% . · $ 4.2 million or over 350 % increase in net income for 2016 compared to 2015. on february 1 , 2017 , we sold 2,760,000 shares of our common stock resulting in aggregate net proceeds of approximately $ 38.4 million . we used the proceeds of the offering to pay off the loan to raymond james bank , n.a . and retained the remainder . this will positively impact our liquidity and capital position in 2017 and provide funds that will allow us to grow our loans and investments . 29 critical accounting policies our accounting and financial reporting policies conform to the accounting principles generally accepted in the united states of america ( “ gaap ” ) and general practice within the banking industry . accordingly , preparation of the financial statements require management to exercise significant judgment or discretion and make significant assumptions and estimates based on the information available that have , or could have , a material impact on the carrying value of certain assets or on income . these estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented . in reviewing and understanding financial information for us , you are encouraged to read and understand the significant accounting policies used in preparing our financial statements . the accounting policies we view as critical are those relating to the allowance for credit losses , goodwill and other intangible assets , income taxes and share based compensation . allowance for credit losses the allowance for credit losses is established through a provision for credit losses charged against income . loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely . subsequent recoveries are added to the allowance . the allowance is an amount that represents the amount of probable and reasonably estimable known and inherent losses in the loan portfolio , based on evaluations of the collectability of loans . the evaluations take into consideration such factors as changes in the types and amount of loans in the loan portfolio , historical loss experience , adverse situations that may affect the borrower 's ability to repay , estimated value of any underlying collateral , estimated losses relating to specifically identified loans , and current economic conditions . this evaluation is inherently subjective as it requires material estimates including , among others , exposure at default , the amount and timing of expected future cash flows on impaired loans , value of collateral , estimated losses on our loan portfolios as well as consideration of general loss experience . based on our estimate of the level of allowance for credit losses required , we record a provision for credit losses to maintain the allowance for credit losses at an appropriate level . we can not predict with certainty the amount of loan charge-offs that we will incur . we do not currently determine a range of loss with respect to the allowance for credit losses . in addition , our regulatory agencies , as an integral part of their examination processes , periodically review our allowance for credit losses . such agencies may require that we recognize additions to the allowance for credit losses based on their judgments about information available to them at the time of their examination . to the extent that actual outcomes differ from management 's estimates , additional provisions to the allowance for credit losses may be required that would adversely impact earnings in future periods . goodwill and other intangible assets goodwill represents the excess of the purchase price over the sum of the estimated fair values of tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed . core deposit intangibles represent the estimated value of long-term deposit relationships acquired in a business combination . the core deposit intangible is amortized over the estimated useful lives of the acquired long-term deposits acquired , and the remaining amounts of the core deposit intangible are periodically reviewed for reasonableness . goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired . the goodwill impairment analysis estimates the fair value of equity using discounted cash flow analyses . the inputs and assumptions specific to each reporting unit are incorporated in the valuations , including projections of future cash flows , discount rates , and an estimated long-term growth rate . we assess the reasonableness of the estimated fair value of the reporting units by comparing implied valuation multiples with valuation multiples from guideline companies and by comparing the aggregate estimated fair value of the reporting units to our market capitalization over a reasonable period of time . significant and sustained declines in our market capitalization could be an indication of potential goodwill impairment . the estimated fair values of the reporting units are highly sensitive to changes in these estimates and assumptions ; therefore , in some instances , changes in these assumptions could impact whether the fair value of a reporting unit is greater than its carrying value . ultimately , potential future changes in these assumptions may impact the estimated fair value of a reporting unit and cause the fair value of the reporting unit to be below its carrying value . we have determined that there was not an impairment of the carrying value of either the goodwill or core deposit intangible for 2016 . 30 income taxes we account for income taxes under the asset/liability method . we recognize deferred tax assets and liabilities for the future consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases , as well as operating loss and tax credit carry-forwards . story_separator_special_tag general net income available to common shareholders increased $ 4.1 million , to $ 5.1 million for the year ended december 31 , 2016 compared to $ 1.0 million for the year ended december 31 , 2015. the increase in net income available to common shareholders was driven by increases of $ 5.3 million in interest income and $ 2.9 million in noninterest income , partially offset by increases of $ 1.5 million in interest expense , $ 201 thousand in the provision for credit losses and $ 432 thousand in noninterest expense . much of this revenue growth and the increased expenses are attributable to balance sheet growth resulting from our continued strategic and organic growth initiatives . for 2016 , the dividends paid on preferred stock totaled $ 166 thousand compared to $ 126 thousand for 2015. with the redemption our series aa preferred stock , previously discussed , these dividends paid will not continue in 2017 . 37 interest income interest income increased $ 5.4 million , or 16.2 % , to $ 38.7 million for the year ended december 31 , 2016 compared to $ 33.3 million during the year ended december 31 , 2015. the increase was almost entirely due to a $ 5.0 million , or 15.3 % , increase in interest and fees on loans and leases ( including loans held for sale ) . the increase in interest and fees on loans and leases was a result of an increase of $ 158.2 million in average loans outstanding for 2016 versus 2015 , largely attributable to the loans we acquired in the patapsco bancorp acquisition , partially offset by a decrease in the average yield on such loans . the average yield on loans and leases decreased to 4.64 % from 4.97 % year over year and the average yield on loans held for sale decreased to 3.40 % from 3.58 % , reflective of competitive conditions with respect to loan pricing that required us to lower our interest rates on loans . commercial real estate loans reflected the largest decline in yield and was impacted by our large growth in this category with much of the growth recorded at reduced interest rates given the highly competitive pricing in our marketplace . in addition , interest income earned on investment securities increased $ 242 thousand as the average yield on investment securities increased to 1.32 % from 1.02 % , primarily as a result of changes in the portfolio mix . in addition , other interest income increased $ 122 thousand to $ 185 thousand during the year ended december 31 , 2016 compared to $ 63 thousand during the prior year . this increase was a result of increases in both the average balance and average yield on other earning assets , which increased $ 12.6 million and 24 basis points , respectively , year over year . the average balance increase was a result of the bank 's $ 19.5 million investment in interest bearing certificates of deposit at other financial institutions . interest expense interest expense increased $ 1.5 million , or 48.5 % , to $ 4.6 million during the year ended december 31 , 2016 from $ 3.1 million during the prior year . interest expense on deposits increased $ 859 thousand or 32.9 % as a result of the $ 126.5 million or 26.5 % increase in average interest-bearing deposits we experienced , largely attributable to the deposits we acquired in the patapsco bancorp acquisition . overall , the average rate paid on our interest-bearing deposits remained relatively unchanged year over year . average money market balances grew 45.0 % , while the average rate on these deposits decreased slightly in 2016. interest expense on borrowings increased $ 631 thousand comparing 2016 to 2015 , as a result of increases in both the average volume of and average rate on our borrowings . there were two main reasons for these increases . the first was an increase in the average balance of and average rate on our long-term borrowings resulting from the $ 3.4 million of debt we assumed in the patapsco bancorp acquisition and increases in fhlb advances . the second was the increase in the average balance of and the average rate paid on our short-term borrowings resulting from the $ 12.6 million variable rate debt we incurred to fund the redemption of our outstanding preferred stock as discussed above . it is important to note that while our series aa preferred stock was outstanding we were paying a dividend on the stock , which was not a component of interest expense , while the additional $ 12.6 million in borrowings used to redeem the preferred stock has associated interest payments , and therefore was a component of interest expense during 2016. net interest income net interest income is our largest source of operating revenue . net interest income is affected by various factors including changes in interest rates and the composition of interest-earning assets and interest-bearing liabilities and maturities . net interest income is determined by the interest rate spread ( i.e . , the difference between the yields earned on interest-earning assets and the rates paid on interest-bearing liabilities ) and the relative amounts of interest-earning assets and interest-bearing liabilities . net interest income increased $ 3.9 million , or 12.9 % , during the year ended december 31 , 2016 compared to the year ended december 31 , 2015. the increase in net interest income was primarily due to an increase in interest income driven by our continued balance sheet growth , while controlling interest expense even with the sizable growth in deposits and borrowings . provision for credit losses we establish a provision for credit losses , which is a charge to earnings , in order to maintain the allowance for credit losses at a level we consider adequate to absorb credit losses incurred in the loan portfolio that are

liquidity and capital resources liquidity is the ability to meet current and future financial obligations . our primary sources of funds consist of deposit inflows , loan repayments , advances from the fhlb , principal repayments and the sale of securities available for sale . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . our asset/liability committee is responsible for establishing and monitoring our liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting the borrowing needs and deposit withdrawals of our customers as well as unanticipated contingencies . we believe that we have enough sources of liquidity to satisfy our short- and long-term liquidity needs as of december 31 , 2016 and december 31 , 2015. we regularly monitor and adjust our investments in liquid assets based upon our assessment of : · expected loan demand ; · expected deposit flows and borrowing maturities ; · yields available on interest-earning deposits and securities ; and · the objectives of our asset/liability management program . excess liquid assets are invested generally in interest-earning deposits and short-term securities . the most liquid of all assets are cash and cash equivalents . the level of these assets is dependent on our operating , financing , lending and investing activities during any given period . at december 31 , 2016 and 2015 , cash and cash equivalents totaled $ 39.4 million and $ 38.3 million , respectively . the increase for 2016 primarily resulted from growth in our deposits and other funding sources . we used cash and cash equivalents to provide additional funds needed to fund these assets . our cash flows are derived from operating activities , investing activities and financing activities as reported in our statements of cash flows included in our financial statements .


 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 capital resources liquidity is the ability to meet current and future financial obligations . our primary sources of funds consist of deposit inflows , loan repayments , advances from the fhlb , principal repayments and the sale of securities available for sale . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . our asset/liability committee is responsible for establishing and monitoring our liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting the borrowing needs and deposit withdrawals of our customers as well as unanticipated contingencies . we believe that we have enough sources of liquidity to satisfy our short- and long-term liquidity needs as of december 31 , 2016 and december 31 , 2015. we regularly monitor and adjust our investments in liquid assets based upon our assessment of : · expected loan demand ; · expected deposit flows and borrowing maturities ; · yields available on interest-earning deposits and securities ; and · the objectives of our asset/liability management program . excess liquid assets are invested generally in interest-earning deposits and short-term securities . the most liquid of all assets are cash and cash equivalents . the level of these assets is dependent on our operating , financing , lending and investing activities during any given period . at december 31 , 2016 and 2015 , cash and cash equivalents totaled $ 39.4 million and $ 38.3 million , respectively . the increase for 2016 primarily resulted from growth in our deposits and other funding sources . we used cash and cash equivalents to provide additional funds needed to fund these assets . our cash flows are derived from operating activities , investing activities and financing activities as reported in our statements of cash flows included in our financial statements .
```    
 Suspicious Activity Report : % . · $ 4.2 million or over 350 % increase in net income for 2016 compared to 2015. on february 1 , 2017 , we sold 2,760,000 shares of our common stock resulting in aggregate net proceeds of approximately $ 38.4 million . we used the proceeds of the offering to pay off the loan to raymond james bank , n.a . and retained the remainder . this will positively impact our liquidity and capital position in 2017 and provide funds that will allow us to grow our loans and investments . 29 critical accounting policies our accounting and financial reporting policies conform to the accounting principles generally accepted in the united states of america ( “ gaap ” ) and general practice within the banking industry . accordingly , preparation of the financial statements require management to exercise significant judgment or discretion and make significant assumptions and estimates based on the information available that have , or could have , a material impact on the carrying value of certain assets or on income . these estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented . in reviewing and understanding financial information for us , you are encouraged to read and understand the significant accounting policies used in preparing our financial statements . the accounting policies we view as critical are those relating to the allowance for credit losses , goodwill and other intangible assets , income taxes and share based compensation . allowance for credit losses the allowance for credit losses is established through a provision for credit losses charged against income . loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely . subsequent recoveries are added to the allowance . the allowance is an amount that represents the amount of probable and reasonably estimable known and inherent losses in the loan portfolio , based on evaluations of the collectability of loans . the evaluations take into consideration such factors as changes in the types and amount of loans in the loan portfolio , historical loss experience , adverse situations that may affect the borrower 's ability to repay , estimated value of any underlying collateral , estimated losses relating to specifically identified loans , and current economic conditions . this evaluation is inherently subjective as it requires material estimates including , among others , exposure at default , the amount and timing of expected future cash flows on impaired loans , value of collateral , estimated losses on our loan portfolios as well as consideration of general loss experience . based on our estimate of the level of allowance for credit losses required , we record a provision for credit losses to maintain the allowance for credit losses at an appropriate level . we can not predict with certainty the amount of loan charge-offs that we will incur . we do not currently determine a range of loss with respect to the allowance for credit losses . in addition , our regulatory agencies , as an integral part of their examination processes , periodically review our allowance for credit losses . such agencies may require that we recognize additions to the allowance for credit losses based on their judgments about information available to them at the time of their examination . to the extent that actual outcomes differ from management 's estimates , additional provisions to the allowance for credit losses may be required that would adversely impact earnings in future periods . goodwill and other intangible assets goodwill represents the excess of the purchase price over the sum of the estimated fair values of tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed . core deposit intangibles represent the estimated value of long-term deposit relationships acquired in a business combination . the core deposit intangible is amortized over the estimated useful lives of the acquired long-term deposits acquired , and the remaining amounts of the core deposit intangible are periodically reviewed for reasonableness . goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired . the goodwill impairment analysis estimates the fair value of equity using discounted cash flow analyses . the inputs and assumptions specific to each reporting unit are incorporated in the valuations , including projections of future cash flows , discount rates , and an estimated long-term growth rate . we assess the reasonableness of the estimated fair value of the reporting units by comparing implied valuation multiples with valuation multiples from guideline companies and by comparing the aggregate estimated fair value of the reporting units to our market capitalization over a reasonable period of time . significant and sustained declines in our market capitalization could be an indication of potential goodwill impairment . the estimated fair values of the reporting units are highly sensitive to changes in these estimates and assumptions ; therefore , in some instances , changes in these assumptions could impact whether the fair value of a reporting unit is greater than its carrying value . ultimately , potential future changes in these assumptions may impact the estimated fair value of a reporting unit and cause the fair value of the reporting unit to be below its carrying value . we have determined that there was not an impairment of the carrying value of either the goodwill or core deposit intangible for 2016 . 30 income taxes we account for income taxes under the asset/liability method . we recognize deferred tax assets and liabilities for the future consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases , as well as operating loss and tax credit carry-forwards . story_separator_special_tag general net income available to common shareholders increased $ 4.1 million , to $ 5.1 million for the year ended december 31 , 2016 compared to $ 1.0 million for the year ended december 31 , 2015. the increase in net income available to common shareholders was driven by increases of $ 5.3 million in interest income and $ 2.9 million in noninterest income , partially offset by increases of $ 1.5 million in interest expense , $ 201 thousand in the provision for credit losses and $ 432 thousand in noninterest expense . much of this revenue growth and the increased expenses are attributable to balance sheet growth resulting from our continued strategic and organic growth initiatives . for 2016 , the dividends paid on preferred stock totaled $ 166 thousand compared to $ 126 thousand for 2015. with the redemption our series aa preferred stock , previously discussed , these dividends paid will not continue in 2017 . 37 interest income interest income increased $ 5.4 million , or 16.2 % , to $ 38.7 million for the year ended december 31 , 2016 compared to $ 33.3 million during the year ended december 31 , 2015. the increase was almost entirely due to a $ 5.0 million , or 15.3 % , increase in interest and fees on loans and leases ( including loans held for sale ) . the increase in interest and fees on loans and leases was a result of an increase of $ 158.2 million in average loans outstanding for 2016 versus 2015 , largely attributable to the loans we acquired in the patapsco bancorp acquisition , partially offset by a decrease in the average yield on such loans . the average yield on loans and leases decreased to 4.64 % from 4.97 % year over year and the average yield on loans held for sale decreased to 3.40 % from 3.58 % , reflective of competitive conditions with respect to loan pricing that required us to lower our interest rates on loans . commercial real estate loans reflected the largest decline in yield and was impacted by our large growth in this category with much of the growth recorded at reduced interest rates given the highly competitive pricing in our marketplace . in addition , interest income earned on investment securities increased $ 242 thousand as the average yield on investment securities increased to 1.32 % from 1.02 % , primarily as a result of changes in the portfolio mix . in addition , other interest income increased $ 122 thousand to $ 185 thousand during the year ended december 31 , 2016 compared to $ 63 thousand during the prior year . this increase was a result of increases in both the average balance and average yield on other earning assets , which increased $ 12.6 million and 24 basis points , respectively , year over year . the average balance increase was a result of the bank 's $ 19.5 million investment in interest bearing certificates of deposit at other financial institutions . interest expense interest expense increased $ 1.5 million , or 48.5 % , to $ 4.6 million during the year ended december 31 , 2016 from $ 3.1 million during the prior year . interest expense on deposits increased $ 859 thousand or 32.9 % as a result of the $ 126.5 million or 26.5 % increase in average interest-bearing deposits we experienced , largely attributable to the deposits we acquired in the patapsco bancorp acquisition . overall , the average rate paid on our interest-bearing deposits remained relatively unchanged year over year . average money market balances grew 45.0 % , while the average rate on these deposits decreased slightly in 2016. interest expense on borrowings increased $ 631 thousand comparing 2016 to 2015 , as a result of increases in both the average volume of and average rate on our borrowings . there were two main reasons for these increases . the first was an increase in the average balance of and average rate on our long-term borrowings resulting from the $ 3.4 million of debt we assumed in the patapsco bancorp acquisition and increases in fhlb advances . the second was the increase in the average balance of and the average rate paid on our short-term borrowings resulting from the $ 12.6 million variable rate debt we incurred to fund the redemption of our outstanding preferred stock as discussed above . it is important to note that while our series aa preferred stock was outstanding we were paying a dividend on the stock , which was not a component of interest expense , while the additional $ 12.6 million in borrowings used to redeem the preferred stock has associated interest payments , and therefore was a component of interest expense during 2016. net interest income net interest income is our largest source of operating revenue . net interest income is affected by various factors including changes in interest rates and the composition of interest-earning assets and interest-bearing liabilities and maturities . net interest income is determined by the interest rate spread ( i.e . , the difference between the yields earned on interest-earning assets and the rates paid on interest-bearing liabilities ) and the relative amounts of interest-earning assets and interest-bearing liabilities . net interest income increased $ 3.9 million , or 12.9 % , during the year ended december 31 , 2016 compared to the year ended december 31 , 2015. the increase in net interest income was primarily due to an increase in interest income driven by our continued balance sheet growth , while controlling interest expense even with the sizable growth in deposits and borrowings . provision for credit losses we establish a provision for credit losses , which is a charge to earnings , in order to maintain the allowance for credit losses at a level we consider adequate to absorb credit losses incurred in the loan portfolio that are

