in determining the allowance for loan losses , management makes significant estimates and judgments , which to some extent involve assumptions about borrowers ' abilities to continue to make future principal and interest payments . these estimates and judgments involve a high degree of judgment and subjectivity and are based on facts 39 and circumstances that existed at the date in which the allowance is determined . changes in the macro and micro economic environment can have a significant impact on these estimates and judgments in the future that could result in changes to the allowance for loan losses . integral to our allowance methodology is the use of a loan grading system whereby all loans are assigned a grade based on the risk profile of each loan . loan grades are initially assigned at origination and are routinely evaluated to determine if grades need to be changed . through our internal credit review function , ongoing credit monitoring , and continuous review of past due trends , loan grades are adjusted by management either to respond to improvements in or deterioration of credit . loan grades are determined based on an evaluation of relevant information about the ability of borrowers to service their debt such as current financial information , historical payment experience , credit documentation , public information , and current economic trends , among other factors . the allowance methodology consists of two parts : an evaluation of loss for specific loans and an evaluation of loss for homogenous pools of loans , commonly referred to as the specific and general valuation allowance . certain loans exhibiting signs of potential credit weakness are evaluated individually for impairment . a loan is considered to be impaired if it is probable that we will not receive substantially all contractual principal and interest payments . the amount of impairment , or specific valuation allowance , is measured by a comparison of the present value of expected future cash flows less selling expenses to the loan 's carrying value , or in the case of collateral dependent loans a comparison to the fair value of the collateral less selling costs . to the extent the carrying value of the loan exceeds the present value of a loan 's expected cash flows less selling expenses , a specific allowance is recorded . if the carrying value is less than the present value of the impaired loan 's expected future cash flows , no specific allowance is recorded however the loan is not included in the determination of the general valuation allowance . as a substantial amount of our loan portfolio is collateralized by real estate , appraisals of the underlying value of property securing loans and discounted cash flow valuations of properties are critical in determining the amount of the allowance required for specific loans . assumptions for appraisals and discounted cash flow valuations are instrumental in determining the value of properties . overly optimistic assumptions or negative changes to assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined . the assumptions supporting such appraisals and discounted cash flow valuations are carefully reviewed by management to determine that the resulting values reasonably reflect amounts realizable on the related loans . the general valuation allowance is determined for loans not determined to be impaired . we segregate our loan portfolio into portfolio segments . these portfolio segments share common characteristics such as the type of loan , its purpose , its underlying collateral , and other risk characteristics . once segregated , these loans are further segregated by loan grade . to calculate the allowance by grade , we apply internally developed loss factors comprised of both quantitative and qualitative considerations . we estimate our loss factors by taking into consideration both quantitative and qualitative aspects that would affect our estimation of probable incurred losses . these aspects include , but are not limited to historical charge-offs ; loan delinquencies and foreclosure trends ; current economic trends and demographic data within our market area , such as unemployment rates and population trends ; current trends in real estate values ; charge-off trends of other comparable institutions ; the results of any internal loan reviews ; loan-to-value ratios ; our historically conservative credit risk policy ; the strength of our underwriting and ongoing credit monitoring function ; and other relevant factors . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision based on changes in economic and real estate market conditions . actual loan losses may be significantly more than the allowance for loan losses we have established , which could have a material negative effect on our financial results . see note 1 “ summary of significant accounting policies ” and note 5 “ loans ” to the accompanying consolidated financial statements contained in item 8 for additional discussion on the allowance for loan losses . business combinations . business combinations are accounted for using the acquisition method of accounting . as such , assets acquired , including identified intangible assets , and liabilities assumed are recorded at their fair value , which often involves estimates based on third party valuations , such as appraisals , or internal valuations based on discounted cash flow analyses or other valuation techniques , all 40 of which are inherently subjective . identified intangible assets are amortized based upon the estimated economic benefits to be received , which is also subjective . management will review identified intangible assets for impairment at least annually , or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable , in which case an impairment charge would be recorded . goodwill is subject to impairment testing on at least an annual basis . story_separator_special_tag the increases resulted from a successful money market campaign during the year ended june 30 , 2016. interest expense on now and demand deposits and regular savings and other deposits decreased by $ 71 thousand to $ 68 thousand for the year ended june 30 , 2016 from $ 139 thousand for the year ended june 30 , 2015. the decrease in interest expense on these deposits was largely attributable to the decrease in the cost on these deposits . the total average cost on these deposits decreased nine basis points to 0.08 % from 0.17 % . interest expense on certificates of deposit decreased $ 139 thousand , or 13.1 % , to $ 926 thousand for the year ended june 30 , 2016 from $ 1.1 million for the year ended june 30 , 2015. the decrease in interest expense on certificates of deposits primarily reflected a decrease of six basis points in the average cost on certificates of deposit to 0.39 % from 0.45 % . the average balance of certificates of deposits also decreased to $ 236.3 million for the year ended june 30 , 2016 from $ 238.1 million for the year ended june 30 , 2015. net interest income . net interest income increased by $ 1.6 million , or 10.8 % , to $ 16.6 million for the year ended june 30 , 2016 compared to $ 15.0 million for 2015. net interest margin for the year ended june 30 , 2016 was 3.77 % , up four basis points from 3.73 % for the year ended june 30 , 2015. this increase in net interest margin was reflective of the decrease in our average cost of funds to 0.32 % for the year ended june 30 , 2016 from 0.37 % for the year ended june 30 , 2015 and a slight increase in the average yield on interest-earning assets to 4.04 % for the year ended june 30 , 2016 from 4.03 % for the year ended june 30 , 2015. provision for loan losses . we recorded a provision for loan losses of $ 451 thousand for the year ended june 30 , 2016 compared with a provision of $ 195 thousand for the year ended june 30 , 2015. net charge-offs for the year ended june 30 , 2016 were $ 537 thousand and consisted of $ 371 thousand on acquired loans and $ 166 thousand on originated loans . net charge-offs for the year ended june 30 , 2015 were $ 42 thousand . both the general and the specific valuation allowances decreased from june 30 , 2015 to june 30 , 2016 ; however the allowance as a percentage of total loans only decreased by one basis point , from 0.32 % to 0.31 % , respectively . both the general and specific valuation allowances for the portfolio declined as a result of the decline in the average balance outstanding of portfolio loans and charge-offs on previously allocated impaired loans . at june 30 , 2016 , all impaired loans were within our acquired loan portfolio and totaled $ 5.4 million , $ 4.4 million of which were purchased credit impaired . the remaining $ 1.0 million of impaired loans were identified as having evidence of credit deterioration not existing at the acquisition date . the amount of impairment measured on these loans was $ 55 thousand . within our originated portfolio , there were no loans identified as impaired at june 30 , 2016. at june 30 , 2015 , within our acquired loan portfolio , we had a total of $ 7.9 million in impaired loans , $ 7.4 million of which were purchased credit impaired . the remaining $ 546 thousand of impaired loans were identified as having evidence of credit deterioration not 44 existing at the acquisition date . the amount of impairment measured on these loans was $ 89 thousand . within our originated portfolio , we had $ 2.1 million in impaired loans , and the impairment amount on these loans was $ 115 thousand . during 2016 we changed our policy to only identify specific impairment on loans over $ 250 thousand . all smaller , homogenous loans are evaluated on a pool basis as of june 30 , 2016. our ratio of nonperforming loans to total loans decreased to 1.3 % at june 30 , 2016 from 1.4 % at june 30 , 2015 , and our ratio of nonperforming assets to total assets decreased to 1.1 % from 1.3 % at the same dates . total nonperforming loans was $ 3.8 million at june 30 , 2016 compared to $ 4.2 million at june 30 , 2015. a total of $ 731 thousand of nonperforming loans was related to our originated portfolio and $ 3.0 million was related to our acquired loan portfolio . of the $ 3.0 million in nonperforming loans within our acquired portfolio , $ 1.6 million are loans identified as purchased credit impaired . at june 30 , 2015 , a total of $ 1.0 million of nonperforming loans was related to our originated portfolio and $ 3.2 million was related to our acquired loan portfolio . of the $ 3.2 million in nonperforming loans within our acquired portfolio , $ 2.8 million are loans identified as purchased credit impaired . we used the same methodology in assessing the allowances for both periods ended . our allowance at june 30 , 2016 reflects both a general valuation component of $ 738 thousand and a specific component of $ 184 thousand for loans determined to be impaired based upon an analysis of certain individual loans determined to be impaired . in comparison , our allowance at june 30 , 2015 consisted of a general valuation component of $ 788 thousand and a specific component of $ 220 thousand . overall , our allowance for loan losses to the total gross carrying value of loans remained

liquidity and capital resources our primary sources of funds are deposits and the proceeds from principal and interest payments on loans and investment securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally manage the pricing of our deposits to be competitive within our market and to increase core deposit relationships . our cash flows are derived from operating activities , investing activities and financing activities . net cash flows provided by operating activities were $ 8.1 million for the year ended june 30 , 2016 and $ 5.7 million for the year ended june 30 , 2015. net cash flows provided by operating activities consisted primarily of our net income . net cash flows used in investing activities were ( $ 8.9 ) million for the year ended june 30 , 2016 and consisted primarily of purchases of investment securities , offset by proceeds from maturities and paydowns on investment securities , net loan repayments , and an investment in bank owned life insurance . net cash flows provided by investing activities for the year ended june 30 , 2015 were $ 37.0 million , which consisted of the net cash received of $ 24.1 million from the acquisition of stephens federal and purchases of investment securities , offset by proceeds from maturities and paydowns on investment securities , and net loan repayments . net cash flows provided by financing activities were $ 2.3 million for the year ended june 30 , 2016 and primarily consisted of increases in deposits offset by the payment of dividends and share repurchases of our common stock . net cash flows used in financing activities were ( $ 28.4 ) million for the year ended june 30 , 2015. net cash flows used in financing activities consisted primarily of the payment of the net deposit outflow of ( $ 26.1 ) million for the year ended june 30 , 2015 and the payments of dividends and share repurchases of our common stock . our most liquid assets are cash and short-term investments .


 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 our primary sources of funds are deposits and the proceeds from principal and interest payments on loans and investment securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally manage the pricing of our deposits to be competitive within our market and to increase core deposit relationships . our cash flows are derived from operating activities , investing activities and financing activities . net cash flows provided by operating activities were $ 8.1 million for the year ended june 30 , 2016 and $ 5.7 million for the year ended june 30 , 2015. net cash flows provided by operating activities consisted primarily of our net income . net cash flows used in investing activities were ( $ 8.9 ) million for the year ended june 30 , 2016 and consisted primarily of purchases of investment securities , offset by proceeds from maturities and paydowns on investment securities , net loan repayments , and an investment in bank owned life insurance . net cash flows provided by investing activities for the year ended june 30 , 2015 were $ 37.0 million , which consisted of the net cash received of $ 24.1 million from the acquisition of stephens federal and purchases of investment securities , offset by proceeds from maturities and paydowns on investment securities , and net loan repayments . net cash flows provided by financing activities were $ 2.3 million for the year ended june 30 , 2016 and primarily consisted of increases in deposits offset by the payment of dividends and share repurchases of our common stock . net cash flows used in financing activities were ( $ 28.4 ) million for the year ended june 30 , 2015. net cash flows used in financing activities consisted primarily of the payment of the net deposit outflow of ( $ 26.1 ) million for the year ended june 30 , 2015 and the payments of dividends and share repurchases of our common stock . our most liquid assets are cash and short-term investments .
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 Suspicious Activity Report : in determining the allowance for loan losses , management makes significant estimates and judgments , which to some extent involve assumptions about borrowers ' abilities to continue to make future principal and interest payments . these estimates and judgments involve a high degree of judgment and subjectivity and are based on facts 39 and circumstances that existed at the date in which the allowance is determined . changes in the macro and micro economic environment can have a significant impact on these estimates and judgments in the future that could result in changes to the allowance for loan losses . integral to our allowance methodology is the use of a loan grading system whereby all loans are assigned a grade based on the risk profile of each loan . loan grades are initially assigned at origination and are routinely evaluated to determine if grades need to be changed . through our internal credit review function , ongoing credit monitoring , and continuous review of past due trends , loan grades are adjusted by management either to respond to improvements in or deterioration of credit . loan grades are determined based on an evaluation of relevant information about the ability of borrowers to service their debt such as current financial information , historical payment experience , credit documentation , public information , and current economic trends , among other factors . the allowance methodology consists of two parts : an evaluation of loss for specific loans and an evaluation of loss for homogenous pools of loans , commonly referred to as the specific and general valuation allowance . certain loans exhibiting signs of potential credit weakness are evaluated individually for impairment . a loan is considered to be impaired if it is probable that we will not receive substantially all contractual principal and interest payments . the amount of impairment , or specific valuation allowance , is measured by a comparison of the present value of expected future cash flows less selling expenses to the loan 's carrying value , or in the case of collateral dependent loans a comparison to the fair value of the collateral less selling costs . to the extent the carrying value of the loan exceeds the present value of a loan 's expected cash flows less selling expenses , a specific allowance is recorded . if the carrying value is less than the present value of the impaired loan 's expected future cash flows , no specific allowance is recorded however the loan is not included in the determination of the general valuation allowance . as a substantial amount of our loan portfolio is collateralized by real estate , appraisals of the underlying value of property securing loans and discounted cash flow valuations of properties are critical in determining the amount of the allowance required for specific loans . assumptions for appraisals and discounted cash flow valuations are instrumental in determining the value of properties . overly optimistic assumptions or negative changes to assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined . the assumptions supporting such appraisals and discounted cash flow valuations are carefully reviewed by management to determine that the resulting values reasonably reflect amounts realizable on the related loans . the general valuation allowance is determined for loans not determined to be impaired . we segregate our loan portfolio into portfolio segments . these portfolio segments share common characteristics such as the type of loan , its purpose , its underlying collateral , and other risk characteristics . once segregated , these loans are further segregated by loan grade . to calculate the allowance by grade , we apply internally developed loss factors comprised of both quantitative and qualitative considerations . we estimate our loss factors by taking into consideration both quantitative and qualitative aspects that would affect our estimation of probable incurred losses . these aspects include , but are not limited to historical charge-offs ; loan delinquencies and foreclosure trends ; current economic trends and demographic data within our market area , such as unemployment rates and population trends ; current trends in real estate values ; charge-off trends of other comparable institutions ; the results of any internal loan reviews ; loan-to-value ratios ; our historically conservative credit risk policy ; the strength of our underwriting and ongoing credit monitoring function ; and other relevant factors . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision based on changes in economic and real estate market conditions . actual loan losses may be significantly more than the allowance for loan losses we have established , which could have a material negative effect on our financial results . see note 1 “ summary of significant accounting policies ” and note 5 “ loans ” to the accompanying consolidated financial statements contained in item 8 for additional discussion on the allowance for loan losses . business combinations . business combinations are accounted for using the acquisition method of accounting . as such , assets acquired , including identified intangible assets , and liabilities assumed are recorded at their fair value , which often involves estimates based on third party valuations , such as appraisals , or internal valuations based on discounted cash flow analyses or other valuation techniques , all 40 of which are inherently subjective . identified intangible assets are amortized based upon the estimated economic benefits to be received , which is also subjective . management will review identified intangible assets for impairment at least annually , or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable , in which case an impairment charge would be recorded . goodwill is subject to impairment testing on at least an annual basis . story_separator_special_tag the increases resulted from a successful money market campaign during the year ended june 30 , 2016. interest expense on now and demand deposits and regular savings and other deposits decreased by $ 71 thousand to $ 68 thousand for the year ended june 30 , 2016 from $ 139 thousand for the year ended june 30 , 2015. the decrease in interest expense on these deposits was largely attributable to the decrease in the cost on these deposits . the total average cost on these deposits decreased nine basis points to 0.08 % from 0.17 % . interest expense on certificates of deposit decreased $ 139 thousand , or 13.1 % , to $ 926 thousand for the year ended june 30 , 2016 from $ 1.1 million for the year ended june 30 , 2015. the decrease in interest expense on certificates of deposits primarily reflected a decrease of six basis points in the average cost on certificates of deposit to 0.39 % from 0.45 % . the average balance of certificates of deposits also decreased to $ 236.3 million for the year ended june 30 , 2016 from $ 238.1 million for the year ended june 30 , 2015. net interest income . net interest income increased by $ 1.6 million , or 10.8 % , to $ 16.6 million for the year ended june 30 , 2016 compared to $ 15.0 million for 2015. net interest margin for the year ended june 30 , 2016 was 3.77 % , up four basis points from 3.73 % for the year ended june 30 , 2015. this increase in net interest margin was reflective of the decrease in our average cost of funds to 0.32 % for the year ended june 30 , 2016 from 0.37 % for the year ended june 30 , 2015 and a slight increase in the average yield on interest-earning assets to 4.04 % for the year ended june 30 , 2016 from 4.03 % for the year ended june 30 , 2015. provision for loan losses . we recorded a provision for loan losses of $ 451 thousand for the year ended june 30 , 2016 compared with a provision of $ 195 thousand for the year ended june 30 , 2015. net charge-offs for the year ended june 30 , 2016 were $ 537 thousand and consisted of $ 371 thousand on acquired loans and $ 166 thousand on originated loans . net charge-offs for the year ended june 30 , 2015 were $ 42 thousand . both the general and the specific valuation allowances decreased from june 30 , 2015 to june 30 , 2016 ; however the allowance as a percentage of total loans only decreased by one basis point , from 0.32 % to 0.31 % , respectively . both the general and specific valuation allowances for the portfolio declined as a result of the decline in the average balance outstanding of portfolio loans and charge-offs on previously allocated impaired loans . at june 30 , 2016 , all impaired loans were within our acquired loan portfolio and totaled $ 5.4 million , $ 4.4 million of which were purchased credit impaired . the remaining $ 1.0 million of impaired loans were identified as having evidence of credit deterioration not existing at the acquisition date . the amount of impairment measured on these loans was $ 55 thousand . within our originated portfolio , there were no loans identified as impaired at june 30 , 2016. at june 30 , 2015 , within our acquired loan portfolio , we had a total of $ 7.9 million in impaired loans , $ 7.4 million of which were purchased credit impaired . the remaining $ 546 thousand of impaired loans were identified as having evidence of credit deterioration not 44 existing at the acquisition date . the amount of impairment measured on these loans was $ 89 thousand . within our originated portfolio , we had $ 2.1 million in impaired loans , and the impairment amount on these loans was $ 115 thousand . during 2016 we changed our policy to only identify specific impairment on loans over $ 250 thousand . all smaller , homogenous loans are evaluated on a pool basis as of june 30 , 2016. our ratio of nonperforming loans to total loans decreased to 1.3 % at june 30 , 2016 from 1.4 % at june 30 , 2015 , and our ratio of nonperforming assets to total assets decreased to 1.1 % from 1.3 % at the same dates . total nonperforming loans was $ 3.8 million at june 30 , 2016 compared to $ 4.2 million at june 30 , 2015. a total of $ 731 thousand of nonperforming loans was related to our originated portfolio and $ 3.0 million was related to our acquired loan portfolio . of the $ 3.0 million in nonperforming loans within our acquired portfolio , $ 1.6 million are loans identified as purchased credit impaired . at june 30 , 2015 , a total of $ 1.0 million of nonperforming loans was related to our originated portfolio and $ 3.2 million was related to our acquired loan portfolio . of the $ 3.2 million in nonperforming loans within our acquired portfolio , $ 2.8 million are loans identified as purchased credit impaired . we used the same methodology in assessing the allowances for both periods ended . our allowance at june 30 , 2016 reflects both a general valuation component of $ 738 thousand and a specific component of $ 184 thousand for loans determined to be impaired based upon an analysis of certain individual loans determined to be impaired . in comparison , our allowance at june 30 , 2015 consisted of a general valuation component of $ 788 thousand and a specific component of $ 220 thousand . overall , our allowance for loan losses to the total gross carrying value of loans remained

