total noninterest expense increased $ 19.5 billion or 4.6 percent comparing 2017 and 2016. the return on average assets for 2017 was 0.97 percent compared to 1.04 percent in 2016. the united states economy continued to improve in 2017. this could affect future interest rates which may adversely impact bank earnings as net interest margins compress from the inability of management to keep funding costs low . continuous expense control , sound balance sheet management and lower loan loss provisions could offset some of the negative impact of the reduction in net interest margins . review of financial position : total assets , loans and deposits were $ 2.2 billion , $ 1.7 billion and $ 1.7 billion , respectively , at december 31 , 2017. total assets , loans and deposits grew 8.5 percent , 10.4 percent and 8.2 percent , respectively , compared to 2016 year-end balances . the loan portfolio consisted of $ 1.3 billion of business loans , including commercial and commercial real estate loans , and $ 430.7 million in retail loans , including residential mortgage and consumer loans at december 31 , 2017. total investment securities were $ 281.8 million at december 31 , 2017 , including $ 272.5 million of investment securities classified as available-for sale and $ 9.3 million classified as held-to-maturity . total deposits consisted of $ 380.7 million in noninterest-bearing deposits and $ 1.3 billion in interest-bearing deposits at december 31 , 2017. stockholders ' equity equaled $ 265.0 million , or $ 35.82 per share , at december 31 , 2017 , and $ 256.6 million , or $ 34.71 per share , at december 31 , 2016. our equity to asset ratio was 12.21 percent and 12.83 percent at those respective period ends . dividends declared for the 2017 amounted to $ 1.26 per share representing 50.4 percent of net income . nonperforming assets equaled $ 11.6 million or 0.68 percent of loans , net and foreclosed assets at december 31 , 2017 , down from $ 14.2 million or 0.93 percent at december 31 , 2016. the allowance for loan losses equaled $ 19.0 million or 1.12 percent of loans , net , at december 31 , 2017 , compared to $ 16.0 million or 1.04 percent at year-end 2016. loans charged-off , net of recoveries equaled $ 1.8 million or 0.11 percent of average loans in 2017 , compared to $ 2.0 million or 0.14 percent of average loans in 2016. investment portfolio : primarily , our investment portfolio provides a source of liquidity needed to meet expected loan demand and generates a reasonable return in order to increase our profitability . additionally , we utilize the investment portfolio to meet pledging requirements and reduce income taxes . at december 31 , 2017 , our portfolio consisted primarily of short-term u.s. treasury and government agency securities , which provide a source of liquidity and intermediate-term , tax-exempt state and municipal obligations , which mitigate our tax burden . investment securities increased $ 11.9 million , to $ 281.8 million at december 31 , 2017 , from $ 269.9 million at december 31 , 2016. at december 31 , 2017 , the investment portfolio consisted of $ 272.5 million of investment securities classified as available-for-sale and $ 9.3 million classified as held-to-maturity . strong loan demand during 2017 resulted in using a portion of the investment cash flow to fund loans . excess cash flow from investment repayments was directed back into the investment portfolio primarily during the third and fourth quarters of 2017. security purchases totaled $ 73.5 million in 2017 , with purchases consisting of short-term u.s. treasury securities , intermediate- term u.s. government sponsored enterprises securities , longer term tax-exempt securities and mortgage-backed securities . investment purchases in 2016 amounted to $ 62.0 million . repayments of investment securities totaled $ 57.0 million in 2017 and $ 54.7 million in 2016. there were no sales of investment securities during 2017. proceeds from the sale of investment securities available-for-sale in 2016 totaled $ 27.4 million with net gains recognized on the sale totaling $ 623 thousand . the 2016 sales consisted of $ 17.1 million of short-term u.s. government-sponsored enterprises securities and $ 10.3 million of short-term u.s. treasury securities . we continually analyze the investment portfolio with respect to its exposure to various risk elements . -56- investment securities averaged $ 272.4 million and equaled 14.6 percent of average earning assets in 2017 , compared to $ 271.3 million and equaled 15.7 percent of average earning assets in 2016. the tax-equivalent yield on the investment portfolio decreased five basis points to 2.84 percent in 2017 from 2.89 percent in 2016. loan portfolio : loans , net increased $ 160.1 million or 10.4 percent in 2017 to $ 1.7 billion at december 31 , 2017. business loans , including commercial loans and commercial real estate loans , were $ 1.3 billion or 74.6 percent of loans , net at december 31 , 2017 , and $ 1.1 billion or 72.3 percent at year-end 2016. residential mortgages and consumer loans totaled $ 430.7 million or 25.4 percent of loans , net at year-end 2017 and $ 424.0 million or 27.7 percent at year-end 2016. loan growth remained strong throughout 2017. loans , net grew at an annual rate of 10.4 percent in 2017. the increase in loans in 2017 was primarily attributable to the continued growth fostered by our entrance into the lehigh valley market during the fourth quarter of 2014 by establishing a community banking office with a dedicated team of commercial and retail lenders . our company has expanded our presence in the greater lehigh valley with the addition of two community banking offices , complemented with additional lending teams to continue the growth . story_separator_special_tag specifically , the cost of money market and now accounts increased 16 basis points and 5 basis points comparing 2017 and 2016. these increases resulted in an increase in interest expense of $ 562. the cost of savings accounts decreased five basis points , which resulted in a decrease of $ 201 in interest expense . with regard to time deposits , the average rate paid for time deposits less than $ 100 increased three basis points while time deposits $ 100 or more increased 14 basis points , which together resulted in a $ 212 increase in interest expense . the average rate paid on short-term borrowings increased 57 basis points in 2017 when compared to 2016 , causing a $ 437 increase in interest expense . interest expense increased $ 19 from a four basis point increase in the average rate paid on long-term debt . -61- provision for loan losses : we evaluate the adequacy of the allowance for loan losses account on a quarterly basis utilizing our systematic analysis in accordance with procedural discipline . we take into consideration certain factors such as composition of the loan portfolio , volume of nonperforming loans , volumes of net charge-offs , prevailing economic conditions and other relevant factors when determining the adequacy of the allowance for loan losses account . we make monthly provisions to the allowance for loan losses account in order to maintain the allowance at an appropriate level . the provision for loan losses equaled $ 4,800 in 2017 and $ 5,000 in 2016. a lower provision for loan losses is the product of improving asset quality throughout 2017. consumer loans experienced an increase in the qualitative factors for asset quality while commercial loans experienced an increase in the qualitative factor for concentration levels . based on our most recent evaluation at december 31 , 2017 , we believe that the allowance was adequate to absorb any known or potential losses in our portfolio . noninterest income : our noninterest income increased $ 1,298 or 8.2 percent to $ 17.2 million in 2017 from $ 15.9 million in 2016. we realized a $ 2.3 million net gain on the sale of our merchant services business in 2017 while the 2016 results include net gains of $ 0.6 million on the sale of investment securities . revenue received from service charges , fees and commissions increased $ 1,228 or 20.1 percent comparing 2017 and 2016 , due in part to fees generated on interest rate swap transactions which we began entering into during the third quarter of 2017. swap transactions resulted in the recognition of net fee income of $ 749 thousand . these interest rate swaps allowed the bank to retain large commercial credit relationships . commissions and fees on fiduciary activities increased $ 81 or 4.1 percent comparing 2017 and 2016 due to an increase in executor fees . wealth management income increased $ 113 or 8.7 percent comparing 2017 to 2016 as the plan to accelerate growth continued throughout 2017. offsetting the increase were lower revenues received from merchant services of $ 1,656 due to the sale of our merchant services business in the second quarter of 2017. mortgage banking income decreased $ 101 or 11.4 percent in 2017 compared to 2016 due to the leveling off of volumes which were driven by the increase in market rates . income from investment in life insurance decreased $ 22 or 2.8 percent to $ 769 in 2017 from $ 791 in 2016. noninterest expense : noninterest expense was $ 51.3 million for the year ended december 31 , 2017 compared to $ 48.0 million for the year ended december 31 , 2016. salaries and employee benefits expense constitute the majority of our noninterest expenses accounting for 52.0 percent of the total noninterest expense . salaries and employee benefits expense increased $ 4,236 or 18.9 percent to $ 26.7 million in 2017 from $ 22.4 million in 2016. salaries and payroll taxes increased $ 3,616 or 19.4 percent , while employee benefits expense increased $ 620 or 16.4 percent . severances paid out in the first half of 2016 along with the addition of salaries and benefit costs associated with our further expansion in the lehigh valley with the opening of two new community banking offices during 2017 and a full year at our king of prussia branch office provided the majority of the increase . occupancy and equipment expense increased $ 553 or 5.9 percent to $ 10.0 million in 2017 from $ 9.4 million in 2016. specifically , building-related costs increased $ 348 or 6.6 percent while equipment-related costs increased $ 205 or 5.0 percent . the increases in occupancy and equipment-related expenses were driven by costs associated with the opening of our new community banking offices on tilghman street in west allentown , pa and emrick boulevard in bethlehem , pa. other expenses , which consist of merchant transaction expense , fdic insurance and assessments , professional fees and outside services , other taxes , stationary and supplies , advertising , amortization of intangible assets and all other expenses were $ 14.6 million in 2017 and $ 16.2 million in 2016. merchant transaction expenses decreased $ 1,185 or 40.0 percent to $ 1,808 due to the sale of our merchant business in the second quarter of 2017. all other expenses , including fdic insurance and assessments , professional fees and outside services , other taxes , stationery and supplies , advertising and amortization of intangible assets and other expenses totaled $ 12,840 in 2017 , a decrease of $ 341 or 2.6 percent , compared to $ 13,181 in 2016 . -62- income taxes : our income tax expense was $ 8.2 million in 2017 and $ 5.0 million in 2016. on december 22 , 2017 , president donald trump signed into law h.r . 1 , also known as the tax cuts and jobs act , which among other things reduced

liquidity : we employ a number of analytical techniques in assessing the adequacy of our liquidity position . one such technique is the use of ratio analysis to illustrate our reliance on noncore funds to fund our investments and loans maturing after 2017. at december 31 , 2017 , our noncore funds consisted of time deposits in denominations of $ 100 or more , repurchase agreements , short-term borrowings and long-term debt . large denomination time deposits are particularly not considered to be a strong source of liquidity since they are very interest rate sensitive and are considered to be highly volatile . at december 31 , 2017 , our net noncore funding dependence ratio , the difference between noncore funds and short-term investments to long-term assets , was 16.1 percent . our net short-term noncore funding dependence ratio , noncore funds maturing within one year , less short-term investments to long-term assets equaled 11.1 percent . comparatively , our ratios equaled 14.4 percent and 6.5 percent at the end of 2016 , which indicated an increase in our reliance on noncore funds . moreover , our basic liquidity surplus ratio , defined as liquid assets less short-term -59- potentially volatile liabilities as a percentage of total assets , declined to 3.7 percent at december 31 , 2017 , from 4.2 percent at december 31 , 2016. we believe that by supplying adequate volumes of short-term investments and implementing competitive pricing strategies on deposits , we can ensure adequate liquidity to support future growth . the consolidated statements of cash flows present the change in cash and cash equivalents from operating , investing and financing activities . cash and cash equivalents consist of cash on hand , cash items in the process of collection , noninterest-bearing and interest-bearing deposits with other banks and federal funds sold . cash and cash equivalents decreased $ 2.5 million for the year ended december 31 , 2017. for the year ended december 31 , 2016 , cash and cash equivalents increased $ 7.0 million .


 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 : we employ a number of analytical techniques in assessing the adequacy of our liquidity position . one such technique is the use of ratio analysis to illustrate our reliance on noncore funds to fund our investments and loans maturing after 2017. at december 31 , 2017 , our noncore funds consisted of time deposits in denominations of $ 100 or more , repurchase agreements , short-term borrowings and long-term debt . large denomination time deposits are particularly not considered to be a strong source of liquidity since they are very interest rate sensitive and are considered to be highly volatile . at december 31 , 2017 , our net noncore funding dependence ratio , the difference between noncore funds and short-term investments to long-term assets , was 16.1 percent . our net short-term noncore funding dependence ratio , noncore funds maturing within one year , less short-term investments to long-term assets equaled 11.1 percent . comparatively , our ratios equaled 14.4 percent and 6.5 percent at the end of 2016 , which indicated an increase in our reliance on noncore funds . moreover , our basic liquidity surplus ratio , defined as liquid assets less short-term -59- potentially volatile liabilities as a percentage of total assets , declined to 3.7 percent at december 31 , 2017 , from 4.2 percent at december 31 , 2016. we believe that by supplying adequate volumes of short-term investments and implementing competitive pricing strategies on deposits , we can ensure adequate liquidity to support future growth . the consolidated statements of cash flows present the change in cash and cash equivalents from operating , investing and financing activities . cash and cash equivalents consist of cash on hand , cash items in the process of collection , noninterest-bearing and interest-bearing deposits with other banks and federal funds sold . cash and cash equivalents decreased $ 2.5 million for the year ended december 31 , 2017. for the year ended december 31 , 2016 , cash and cash equivalents increased $ 7.0 million .
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 Suspicious Activity Report : total noninterest expense increased $ 19.5 billion or 4.6 percent comparing 2017 and 2016. the return on average assets for 2017 was 0.97 percent compared to 1.04 percent in 2016. the united states economy continued to improve in 2017. this could affect future interest rates which may adversely impact bank earnings as net interest margins compress from the inability of management to keep funding costs low . continuous expense control , sound balance sheet management and lower loan loss provisions could offset some of the negative impact of the reduction in net interest margins . review of financial position : total assets , loans and deposits were $ 2.2 billion , $ 1.7 billion and $ 1.7 billion , respectively , at december 31 , 2017. total assets , loans and deposits grew 8.5 percent , 10.4 percent and 8.2 percent , respectively , compared to 2016 year-end balances . the loan portfolio consisted of $ 1.3 billion of business loans , including commercial and commercial real estate loans , and $ 430.7 million in retail loans , including residential mortgage and consumer loans at december 31 , 2017. total investment securities were $ 281.8 million at december 31 , 2017 , including $ 272.5 million of investment securities classified as available-for sale and $ 9.3 million classified as held-to-maturity . total deposits consisted of $ 380.7 million in noninterest-bearing deposits and $ 1.3 billion in interest-bearing deposits at december 31 , 2017. stockholders ' equity equaled $ 265.0 million , or $ 35.82 per share , at december 31 , 2017 , and $ 256.6 million , or $ 34.71 per share , at december 31 , 2016. our equity to asset ratio was 12.21 percent and 12.83 percent at those respective period ends . dividends declared for the 2017 amounted to $ 1.26 per share representing 50.4 percent of net income . nonperforming assets equaled $ 11.6 million or 0.68 percent of loans , net and foreclosed assets at december 31 , 2017 , down from $ 14.2 million or 0.93 percent at december 31 , 2016. the allowance for loan losses equaled $ 19.0 million or 1.12 percent of loans , net , at december 31 , 2017 , compared to $ 16.0 million or 1.04 percent at year-end 2016. loans charged-off , net of recoveries equaled $ 1.8 million or 0.11 percent of average loans in 2017 , compared to $ 2.0 million or 0.14 percent of average loans in 2016. investment portfolio : primarily , our investment portfolio provides a source of liquidity needed to meet expected loan demand and generates a reasonable return in order to increase our profitability . additionally , we utilize the investment portfolio to meet pledging requirements and reduce income taxes . at december 31 , 2017 , our portfolio consisted primarily of short-term u.s. treasury and government agency securities , which provide a source of liquidity and intermediate-term , tax-exempt state and municipal obligations , which mitigate our tax burden . investment securities increased $ 11.9 million , to $ 281.8 million at december 31 , 2017 , from $ 269.9 million at december 31 , 2016. at december 31 , 2017 , the investment portfolio consisted of $ 272.5 million of investment securities classified as available-for-sale and $ 9.3 million classified as held-to-maturity . strong loan demand during 2017 resulted in using a portion of the investment cash flow to fund loans . excess cash flow from investment repayments was directed back into the investment portfolio primarily during the third and fourth quarters of 2017. security purchases totaled $ 73.5 million in 2017 , with purchases consisting of short-term u.s. treasury securities , intermediate- term u.s. government sponsored enterprises securities , longer term tax-exempt securities and mortgage-backed securities . investment purchases in 2016 amounted to $ 62.0 million . repayments of investment securities totaled $ 57.0 million in 2017 and $ 54.7 million in 2016. there were no sales of investment securities during 2017. proceeds from the sale of investment securities available-for-sale in 2016 totaled $ 27.4 million with net gains recognized on the sale totaling $ 623 thousand . the 2016 sales consisted of $ 17.1 million of short-term u.s. government-sponsored enterprises securities and $ 10.3 million of short-term u.s. treasury securities . we continually analyze the investment portfolio with respect to its exposure to various risk elements . -56- investment securities averaged $ 272.4 million and equaled 14.6 percent of average earning assets in 2017 , compared to $ 271.3 million and equaled 15.7 percent of average earning assets in 2016. the tax-equivalent yield on the investment portfolio decreased five basis points to 2.84 percent in 2017 from 2.89 percent in 2016. loan portfolio : loans , net increased $ 160.1 million or 10.4 percent in 2017 to $ 1.7 billion at december 31 , 2017. business loans , including commercial loans and commercial real estate loans , were $ 1.3 billion or 74.6 percent of loans , net at december 31 , 2017 , and $ 1.1 billion or 72.3 percent at year-end 2016. residential mortgages and consumer loans totaled $ 430.7 million or 25.4 percent of loans , net at year-end 2017 and $ 424.0 million or 27.7 percent at year-end 2016. loan growth remained strong throughout 2017. loans , net grew at an annual rate of 10.4 percent in 2017. the increase in loans in 2017 was primarily attributable to the continued growth fostered by our entrance into the lehigh valley market during the fourth quarter of 2014 by establishing a community banking office with a dedicated team of commercial and retail lenders . our company has expanded our presence in the greater lehigh valley with the addition of two community banking offices , complemented with additional lending teams to continue the growth . story_separator_special_tag specifically , the cost of money market and now accounts increased 16 basis points and 5 basis points comparing 2017 and 2016. these increases resulted in an increase in interest expense of $ 562. the cost of savings accounts decreased five basis points , which resulted in a decrease of $ 201 in interest expense . with regard to time deposits , the average rate paid for time deposits less than $ 100 increased three basis points while time deposits $ 100 or more increased 14 basis points , which together resulted in a $ 212 increase in interest expense . the average rate paid on short-term borrowings increased 57 basis points in 2017 when compared to 2016 , causing a $ 437 increase in interest expense . interest expense increased $ 19 from a four basis point increase in the average rate paid on long-term debt . -61- provision for loan losses : we evaluate the adequacy of the allowance for loan losses account on a quarterly basis utilizing our systematic analysis in accordance with procedural discipline . we take into consideration certain factors such as composition of the loan portfolio , volume of nonperforming loans , volumes of net charge-offs , prevailing economic conditions and other relevant factors when determining the adequacy of the allowance for loan losses account . we make monthly provisions to the allowance for loan losses account in order to maintain the allowance at an appropriate level . the provision for loan losses equaled $ 4,800 in 2017 and $ 5,000 in 2016. a lower provision for loan losses is the product of improving asset quality throughout 2017. consumer loans experienced an increase in the qualitative factors for asset quality while commercial loans experienced an increase in the qualitative factor for concentration levels . based on our most recent evaluation at december 31 , 2017 , we believe that the allowance was adequate to absorb any known or potential losses in our portfolio . noninterest income : our noninterest income increased $ 1,298 or 8.2 percent to $ 17.2 million in 2017 from $ 15.9 million in 2016. we realized a $ 2.3 million net gain on the sale of our merchant services business in 2017 while the 2016 results include net gains of $ 0.6 million on the sale of investment securities . revenue received from service charges , fees and commissions increased $ 1,228 or 20.1 percent comparing 2017 and 2016 , due in part to fees generated on interest rate swap transactions which we began entering into during the third quarter of 2017. swap transactions resulted in the recognition of net fee income of $ 749 thousand . these interest rate swaps allowed the bank to retain large commercial credit relationships . commissions and fees on fiduciary activities increased $ 81 or 4.1 percent comparing 2017 and 2016 due to an increase in executor fees . wealth management income increased $ 113 or 8.7 percent comparing 2017 to 2016 as the plan to accelerate growth continued throughout 2017. offsetting the increase were lower revenues received from merchant services of $ 1,656 due to the sale of our merchant services business in the second quarter of 2017. mortgage banking income decreased $ 101 or 11.4 percent in 2017 compared to 2016 due to the leveling off of volumes which were driven by the increase in market rates . income from investment in life insurance decreased $ 22 or 2.8 percent to $ 769 in 2017 from $ 791 in 2016. noninterest expense : noninterest expense was $ 51.3 million for the year ended december 31 , 2017 compared to $ 48.0 million for the year ended december 31 , 2016. salaries and employee benefits expense constitute the majority of our noninterest expenses accounting for 52.0 percent of the total noninterest expense . salaries and employee benefits expense increased $ 4,236 or 18.9 percent to $ 26.7 million in 2017 from $ 22.4 million in 2016. salaries and payroll taxes increased $ 3,616 or 19.4 percent , while employee benefits expense increased $ 620 or 16.4 percent . severances paid out in the first half of 2016 along with the addition of salaries and benefit costs associated with our further expansion in the lehigh valley with the opening of two new community banking offices during 2017 and a full year at our king of prussia branch office provided the majority of the increase . occupancy and equipment expense increased $ 553 or 5.9 percent to $ 10.0 million in 2017 from $ 9.4 million in 2016. specifically , building-related costs increased $ 348 or 6.6 percent while equipment-related costs increased $ 205 or 5.0 percent . the increases in occupancy and equipment-related expenses were driven by costs associated with the opening of our new community banking offices on tilghman street in west allentown , pa and emrick boulevard in bethlehem , pa. other expenses , which consist of merchant transaction expense , fdic insurance and assessments , professional fees and outside services , other taxes , stationary and supplies , advertising , amortization of intangible assets and all other expenses were $ 14.6 million in 2017 and $ 16.2 million in 2016. merchant transaction expenses decreased $ 1,185 or 40.0 percent to $ 1,808 due to the sale of our merchant business in the second quarter of 2017. all other expenses , including fdic insurance and assessments , professional fees and outside services , other taxes , stationery and supplies , advertising and amortization of intangible assets and other expenses totaled $ 12,840 in 2017 , a decrease of $ 341 or 2.6 percent , compared to $ 13,181 in 2016 . -62- income taxes : our income tax expense was $ 8.2 million in 2017 and $ 5.0 million in 2016. on december 22 , 2017 , president donald trump signed into law h.r . 1 , also known as the tax cuts and jobs act , which among other things reduced

