one of the primary contributors to newtek 's continued profitability was the small business finance segment which generated pro forma pretax income of $ 12,873,000 in 2014 compared to $ 10,143,000 in 2013 , an increase of $ 2,730,000. the primary drivers were servicing fee income on nsbf and external portfolios which in 2014 increased by $ 3,630,000 , or 55 % and interest income which increased $ 1,927,000 or 40 % . total sba loans originated increased to $ 202,269,000 in 2014 compared with $ 177,941,000 for 2013. the weighted average sales price for the guaranteed portions of sba loans sold increased slightly to 112.49 % compared with 112.32 % for 2014 and 2013 , respectively . the electronic payment processing segment recorded a 19 % decrease in pro forma pretax net income , which decreased to $ 6,728,000 in 2014 from $ 8,304,000 compared with the 2013 period . pro forma revenue increased by $ 1,505,000 or 2 % to $ 91,160,000 during 2014 compared to 2013. the increase was related to growth in processing volumes and fee increases passed on to merchants . processing revenue less processing costs increased from 15.5 % in 2013 to 15.9 % in 2014. while margin was favorably impacted by the implementation and growth of fees , the increase was offset by an increase in provision for chargebacks in 2014 attributed to a specific merchant that experienced a high level of chargebacks as well as a charge related to a potential legal judgment against the company . pro forma pretax net income for managed technology solutions decreased from $ 3,564,000 in the year ended december 31 , 2013 to $ 3,081,000 for the year ended december 31 , 2014. segment pro forma revenue decreased by 10 % due primarily to a reduction in web hosting revenue driven by a reduction in active plans . it continues to be management 's intent to increase revenue and margin per plan through higher service offerings to customers which include cloud-based applications . management has broadened the company 's focus beyond the microsoft web platform by now providing its platform capabilities to include open source web applications which have become increasingly attractive to web developers and resellers . in december 2014 , a company subsidiary closed its fifth securitization issuing an additional $ 31,700,000 in notes with an “ a ” rating under s & p see securitzation transactions in part ii item 7. consolidated results of operations post bdc election : as a bdc , we are subject to certain constraints on our operations , including limitations imposed by the 1940 act . in addition , due to the conversion from an operating company to a bdc on november 12 , 2014 , there is no prior period results to compare the reportable period to , and the results below only reflect the results of the company for the period november 12 , 2014 through december 31 , 2014 . 56 investment income total investment income was $ 1,976,000 for the period november 12 , 2014 through december 31 , 2014. investment income from non-controlled non-affiliates was $ 1,912,000 and consisted of $ 1,080,000 in interest income earned primarily from our sba loan portfolio . servicing income earned was $ 562,000 related to our sba loan portfolio . other income from non-controlled non-affiliates for the period was $ 270,000 and consists of fees earned such as closing , packaging , and late payment fees related to our sba loan portfolio . investment income from controlled affiliate investments was $ 64,000 for the period november 12 , 2014 through december 31 , 2014 and consisted of $ 37,000 in dividend income from a controlled portfolio company and $ 23,000 of interest income from various controlled portfolio companies . expenses total expenses for the period post bdc election were $ 4,305,000. total operating expenses for the period consisted principally of salaries and benefits , interest expense , professional fees and general and administrative expenses . salaries and benefits relate to our lending subsidiary and corporate employees of the bdc . interest expense relates to the term loan held by the bdc , the revolving credit facility of sbf and the securitization notes payable . since the company will not be eligible for the ric election until 2015 , the company recorded a tax provision for the period which is reflective of the company filing a consolidated c-corp return for the full year . as a result , the company recorded a tax provision for the period november 12 , 2014 through december 31 , 2014 of $ 194,000. net realized gains and net unrealized appreciation and depreciation realized gains or losses on investments are measured by the difference between the net proceeds from the repayment or sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period , net of recoveries . the net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period , including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized . for the period november 12 , 2014 through december 31 , 2014 , we had net realized gains totaling $ 595,000 primarily due to the sale of non-controlled non-affiliate investments ( sba loans ) into a secondary market during the period . for the period november 12 , 2014 through december 31 , 2014 , net unrealized appreciation on non-affiliate investments totaled $ 2,733,000 which was primarily due to unrealized appreciation on 30 non-affiliate debt investments which have not yet traded as of december 31 , 2014. business segment results : the results of the company 's reportable business segments presented for the full year on a pro forma basis are discussed below . story_separator_special_tag the company used an assumed prepayment speed of 19 % based on current market conditions and historical experience for the loan portfolio , against a prepayment curve developed from nsbf historical experience to calculate expected loan prepayments in a given year . defaults are defined as any loan placed on non-accrual status as of december 31 , 2014. the cumulative default rate , defined as the percent of loan balance that will enter final liquidation in a given year , was estimated to be 25 % , and was derived from nsbf historical experience . the mix of nsbf 's loan portfolio continues to shift from start-up businesses , to predominately existing businesses . our historical default and loss rates demonstrate that this particular segment ( i.e . existing business ) of our sba loan portfolio continues to experience the lowest rate of defaults and ultimate losses over our twelve year history of originating loans . when computing the cumulative default rate to be applied to the performing portfolio loan balances , the company excluded the last three years of originations as those loans have not seasoned yet . the discounted cash flow analysis resulted in a price equivalent of 94.80 % of the par amount on our performing loans held for investment . other general and administrative costs increased by $ 1,323,000 when compared to the comparable period of the prior year . the increase was mainly attributed to increases in loan origination costs of $ 339,000 , loan recovery and servicing expenses of $ 623,000 and additional marketing expense of $ 289,000 in connection with our television ad campaign for the year ended december 31 , 2014. the increase of loan originations and the size of the portfolio , combined with improvements in interest income , generated by the addition to and enhanced performance of the portfolio , were sufficient to offset additional salaries , servicing and origination expenses . the resulting pretax income of $ 12,874,000 was a 27 % improvement over pretax income of $ 10,143,000 for the year ended december 31 , 2013. the following tables set forth distribution by business type of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 replace_table_token_11_th as of december 31 , 2013 replace_table_token_12_th 63 the following tables set forth distribution by borrower 's credit score of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively as of december 31 , 2014 replace_table_token_13_th as of december 31 , 2013 replace_table_token_14_th the following tables set forth distribution by primary collateral type of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 64 replace_table_token_15_th as of december 31 , 2013 replace_table_token_16_th the following tables set forth distribution by days delinquent of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 replace_table_token_17_th as of december 31 , 2013 65 replace_table_token_18_th comparison of the years ended december 31 , 2013 and december 31 , 2012 for the year ended december 31 , 2013 , the company recognized $ 19,456,000 of premium income from 167 guaranteed loans sold aggregating $ 131,733,000. during 2012 , the company recognized $ 12,367,000 of premium income from 105 guaranteed loans sold totaling $ 84,743,000. the increase in premium income for the year ended december 31 , 2013 is the result of an increased number of loans sold as compared with the prior period . sale prices on guaranteed loan sales averaged 112.32 % for the twelve months ended december 31 , 2013 compared with 112.22 % for the twelve months ended december 31 , 2012. the $ 297,000 decline in total servicing income was attributable primarily to the decrease in fdic servicing income of $ 1,278,000 as a result of the sale of a portion of that portfolio , which was offset by an increase in other third party loan servicing of $ 511,000. with the addition in november 2013 of the community south bank portfolio , which we service for the fdic , as well as the addition of other third party loan servicing contracts in 2013 , the average third party servicing portfolio increased from $ 195,670,000 for the twelve month period ended december 31 , 2012 to $ 232,410,000 for the same twelve month period in 2013. servicing fees received on the nsbf portfolio increased by $ 471,000 period over period and was attributable to the expansion of the nsbf originated portfolio in which we earn servicing income . the portfolio increased from an average of $ 238,590,000 for the twelve month period ending december 31 , 2012 to an average of $ 314,486,000 for the same twelve month period in 2013. this increase was the direct result of increased loan originations in 2013. interest income increased by $ 1,432,000 for the year ended december 31 , 2013 as compared to the same period in 2012 as a result of the average outstanding performing portfolio of sba loans held for investment increasing to $ 72,337,000 from $ 48,512,000 for the years ended december 31 , 2013 and 2012 , respectively . other income increased by $ 772,000 for the year ended december 31 , 2013 as compared to the same period in 2012. the increase is primarily attributable to nsbf which increased $ 616,000 period over period and included an increase of $ 333,000 in consulting fee income from the fdic and an increase in packaging and other servicing fee income of $ 188,000. the remaining increase was attributable to loan recovery and various loan-related fee income . additionally ,

liquidity and capital resources overview cash requirements and liquidity needs over the next twelve months are anticipated to be funded primarily through operating results , available cash and cash equivalents , existing credit lines , proposed new credit lines , additional securitizations of the company 's sba lender 's unguaranteed loan portions and additional issuances of common stocks . in november 2014 , the company closed an underwritten offering of 2,530,000 shares of its common stock at a public offering price of $ 12.50 per share for total gross proceeds of $ 31,625,000. the company is using the proceeds to expand its financing activities and to primarily increase its activity in sba 7 ( a ) lending and make direct investments in portfolio companies in accordance with its investment objectives and strategies . as more fully described below , the company 's sba lender ( “ nsbf ” ) will require additional funding sources to maintain current sba loan originations under anticipated conditions ; although the failure to find these sources may require the reduction in the company 's sba lending and related operations , it will not impair the company 's overall ability to operate . nsbf depends on the availability of licensed sba lenders to purchase sba loans held for sale transferred to the secondary markets and the premium earned therein to support its lending operations . at this time the secondary market for the sba loans held for sale is robust . nsbf has historically financed the operations of its lending business through loans or credit facilities from various lenders and will need to continue to do so in the future , as well as raise capital through the issuance of the company 's common stock . such lenders invariably require a security interest in the sba loans as collateral which , under the applicable law , requires the prior approval of the sba . if the company should ever be unable to obtain the approval for its financing arrangements from the sba , or if it were otherwise unable to raise capital , it would likely be unable to continue to make 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 overview cash requirements and liquidity needs over the next twelve months are anticipated to be funded primarily through operating results , available cash and cash equivalents , existing credit lines , proposed new credit lines , additional securitizations of the company 's sba lender 's unguaranteed loan portions and additional issuances of common stocks . in november 2014 , the company closed an underwritten offering of 2,530,000 shares of its common stock at a public offering price of $ 12.50 per share for total gross proceeds of $ 31,625,000. the company is using the proceeds to expand its financing activities and to primarily increase its activity in sba 7 ( a ) lending and make direct investments in portfolio companies in accordance with its investment objectives and strategies . as more fully described below , the company 's sba lender ( “ nsbf ” ) will require additional funding sources to maintain current sba loan originations under anticipated conditions ; although the failure to find these sources may require the reduction in the company 's sba lending and related operations , it will not impair the company 's overall ability to operate . nsbf depends on the availability of licensed sba lenders to purchase sba loans held for sale transferred to the secondary markets and the premium earned therein to support its lending operations . at this time the secondary market for the sba loans held for sale is robust . nsbf has historically financed the operations of its lending business through loans or credit facilities from various lenders and will need to continue to do so in the future , as well as raise capital through the issuance of the company 's common stock . such lenders invariably require a security interest in the sba loans as collateral which , under the applicable law , requires the prior approval of the sba . if the company should ever be unable to obtain the approval for its financing arrangements from the sba , or if it were otherwise unable to raise capital , it would likely be unable to continue to make loans .
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 Suspicious Activity Report : one of the primary contributors to newtek 's continued profitability was the small business finance segment which generated pro forma pretax income of $ 12,873,000 in 2014 compared to $ 10,143,000 in 2013 , an increase of $ 2,730,000. the primary drivers were servicing fee income on nsbf and external portfolios which in 2014 increased by $ 3,630,000 , or 55 % and interest income which increased $ 1,927,000 or 40 % . total sba loans originated increased to $ 202,269,000 in 2014 compared with $ 177,941,000 for 2013. the weighted average sales price for the guaranteed portions of sba loans sold increased slightly to 112.49 % compared with 112.32 % for 2014 and 2013 , respectively . the electronic payment processing segment recorded a 19 % decrease in pro forma pretax net income , which decreased to $ 6,728,000 in 2014 from $ 8,304,000 compared with the 2013 period . pro forma revenue increased by $ 1,505,000 or 2 % to $ 91,160,000 during 2014 compared to 2013. the increase was related to growth in processing volumes and fee increases passed on to merchants . processing revenue less processing costs increased from 15.5 % in 2013 to 15.9 % in 2014. while margin was favorably impacted by the implementation and growth of fees , the increase was offset by an increase in provision for chargebacks in 2014 attributed to a specific merchant that experienced a high level of chargebacks as well as a charge related to a potential legal judgment against the company . pro forma pretax net income for managed technology solutions decreased from $ 3,564,000 in the year ended december 31 , 2013 to $ 3,081,000 for the year ended december 31 , 2014. segment pro forma revenue decreased by 10 % due primarily to a reduction in web hosting revenue driven by a reduction in active plans . it continues to be management 's intent to increase revenue and margin per plan through higher service offerings to customers which include cloud-based applications . management has broadened the company 's focus beyond the microsoft web platform by now providing its platform capabilities to include open source web applications which have become increasingly attractive to web developers and resellers . in december 2014 , a company subsidiary closed its fifth securitization issuing an additional $ 31,700,000 in notes with an “ a ” rating under s & p see securitzation transactions in part ii item 7. consolidated results of operations post bdc election : as a bdc , we are subject to certain constraints on our operations , including limitations imposed by the 1940 act . in addition , due to the conversion from an operating company to a bdc on november 12 , 2014 , there is no prior period results to compare the reportable period to , and the results below only reflect the results of the company for the period november 12 , 2014 through december 31 , 2014 . 56 investment income total investment income was $ 1,976,000 for the period november 12 , 2014 through december 31 , 2014. investment income from non-controlled non-affiliates was $ 1,912,000 and consisted of $ 1,080,000 in interest income earned primarily from our sba loan portfolio . servicing income earned was $ 562,000 related to our sba loan portfolio . other income from non-controlled non-affiliates for the period was $ 270,000 and consists of fees earned such as closing , packaging , and late payment fees related to our sba loan portfolio . investment income from controlled affiliate investments was $ 64,000 for the period november 12 , 2014 through december 31 , 2014 and consisted of $ 37,000 in dividend income from a controlled portfolio company and $ 23,000 of interest income from various controlled portfolio companies . expenses total expenses for the period post bdc election were $ 4,305,000. total operating expenses for the period consisted principally of salaries and benefits , interest expense , professional fees and general and administrative expenses . salaries and benefits relate to our lending subsidiary and corporate employees of the bdc . interest expense relates to the term loan held by the bdc , the revolving credit facility of sbf and the securitization notes payable . since the company will not be eligible for the ric election until 2015 , the company recorded a tax provision for the period which is reflective of the company filing a consolidated c-corp return for the full year . as a result , the company recorded a tax provision for the period november 12 , 2014 through december 31 , 2014 of $ 194,000. net realized gains and net unrealized appreciation and depreciation realized gains or losses on investments are measured by the difference between the net proceeds from the repayment or sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period , net of recoveries . the net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period , including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized . for the period november 12 , 2014 through december 31 , 2014 , we had net realized gains totaling $ 595,000 primarily due to the sale of non-controlled non-affiliate investments ( sba loans ) into a secondary market during the period . for the period november 12 , 2014 through december 31 , 2014 , net unrealized appreciation on non-affiliate investments totaled $ 2,733,000 which was primarily due to unrealized appreciation on 30 non-affiliate debt investments which have not yet traded as of december 31 , 2014. business segment results : the results of the company 's reportable business segments presented for the full year on a pro forma basis are discussed below . story_separator_special_tag the company used an assumed prepayment speed of 19 % based on current market conditions and historical experience for the loan portfolio , against a prepayment curve developed from nsbf historical experience to calculate expected loan prepayments in a given year . defaults are defined as any loan placed on non-accrual status as of december 31 , 2014. the cumulative default rate , defined as the percent of loan balance that will enter final liquidation in a given year , was estimated to be 25 % , and was derived from nsbf historical experience . the mix of nsbf 's loan portfolio continues to shift from start-up businesses , to predominately existing businesses . our historical default and loss rates demonstrate that this particular segment ( i.e . existing business ) of our sba loan portfolio continues to experience the lowest rate of defaults and ultimate losses over our twelve year history of originating loans . when computing the cumulative default rate to be applied to the performing portfolio loan balances , the company excluded the last three years of originations as those loans have not seasoned yet . the discounted cash flow analysis resulted in a price equivalent of 94.80 % of the par amount on our performing loans held for investment . other general and administrative costs increased by $ 1,323,000 when compared to the comparable period of the prior year . the increase was mainly attributed to increases in loan origination costs of $ 339,000 , loan recovery and servicing expenses of $ 623,000 and additional marketing expense of $ 289,000 in connection with our television ad campaign for the year ended december 31 , 2014. the increase of loan originations and the size of the portfolio , combined with improvements in interest income , generated by the addition to and enhanced performance of the portfolio , were sufficient to offset additional salaries , servicing and origination expenses . the resulting pretax income of $ 12,874,000 was a 27 % improvement over pretax income of $ 10,143,000 for the year ended december 31 , 2013. the following tables set forth distribution by business type of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 replace_table_token_11_th as of december 31 , 2013 replace_table_token_12_th 63 the following tables set forth distribution by borrower 's credit score of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively as of december 31 , 2014 replace_table_token_13_th as of december 31 , 2013 replace_table_token_14_th the following tables set forth distribution by primary collateral type of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 64 replace_table_token_15_th as of december 31 , 2013 replace_table_token_16_th the following tables set forth distribution by days delinquent of the company 's sba 7 ( a ) loan portfolio for the years ended december 31 , 2014 and december 31 , 2013 , respectively : as of december 31 , 2014 replace_table_token_17_th as of december 31 , 2013 65 replace_table_token_18_th comparison of the years ended december 31 , 2013 and december 31 , 2012 for the year ended december 31 , 2013 , the company recognized $ 19,456,000 of premium income from 167 guaranteed loans sold aggregating $ 131,733,000. during 2012 , the company recognized $ 12,367,000 of premium income from 105 guaranteed loans sold totaling $ 84,743,000. the increase in premium income for the year ended december 31 , 2013 is the result of an increased number of loans sold as compared with the prior period . sale prices on guaranteed loan sales averaged 112.32 % for the twelve months ended december 31 , 2013 compared with 112.22 % for the twelve months ended december 31 , 2012. the $ 297,000 decline in total servicing income was attributable primarily to the decrease in fdic servicing income of $ 1,278,000 as a result of the sale of a portion of that portfolio , which was offset by an increase in other third party loan servicing of $ 511,000. with the addition in november 2013 of the community south bank portfolio , which we service for the fdic , as well as the addition of other third party loan servicing contracts in 2013 , the average third party servicing portfolio increased from $ 195,670,000 for the twelve month period ended december 31 , 2012 to $ 232,410,000 for the same twelve month period in 2013. servicing fees received on the nsbf portfolio increased by $ 471,000 period over period and was attributable to the expansion of the nsbf originated portfolio in which we earn servicing income . the portfolio increased from an average of $ 238,590,000 for the twelve month period ending december 31 , 2012 to an average of $ 314,486,000 for the same twelve month period in 2013. this increase was the direct result of increased loan originations in 2013. interest income increased by $ 1,432,000 for the year ended december 31 , 2013 as compared to the same period in 2012 as a result of the average outstanding performing portfolio of sba loans held for investment increasing to $ 72,337,000 from $ 48,512,000 for the years ended december 31 , 2013 and 2012 , respectively . other income increased by $ 772,000 for the year ended december 31 , 2013 as compared to the same period in 2012. the increase is primarily attributable to nsbf which increased $ 616,000 period over period and included an increase of $ 333,000 in consulting fee income from the fdic and an increase in packaging and other servicing fee income of $ 188,000. the remaining increase was attributable to loan recovery and various loan-related fee income . additionally ,

