unless required by law , the company does not undertake , and specifically disclaims any obligations to , publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements . general the financial review , which follows focuses on the factors affecting the consolidated financial condition and results of operations of the company and its wholly-owned subsidiaries , the bank , nbt financial services and nbt holdings during 2017 and , in summary form , the preceding two years . collectively , the registrant and its subsidiaries are referred to herein as “ the company . ” net interest margin is presented in this discussion on a fully taxable equivalent ( `` fte `` ) basis . average balances discussed are daily averages unless otherwise described . the audited consolidated financial statements and related notes as of december 31 , 2017 and 2016 and for each of the years in the three-year period ended december 31 , 2017 should be read in conjunction with this review . amounts in prior period consolidated financial statements are reclassified whenever necessary to conform to the 2017 presentation . critical accounting policies the company has identified policies as being critical because they require management to make particularly difficult , subjective and or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions . these policies relate to the allowance for loan losses , pension accounting and provision for income taxes . management of the company considers the accounting policy relating to the allowance for loan losses to be a critical accounting policy given the uncertainty in evaluating the level of the allowance required to cover credit losses inherent in the loan portfolio and the material effect that such judgments can have on the results of operations . while management 's current evaluation of the allowance for loan losses indicates that the allowance is appropriate , under adversely different conditions or assumptions , the allowance may need to be increased . for example , if historical loan loss experience significantly worsened or if current economic conditions significantly deteriorated , additional provision for loan losses would be required to increase the allowance . in addition , the assumptions and estimates used in the internal reviews of the company 's nonperforming loans and potential problem loans have a significant impact on the overall analysis of the adequacy of the allowance for loan losses . while management has concluded that the current evaluation of collateral values is reasonable under the circumstances , if collateral values were significantly lower , the company 's allowance for loan loss policy would also require additional provision for loan losses . 30 management is required to make various assumptions in valuing the company 's pension assets and liabilities . these assumptions include the expected rate of return on plan assets , the discount rate and the rate of increase in future compensation levels . changes to these assumptions could impact earnings in future periods . the company takes into account the plan asset mix , funding obligations and expert opinions in determining the various rates used to estimate pension expense . the company also considers the citigroup pension liability index , market interest rates and discounted cash flows in setting the appropriate discount rate . in addition , the company reviews expected inflationary and merit increases to compensation in determining the rate of increase in future compensation levels . the company is subject to examinations from various taxing authorities . such examinations may result in challenges to the tax return treatment applied by the company to specific transactions . management believes that the assumptions and judgments used to record tax-related assets or liabilities have been appropriate . should tax laws change or the taxing authorities determine that management 's assumptions were inappropriate , an adjustment may be required which could have a material effect on the company 's results of operations . the company 's policies on the allowance for loan losses , pension accounting and provision for income taxes are disclosed in note 1 to the consolidated financial statements . a more detailed description of the allowance for loan losses is included in the section captioned “ risk management – credit risk ” in item 7. management 's discussion and analysis of financial condition and results of operations of this form 10-k. all significant pension accounting assumptions , income tax assumptions and intangible asset assumptions and detail are disclosed in notes 13 , 12 and 7 to the consolidated financial statements , respectively . all accounting policies are important , and as such , the company encourages the reader to review each of the policies included in note 1 to obtain a better understanding of how the company 's financial performance is reported . non-gaap measures this annual report on form 10-k contains financial information determined by methods other than in accordance with accounting principles generally accepted in the united states of america ( `` gaap `` ) . these measures adjust gaap measures to exclude the effects of acquisition-related intangible amortization expense on earnings and equity as well as providing a fte yield on securities and loans . where non-gaap disclosures are used in this annual report on form 10-k , the comparable gaap measure , as well as a reconciliation to the comparable gaap measure , is provided in the accompanying tables . management believes that these non-gaap measures provide useful information that is important to an understanding of the results of the company 's core business as well as provide information standard in the financial institution industry . story_separator_special_tag noninterest income noninterest income is a significant source of revenue for the company and an important factor in the company 's results of operations . the following table sets forth information by category of noninterest income for the years indicated : replace_table_token_12_th 37 noninterest income for the year ended december 31 , 2017 was $ 121.3 million , up $ 5.6 million , or 4.8 % , from the same period of 2016. the increase in noninterest income from the prior year was driven by higher retirement plan administration fees , net securities gains ( losses ) , atm and debit card fees and trust revenues that were partially offset by lower other noninterest income and insurance and other financial services revenue during 2017 as compared to 2016. retirement plan administration fees increased in 2017 as compared to the prior year due primarily to acquisitions completed in 2016 and the acquisition of downeast pension services ( `` dps `` ) in the second quarter of 2017. net securities gains ( losses ) increased due to a gain recognized on the sale of securities in 2017 as compared to a net loss in 2016. atm and debit card fees increased from the prior year due to a higher number of accounts and increased usage in 2017 as compared to 2016. trust revenue increased from the prior year due to market returns and account growth . other noninterest income decreased from 2016 to 2017 due to lower swap fee income and a net decrease in non-recurring items of $ 1.4 million . insurance and other financial services revenue decreased from the prior year primarily due to the divestiture of a book of business in the third quarter of 2016. noninterest income as a percent of total revenue excluding net securities gains ( losses ) and the gain on the sale of equity investment was 29.5 % and 30.6 % for the years ended december 31 , 2017 and 2016 , respectively . noninterest expense noninterest expenses are also an important factor in the company 's results of operations . the following table sets forth the major components of noninterest expense for the years indicated : replace_table_token_13_th noninterest expense for the year ended december 31 , 2017 was $ 245.6 million , up $ 9.7 million , or 4.1 % from 2016. this increase was due to higher salaries and employee benefits , loan collection and other real estate owned ( `` oreo `` ) expense and other noninterest expense . other noninterest expense increased $ 3.9 million due to the write-down of an intangible asset no longer in use due to a change in business strategy combined with a favorable settlement of an accrual in 2016. salaries and employee benefits increased from the prior year due to the acquisition of dps in the second quarter of 2017 and higher medical costs . loan collection and oreo expense increased from the prior year due primarily to commercial property write-downs . income taxes we calculate our current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year . adjustments based on filed returns are recorded when identified , which is generally in the third quarter of the subsequent year for u.s. federal and state provisions . the amount of income taxes the company pays is subject at times to ongoing audits by federal and state tax authorities , which may result in proposed assessments . future results may include favorable or unfavorable adjustments to the estimated tax liabilities in the period the assessments are proposed or resolved or when statutes of limitation on potential assessments expire . as a result , the company 's effective tax rate may fluctuate significantly on a quarterly or annual basis . on december 22 , 2017 , the u.s. government enacted the tax cuts and jobs act ( the `` tax act `` ) . the tax act includes significant changes to the u.s. corporate income tax system including a federal corporate rate reduction from 35 % to 21 % . the company follows the guidance in sec staff accounting bulletin 118 ( `` sab 118 `` ) , which provides additional clarification regarding the application of asc topic 740 , income taxe s , in situations where the company does not have the necessary information available , prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the tax act for the reporting period in which the tax act was enacted . sab 118 provides for a measurement period beginning in the reporting period that includes the tax act 's enactment data and ending when the company has obtained , prepared and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date . in connection with our initial analysis of the impact of the tax act , the company recorded a $ 4.4 million adjustment in the year ended december 31 , 2017 for remeasurement of deferred tax assets and liabilities for the corporate rate reduction . a certain amount of this adjustment is provisional , related to consideration of depreciation , compensation matters and different interpretations by various regulatory authorities . 38 income tax expense for the year ended december 31 , 2017 was $ 46.0 million , up $ 5.6 million , or 13.9 % , from $ 40.4 million , for the same period of 2016. the effective tax rate of 35.9 % for 2017 was up from 34.0 % for 2016. the increase from the prior year was primarily due to a higher level of taxable income in 2017 combined with the $ 4.4 million estimated non-cash charge related to the enactment of the tax act resulting in the remeasurement of the company 's deferred tax assets and liabilities arising from the lower federal

capital resources consistent with its goal to operate a sound and profitable financial institution , the company actively seeks to maintain a “ well-capitalized ” institution in accordance with regulatory standards . the principal source of capital to the company is earnings retention . the company 's capital measurements are in excess of both regulatory minimum guidelines and meet the requirements to be considered well-capitalized . the company 's principal source of funds to pay interest on trust preferred debentures and pay cash dividends to its shareholders are dividends from its subsidiaries . various laws and regulations restrict the ability of banks to pay dividends to their shareholders . generally , the payment of dividends by the company in the future as well as the payment of interest on the capital securities will require the generation of sufficient future earnings by its subsidiaries . the bank also is subject to substantial regulatory restrictions on its ability to pay dividends to the company . under occ regulations , the bank may not pay a dividend , without prior occ approval , if the total amount of all dividends declared during the calendar year , including the proposed dividend , exceeds the sum of its retained net income to date during the calendar year and its retained net income over the preceding two years . at december 31 , 2017 and 2016 , approximately $ 107.5 million and $ 102.5 million , respectively , of the total stockholders ' equity of the bank was available for payment of dividends to the company without approval by the occ . the bank 's ability to pay dividends also is subject to the bank being in compliance with regulatory capital requirements . the bank is currently in compliance with these requirements .


 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.
     ```capital resources consistent with its goal to operate a sound and profitable financial institution , the company actively seeks to maintain a “ well-capitalized ” institution in accordance with regulatory standards . the principal source of capital to the company is earnings retention . the company 's capital measurements are in excess of both regulatory minimum guidelines and meet the requirements to be considered well-capitalized . the company 's principal source of funds to pay interest on trust preferred debentures and pay cash dividends to its shareholders are dividends from its subsidiaries . various laws and regulations restrict the ability of banks to pay dividends to their shareholders . generally , the payment of dividends by the company in the future as well as the payment of interest on the capital securities will require the generation of sufficient future earnings by its subsidiaries . the bank also is subject to substantial regulatory restrictions on its ability to pay dividends to the company . under occ regulations , the bank may not pay a dividend , without prior occ approval , if the total amount of all dividends declared during the calendar year , including the proposed dividend , exceeds the sum of its retained net income to date during the calendar year and its retained net income over the preceding two years . at december 31 , 2017 and 2016 , approximately $ 107.5 million and $ 102.5 million , respectively , of the total stockholders ' equity of the bank was available for payment of dividends to the company without approval by the occ . the bank 's ability to pay dividends also is subject to the bank being in compliance with regulatory capital requirements . the bank is currently in compliance with these requirements .
```    
 Suspicious Activity Report : unless required by law , the company does not undertake , and specifically disclaims any obligations to , publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements . general the financial review , which follows focuses on the factors affecting the consolidated financial condition and results of operations of the company and its wholly-owned subsidiaries , the bank , nbt financial services and nbt holdings during 2017 and , in summary form , the preceding two years . collectively , the registrant and its subsidiaries are referred to herein as “ the company . ” net interest margin is presented in this discussion on a fully taxable equivalent ( `` fte `` ) basis . average balances discussed are daily averages unless otherwise described . the audited consolidated financial statements and related notes as of december 31 , 2017 and 2016 and for each of the years in the three-year period ended december 31 , 2017 should be read in conjunction with this review . amounts in prior period consolidated financial statements are reclassified whenever necessary to conform to the 2017 presentation . critical accounting policies the company has identified policies as being critical because they require management to make particularly difficult , subjective and or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions . these policies relate to the allowance for loan losses , pension accounting and provision for income taxes . management of the company considers the accounting policy relating to the allowance for loan losses to be a critical accounting policy given the uncertainty in evaluating the level of the allowance required to cover credit losses inherent in the loan portfolio and the material effect that such judgments can have on the results of operations . while management 's current evaluation of the allowance for loan losses indicates that the allowance is appropriate , under adversely different conditions or assumptions , the allowance may need to be increased . for example , if historical loan loss experience significantly worsened or if current economic conditions significantly deteriorated , additional provision for loan losses would be required to increase the allowance . in addition , the assumptions and estimates used in the internal reviews of the company 's nonperforming loans and potential problem loans have a significant impact on the overall analysis of the adequacy of the allowance for loan losses . while management has concluded that the current evaluation of collateral values is reasonable under the circumstances , if collateral values were significantly lower , the company 's allowance for loan loss policy would also require additional provision for loan losses . 30 management is required to make various assumptions in valuing the company 's pension assets and liabilities . these assumptions include the expected rate of return on plan assets , the discount rate and the rate of increase in future compensation levels . changes to these assumptions could impact earnings in future periods . the company takes into account the plan asset mix , funding obligations and expert opinions in determining the various rates used to estimate pension expense . the company also considers the citigroup pension liability index , market interest rates and discounted cash flows in setting the appropriate discount rate . in addition , the company reviews expected inflationary and merit increases to compensation in determining the rate of increase in future compensation levels . the company is subject to examinations from various taxing authorities . such examinations may result in challenges to the tax return treatment applied by the company to specific transactions . management believes that the assumptions and judgments used to record tax-related assets or liabilities have been appropriate . should tax laws change or the taxing authorities determine that management 's assumptions were inappropriate , an adjustment may be required which could have a material effect on the company 's results of operations . the company 's policies on the allowance for loan losses , pension accounting and provision for income taxes are disclosed in note 1 to the consolidated financial statements . a more detailed description of the allowance for loan losses is included in the section captioned “ risk management – credit risk ” in item 7. management 's discussion and analysis of financial condition and results of operations of this form 10-k. all significant pension accounting assumptions , income tax assumptions and intangible asset assumptions and detail are disclosed in notes 13 , 12 and 7 to the consolidated financial statements , respectively . all accounting policies are important , and as such , the company encourages the reader to review each of the policies included in note 1 to obtain a better understanding of how the company 's financial performance is reported . non-gaap measures this annual report on form 10-k contains financial information determined by methods other than in accordance with accounting principles generally accepted in the united states of america ( `` gaap `` ) . these measures adjust gaap measures to exclude the effects of acquisition-related intangible amortization expense on earnings and equity as well as providing a fte yield on securities and loans . where non-gaap disclosures are used in this annual report on form 10-k , the comparable gaap measure , as well as a reconciliation to the comparable gaap measure , is provided in the accompanying tables . management believes that these non-gaap measures provide useful information that is important to an understanding of the results of the company 's core business as well as provide information standard in the financial institution industry . story_separator_special_tag noninterest income noninterest income is a significant source of revenue for the company and an important factor in the company 's results of operations . the following table sets forth information by category of noninterest income for the years indicated : replace_table_token_12_th 37 noninterest income for the year ended december 31 , 2017 was $ 121.3 million , up $ 5.6 million , or 4.8 % , from the same period of 2016. the increase in noninterest income from the prior year was driven by higher retirement plan administration fees , net securities gains ( losses ) , atm and debit card fees and trust revenues that were partially offset by lower other noninterest income and insurance and other financial services revenue during 2017 as compared to 2016. retirement plan administration fees increased in 2017 as compared to the prior year due primarily to acquisitions completed in 2016 and the acquisition of downeast pension services ( `` dps `` ) in the second quarter of 2017. net securities gains ( losses ) increased due to a gain recognized on the sale of securities in 2017 as compared to a net loss in 2016. atm and debit card fees increased from the prior year due to a higher number of accounts and increased usage in 2017 as compared to 2016. trust revenue increased from the prior year due to market returns and account growth . other noninterest income decreased from 2016 to 2017 due to lower swap fee income and a net decrease in non-recurring items of $ 1.4 million . insurance and other financial services revenue decreased from the prior year primarily due to the divestiture of a book of business in the third quarter of 2016. noninterest income as a percent of total revenue excluding net securities gains ( losses ) and the gain on the sale of equity investment was 29.5 % and 30.6 % for the years ended december 31 , 2017 and 2016 , respectively . noninterest expense noninterest expenses are also an important factor in the company 's results of operations . the following table sets forth the major components of noninterest expense for the years indicated : replace_table_token_13_th noninterest expense for the year ended december 31 , 2017 was $ 245.6 million , up $ 9.7 million , or 4.1 % from 2016. this increase was due to higher salaries and employee benefits , loan collection and other real estate owned ( `` oreo `` ) expense and other noninterest expense . other noninterest expense increased $ 3.9 million due to the write-down of an intangible asset no longer in use due to a change in business strategy combined with a favorable settlement of an accrual in 2016. salaries and employee benefits increased from the prior year due to the acquisition of dps in the second quarter of 2017 and higher medical costs . loan collection and oreo expense increased from the prior year due primarily to commercial property write-downs . income taxes we calculate our current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year . adjustments based on filed returns are recorded when identified , which is generally in the third quarter of the subsequent year for u.s. federal and state provisions . the amount of income taxes the company pays is subject at times to ongoing audits by federal and state tax authorities , which may result in proposed assessments . future results may include favorable or unfavorable adjustments to the estimated tax liabilities in the period the assessments are proposed or resolved or when statutes of limitation on potential assessments expire . as a result , the company 's effective tax rate may fluctuate significantly on a quarterly or annual basis . on december 22 , 2017 , the u.s. government enacted the tax cuts and jobs act ( the `` tax act `` ) . the tax act includes significant changes to the u.s. corporate income tax system including a federal corporate rate reduction from 35 % to 21 % . the company follows the guidance in sec staff accounting bulletin 118 ( `` sab 118 `` ) , which provides additional clarification regarding the application of asc topic 740 , income taxe s , in situations where the company does not have the necessary information available , prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the tax act for the reporting period in which the tax act was enacted . sab 118 provides for a measurement period beginning in the reporting period that includes the tax act 's enactment data and ending when the company has obtained , prepared and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date . in connection with our initial analysis of the impact of the tax act , the company recorded a $ 4.4 million adjustment in the year ended december 31 , 2017 for remeasurement of deferred tax assets and liabilities for the corporate rate reduction . a certain amount of this adjustment is provisional , related to consideration of depreciation , compensation matters and different interpretations by various regulatory authorities . 38 income tax expense for the year ended december 31 , 2017 was $ 46.0 million , up $ 5.6 million , or 13.9 % , from $ 40.4 million , for the same period of 2016. the effective tax rate of 35.9 % for 2017 was up from 34.0 % for 2016. the increase from the prior year was primarily due to a higher level of taxable income in 2017 combined with the $ 4.4 million estimated non-cash charge related to the enactment of the tax act resulting in the remeasurement of the company 's deferred tax assets and liabilities arising from the lower federal

