the increase in total assets was partially offset by decreases in loans , which decreased to $ 249.8 million at june 30 , 2012 from $ 264.9 million at june 30 , 2011 , federal funds sold and overnight deposits , which decreased to $ 32.6 million at june 30 , 2012 from $ 49.4 million at june 30 , 2011 , and real estate owned , which decreased to $ 854 thousand at june 30 , 2012 from $ 2.3 million at june 30 , 2011 , reflecting a decrease in foreclosures of real estate collateralizing one- to four-family residential mortgage loans and sales of existing real estate owned . additionally , there were modest decreases in securities held-to-maturity to $ 8.7 million at june 30 , 2012 from $ 9.0 million at june 30 , 2011 and prepaid fdic insurance premiums to $ 345 thousand from $ 488 thousand at the same periods , respectively . 45 deposits increased modestly by $ 899 thousand , or 0.3 % , to $ 293.4 million at june 30 , 2012 from $ 292.5 million at june 30 , 2011. the increase in deposits reflected increases in now and demand deposits , money market deposits , and regular savings and other deposits of $ 4.7 million , or 7.4 % . the increase in transaction and savings accounts was offset partially by a decrease in certificates of deposit of $ 3.8 million , or 1.6 % . the declining interest rate environment has slowed overall deposit growth , particularly in certificates of deposit , which historically have yielded higher rates . we generally do not accept brokered deposits and no brokered deposits were accepted during the 12 months ended june 30 , 2012. we had no advances from the federal home loan bank of atlanta as of june 30 , 2012 and 2011. we have credit available under a loan agreement with the federal home loan bank of atlanta in the amount of 11 % of total assets , or approximately $ 41.5 million at june 30 , 2012. total equity equaled $ 83.0 million at june 30 , 2012 , compared to $ 80.2 million at june 30 , 2011. the increase resulted from net income of $ 4.0 million , net of dividends of $ 1.8 million , an increase in accumulated other comprehensive income of $ 463 thousand , and a decrease in unearned esop shares of $ 187 thousand , offset partially by a decrease in additional paid in capital of $ 55 thousand . during 2012 , we issued 87 thousand shares of restricted stock for our equity incentive plan . additionally , during the fourth quarter of 2012 , we repurchased 11 thousand shares of our outstanding common stock for $ 141 thousand . comparison of operating results for the years ended june 30 , 2012 and june 30 , 2011 general . net income increased to $ 4.0 million for the year ended june 30 , 2012 from $ 2.3 million for the year ended june 30 , 2011 , an increase of $ 1.7 million , or 74.5 % , from june 30 , 2011. the increase was primarily attributed to a decrease in interest expense of $ 1.7 million for the year ended june 30 , 2012. the decrease in interest expense resulted in an increase in net interest income of $ 1.8 million , or 17.2 % . additionally , an increase in noninterest income of $ 307 thousand , or 313.3 % , and a decrease in noninterest expense of $ 976 thousand , or 14.8 % also contributed to the overall increase in net income . the increase in noninterest income was primarily due to gains on sales of real estate owned and gains on sales of available-for-sale securities of $ 131 thousand and $ 185 thousand , respectfully , for the year ended june 30 , 2012 as compared to $ 7 thousand for the year ended june 30 , 2011 , and the decrease in noninterest expense was primarily due to a decrease in charitable contribution expense of $ 1.7 million from the year ended june 30 , 2011. in 2011 , we incurred $ 1.7 million in charitable contribution expense related to the cash and common stock contributed to a charitable foundation as part of our mutual to stock conversion . interest income . interest income increased $ 27 thousand , or 0.18 % , to $ 15.3 million for the year ended june 30 , 2012 from $ 15.2 million for the year ended june 30 , 2011. the modest increase was due to a slight increase in the yield on interest-earning assets to 4.4 % for the year ended june 30 , 2012 from 4.35 % for the year ended june 30 , 2011 , which offset the decrease in the average balances of interest-earning assets to $ 349.5 million for the year ended june 30 , 2012 from $ 350.5 million for the year ended june 30 , 2011. the decline in the average balances of interest earning assets is primarily a reflection of the decline in average loans due to the decline in demand in our market area . interest income on loans decreased $ 422 thousand , or 2.9 % , for the year ended june 30 , 2012 from $ 14.7 million for the year ended june 30 , 2011 , reflecting shrinking loan demand . story_separator_special_tag noninterest income increased $ 307 thousand for the year ended june 30 , 2012 from $ 98 thousand for the year ended june 30 , 2011. the increase in noninterest income was attributable to an increase in other noninterest income of $ 134 thousand , which was entirely attributable to an increase in gains on sales of real estate owned of $ 124 thousand to $ 131 thousand for the year ended june 30 , 2012 from $ 7 thousand for the year ended june 30 , 2011. additionally , the increase in noninterest income was attributable to gains of sales of available-for-sale securities of $ 185 thousand for the year ended june 30 , 2012 compared to no gains for the year ended june 30 , 2011. noninterest expense . noninterest expense decreased $ 976 thousand , or 14.8 % , to $ 5.6 million for the year ended june 30 , 2012 from $ 6.6 million for the year ended june 30 , 2011. the decrease was primarily attributed to a decrease in charitable contributions expense to $ 2 thousand for the year ended june 30 , 2012 from $ 1.7 million for the year ended june 30 , 2011 , which was related to our contribution of $ 1.7 million of cash and common stock issued to a charitable foundation formed in connection with our conversion in 2011. the decrease in charitable contribution expense was offset by increases in wages and salaries of $ 328 thousand , or 12.8 % to $ 2.9 million for the year ended june 30 , 2012 from $ 2.6 million for the year ended june 30 , 2011 due to our esop and grants under our equity incentive plan . compensation expense for our esop plan was $ 217 thousand for the year ended june 30 , 2012 compared to $ 60 thousand for the year ended june 30 , 2011. compensation expense related to our equity incentive plan was $ 57 thousand for the year ended june 30 , 2012. income tax expense . the provision for income taxes was $ 2.6 million for year ended june 30 , 2012 compared to $ 1.4 million at june 30 , 2011. our effective tax rates for the years ended june 30 , 2012 and 2011 were 39.1 % and 37.3 % , respectively . the increase in effective tax rates resulted from changes in the impact of permanent differences relative to pre-tax net income in each year . analysis of net interest income net interest income represents the difference between the income we earn on interest-earning assets and the interest expense we pay on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them . the following tables set forth average balance sheets , average yields and costs , and certain other information at the dates and for the periods indicated . all average balances are daily average balances . non-accrual loans were included in the computation of average balances , but have been reflected in the 48 tables as loans carrying a zero yield . the yields set forth below include the effect of deferred fees , discounts and premiums that are amortized or accreted to interest income . replace_table_token_23_th rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities . information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to ( i ) changes attributable to changes in volume ( i.e . , changes in average balances multiplied by the prior-period average rate ) and ( ii ) changes attributable to rate ( i.e . , changes in average rate multiplied by prior-period average balances ) . for purposes of this table , changes attributable to both rate and 49 volume , which can not be segregated , have been allocated proportionately to the change due to volume and the change due to rate . replace_table_token_24_th replace_table_token_25_th management of market risk our most significant form of market risk is interest rate risk because , as a financial institution , the majority of our assets and liabilities are sensitive to changes in interest rates . therefore , a principal part of our operations is to manage interest rate risk and limit the exposure of our net interest income to changes in market interest rates . our board of directors is responsible for the review and oversight of our asset/liability strategies . the asset/liability committee of our board of directors meets monthly and is charged with developing an asset/liability management plan . our board of directors has established an asset/liability management committee , consisting of senior management . senior management meets daily to review pricing and liquidity needs and to assess our interest rate risk . this committee is responsible for evaluating the interest rate risk inherent in our assets and liabilities , for determining the level of risk that is appropriate , given our business strategy , operating environment , capital , liquidity and performance objectives , and for managing this risk consistent with the guidelines approved by our board of directors . the techniques we are currently using to manage interest rate risk include : using pricing strategies in an effort to balance the proportions of 30-year and 15-year fixed rate loans in our portfolio ; maintaining a modest portfolio of adjustable-rate one- to four-family residential loans ; funding a portion of our operations with deposits with terms greater than one year ; 50 focusing our business operations on local retail customers who value our community orientation and personal service and who may be somewhat less sensitive to interest rate changes than wholesale deposit customers ; and maintaining a strong capital position , which provides for a favorable level of interest-earning assets relative to interest-bearing liabilities . depending on

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 $ 5.4 million for the year ended june 30 , 2012 and $ 4.1 million for the year ended june 30 , 2011. net cash flows provided by operating activities consisted primarily of our net income . net cash flows used in investing activities were $ 17.3 million for the year ended june 30 , 2012 and $ 29.9 million for the year ended june 30 , 2011. net cash flows used in investing activities consisted primarily of purchases of investment securities , offset by proceeds from maturities and paydowns on investment securities , and net loan repayments . net cash flows used in financing activities were $ 1.3 million for the year ended june 30 , 2012. net cash flows provided by financing activities were $ 36.9 million for the year ended june 30 , 2011. net cash flows used in financing activities consisted primarily of the payment of dividends . our most liquid assets are cash and short-term investments . the levels of these assets are dependent on our operating , financing , lending , and investing activities during any given period . at june 30 , 2012 and 2011 , cash and short-term investments totaled $ 47.6 million and $ 60.8 million , respectively .


 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 $ 5.4 million for the year ended june 30 , 2012 and $ 4.1 million for the year ended june 30 , 2011. net cash flows provided by operating activities consisted primarily of our net income . net cash flows used in investing activities were $ 17.3 million for the year ended june 30 , 2012 and $ 29.9 million for the year ended june 30 , 2011. net cash flows used in investing activities consisted primarily of purchases of investment securities , offset by proceeds from maturities and paydowns on investment securities , and net loan repayments . net cash flows used in financing activities were $ 1.3 million for the year ended june 30 , 2012. net cash flows provided by financing activities were $ 36.9 million for the year ended june 30 , 2011. net cash flows used in financing activities consisted primarily of the payment of dividends . our most liquid assets are cash and short-term investments . the levels of these assets are dependent on our operating , financing , lending , and investing activities during any given period . at june 30 , 2012 and 2011 , cash and short-term investments totaled $ 47.6 million and $ 60.8 million , respectively .
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 Suspicious Activity Report : the increase in total assets was partially offset by decreases in loans , which decreased to $ 249.8 million at june 30 , 2012 from $ 264.9 million at june 30 , 2011 , federal funds sold and overnight deposits , which decreased to $ 32.6 million at june 30 , 2012 from $ 49.4 million at june 30 , 2011 , and real estate owned , which decreased to $ 854 thousand at june 30 , 2012 from $ 2.3 million at june 30 , 2011 , reflecting a decrease in foreclosures of real estate collateralizing one- to four-family residential mortgage loans and sales of existing real estate owned . additionally , there were modest decreases in securities held-to-maturity to $ 8.7 million at june 30 , 2012 from $ 9.0 million at june 30 , 2011 and prepaid fdic insurance premiums to $ 345 thousand from $ 488 thousand at the same periods , respectively . 45 deposits increased modestly by $ 899 thousand , or 0.3 % , to $ 293.4 million at june 30 , 2012 from $ 292.5 million at june 30 , 2011. the increase in deposits reflected increases in now and demand deposits , money market deposits , and regular savings and other deposits of $ 4.7 million , or 7.4 % . the increase in transaction and savings accounts was offset partially by a decrease in certificates of deposit of $ 3.8 million , or 1.6 % . the declining interest rate environment has slowed overall deposit growth , particularly in certificates of deposit , which historically have yielded higher rates . we generally do not accept brokered deposits and no brokered deposits were accepted during the 12 months ended june 30 , 2012. we had no advances from the federal home loan bank of atlanta as of june 30 , 2012 and 2011. we have credit available under a loan agreement with the federal home loan bank of atlanta in the amount of 11 % of total assets , or approximately $ 41.5 million at june 30 , 2012. total equity equaled $ 83.0 million at june 30 , 2012 , compared to $ 80.2 million at june 30 , 2011. the increase resulted from net income of $ 4.0 million , net of dividends of $ 1.8 million , an increase in accumulated other comprehensive income of $ 463 thousand , and a decrease in unearned esop shares of $ 187 thousand , offset partially by a decrease in additional paid in capital of $ 55 thousand . during 2012 , we issued 87 thousand shares of restricted stock for our equity incentive plan . additionally , during the fourth quarter of 2012 , we repurchased 11 thousand shares of our outstanding common stock for $ 141 thousand . comparison of operating results for the years ended june 30 , 2012 and june 30 , 2011 general . net income increased to $ 4.0 million for the year ended june 30 , 2012 from $ 2.3 million for the year ended june 30 , 2011 , an increase of $ 1.7 million , or 74.5 % , from june 30 , 2011. the increase was primarily attributed to a decrease in interest expense of $ 1.7 million for the year ended june 30 , 2012. the decrease in interest expense resulted in an increase in net interest income of $ 1.8 million , or 17.2 % . additionally , an increase in noninterest income of $ 307 thousand , or 313.3 % , and a decrease in noninterest expense of $ 976 thousand , or 14.8 % also contributed to the overall increase in net income . the increase in noninterest income was primarily due to gains on sales of real estate owned and gains on sales of available-for-sale securities of $ 131 thousand and $ 185 thousand , respectfully , for the year ended june 30 , 2012 as compared to $ 7 thousand for the year ended june 30 , 2011 , and the decrease in noninterest expense was primarily due to a decrease in charitable contribution expense of $ 1.7 million from the year ended june 30 , 2011. in 2011 , we incurred $ 1.7 million in charitable contribution expense related to the cash and common stock contributed to a charitable foundation as part of our mutual to stock conversion . interest income . interest income increased $ 27 thousand , or 0.18 % , to $ 15.3 million for the year ended june 30 , 2012 from $ 15.2 million for the year ended june 30 , 2011. the modest increase was due to a slight increase in the yield on interest-earning assets to 4.4 % for the year ended june 30 , 2012 from 4.35 % for the year ended june 30 , 2011 , which offset the decrease in the average balances of interest-earning assets to $ 349.5 million for the year ended june 30 , 2012 from $ 350.5 million for the year ended june 30 , 2011. the decline in the average balances of interest earning assets is primarily a reflection of the decline in average loans due to the decline in demand in our market area . interest income on loans decreased $ 422 thousand , or 2.9 % , for the year ended june 30 , 2012 from $ 14.7 million for the year ended june 30 , 2011 , reflecting shrinking loan demand . story_separator_special_tag noninterest income increased $ 307 thousand for the year ended june 30 , 2012 from $ 98 thousand for the year ended june 30 , 2011. the increase in noninterest income was attributable to an increase in other noninterest income of $ 134 thousand , which was entirely attributable to an increase in gains on sales of real estate owned of $ 124 thousand to $ 131 thousand for the year ended june 30 , 2012 from $ 7 thousand for the year ended june 30 , 2011. additionally , the increase in noninterest income was attributable to gains of sales of available-for-sale securities of $ 185 thousand for the year ended june 30 , 2012 compared to no gains for the year ended june 30 , 2011. noninterest expense . noninterest expense decreased $ 976 thousand , or 14.8 % , to $ 5.6 million for the year ended june 30 , 2012 from $ 6.6 million for the year ended june 30 , 2011. the decrease was primarily attributed to a decrease in charitable contributions expense to $ 2 thousand for the year ended june 30 , 2012 from $ 1.7 million for the year ended june 30 , 2011 , which was related to our contribution of $ 1.7 million of cash and common stock issued to a charitable foundation formed in connection with our conversion in 2011. the decrease in charitable contribution expense was offset by increases in wages and salaries of $ 328 thousand , or 12.8 % to $ 2.9 million for the year ended june 30 , 2012 from $ 2.6 million for the year ended june 30 , 2011 due to our esop and grants under our equity incentive plan . compensation expense for our esop plan was $ 217 thousand for the year ended june 30 , 2012 compared to $ 60 thousand for the year ended june 30 , 2011. compensation expense related to our equity incentive plan was $ 57 thousand for the year ended june 30 , 2012. income tax expense . the provision for income taxes was $ 2.6 million for year ended june 30 , 2012 compared to $ 1.4 million at june 30 , 2011. our effective tax rates for the years ended june 30 , 2012 and 2011 were 39.1 % and 37.3 % , respectively . the increase in effective tax rates resulted from changes in the impact of permanent differences relative to pre-tax net income in each year . analysis of net interest income net interest income represents the difference between the income we earn on interest-earning assets and the interest expense we pay on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them . the following tables set forth average balance sheets , average yields and costs , and certain other information at the dates and for the periods indicated . all average balances are daily average balances . non-accrual loans were included in the computation of average balances , but have been reflected in the 48 tables as loans carrying a zero yield . the yields set forth below include the effect of deferred fees , discounts and premiums that are amortized or accreted to interest income . replace_table_token_23_th rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities . information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to ( i ) changes attributable to changes in volume ( i.e . , changes in average balances multiplied by the prior-period average rate ) and ( ii ) changes attributable to rate ( i.e . , changes in average rate multiplied by prior-period average balances ) . for purposes of this table , changes attributable to both rate and 49 volume , which can not be segregated , have been allocated proportionately to the change due to volume and the change due to rate . replace_table_token_24_th replace_table_token_25_th management of market risk our most significant form of market risk is interest rate risk because , as a financial institution , the majority of our assets and liabilities are sensitive to changes in interest rates . therefore , a principal part of our operations is to manage interest rate risk and limit the exposure of our net interest income to changes in market interest rates . our board of directors is responsible for the review and oversight of our asset/liability strategies . the asset/liability committee of our board of directors meets monthly and is charged with developing an asset/liability management plan . our board of directors has established an asset/liability management committee , consisting of senior management . senior management meets daily to review pricing and liquidity needs and to assess our interest rate risk . this committee is responsible for evaluating the interest rate risk inherent in our assets and liabilities , for determining the level of risk that is appropriate , given our business strategy , operating environment , capital , liquidity and performance objectives , and for managing this risk consistent with the guidelines approved by our board of directors . the techniques we are currently using to manage interest rate risk include : using pricing strategies in an effort to balance the proportions of 30-year and 15-year fixed rate loans in our portfolio ; maintaining a modest portfolio of adjustable-rate one- to four-family residential loans ; funding a portion of our operations with deposits with terms greater than one year ; 50 focusing our business operations on local retail customers who value our community orientation and personal service and who may be somewhat less sensitive to interest rate changes than wholesale deposit customers ; and maintaining a strong capital position , which provides for a favorable level of interest-earning assets relative to interest-bearing liabilities . depending on

