specifically , subsequent evaluations of the loan portfolio , in light of the factors then prevailing , may result in significant changes in the alll in future periods , and the inability to collect on outstanding loans could result in increased loan losses . in addition , the valuation of certain securities in the company 's investment portfolio could be negatively impacted by illiquidity or dislocation in marketplaces resulting in significantly depressed market prices thus leading to further impairment losses . allowance for loan and lease losses the alll is established as losses are estimated to have occurred through a provision for loan losses charged to earnings , and is maintained at a level that management considers adequate to absorb losses in the loan portfolio . loans are charged against the alll when management believes the uncollectability of a loan balance is confirmed . subsequent recoveries , if any , are credited to the alll . the alll represents management 's estimate of probable loan losses inherent in the loan portfolio . determining the amount of the alll is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans , estimated losses on pools of homogeneous loans based on historical loss experience , qualitative factors , and consideration of current economic trends and conditions , all of which may be susceptible to significant change . various banking regulators , as an integral part of their examination of the company , also review the alll . such regulators may require , based on their judgments about information available to them at the time of their examination , that certain loan 30 balances be charged off or require that adjustments be made to the alll . additionally , the alll is determined , in part , by the composition and size of the loan portfolio . the alll consists of specific and general components . the specific component relates to loans that are classified as impaired . for such loans an allowance is established when the discounted cash flows , collateral value or observable market price of the impaired loan is lower than the carrying value of that loan . the general component covers all other loans and is based on historical loss experience adjusted by qualitative factors . the general reserve component of the alll is based on pools of unimpaired loans segregated generally by loan type and risk rating categories of pass , special mention or substandard and accruing ,  and historical loss factors and varied qualitative factor basis point allocations are applied based on the risk profile in each pool to determine the appropriate reserve related to those loans . substandard loans on nonaccrual status are included in impaired loans . see note 2-summary of significant accounting policies and note 5-loans of the consolidated financial statements included in item 8-financial statements and supplementary data for additional information about the alll . securities valuation management utilizes various inputs to determine the fair value of its investment portfolio . to the extent they exist , unadjusted quoted market prices in active markets ( level 1 ) or quoted prices on similar assets or models using inputs that are observable , either directly or indirectly ( level 2 ) are utilized to determine the fair value of each investment in the portfolio . in the absence of observable inputs or if markets are illiquid , valuation techniques would be used to determine fair value of any investments that require inputs that are both unobservable and significant to the fair value measurement ( level 3 ) . for level 3 inputs , valuation techniques are based on various assumptions , including , but not limited to cash flows , discount rates , adjustments for nonperformance and liquidity , and liquidation values . a significant degree of judgment is involved in valuing investments using level 3 inputs . the use of different assumptions could have a positive or negative effect on the consolidated financial condition or results of operations . see note 4-securities and note 18-fair value measurements of the consolidated financial statements included in item 8 hereof for more information about our securities valuation techniques . management must periodically evaluate if unrealized losses ( as determined based on the securities valuation methodologies discussed above ) on individual securities classified as held-to-maturity or available-for-sale in the investment portfolio are considered to be otti . the analysis of otti requires the use of various assumptions , including but not limited to , the length of time an investment 's fair value is less than book value , the severity of the investment 's decline , any credit deterioration of the issuer , whether management intends to sell the security , and whether it is more-likely-than-not that the company will be required to sell the security prior to recovery of its amortized cost basis . debt investment securities deemed to be otti are written down by the impairment related to the estimated credit loss and the non-credit related impairment loss is recognized in other comprehensive income . the company recognized otti charges on securities of $ 0.8 million , $ 4.3 million , and $ 20.6 in 2011 , 2010 , and 2009 , respectively , within the consolidated statements of operations . for 2011 , the otti charges relate to estimated credit losses on pooled trust preferred securities . see note 4-securities included in item 8-financial statements and supplementary data to the consolidated financial statements for additional information about our otti charges . other real estate owned other real estate owned ( oreo ) consists of property acquired by foreclosure or deed in-lieu of foreclosure . it is held for sale and is initially recorded at fair value less cost to sell at the date of foreclosure , which establishes a new cost basis . story_separator_special_tag fees , both primarily attributable to increased audit , regulatory compliance , and restatement expenses , and a $ 1.0 million increase in salary and benefits expenses . the company 's return on average assets for the years ended december 31 , 2011 and 2010 was ( 0.03 % ) and ( 2.44 % ) , respectively , while the return on average equity was ( 0.98 % ) and ( 59.44 % ) , respectively . net interest income net interest income consists of interest income and fees on interest-earning assets less interest expense on deposits and borrowed funds . it represents the largest component of the company 's operating income and , as such , is the primary determinant of profitability . the net interest margin on a fully tax-equivalent basis is calculated by dividing tax-equivalent net interest income by average interest-earning assets and is a key measurement used in the banking industry to measure income from earning assets . the net interest margin was 3.10 % for the year ended december 31 , 2011 , an increase of 3 basis points compared to the same period in 2010. this increase in the net interest margin was primarily due to a 15.9 % decrease in interest-bearing liabilities , partially offset by a 14.8 % decrease in interest-earning assets . rate spread , the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities shown on a fully tax-equivalent basis was 3.0 % for 2011 , an increase of 6 basis points versus 2010. net interest income on a tax-equivalent basis decreased $ 5.2 million to $ 32.5 million for 2011 compared with $ 37.7 million for 2010. during 2011 , lower average securities and loan balances and lower yields on interest-earning assets negatively impacted our net interest income . the yield on loans and investments declined 31 basis points and 21 basis points , respectively , partially offset by a 47 basis point decline in the cost of average interest-bearing liabilities and lower average interest-bearing liabilities as compared to 2010. the federal reserve kept interest rates stable during 2011 leaving the federal funds rate at an historic low of 25 basis points . the company 's floating rate loans are largely indexed to the national prime rate and many of these loans are now at their floors and will remain there until the prime rate moves up enough for their rates to move above their floors . in addition , most of the time deposits in the company 's funding portfolio matured and renewed at lower market rates in 2011. average loans totaled $ 723.7 million for the year ended december 31 , 2011 , a decrease of $ 155.3 million , or 17.7 % , compared to the same period for 2010. the reduction is primarily due to the net pay downs of real estate loans and commercial and industrial loans of $ 51.6 million and $ 23.5 million , respectively ; the transfer of $ 4.0 million of foreclosed loans into oreo ; and a smaller portfolio at the onset of 2011. during 2011 , loan satisfactions continued to outpace originations and the company continued to focus its efforts on reducing exposure to higher risk construction , land acquisition and development loans by allowing $ 43.9 million of this segment of the portfolio to pay-off . interest income on a tax equivalent basis for loans decreased $ 10.3 million due to the decrease in average loans and a 31 basis point decrease in the average loan yield as loans continued to reset at lower rates and new business was originated at lower market rates compared with 2010. the interest income that would have been earned on non-accrual and restructured loans outstanding at december 31 , 2011 , 2010 and 2009 in accordance with their original terms approximated $ 2.2 million , $ 2.9 million , and $ 2.8 million , respectively . interest income on impaired loans of $ 238 thousand , $ 619 thousand , and $ 976 thousand was recognized based on payments received in 2011 , 2010 and 2009. average investment securities totaled $ 232.8 million , a decrease of $ 49.2 million , or 17.5 % , in 2011 compared to 2010. interest income on a tax equivalent basis for investment securities decreased $ 2.9 million primarily due to reinvestment of pay downs and maturities into more liquid lower yielding securities . average interest-bearing deposits in other banks increased $ 23.0 million as the company increased its holdings of liquid assets . interest income on interest-bearing deposits in other banks increased $ 17 thousand as the increase in volume more than offset the 4 basis point decline in yield earned . 35 average interest-bearing liabilities totaled $ 969.6 million for the year ended december 31 , 2011 , a decrease of $ 182.8 million , or 15.9 % , during 2011 compared to the same period in 2010 due to a decrease in interest-bearing deposits of $ 97.9 million , or 10.2 % , and a decrease in borrowings of $ 84.9 million , or 43.2 % . average interest-bearing demand deposits , savings deposits , time deposits over $ 100 thousand , and other time deposits decreased $ 18.4 million , $ 4.1 million , $ 44.3 million and $ 31.1 million , respectively . during 2011 , the company implemented a pricing strategy to reduce its cost of funds and to concentrate deposit growth on short-term maturities . the company repositioned maturing longer term time deposits into short-term products , whenever possible , and allowed the residual to run-off . the company used the net proceeds from the sale of investment securities and a portion of the funds provided from loan repayments to fund deposit withdrawals and the maturities of the higher cost time deposits . the cost of interest-bearing demand deposits , savings deposits , time deposits over $ 100 thousand , and other

liquidity the term liquidity refers to the ability of the company to generate sufficient amounts of cash to meet its cash flow needs . liquidity is required to fulfill the borrowing needs of the company 's credit customers and the withdrawal and maturity requirements of its deposit customers , as well as to meet other financial commitments . cash and cash equivalents ( cash and due from banks , interest-bearing deposits in other banks and federal funds sold ) are the company 's most liquid assets . at december 31 , 2011 , cash and cash equivalents totaled $ 168.6 million , compared to $ 74.5 million at december 31 , 2010 , an increase of $ 94.1 million . cash flows from investing activities provided $ 170.2 million and operating activities provided $ 3.3 million of cash and cash equivalents during the year , while financing activities utilized $ 79.3 million . the cash flows provided by investing activities were largely attributable to the $ 74.0 million in net loan repayments by customers and $ 88.7 million net reduction in investments . the $ 79.3 million used by financing activities reflected $ 53.6 million of repayments of fhlb advances , net of new advances , as well as the run-off of $ 41.5 million of higher-cost time deposits . cash flows from financing activities were positively affected by the $ 16.2 million increase in lower-cost transaction and savings accounts . core deposits , which represent the company 's primary source of liquidity , averaged $ 745 million in 2011 , a decrease of $ 34 million from the $ 779 million in 2010. core deposits are comprised of total deposit liabilities less : brokered deposits , deposits generated through the certificate of deposit account registry service ( cdars ) and all certificates of deposit accounts with balances greater than $ 100 thousand . the company has other potential sources of liquidity including the ability to borrow on credit lines established at the federal home loan bank of pittsburgh and access to the federal reserve discount window .


 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 the term liquidity refers to the ability of the company to generate sufficient amounts of cash to meet its cash flow needs . liquidity is required to fulfill the borrowing needs of the company 's credit customers and the withdrawal and maturity requirements of its deposit customers , as well as to meet other financial commitments . cash and cash equivalents ( cash and due from banks , interest-bearing deposits in other banks and federal funds sold ) are the company 's most liquid assets . at december 31 , 2011 , cash and cash equivalents totaled $ 168.6 million , compared to $ 74.5 million at december 31 , 2010 , an increase of $ 94.1 million . cash flows from investing activities provided $ 170.2 million and operating activities provided $ 3.3 million of cash and cash equivalents during the year , while financing activities utilized $ 79.3 million . the cash flows provided by investing activities were largely attributable to the $ 74.0 million in net loan repayments by customers and $ 88.7 million net reduction in investments . the $ 79.3 million used by financing activities reflected $ 53.6 million of repayments of fhlb advances , net of new advances , as well as the run-off of $ 41.5 million of higher-cost time deposits . cash flows from financing activities were positively affected by the $ 16.2 million increase in lower-cost transaction and savings accounts . core deposits , which represent the company 's primary source of liquidity , averaged $ 745 million in 2011 , a decrease of $ 34 million from the $ 779 million in 2010. core deposits are comprised of total deposit liabilities less : brokered deposits , deposits generated through the certificate of deposit account registry service ( cdars ) and all certificates of deposit accounts with balances greater than $ 100 thousand . the company has other potential sources of liquidity including the ability to borrow on credit lines established at the federal home loan bank of pittsburgh and access to the federal reserve discount window .
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 Suspicious Activity Report : specifically , subsequent evaluations of the loan portfolio , in light of the factors then prevailing , may result in significant changes in the alll in future periods , and the inability to collect on outstanding loans could result in increased loan losses . in addition , the valuation of certain securities in the company 's investment portfolio could be negatively impacted by illiquidity or dislocation in marketplaces resulting in significantly depressed market prices thus leading to further impairment losses . allowance for loan and lease losses the alll is established as losses are estimated to have occurred through a provision for loan losses charged to earnings , and is maintained at a level that management considers adequate to absorb losses in the loan portfolio . loans are charged against the alll when management believes the uncollectability of a loan balance is confirmed . subsequent recoveries , if any , are credited to the alll . the alll represents management 's estimate of probable loan losses inherent in the loan portfolio . determining the amount of the alll is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans , estimated losses on pools of homogeneous loans based on historical loss experience , qualitative factors , and consideration of current economic trends and conditions , all of which may be susceptible to significant change . various banking regulators , as an integral part of their examination of the company , also review the alll . such regulators may require , based on their judgments about information available to them at the time of their examination , that certain loan 30 balances be charged off or require that adjustments be made to the alll . additionally , the alll is determined , in part , by the composition and size of the loan portfolio . the alll consists of specific and general components . the specific component relates to loans that are classified as impaired . for such loans an allowance is established when the discounted cash flows , collateral value or observable market price of the impaired loan is lower than the carrying value of that loan . the general component covers all other loans and is based on historical loss experience adjusted by qualitative factors . the general reserve component of the alll is based on pools of unimpaired loans segregated generally by loan type and risk rating categories of pass , special mention or substandard and accruing ,  and historical loss factors and varied qualitative factor basis point allocations are applied based on the risk profile in each pool to determine the appropriate reserve related to those loans . substandard loans on nonaccrual status are included in impaired loans . see note 2-summary of significant accounting policies and note 5-loans of the consolidated financial statements included in item 8-financial statements and supplementary data for additional information about the alll . securities valuation management utilizes various inputs to determine the fair value of its investment portfolio . to the extent they exist , unadjusted quoted market prices in active markets ( level 1 ) or quoted prices on similar assets or models using inputs that are observable , either directly or indirectly ( level 2 ) are utilized to determine the fair value of each investment in the portfolio . in the absence of observable inputs or if markets are illiquid , valuation techniques would be used to determine fair value of any investments that require inputs that are both unobservable and significant to the fair value measurement ( level 3 ) . for level 3 inputs , valuation techniques are based on various assumptions , including , but not limited to cash flows , discount rates , adjustments for nonperformance and liquidity , and liquidation values . a significant degree of judgment is involved in valuing investments using level 3 inputs . the use of different assumptions could have a positive or negative effect on the consolidated financial condition or results of operations . see note 4-securities and note 18-fair value measurements of the consolidated financial statements included in item 8 hereof for more information about our securities valuation techniques . management must periodically evaluate if unrealized losses ( as determined based on the securities valuation methodologies discussed above ) on individual securities classified as held-to-maturity or available-for-sale in the investment portfolio are considered to be otti . the analysis of otti requires the use of various assumptions , including but not limited to , the length of time an investment 's fair value is less than book value , the severity of the investment 's decline , any credit deterioration of the issuer , whether management intends to sell the security , and whether it is more-likely-than-not that the company will be required to sell the security prior to recovery of its amortized cost basis . debt investment securities deemed to be otti are written down by the impairment related to the estimated credit loss and the non-credit related impairment loss is recognized in other comprehensive income . the company recognized otti charges on securities of $ 0.8 million , $ 4.3 million , and $ 20.6 in 2011 , 2010 , and 2009 , respectively , within the consolidated statements of operations . for 2011 , the otti charges relate to estimated credit losses on pooled trust preferred securities . see note 4-securities included in item 8-financial statements and supplementary data to the consolidated financial statements for additional information about our otti charges . other real estate owned other real estate owned ( oreo ) consists of property acquired by foreclosure or deed in-lieu of foreclosure . it is held for sale and is initially recorded at fair value less cost to sell at the date of foreclosure , which establishes a new cost basis . story_separator_special_tag fees , both primarily attributable to increased audit , regulatory compliance , and restatement expenses , and a $ 1.0 million increase in salary and benefits expenses . the company 's return on average assets for the years ended december 31 , 2011 and 2010 was ( 0.03 % ) and ( 2.44 % ) , respectively , while the return on average equity was ( 0.98 % ) and ( 59.44 % ) , respectively . net interest income net interest income consists of interest income and fees on interest-earning assets less interest expense on deposits and borrowed funds . it represents the largest component of the company 's operating income and , as such , is the primary determinant of profitability . the net interest margin on a fully tax-equivalent basis is calculated by dividing tax-equivalent net interest income by average interest-earning assets and is a key measurement used in the banking industry to measure income from earning assets . the net interest margin was 3.10 % for the year ended december 31 , 2011 , an increase of 3 basis points compared to the same period in 2010. this increase in the net interest margin was primarily due to a 15.9 % decrease in interest-bearing liabilities , partially offset by a 14.8 % decrease in interest-earning assets . rate spread , the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities shown on a fully tax-equivalent basis was 3.0 % for 2011 , an increase of 6 basis points versus 2010. net interest income on a tax-equivalent basis decreased $ 5.2 million to $ 32.5 million for 2011 compared with $ 37.7 million for 2010. during 2011 , lower average securities and loan balances and lower yields on interest-earning assets negatively impacted our net interest income . the yield on loans and investments declined 31 basis points and 21 basis points , respectively , partially offset by a 47 basis point decline in the cost of average interest-bearing liabilities and lower average interest-bearing liabilities as compared to 2010. the federal reserve kept interest rates stable during 2011 leaving the federal funds rate at an historic low of 25 basis points . the company 's floating rate loans are largely indexed to the national prime rate and many of these loans are now at their floors and will remain there until the prime rate moves up enough for their rates to move above their floors . in addition , most of the time deposits in the company 's funding portfolio matured and renewed at lower market rates in 2011. average loans totaled $ 723.7 million for the year ended december 31 , 2011 , a decrease of $ 155.3 million , or 17.7 % , compared to the same period for 2010. the reduction is primarily due to the net pay downs of real estate loans and commercial and industrial loans of $ 51.6 million and $ 23.5 million , respectively ; the transfer of $ 4.0 million of foreclosed loans into oreo ; and a smaller portfolio at the onset of 2011. during 2011 , loan satisfactions continued to outpace originations and the company continued to focus its efforts on reducing exposure to higher risk construction , land acquisition and development loans by allowing $ 43.9 million of this segment of the portfolio to pay-off . interest income on a tax equivalent basis for loans decreased $ 10.3 million due to the decrease in average loans and a 31 basis point decrease in the average loan yield as loans continued to reset at lower rates and new business was originated at lower market rates compared with 2010. the interest income that would have been earned on non-accrual and restructured loans outstanding at december 31 , 2011 , 2010 and 2009 in accordance with their original terms approximated $ 2.2 million , $ 2.9 million , and $ 2.8 million , respectively . interest income on impaired loans of $ 238 thousand , $ 619 thousand , and $ 976 thousand was recognized based on payments received in 2011 , 2010 and 2009. average investment securities totaled $ 232.8 million , a decrease of $ 49.2 million , or 17.5 % , in 2011 compared to 2010. interest income on a tax equivalent basis for investment securities decreased $ 2.9 million primarily due to reinvestment of pay downs and maturities into more liquid lower yielding securities . average interest-bearing deposits in other banks increased $ 23.0 million as the company increased its holdings of liquid assets . interest income on interest-bearing deposits in other banks increased $ 17 thousand as the increase in volume more than offset the 4 basis point decline in yield earned . 35 average interest-bearing liabilities totaled $ 969.6 million for the year ended december 31 , 2011 , a decrease of $ 182.8 million , or 15.9 % , during 2011 compared to the same period in 2010 due to a decrease in interest-bearing deposits of $ 97.9 million , or 10.2 % , and a decrease in borrowings of $ 84.9 million , or 43.2 % . average interest-bearing demand deposits , savings deposits , time deposits over $ 100 thousand , and other time deposits decreased $ 18.4 million , $ 4.1 million , $ 44.3 million and $ 31.1 million , respectively . during 2011 , the company implemented a pricing strategy to reduce its cost of funds and to concentrate deposit growth on short-term maturities . the company repositioned maturing longer term time deposits into short-term products , whenever possible , and allowed the residual to run-off . the company used the net proceeds from the sale of investment securities and a portion of the funds provided from loan repayments to fund deposit withdrawals and the maturities of the higher cost time deposits . the cost of interest-bearing demand deposits , savings deposits , time deposits over $ 100 thousand , and other

