 334 thousand for 2016. there were no loans other than those identified above , that management has known information about possible credit problems of borrowers and their ability to comply with the loan repayment terms . management is actively monitoring certain borrowers ' financial condition and loans which management wants to more closely monitor due to special circumstances . these loans and their potential loss exposure have been considered in management 's analysis of the adequacy of the allowance for loan losses . loan commitments and lines of credit in the normal course of business , the bank has extended various commitments for credit . commitments for mortgages , revolving lines of credit and letters of credit generally are extended for a period of one month up to one year . normally , no fees are charged on any unused portion , but an annual fee of two percent is charged for the issuance of a letter of credit . as of december 31 , 2016 , there were no concentrations of loans exceeding 10 % of total loans that are not disclosed as a category of loans . as of that date , there were also no other interest-earning assets that are either nonaccrual , past due , restructured or non-performing . investment securities the investment securities portfolio decreased $ 24.3 million in 2016. this decrease resulted from some maturing securities not being reinvested and used instead to fund loan portfolio growth . the company 's investment strategy is to maintain a diverse investment security portfolio with a higher concentration in mortgage-backed securities that are issued by u.s. government sponsored enterprises and tax-free municipal securities . farmers sold $ 11.5 million in securities in 2016 , resulting in net security gains of $ 73 thousand . farmers recognized market appreciation on faster paying mortgage-backed securities and lower rated municipal securities , and reinvested in new mortgage-backed securities and higher rated municipal securities to further diversify the securities portfolio . during 2014 , the company created the investments subsidiary to hold municipal securities and take advantage of more favorable tax treatment . at december 31 , 2016 , the investments entity had a balance of $ 76.9 million in municipal securities . farmers ' objective in managing the investment portfolio is to preserve and enhance corporate liquidity through investment in primarily short and intermediate term securities which are readily marketable and of the highest credit quality . in general , investment in securities is limited to those funds the bank feels it has in excess of funds used to satisfy loan demand and operating considerations . the volcker rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution , subject to certain exceptions . the bank does not engage in any of the trading activities or own any of the types of funds regulated by the volcker rule . mortgage-backed securities are created by the pooling of mortgages and issuance of a security . mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages . prepayment estimates for mortgage-backed securities are performed at purchase to ensure that prepayment assumptions are reasonable considering the underlying collateral for the mortgage-backed securities at issue and current mortgage interest rates and to determine the yield and

