interest rates are outside the control of the company , so it must attempt to balance its pricing and duration of its loan portfolio against the risks of rising costs of its deposits and borrowings . 47 the continued success and attraction of anne arundel county , maryland , and vicinity , will also be important to the company 's ability to originate and grow its mortgage loans and deposits , as will the company 's continued focus on maintaining a low overhead . if the volatility in the market and the economy continues or worsens , the company 's business , financial condition , results of operations , access to funds and the price of its stock could be materially and adversely impacted . critical accounting policies the company 's significant accounting policies and recent accounting pronouncements are set forth in note 1 of the consolidated financial statements which are included under part iv , item 5 in this form 10-k. of these significant accounting policies , the company considers the policies regarding the allowance for loan losses , the valuation of foreclosed real estate , the evaluation of other than temporary impairment of investment securities and the valuation of the deferred tax asset to be its most critical accounting policies , given the uncertainty in evaluating the level of the allowance required to cover credit losses inherent in the loan portfolio and the material effect that such judgments can have on the results of operations and future taxable income . in addition , changes in economic conditions can have a significant impact on real estate values of underlying collateral affecting the allowance for loan losses and therefore the provision for loan losses and results of operations as well as the valuation of foreclosed real estate . the company has developed policies and procedures for assessing the adequacy of the allowance for loan losses , recognizing that this process requires a number of assumptions and estimates with respect to its loan portfolio . the company 's assessments may be impacted in future periods by changes in economic conditions , the impact of regulatory examinations , and the discovery of information with respect to borrowers that is not known to management at the time of the issuance of the consolidated financial statements . comparison of statement of financial condition for december 31 , 2016 versus 2015. financial condition total assets increased by $ 25,406,000 , or 3.3 % to $ 787,485,000 at december 31 , 2016 , compared to the $ 762,079,000 at december 31 , 2015. increases in loans , cash , and deferred income taxes were the reasons for the increase . story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0000868271/000114036117012935/ # tableofcontents `` style= `` font-size : 8pt ; font-style : italic `` > the 2035 debentures were issued and sold to severn capital trust i ( the “ trust ” ) , of which 100 % of the common equity is owned by the company . the trust was formed for the purpose of issuing corporation-obligated mandatorily redeemable capital securities ( “ capital securities ” ) to third-party investors and using the proceeds from the sale of such capital securities to purchase the 2035 debentures . the 2035 debentures held by the trust are the sole assets of the trust . distributions on the capital securities issued by the trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the 2035 debentures . the capital securities are subject to mandatory redemption , in whole or in part , upon repayment of the 2035 debentures . the company has entered into an agreement which , taken collectively , fully and unconditionally guarantees the capital securities subject to the terms of the guarantee . under the terms of the 2035 debenture , the company is permitted to defer the payment of interest on the 2035 debentures for up to 20 consecutive quarterly periods , provided that no event of default has occurred and is continuing . as of december 31 , 2015 , the company had deferred the payment of fifteen quarters of interest and the cumulative amount of interest in arrears not paid , including interest on unpaid interest , was $ 1,863,000. during the second quarter of 2016 , the company paid all of the deferred interest and as of december 31 , 2016 , the company is current on all interest due on the 2035 debenture . accrued interest payable and other liabilities . accrued interest payable and other liabilities decreased $ 9,243,000 , or 72.5 % , from $ 12,733,000 as of december 31 , 2015 to $ 3,490,000 as of december 31 , 2015. the decrease was due to the repayment of the deferred interest on the subordinated debentures and the repayment of all accrued and unpaid dividends and interest on its series b preferred stock in 2016. the total amount of deferred interest paid on the subordinated debentures was $ 1,863,000 and the amount of dividends and interest paid on the series b preferred stock was $ 7,590,000. subordinated notes and series a preferred stock . on november 15 , 2008 , the company completed a private placement offering consisting of a total of 70 units , at an offering price of $ 100,000 per unit , for gross proceeds of $ 7,000,000. each unit consists of 6,250 shares of the company 's series a 8.0 % non-cumulative convertible preferred stock and the company 's subordinated notes ( “ subordinated notes ” ) in the original principal amount of $ 50,000. the subordinated notes earned interest at an annual rate of 8.0 % , payable quarterly in arrears on the last day of march , june , september and december commencing december 31 , 2008. the subordinated notes were redeemable in whole or in part at the story_separator_special_tag the maturities of these long-term advances at december 31 , 2016 were as follows ( dollars in thousands ) : replace_table_token_18_th as of december 31 , 2016 , the company had outstanding $ 20,619,000 in principal amount of subordinated debt , consisting of the 2035 debentures . the 2035 debentures total $ 20,619,000 in principal amount which pay interest quarterly at a floating rate of interest of 3-month libor ( 0.88 % at december 31 , 2016 ) plus 200 basis points , and matures on january 7 , 2035 . 53 the subordinated notes that totaled $ 3,500,000 and paid interest at an annual rate of 8.0 % , were paid off on september 30 , 2016 and replaced with a loan from a commercial bank whereby the company borrowed $ 3,500,000 for a term of 8 years . the unsecured note bears interest at a fixed rate of 4.25 % for the first 36 months then , at the option of the company , converts to either ( 1 ) floating rate of the wall street journal prime plus .50 % or ( 2 ) fixed rate at two hundred seventy five ( 275 ) basis points over the five year amortizing federal home loan bank rate for the remaining five years . repayment terms are monthly interest only payments for the first 36 months , then quarterly principal payments of $ 175,000 plus interest . the loan is subject to a prepayment penalty of 1 % of the principal amount prepaid during the first 36 months . if the bancorp elects the 5 year fixed rate of 275 basis points over the federal home loan bank rate ( “ fhlb rate period ” ) , the loan will be subject to a prepayment penalty of 2 % during the first and second years of the fhlb rate period and 1 % of the principal repaid during the third , fourth and fifth years of the fhlb rate period . the company may make additional principal payments from internally generated funds of up to $ 875,000 per year during any fixed rate period without penalty . there is no prepayment penalty during any floating rate period . as of december 31 , 2016 , the company had $ 574,000 outstanding in mortgage loan commitments , and unadvanced construction commitments of $ 15,728,000 which the company expects to fund from the sources of liquidity described above . these amounts do not include undisbursed lines of credit , home equity lines of credit and standby letters of credit , in the aggregate amount of $ 45,883,000 at december 31 , 2016 , which the company anticipates it will be able to fund , if required , from these liquidity sources in the regular course of business . in addition to the foregoing , the payment of dividends is a use of cash , but is not expected to have a material effect on liquidity . as of december 31 , 2016 , the company had no material commitments for capital expenditures . the bank is subject to various regulatory capital requirements administered by the federal banking agencies . failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary , actions by the regulators that , if undertaken , could have a direct material effect on the bank 's financial statements . under capital adequacy guidelines and the regulatory framework for prompt corrective action , the bank must meet specific capital guidelines that involve quantitative measures of the bank 's assets , liabilities , and certain off-balance sheet items as calculated under regulatory accounting practices . the bank 's capital amounts and classifications are also subject to qualitative judgments by the regulators about components , risk weightings , and other factors . as of december 31 , 2016 , that the bank exceeded all capital adequacy requirements to which it is subject and is considered well-capitalized as shown in the table on page 26. we anticipate that our primary sources of liquidity in fiscal 2017 will be from loan repayments , maturing investments , deposit growth and borrowed funds . we believe that these sources of liquidity will be sufficient for the company to meet its liquidity needs over the next twelve months . cash generated from these liquidity sources may be affected by a number of factors . see “ risk factors ” for a discussion of the factors that can negatively impact the amount of cash we could receive . off-balance sheet arrangements . the company has certain outstanding commitments and obligations that could impact the company 's financial condition , liquidity , revenues or expenses . these commitments and obligations include standby letters of credit , home equity lines of credit , loan commitments , lines of credit , and loans sold and serviced with limited repurchase provisions . standby letters of credit , which are conditional commitments of the company to guarantee performance of customers to various municipalities , decreased $ 1,915,000 , or 32.3 % , as of december 31 , 2016 to $ 4,022,000 , compared to $ 5,937,000 as of december 31 , 2015. the company continues to experience a decrease in demand from its customers for letter of credit requirements . the company requires collateral supporting these letters of credit as deemed necessary , and believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees . the current amount of the liability for guarantees under standby letters of credit issued as of december 31 , 2016 and 2015 was $ 94,000 and $ 115,000 , respectively . 54 unadvanced construction commitments decreased $ 5,373,000 , or 25.5 % , as of december 31 , 2016 to $ 15,728,000 , compared to $ 21,101,000 as of december 31 , 2015. this decrease was primarily the result of decreased construction activity in 2016

cash cash and cash equivalents increased by $ 23,523,000 , or 54.0 % , to $ 67,114,000 at december 31 , 2016 , compared to $ 43,591,000 at december 31 , 2015. this increase was primarily due to proceeds received in 2016 from matured securities and mortgage backed securities pay downs and deposit growth . investments investment securities held to maturity decreased by $ 13,376,000 , or 17.6 % , to $ 62,757,000 at december 31 , 2016 , compared to $ 76,133,000 at december 31 , 2015. this decrease was primarily due to management 's decision to use matured securities funds and pay downs from mortgage backed securities to fund an increase in loan demand . loans loans held for sale . loans held for sale decreased by $ 2,896,000 , or 21.9 % , to $ 10,307,000 at december 31 , 2016 , compared to $ 13,203,000 at december 31 , 2015. this decrease was primarily due to the timing of loans pending sale on the secondary market as of december 31 , 2016 compared to december 31 , 2015. loans receivable . total loans receivable , net increased by $ 11,653,000 , or 2.0 % , to $ 601,309,000 at december 31 , 2016 , compared to $ 589,656,000 at december 31 , 2015. this increase was primarily due to an increase in the commercial portfolio loan demand . 48 allowance for loan losses the allowance for loan losses increased by $ 211,000 , or 2.4 % , at december 31 , 2016 to $ 8,969,000 , compared to $ 8,758,000 at december 31 , 2015. this increase in the allowance was primarily due to an increased loan portfolio , and management 's assessment of the collectability of the loans in the company 's portfolio .


 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.
     ```cash cash and cash equivalents increased by $ 23,523,000 , or 54.0 % , to $ 67,114,000 at december 31 , 2016 , compared to $ 43,591,000 at december 31 , 2015. this increase was primarily due to proceeds received in 2016 from matured securities and mortgage backed securities pay downs and deposit growth . investments investment securities held to maturity decreased by $ 13,376,000 , or 17.6 % , to $ 62,757,000 at december 31 , 2016 , compared to $ 76,133,000 at december 31 , 2015. this decrease was primarily due to management 's decision to use matured securities funds and pay downs from mortgage backed securities to fund an increase in loan demand . loans loans held for sale . loans held for sale decreased by $ 2,896,000 , or 21.9 % , to $ 10,307,000 at december 31 , 2016 , compared to $ 13,203,000 at december 31 , 2015. this decrease was primarily due to the timing of loans pending sale on the secondary market as of december 31 , 2016 compared to december 31 , 2015. loans receivable . total loans receivable , net increased by $ 11,653,000 , or 2.0 % , to $ 601,309,000 at december 31 , 2016 , compared to $ 589,656,000 at december 31 , 2015. this increase was primarily due to an increase in the commercial portfolio loan demand . 48 allowance for loan losses the allowance for loan losses increased by $ 211,000 , or 2.4 % , at december 31 , 2016 to $ 8,969,000 , compared to $ 8,758,000 at december 31 , 2015. this increase in the allowance was primarily due to an increased loan portfolio , and management 's assessment of the collectability of the loans in the company 's portfolio .
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 Suspicious Activity Report : interest rates are outside the control of the company , so it must attempt to balance its pricing and duration of its loan portfolio against the risks of rising costs of its deposits and borrowings . 47 the continued success and attraction of anne arundel county , maryland , and vicinity , will also be important to the company 's ability to originate and grow its mortgage loans and deposits , as will the company 's continued focus on maintaining a low overhead . if the volatility in the market and the economy continues or worsens , the company 's business , financial condition , results of operations , access to funds and the price of its stock could be materially and adversely impacted . critical accounting policies the company 's significant accounting policies and recent accounting pronouncements are set forth in note 1 of the consolidated financial statements which are included under part iv , item 5 in this form 10-k. of these significant accounting policies , the company considers the policies regarding the allowance for loan losses , the valuation of foreclosed real estate , the evaluation of other than temporary impairment of investment securities and the valuation of the deferred tax asset to be its most critical accounting policies , given the uncertainty in evaluating the level of the allowance required to cover credit losses inherent in the loan portfolio and the material effect that such judgments can have on the results of operations and future taxable income . in addition , changes in economic conditions can have a significant impact on real estate values of underlying collateral affecting the allowance for loan losses and therefore the provision for loan losses and results of operations as well as the valuation of foreclosed real estate . the company has developed policies and procedures for assessing the adequacy of the allowance for loan losses , recognizing that this process requires a number of assumptions and estimates with respect to its loan portfolio . the company 's assessments may be impacted in future periods by changes in economic conditions , the impact of regulatory examinations , and the discovery of information with respect to borrowers that is not known to management at the time of the issuance of the consolidated financial statements . comparison of statement of financial condition for december 31 , 2016 versus 2015. financial condition total assets increased by $ 25,406,000 , or 3.3 % to $ 787,485,000 at december 31 , 2016 , compared to the $ 762,079,000 at december 31 , 2015. increases in loans , cash , and deferred income taxes were the reasons for the increase . story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0000868271/000114036117012935/ # tableofcontents `` style= `` font-size : 8pt ; font-style : italic `` > the 2035 debentures were issued and sold to severn capital trust i ( the “ trust ” ) , of which 100 % of the common equity is owned by the company . the trust was formed for the purpose of issuing corporation-obligated mandatorily redeemable capital securities ( “ capital securities ” ) to third-party investors and using the proceeds from the sale of such capital securities to purchase the 2035 debentures . the 2035 debentures held by the trust are the sole assets of the trust . distributions on the capital securities issued by the trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the 2035 debentures . the capital securities are subject to mandatory redemption , in whole or in part , upon repayment of the 2035 debentures . the company has entered into an agreement which , taken collectively , fully and unconditionally guarantees the capital securities subject to the terms of the guarantee . under the terms of the 2035 debenture , the company is permitted to defer the payment of interest on the 2035 debentures for up to 20 consecutive quarterly periods , provided that no event of default has occurred and is continuing . as of december 31 , 2015 , the company had deferred the payment of fifteen quarters of interest and the cumulative amount of interest in arrears not paid , including interest on unpaid interest , was $ 1,863,000. during the second quarter of 2016 , the company paid all of the deferred interest and as of december 31 , 2016 , the company is current on all interest due on the 2035 debenture . accrued interest payable and other liabilities . accrued interest payable and other liabilities decreased $ 9,243,000 , or 72.5 % , from $ 12,733,000 as of december 31 , 2015 to $ 3,490,000 as of december 31 , 2015. the decrease was due to the repayment of the deferred interest on the subordinated debentures and the repayment of all accrued and unpaid dividends and interest on its series b preferred stock in 2016. the total amount of deferred interest paid on the subordinated debentures was $ 1,863,000 and the amount of dividends and interest paid on the series b preferred stock was $ 7,590,000. subordinated notes and series a preferred stock . on november 15 , 2008 , the company completed a private placement offering consisting of a total of 70 units , at an offering price of $ 100,000 per unit , for gross proceeds of $ 7,000,000. each unit consists of 6,250 shares of the company 's series a 8.0 % non-cumulative convertible preferred stock and the company 's subordinated notes ( “ subordinated notes ” ) in the original principal amount of $ 50,000. the subordinated notes earned interest at an annual rate of 8.0 % , payable quarterly in arrears on the last day of march , june , september and december commencing december 31 , 2008. the subordinated notes were redeemable in whole or in part at the story_separator_special_tag the maturities of these long-term advances at december 31 , 2016 were as follows ( dollars in thousands ) : replace_table_token_18_th as of december 31 , 2016 , the company had outstanding $ 20,619,000 in principal amount of subordinated debt , consisting of the 2035 debentures . the 2035 debentures total $ 20,619,000 in principal amount which pay interest quarterly at a floating rate of interest of 3-month libor ( 0.88 % at december 31 , 2016 ) plus 200 basis points , and matures on january 7 , 2035 . 53 the subordinated notes that totaled $ 3,500,000 and paid interest at an annual rate of 8.0 % , were paid off on september 30 , 2016 and replaced with a loan from a commercial bank whereby the company borrowed $ 3,500,000 for a term of 8 years . the unsecured note bears interest at a fixed rate of 4.25 % for the first 36 months then , at the option of the company , converts to either ( 1 ) floating rate of the wall street journal prime plus .50 % or ( 2 ) fixed rate at two hundred seventy five ( 275 ) basis points over the five year amortizing federal home loan bank rate for the remaining five years . repayment terms are monthly interest only payments for the first 36 months , then quarterly principal payments of $ 175,000 plus interest . the loan is subject to a prepayment penalty of 1 % of the principal amount prepaid during the first 36 months . if the bancorp elects the 5 year fixed rate of 275 basis points over the federal home loan bank rate ( “ fhlb rate period ” ) , the loan will be subject to a prepayment penalty of 2 % during the first and second years of the fhlb rate period and 1 % of the principal repaid during the third , fourth and fifth years of the fhlb rate period . the company may make additional principal payments from internally generated funds of up to $ 875,000 per year during any fixed rate period without penalty . there is no prepayment penalty during any floating rate period . as of december 31 , 2016 , the company had $ 574,000 outstanding in mortgage loan commitments , and unadvanced construction commitments of $ 15,728,000 which the company expects to fund from the sources of liquidity described above . these amounts do not include undisbursed lines of credit , home equity lines of credit and standby letters of credit , in the aggregate amount of $ 45,883,000 at december 31 , 2016 , which the company anticipates it will be able to fund , if required , from these liquidity sources in the regular course of business . in addition to the foregoing , the payment of dividends is a use of cash , but is not expected to have a material effect on liquidity . as of december 31 , 2016 , the company had no material commitments for capital expenditures . the bank is subject to various regulatory capital requirements administered by the federal banking agencies . failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary , actions by the regulators that , if undertaken , could have a direct material effect on the bank 's financial statements . under capital adequacy guidelines and the regulatory framework for prompt corrective action , the bank must meet specific capital guidelines that involve quantitative measures of the bank 's assets , liabilities , and certain off-balance sheet items as calculated under regulatory accounting practices . the bank 's capital amounts and classifications are also subject to qualitative judgments by the regulators about components , risk weightings , and other factors . as of december 31 , 2016 , that the bank exceeded all capital adequacy requirements to which it is subject and is considered well-capitalized as shown in the table on page 26. we anticipate that our primary sources of liquidity in fiscal 2017 will be from loan repayments , maturing investments , deposit growth and borrowed funds . we believe that these sources of liquidity will be sufficient for the company to meet its liquidity needs over the next twelve months . cash generated from these liquidity sources may be affected by a number of factors . see “ risk factors ” for a discussion of the factors that can negatively impact the amount of cash we could receive . off-balance sheet arrangements . the company has certain outstanding commitments and obligations that could impact the company 's financial condition , liquidity , revenues or expenses . these commitments and obligations include standby letters of credit , home equity lines of credit , loan commitments , lines of credit , and loans sold and serviced with limited repurchase provisions . standby letters of credit , which are conditional commitments of the company to guarantee performance of customers to various municipalities , decreased $ 1,915,000 , or 32.3 % , as of december 31 , 2016 to $ 4,022,000 , compared to $ 5,937,000 as of december 31 , 2015. the company continues to experience a decrease in demand from its customers for letter of credit requirements . the company requires collateral supporting these letters of credit as deemed necessary , and believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees . the current amount of the liability for guarantees under standby letters of credit issued as of december 31 , 2016 and 2015 was $ 94,000 and $ 115,000 , respectively . 54 unadvanced construction commitments decreased $ 5,373,000 , or 25.5 % , as of december 31 , 2016 to $ 15,728,000 , compared to $ 21,101,000 as of december 31 , 2015. this decrease was primarily the result of decreased construction activity in 2016

