34 the national economy , as well as the mid-atlantic region in which the company operates , continued to exhibit a solid economic performance throughout 2019. consumer confidence remains high as a result of certain positive economic trends such as reduced lending rates , low unemployment , stable housing prices and solid performance in the financial markets . these positive trends have been tempered by economic concerns over a lack of wage growth , the political environment , trade turmoil and the impact of regional conflict . these factors act to constrain economic activity from time to time on the part of both large and small businesses . despite the mixed business environment , the company has experienced consistent growth in focused areas while maintaining strong levels of liquidity , capital and credit quality . liquidity continues to remain strong due to borrowing lines with the federal home loan bank of atlanta and the federal reserve and the size and composition of the investment portfolio . at december 31 , 2019 , the bank remained above all “ well-capitalized ” regulatory requirement levels . tangible book value per common share increased by 9 % to $ 22.37 from $ 20.45 at december 31 , 2018. the company 's credit quality remained strong as non-performing assets represented 0.50 % of total assets at december 31 , 2019 compared to 0.46 % at december 31 , 2018. the ratio of net charge-offs to average loans was 0.03 % for 2019 , compared to 0.01 % for the prior year . total assets at december 31 , 2019 increased 5 % compared to december 31 , 2018. total loans at december 31 , 2019 , were $ 6.7 billion compared to $ 6.6 billion at december 31 , 2018. during this period , the composition of the portfolio shifted as total commercial loans grew 7 % while mortgage loans declined 8 % due to the refinance activity and the strategic decision to sell the majority of new mortgage loan production . consumer loans experienced a 10 % decline related to recent mortgage refinancing activity . during this period , total funded commercial loan production was a record $ 884 million . commercial loans originated during the current year had total unfunded commitments of $ 479 million as of december 31 , 2019. customer funding sources at year end 2019 , which include deposits plus other short-term borrowings from core customers , increased 8 % compared to year end 2018. the increase in customer funding sources was driven by increases in noninterest-bearing demand and money market savings accounts . the company reduced fhlb borrowings by 39 % during the year to assist in the management of the net interest margin . during the fourth quarter of 2019 , the company issued $ 175 million in subordinated debt . the proceeds from the debt provides capital for future growth in the real estate lending portfolio , in addition to providing funds to reduce higher priced funding sources . stockholders ' equity at december 31 , 2019 increased 6 % to $ 1.13 billion as compared to $ 1.07 billion at december 31 , 2018. the growth in stockholders ' equity during 2019 was due to net income net of the dividends paid to stockholders . during 2019 the company repurchased 668,000 shares , resulting in a $ 24.3 million reduction in stockholders ' equity . net interest income increased 2 % to $ 265.3 million compared to $ 260.4 million in 2018. for the year ended december 31 , 2019 , the net interest margin was 3.51 % compared to 3.60 % for the prior year . net interest income for the year ended december 31 , 2019 included $ 1.8 million in recovered interest income on acquired credit impaired loans as compared to $ 2.4 million in 2018. excluding these recoveries , the net interest margin would have been 3.48 % for the year ended december 31 , 2019 compared to 3.58 % for the year ended december 31 , 2018. the amortization of the fair value adjustments for 2019 was estimated to be 5 basis points on an annual basis compared to a 13 basis point impact for the prior year . compared to the prior year , average interest-earning assets grew 5 % with an increase of 11 basis points in the yield while average interest-bearing liabilities grew 3 % with an increase of 32 basis points in the rate paid . non-interest income increased 17 % in 2019 compared to 2018 driven by the increase in income from mortgage banking activities during 2019 , as favorable residential lending rates during the year resulted in a significant increase in mortgage loan originations . a fter excluding merger expenses from both years , non-interest expenses for the year ended december 31 , 2019 increased 6 % compared to the prior year due to the increase in compensation costs . net income for 2019 included the effect of merger expenses totaling $ 1.3 million , which was offset by the $ 1.8 million in recovered interest income from previously acquired credit impaired loans . the prior year included $ 11.8 million in merger expenses and $ 2.4 million of the interest recoveries , which resulted in an after-tax reduction to earnings per share of approximately $ 0.19 per share for 2018. pre-tax , pre-provision income , which adjusts for the merger expenses in both years in addition to the provision for loan losses , increased 4 % from 2018 to 2019 to a record $ 158.9 million . critical accounting policies 35 the company 's consolidated financial statements are prepared in accordance with generally accepted accounting principles ( “ gaap ” ) in the united states of america and follow general practices within the banking industry . application of these principles requires management to make estimates , assumptions , and judgments that affect the amounts reported in the financial statements and accompanying notes . story_separator_special_tag this guidance is effective for a public business entity that is an sec filer for its annual or any interim goodwill impairment tests in fiscal years beginning after december 15 , 2019. the adoption of this standard is not expected to have a material impact on the company 's financial position , results of operations or cash flows . the fasb issued update no . 2016-13 , current expected credit losses ( cecl ) , in june 2016. this guidance changes the impairment model for most financial assets measured at amortized cost and certain other instruments . entities will be required to use an expected loss model , replacing the incurred loss model that is currently in use . under the new guidance , an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience , current conditions and reasonable and supportable forecasts . this will result in earlier recognition of loss allowances in most instances . credit losses related to available-for-sale debt securities ( regardless of whether the impairment is considered to be other-than-temporary ) will be measured in a manner similar to the present , except that such losses will be recorded as allowances rather than as reductions in the amortized cost of the related securities . with respect to trade and other receivables , loans , held-to-maturity debt securities , net investments in leases and off-balance-sheet credit exposures , the guidance requires that an entity estimate its lifetime expected credit loss and record an allowance resulting in the net amount expected to be collected to be reflected as the financial asset . entities will also be required to provide more disclosures , including information used to track credit quality by year of origination for most financing receivables . this guidance is effective for public business entities for the first interim or annual period beginning after december 15 , 2019. the company completed implementation of the guidance and will adopt it in the first quarter of 2020. as a part of the implementation , the company reconciled historical loan data , determined segmentation of the loan portfolio for application of the cecl calculation , determined the key assumptions , selected calculation methods , and established an internal controls framework . the company also used the services of an independent third party advisor to validate the conceptual soundness of the proposed methodology framework and of the cecl model . at the adoption date , exclusive of the reclassification of $ 2.8 million to the allowance for credit losses of amounts related to the previously acquired impaired loans , the estimated impact to retained earnings at transition date is expected to be approximately $ 2.0 million based on the expected performance of the economy at the transition date . future amounts of provision expense will depend on the size and composition of the loan portfolio , future economic conditions and borrower 's payment performance . 39 net interest income the largest source of the company 's operating revenue is net interest income , which is the difference between the interest earned on interest-earning assets and the interest paid on interest-bearing liabilities . for purposes of this discussion and analysis , the interest earned on tax-advantaged loans and tax-exempt investment securities has been adjusted to an amount comparable to interest subject to normal income taxes . the result is referred to as tax-equivalent interest income and tax-equivalent net interest income . the following discussion of net interest income should be considered in conjunction with the impact of the acquisition of washingtonfirst and a review of the information provided in the table that provides yields and rates on average balances . 2019 vs. 2018 net interest income for 2019 was $ 265.3 million compared to $ 260.4 million for 2018 , a 2 % increase . on a tax-equivalent basis , net interest income for 2019 was $ 270.1 million compared to $ 265.2 million for 2018. the net interest income growth during the current year from the prior year reflects the effects of the 11 basis point increase in the yield on interest-earning assets , which grew 5 % , which was largely offset by the 32 basis point growth in the rate paid on interest-bearing liabilities . overall , the net interest margin decreased to 3.51 % for 2019 compared to 3.60 % for 2018. an analysis of the net interest income performance is presented in the following tables . for the year ended december 31 , 2019 , net interest income included $ 1.8 million in recovered interest income on acquired credit impaired loans compared to $ 2.4 million for the prior year . exclusive of these recoveries the net interest margin would have been 3.48 % for the year ended december 31 , 2019 compared to 3.58 % for the year ended december 31 , 2018. additionally , the amortization of the fair value adjustments in 2019 associated with the acquisition of washingtonfirst was estimated to be a 5 basis point positive impact on the net interest margin for 2019 , compared to a 13 basis point impact for the prior year . replace_table_token_1_th 2018 vs. 2017 net interest income for 2018 was $ 260.4 million compared to $ 168.8 million for 2017 , a 54 % increase , due to growth in earning assets coupled with the overall increase in the associated yields on those assets . on a tax-equivalent basis , net interest income for 2018 was $ 265.2 million compared to $ 176.2 million for 2017. the following table provides an analysis of net interest income performance that reflects the net interest margin that increased to 3.60 % for 2018 compared to 3.55 % for 2017. net interest income for the year ended december 31 , 2018 included $ 2.4 million in recovered interest income on acquired credit impaired loans . this amount compares to interest recoveries of $ 1.1 million for 2017. exclusive of these

liquidity management liquidity is measured by a financial institution 's ability to raise funds through loan repayments , maturing investments , deposit growth , borrowed funds , capital and the sale of highly marketable assets such as investment securities and residential mortgage loans . the company 's liquidity position , considering both internal and external sources available , exceeded anticipated short-term and long-term needs at december 31 , 2019. management considers core deposits , defined to include all deposits other than time deposits of $ 100 thousand or more , to be a relatively stable funding source . core deposits equaled 67 % of total interest-earning assets at december 31 , 2019 . in addition , loan payments , maturities , calls and pay downs of securities , deposit growth and earnings contribute a flow of funds available to meet liquidity requirements . in assessing liquidity , management considers operating requirements , the seasonality of deposit flows , investment , loan and deposit maturities and calls , expected funding of loans and deposit withdrawals , and the market values of available-for-sale investments , so that sufficient funds are available on short notice to meet obligations as they arise and to ensure that the company is able to pursue new business opportunities . in addition to factors discussed above that can affect liquidity , the company 's growth , mortgage banking activities and changes in the liquidity of the investment portfolio due to fluctuations in interest rates are also taken into consideration . under this approach , implemented by the funds management subcommittee of alco under formal policy guidelines , the company 's liquidity position is measured weekly , looking forward at thirty day intervals from thirty ( 30 ) to three hundred sixty ( 360 ) days . the measurement is based upon the projection of funds sold or purchased position , along with ratios and trends developed to measure dependence on purchased funds and core growth .


 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 management liquidity is measured by a financial institution 's ability to raise funds through loan repayments , maturing investments , deposit growth , borrowed funds , capital and the sale of highly marketable assets such as investment securities and residential mortgage loans . the company 's liquidity position , considering both internal and external sources available , exceeded anticipated short-term and long-term needs at december 31 , 2019. management considers core deposits , defined to include all deposits other than time deposits of $ 100 thousand or more , to be a relatively stable funding source . core deposits equaled 67 % of total interest-earning assets at december 31 , 2019 . in addition , loan payments , maturities , calls and pay downs of securities , deposit growth and earnings contribute a flow of funds available to meet liquidity requirements . in assessing liquidity , management considers operating requirements , the seasonality of deposit flows , investment , loan and deposit maturities and calls , expected funding of loans and deposit withdrawals , and the market values of available-for-sale investments , so that sufficient funds are available on short notice to meet obligations as they arise and to ensure that the company is able to pursue new business opportunities . in addition to factors discussed above that can affect liquidity , the company 's growth , mortgage banking activities and changes in the liquidity of the investment portfolio due to fluctuations in interest rates are also taken into consideration . under this approach , implemented by the funds management subcommittee of alco under formal policy guidelines , the company 's liquidity position is measured weekly , looking forward at thirty day intervals from thirty ( 30 ) to three hundred sixty ( 360 ) days . the measurement is based upon the projection of funds sold or purchased position , along with ratios and trends developed to measure dependence on purchased funds and core growth .
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 Suspicious Activity Report : 34 the national economy , as well as the mid-atlantic region in which the company operates , continued to exhibit a solid economic performance throughout 2019. consumer confidence remains high as a result of certain positive economic trends such as reduced lending rates , low unemployment , stable housing prices and solid performance in the financial markets . these positive trends have been tempered by economic concerns over a lack of wage growth , the political environment , trade turmoil and the impact of regional conflict . these factors act to constrain economic activity from time to time on the part of both large and small businesses . despite the mixed business environment , the company has experienced consistent growth in focused areas while maintaining strong levels of liquidity , capital and credit quality . liquidity continues to remain strong due to borrowing lines with the federal home loan bank of atlanta and the federal reserve and the size and composition of the investment portfolio . at december 31 , 2019 , the bank remained above all “ well-capitalized ” regulatory requirement levels . tangible book value per common share increased by 9 % to $ 22.37 from $ 20.45 at december 31 , 2018. the company 's credit quality remained strong as non-performing assets represented 0.50 % of total assets at december 31 , 2019 compared to 0.46 % at december 31 , 2018. the ratio of net charge-offs to average loans was 0.03 % for 2019 , compared to 0.01 % for the prior year . total assets at december 31 , 2019 increased 5 % compared to december 31 , 2018. total loans at december 31 , 2019 , were $ 6.7 billion compared to $ 6.6 billion at december 31 , 2018. during this period , the composition of the portfolio shifted as total commercial loans grew 7 % while mortgage loans declined 8 % due to the refinance activity and the strategic decision to sell the majority of new mortgage loan production . consumer loans experienced a 10 % decline related to recent mortgage refinancing activity . during this period , total funded commercial loan production was a record $ 884 million . commercial loans originated during the current year had total unfunded commitments of $ 479 million as of december 31 , 2019. customer funding sources at year end 2019 , which include deposits plus other short-term borrowings from core customers , increased 8 % compared to year end 2018. the increase in customer funding sources was driven by increases in noninterest-bearing demand and money market savings accounts . the company reduced fhlb borrowings by 39 % during the year to assist in the management of the net interest margin . during the fourth quarter of 2019 , the company issued $ 175 million in subordinated debt . the proceeds from the debt provides capital for future growth in the real estate lending portfolio , in addition to providing funds to reduce higher priced funding sources . stockholders ' equity at december 31 , 2019 increased 6 % to $ 1.13 billion as compared to $ 1.07 billion at december 31 , 2018. the growth in stockholders ' equity during 2019 was due to net income net of the dividends paid to stockholders . during 2019 the company repurchased 668,000 shares , resulting in a $ 24.3 million reduction in stockholders ' equity . net interest income increased 2 % to $ 265.3 million compared to $ 260.4 million in 2018. for the year ended december 31 , 2019 , the net interest margin was 3.51 % compared to 3.60 % for the prior year . net interest income for the year ended december 31 , 2019 included $ 1.8 million in recovered interest income on acquired credit impaired loans as compared to $ 2.4 million in 2018. excluding these recoveries , the net interest margin would have been 3.48 % for the year ended december 31 , 2019 compared to 3.58 % for the year ended december 31 , 2018. the amortization of the fair value adjustments for 2019 was estimated to be 5 basis points on an annual basis compared to a 13 basis point impact for the prior year . compared to the prior year , average interest-earning assets grew 5 % with an increase of 11 basis points in the yield while average interest-bearing liabilities grew 3 % with an increase of 32 basis points in the rate paid . non-interest income increased 17 % in 2019 compared to 2018 driven by the increase in income from mortgage banking activities during 2019 , as favorable residential lending rates during the year resulted in a significant increase in mortgage loan originations . a fter excluding merger expenses from both years , non-interest expenses for the year ended december 31 , 2019 increased 6 % compared to the prior year due to the increase in compensation costs . net income for 2019 included the effect of merger expenses totaling $ 1.3 million , which was offset by the $ 1.8 million in recovered interest income from previously acquired credit impaired loans . the prior year included $ 11.8 million in merger expenses and $ 2.4 million of the interest recoveries , which resulted in an after-tax reduction to earnings per share of approximately $ 0.19 per share for 2018. pre-tax , pre-provision income , which adjusts for the merger expenses in both years in addition to the provision for loan losses , increased 4 % from 2018 to 2019 to a record $ 158.9 million . critical accounting policies 35 the company 's consolidated financial statements are prepared in accordance with generally accepted accounting principles ( “ gaap ” ) in the united states of america and follow general practices within the banking industry . application of these principles requires management to make estimates , assumptions , and judgments that affect the amounts reported in the financial statements and accompanying notes . story_separator_special_tag this guidance is effective for a public business entity that is an sec filer for its annual or any interim goodwill impairment tests in fiscal years beginning after december 15 , 2019. the adoption of this standard is not expected to have a material impact on the company 's financial position , results of operations or cash flows . the fasb issued update no . 2016-13 , current expected credit losses ( cecl ) , in june 2016. this guidance changes the impairment model for most financial assets measured at amortized cost and certain other instruments . entities will be required to use an expected loss model , replacing the incurred loss model that is currently in use . under the new guidance , an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience , current conditions and reasonable and supportable forecasts . this will result in earlier recognition of loss allowances in most instances . credit losses related to available-for-sale debt securities ( regardless of whether the impairment is considered to be other-than-temporary ) will be measured in a manner similar to the present , except that such losses will be recorded as allowances rather than as reductions in the amortized cost of the related securities . with respect to trade and other receivables , loans , held-to-maturity debt securities , net investments in leases and off-balance-sheet credit exposures , the guidance requires that an entity estimate its lifetime expected credit loss and record an allowance resulting in the net amount expected to be collected to be reflected as the financial asset . entities will also be required to provide more disclosures , including information used to track credit quality by year of origination for most financing receivables . this guidance is effective for public business entities for the first interim or annual period beginning after december 15 , 2019. the company completed implementation of the guidance and will adopt it in the first quarter of 2020. as a part of the implementation , the company reconciled historical loan data , determined segmentation of the loan portfolio for application of the cecl calculation , determined the key assumptions , selected calculation methods , and established an internal controls framework . the company also used the services of an independent third party advisor to validate the conceptual soundness of the proposed methodology framework and of the cecl model . at the adoption date , exclusive of the reclassification of $ 2.8 million to the allowance for credit losses of amounts related to the previously acquired impaired loans , the estimated impact to retained earnings at transition date is expected to be approximately $ 2.0 million based on the expected performance of the economy at the transition date . future amounts of provision expense will depend on the size and composition of the loan portfolio , future economic conditions and borrower 's payment performance . 39 net interest income the largest source of the company 's operating revenue is net interest income , which is the difference between the interest earned on interest-earning assets and the interest paid on interest-bearing liabilities . for purposes of this discussion and analysis , the interest earned on tax-advantaged loans and tax-exempt investment securities has been adjusted to an amount comparable to interest subject to normal income taxes . the result is referred to as tax-equivalent interest income and tax-equivalent net interest income . the following discussion of net interest income should be considered in conjunction with the impact of the acquisition of washingtonfirst and a review of the information provided in the table that provides yields and rates on average balances . 2019 vs. 2018 net interest income for 2019 was $ 265.3 million compared to $ 260.4 million for 2018 , a 2 % increase . on a tax-equivalent basis , net interest income for 2019 was $ 270.1 million compared to $ 265.2 million for 2018. the net interest income growth during the current year from the prior year reflects the effects of the 11 basis point increase in the yield on interest-earning assets , which grew 5 % , which was largely offset by the 32 basis point growth in the rate paid on interest-bearing liabilities . overall , the net interest margin decreased to 3.51 % for 2019 compared to 3.60 % for 2018. an analysis of the net interest income performance is presented in the following tables . for the year ended december 31 , 2019 , net interest income included $ 1.8 million in recovered interest income on acquired credit impaired loans compared to $ 2.4 million for the prior year . exclusive of these recoveries the net interest margin would have been 3.48 % for the year ended december 31 , 2019 compared to 3.58 % for the year ended december 31 , 2018. additionally , the amortization of the fair value adjustments in 2019 associated with the acquisition of washingtonfirst was estimated to be a 5 basis point positive impact on the net interest margin for 2019 , compared to a 13 basis point impact for the prior year . replace_table_token_1_th 2018 vs. 2017 net interest income for 2018 was $ 260.4 million compared to $ 168.8 million for 2017 , a 54 % increase , due to growth in earning assets coupled with the overall increase in the associated yields on those assets . on a tax-equivalent basis , net interest income for 2018 was $ 265.2 million compared to $ 176.2 million for 2017. the following table provides an analysis of net interest income performance that reflects the net interest margin that increased to 3.60 % for 2018 compared to 3.55 % for 2017. net interest income for the year ended december 31 , 2018 included $ 2.4 million in recovered interest income on acquired credit impaired loans . this amount compares to interest recoveries of $ 1.1 million for 2017. exclusive of these

