the bank opened its twenty-fourth branch office in late 2011. the branch is located within a senior housing development , harrogate , in lakewood , new jersey and maintains limited hours for residents and employees of the retirement community . the bank currently plans to open an additional branch office in jackson , new jersey in late 2012 or early 2013. core account development has benefited from bank efforts to attract business deposits in conjunction with its commercial 41 lending operations and from an expanded mix of retail core account products . additionally , marketing and incentive plans have focused on core account growth . as a result of these efforts the bank 's core deposit ratio has grown to 84.2 % at december 31 , 2011 as compared to 60.5 % at december 31 , 2006 and only 33.0 % at december 31 , 1997. core deposits are generally considered a less expensive and more stable funding source than certificates of deposit . management continues to diversify the bank 's product line in order to enhance non-interest income . the bank offers alternative investment products ( annuities , mutual funds and life insurance ) for sale through its retail branch network . the products are non-proprietary , sold through a third party vendor , and provide the bank with fee income opportunities . in early 2005 , the alternative investment program was expanded to add licensed bank employees which allows the bank to capture more of the revenue associated with the sale of investment products . the bank offers trust and asset management services and has also expanded the non-interest income received from business relationships by offering fee based products , including merchant services . as a result of these initiatives , income from fees and service charges has increased to $ 11.4 million for the year ended december 31 , 2011 as compared to $ 10.5 million for the year ended december 31 , 2006 and only $ 1.4 million for the year ended december 31 , 1997. the bank also offers reverse mortgage loans which are sold into the secondary market . the gain on sale from selling reverse mortgages is included in the net gain on sales of loans available for sale . in addition to the objectives described above , in 2011 the company determined to more actively manage its capital position to improve return on equity . in the fourth quarter of 2011 , the company announced its intention to repurchase up to 942,306 shares , or 5 % , of its outstanding common stock . through december 31 , 2011 , the company had repurchased 165,154 shares of common stock for $ 2.1 million . summary interest-earning assets , both loans and securities , are generally priced against longer-term indices , while interest-bearing liabilities , primarily deposits and borrowings , are generally priced against shorter-term indices . in 2011 , the company 's net interest margin has contracted as compared to prior year periods . due to the low interest rate environment , high loan refinance volume has caused yields on loans and mortgage-backed securities to trend downward . at the same time , the company 's asset mix has shifted as higher-yielding loans have decreased due to weak demand , prepayments and the sale of newly originated 30-year fixed-rate one-to-four family loans , while lower-yielding interest-earning deposits and securities have increased . management expects the low interest rate environment to continue beyond 2012 , resulting in further pressure on the net interest margin . in addition to the interest rate environment , the company is dependent upon national and local economic conditions . the overall economy remains weak with continued high unemployment coupled with concern surrounding the housing market . these conditions have had an adverse impact on the company 's results of operations . highlights of the company 's financial results for the year ended december 31 , 2011 were as follows : total assets increased to $ 2.302 billion at december 31 , 2011 , from $ 2.251 billion at december 31 , 2010. loans receivable , net decreased $ 97.8 million , or 5.9 % , at december 31 , 2011 , as compared to december 31 , 2010 primarily due to weak demand , prepayments resulting from the low interest rate environment and the sale of newly originated 30-year fixed-rate one-to-four family loans . investment securities available for sale increased by $ 73.4 million , or 79.8 % , to $ 165.3 million at december 31 , 2011 , from $ 91.9 million at december 31 , 2010. deposits increased by $ 42.1 million , or 2.5 % , at december 31 , 2011 , as compared to december 31 , 2010. an increase of $ 58.3 million in core deposits ( i.e . all deposits excluding time deposits ) was partly offset by a decline in time deposits , which decreased $ 16.2 million . at december 31 , 2011 , core deposits , a key focus for the company , represented 84.2 % of total deposits . for the year ended december 31 , 2011 , net income increased to $ 20.7 million , or $ 1.14 per diluted share , as compared to net income of $ 20.4 million , or $ 1.12 per diluted share for the prior year . for the year ended december 31 , 2010 , diluted earnings per share included $ 922,000 , or $ .05 per share , relating to the reduction in the state tax valuation allowance . net interest income for the year ended december 31 , 2011 increased to $ 77.3 million , as compared to $ 77.1 million in the prior year , reflecting greater average interest-earning assets partly offset by a decrease in the net interest margin to 3.59 % for the year ended december 31 , 2011 as compared to 3.69 % in the prior year . story_separator_special_tag stockholders ' equity at december 31 , 2011 increased by 7.8 % , to $ 216.8 million , as compared to $ 201.3 million at december 31 , 2010 , primarily due to net income and a reduction in accumulated other comprehensive loss partly offset by the cash dividend on common stock and by the repurchase of 165,154 shares of common stock for $ 2.1 million . 47 comparison of operating results for the years ended december 31 , 2011 and december 31 , 2010 general net income for year ended december 31 , 2011 increased to $ 20.7 million , as compared to net income of $ 20.4 million for the prior year . on a per share basis , diluted earnings per share increased 1.8 % , to $ 1.14 , for the year ended december 31 , 2011 , as compared to $ 1.12 for the prior year . for the year ended december 31 , 2010 , diluted earnings per share included $ 922,000 , or $ .05 per share , relating to the reduction in the state tax valuation allowance . interest income interest income for the year ended december 31 , 2011 was $ 95.4 million as compared to $ 101.4 million for the year ended december 31 , 2010. the yield on interest-earning assets declined to 4.43 % for the year ended december 31 , 2011 , as compared to 4.86 % for the prior year . this decline was due to a change in the mix of average interest-earning assets from higher-yielding loans receivable into lower-yielding interest-earning deposits and investment securities , as well as the continued low interest rate environment , which caused asset yields to decline . the low interest rate environment also caused high loan refinance volume which resulted in yields on loans and mortgage-backed securities to trend downward . average interest-earning assets increased by $ 66.8 million , or 3.2 % , for the year ended december 31 , 2011 , as compared to the prior year . the increase in average interest-earning assets was primarily due to an increase in average investment securities of $ 82.5 million for the year ended december 31 , 2011 as compared to the prior year and an increase in average interest-earning deposits and short-term investments of $ 23.7 million . these increases were offset by a decrease in average loans receivable , net , of $ 37.0 million . interest expense interest expense for year ended december 31 , 2011 was $ 18.1 million compared to $ 24.3 million for the year ended december 31 , 2010. the cost of interest-bearing liabilities decreased to 0.95 % for the year ended december 31 , 2011 as compared to 1.30 % for the prior year . average interest-bearing liabilities increased by $ 40.0 million for the year ended december 31 , 2011 , as compared to the prior year . the increase in average interest-bearing liabilities was primarily due to an increase in average interest-bearing deposits of $ 127.6 million , offset by a decrease in average fhlb advances of $ 87.6 million . net interest income net interest income for the year ended december 31 , 2011 was $ 77.3 million , as compared to $ 77.1 million in the prior year , reflecting a lower net interest margin partly offset by greater interest-earning assets . the net interest margin decreased to 3.59 % for the year ended december 31 , 2011 from 3.69 % in the prior year . provision for loan losses for the year ended december 31 , 2011 , the provision for loan losses was $ 7.8 million , as compared to $ 8.0 million for the prior year . non-performing loans increased $ 6.5 million , to $ 44.0 million at december 31 , 2011 from $ 37.5 million at december 31 , 2010. the increase is primarily due to the second quarter addition of a $ 6.4 million loan relationship secured by commercial and residential real estate , all business assets and a personal guarantee . an appraisal performed in may 2011 values the real estate collateral at $ 8.7 million . most of the remaining increase in non-performing loans is related to a net increase in non-performing one-to-four family loans of $ 2.6 million . loans receivable , net decreased by $ 97.8 million at december 31 , 2011 as compared to december 31 , 2010. net loan charge-offs increased to $ 9.2 million for the year ended december 31 , 2011 , as compared to $ 3.0 million for the prior year . during the fourth quarter of 2011 , the company modified its charge-off policy on problem loans secured by real estate . historically , the company established specific valuation reserves for estimated losses for problem real estate related loans when the loans were deemed uncollectible . the specific valuation reserves were based upon the estimated fair value of the underlying collateral , less costs to sell . the actual loan charge-off was not recorded until the foreclosure process was complete . under the modified policy , losses on loans secured by real estate are charged-off in the period the loans , or portion thereof , are deemed uncollectible , generally after the loan becomes 120 days delinquent . the modification to the charge-off policy resulted in additional charge-offs in the fourth quarter of 2011 of $ 5.7 million . all of these charge-offs were timely identified in previous periods in the company 's allowance for loan losses process as a specific valuation reserve and were included in the company 's loss history as part of the evaluation of the allowance for loan losses . accordingly , the additional charge-offs did not affect the company 's provision for loan losses or net income for 2011. without the additional charge-offs of $ 5.7 million recorded in the fourth quarter of 2011 , the company would have reported the following as of and for the

liquidity and capital resources the company 's primary sources of funds are deposits , principal and interest payments on loans and mortgage-backed securities , proceeds from the sales of loans , fhlb advances and other borrowings and , to a lesser extent , investment maturities . while scheduled amortization of loans is a predictable source of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the company has other sources of liquidity if a need for additional funds arises , including advances from the fhlb . at december 31 , 2011 and 2010 , the bank had no outstanding overnight borrowings from the fhlb . the bank utilizes overnight borrowings from time-to-time to fund short-term liquidity needs . fhlb advances totaled $ 266.0 million at december 31 , 2011 , an increase from $ 265.0 million at december 31 , 2010. securities sold under agreements to repurchase with retail customers decreased to $ 66.1 million at december 31 , 2011 from $ 67.9 million at december 31 , 2010. like deposit flows , this funding source is dependent upon demand from the bank 's customer base . the company 's cash needs for the year ended december 31 , 2011 were primarily satisfied by principal payments on loans and mortgage-backed securities , proceeds from the sale of mortgage loans held for sale and increased deposits . the low interest rate environment during the year accelerated prepayments of loans and mortgage-backed securities which increased the company 's cash flows . the cash was principally utilized for loan originations and the purchase of investment and mortgage-backed securities . for the year ended december 31 , 2010 , the cash needs of the company were primarily satisfied by principal payments on loans and mortgage-backed securities , proceeds from the sale of mortgage loans held for sale and increased deposits . the cash was principally utilized for loan originations , the purchase of investment and mortgage-backed securities and the repayment of borrowings . in the normal course of business , the bank routinely enters into various commitments , primarily relating to the origination and sale of loans .


 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 the company 's primary sources of funds are deposits , principal and interest payments on loans and mortgage-backed securities , proceeds from the sales of loans , fhlb advances and other borrowings and , to a lesser extent , investment maturities . while scheduled amortization of loans is a predictable source of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the company has other sources of liquidity if a need for additional funds arises , including advances from the fhlb . at december 31 , 2011 and 2010 , the bank had no outstanding overnight borrowings from the fhlb . the bank utilizes overnight borrowings from time-to-time to fund short-term liquidity needs . fhlb advances totaled $ 266.0 million at december 31 , 2011 , an increase from $ 265.0 million at december 31 , 2010. securities sold under agreements to repurchase with retail customers decreased to $ 66.1 million at december 31 , 2011 from $ 67.9 million at december 31 , 2010. like deposit flows , this funding source is dependent upon demand from the bank 's customer base . the company 's cash needs for the year ended december 31 , 2011 were primarily satisfied by principal payments on loans and mortgage-backed securities , proceeds from the sale of mortgage loans held for sale and increased deposits . the low interest rate environment during the year accelerated prepayments of loans and mortgage-backed securities which increased the company 's cash flows . the cash was principally utilized for loan originations and the purchase of investment and mortgage-backed securities . for the year ended december 31 , 2010 , the cash needs of the company were primarily satisfied by principal payments on loans and mortgage-backed securities , proceeds from the sale of mortgage loans held for sale and increased deposits . the cash was principally utilized for loan originations , the purchase of investment and mortgage-backed securities and the repayment of borrowings . in the normal course of business , the bank routinely enters into various commitments , primarily relating to the origination and sale of loans .
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 Suspicious Activity Report : the bank opened its twenty-fourth branch office in late 2011. the branch is located within a senior housing development , harrogate , in lakewood , new jersey and maintains limited hours for residents and employees of the retirement community . the bank currently plans to open an additional branch office in jackson , new jersey in late 2012 or early 2013. core account development has benefited from bank efforts to attract business deposits in conjunction with its commercial 41 lending operations and from an expanded mix of retail core account products . additionally , marketing and incentive plans have focused on core account growth . as a result of these efforts the bank 's core deposit ratio has grown to 84.2 % at december 31 , 2011 as compared to 60.5 % at december 31 , 2006 and only 33.0 % at december 31 , 1997. core deposits are generally considered a less expensive and more stable funding source than certificates of deposit . management continues to diversify the bank 's product line in order to enhance non-interest income . the bank offers alternative investment products ( annuities , mutual funds and life insurance ) for sale through its retail branch network . the products are non-proprietary , sold through a third party vendor , and provide the bank with fee income opportunities . in early 2005 , the alternative investment program was expanded to add licensed bank employees which allows the bank to capture more of the revenue associated with the sale of investment products . the bank offers trust and asset management services and has also expanded the non-interest income received from business relationships by offering fee based products , including merchant services . as a result of these initiatives , income from fees and service charges has increased to $ 11.4 million for the year ended december 31 , 2011 as compared to $ 10.5 million for the year ended december 31 , 2006 and only $ 1.4 million for the year ended december 31 , 1997. the bank also offers reverse mortgage loans which are sold into the secondary market . the gain on sale from selling reverse mortgages is included in the net gain on sales of loans available for sale . in addition to the objectives described above , in 2011 the company determined to more actively manage its capital position to improve return on equity . in the fourth quarter of 2011 , the company announced its intention to repurchase up to 942,306 shares , or 5 % , of its outstanding common stock . through december 31 , 2011 , the company had repurchased 165,154 shares of common stock for $ 2.1 million . summary interest-earning assets , both loans and securities , are generally priced against longer-term indices , while interest-bearing liabilities , primarily deposits and borrowings , are generally priced against shorter-term indices . in 2011 , the company 's net interest margin has contracted as compared to prior year periods . due to the low interest rate environment , high loan refinance volume has caused yields on loans and mortgage-backed securities to trend downward . at the same time , the company 's asset mix has shifted as higher-yielding loans have decreased due to weak demand , prepayments and the sale of newly originated 30-year fixed-rate one-to-four family loans , while lower-yielding interest-earning deposits and securities have increased . management expects the low interest rate environment to continue beyond 2012 , resulting in further pressure on the net interest margin . in addition to the interest rate environment , the company is dependent upon national and local economic conditions . the overall economy remains weak with continued high unemployment coupled with concern surrounding the housing market . these conditions have had an adverse impact on the company 's results of operations . highlights of the company 's financial results for the year ended december 31 , 2011 were as follows : total assets increased to $ 2.302 billion at december 31 , 2011 , from $ 2.251 billion at december 31 , 2010. loans receivable , net decreased $ 97.8 million , or 5.9 % , at december 31 , 2011 , as compared to december 31 , 2010 primarily due to weak demand , prepayments resulting from the low interest rate environment and the sale of newly originated 30-year fixed-rate one-to-four family loans . investment securities available for sale increased by $ 73.4 million , or 79.8 % , to $ 165.3 million at december 31 , 2011 , from $ 91.9 million at december 31 , 2010. deposits increased by $ 42.1 million , or 2.5 % , at december 31 , 2011 , as compared to december 31 , 2010. an increase of $ 58.3 million in core deposits ( i.e . all deposits excluding time deposits ) was partly offset by a decline in time deposits , which decreased $ 16.2 million . at december 31 , 2011 , core deposits , a key focus for the company , represented 84.2 % of total deposits . for the year ended december 31 , 2011 , net income increased to $ 20.7 million , or $ 1.14 per diluted share , as compared to net income of $ 20.4 million , or $ 1.12 per diluted share for the prior year . for the year ended december 31 , 2010 , diluted earnings per share included $ 922,000 , or $ .05 per share , relating to the reduction in the state tax valuation allowance . net interest income for the year ended december 31 , 2011 increased to $ 77.3 million , as compared to $ 77.1 million in the prior year , reflecting greater average interest-earning assets partly offset by a decrease in the net interest margin to 3.59 % for the year ended december 31 , 2011 as compared to 3.69 % in the prior year . story_separator_special_tag stockholders ' equity at december 31 , 2011 increased by 7.8 % , to $ 216.8 million , as compared to $ 201.3 million at december 31 , 2010 , primarily due to net income and a reduction in accumulated other comprehensive loss partly offset by the cash dividend on common stock and by the repurchase of 165,154 shares of common stock for $ 2.1 million . 47 comparison of operating results for the years ended december 31 , 2011 and december 31 , 2010 general net income for year ended december 31 , 2011 increased to $ 20.7 million , as compared to net income of $ 20.4 million for the prior year . on a per share basis , diluted earnings per share increased 1.8 % , to $ 1.14 , for the year ended december 31 , 2011 , as compared to $ 1.12 for the prior year . for the year ended december 31 , 2010 , diluted earnings per share included $ 922,000 , or $ .05 per share , relating to the reduction in the state tax valuation allowance . interest income interest income for the year ended december 31 , 2011 was $ 95.4 million as compared to $ 101.4 million for the year ended december 31 , 2010. the yield on interest-earning assets declined to 4.43 % for the year ended december 31 , 2011 , as compared to 4.86 % for the prior year . this decline was due to a change in the mix of average interest-earning assets from higher-yielding loans receivable into lower-yielding interest-earning deposits and investment securities , as well as the continued low interest rate environment , which caused asset yields to decline . the low interest rate environment also caused high loan refinance volume which resulted in yields on loans and mortgage-backed securities to trend downward . average interest-earning assets increased by $ 66.8 million , or 3.2 % , for the year ended december 31 , 2011 , as compared to the prior year . the increase in average interest-earning assets was primarily due to an increase in average investment securities of $ 82.5 million for the year ended december 31 , 2011 as compared to the prior year and an increase in average interest-earning deposits and short-term investments of $ 23.7 million . these increases were offset by a decrease in average loans receivable , net , of $ 37.0 million . interest expense interest expense for year ended december 31 , 2011 was $ 18.1 million compared to $ 24.3 million for the year ended december 31 , 2010. the cost of interest-bearing liabilities decreased to 0.95 % for the year ended december 31 , 2011 as compared to 1.30 % for the prior year . average interest-bearing liabilities increased by $ 40.0 million for the year ended december 31 , 2011 , as compared to the prior year . the increase in average interest-bearing liabilities was primarily due to an increase in average interest-bearing deposits of $ 127.6 million , offset by a decrease in average fhlb advances of $ 87.6 million . net interest income net interest income for the year ended december 31 , 2011 was $ 77.3 million , as compared to $ 77.1 million in the prior year , reflecting a lower net interest margin partly offset by greater interest-earning assets . the net interest margin decreased to 3.59 % for the year ended december 31 , 2011 from 3.69 % in the prior year . provision for loan losses for the year ended december 31 , 2011 , the provision for loan losses was $ 7.8 million , as compared to $ 8.0 million for the prior year . non-performing loans increased $ 6.5 million , to $ 44.0 million at december 31 , 2011 from $ 37.5 million at december 31 , 2010. the increase is primarily due to the second quarter addition of a $ 6.4 million loan relationship secured by commercial and residential real estate , all business assets and a personal guarantee . an appraisal performed in may 2011 values the real estate collateral at $ 8.7 million . most of the remaining increase in non-performing loans is related to a net increase in non-performing one-to-four family loans of $ 2.6 million . loans receivable , net decreased by $ 97.8 million at december 31 , 2011 as compared to december 31 , 2010. net loan charge-offs increased to $ 9.2 million for the year ended december 31 , 2011 , as compared to $ 3.0 million for the prior year . during the fourth quarter of 2011 , the company modified its charge-off policy on problem loans secured by real estate . historically , the company established specific valuation reserves for estimated losses for problem real estate related loans when the loans were deemed uncollectible . the specific valuation reserves were based upon the estimated fair value of the underlying collateral , less costs to sell . the actual loan charge-off was not recorded until the foreclosure process was complete . under the modified policy , losses on loans secured by real estate are charged-off in the period the loans , or portion thereof , are deemed uncollectible , generally after the loan becomes 120 days delinquent . the modification to the charge-off policy resulted in additional charge-offs in the fourth quarter of 2011 of $ 5.7 million . all of these charge-offs were timely identified in previous periods in the company 's allowance for loan losses process as a specific valuation reserve and were included in the company 's loss history as part of the evaluation of the allowance for loan losses . accordingly , the additional charge-offs did not affect the company 's provision for loan losses or net income for 2011. without the additional charge-offs of $ 5.7 million recorded in the fourth quarter of 2011 , the company would have reported the following as of and for the

