the company began originating consumer indirect loans in the state of california in 2012 with $ 2.5 million in these loans originated during 2012. in 2016 , the company originated $ 20.5 million in the state of california and held $ 36.5 million in california originated consumer loans at december 31 , 2016. management has established a concentration limit of no more than 56 100 % of the bank 's total risk-based capital . at december 31 , 2016 , the limit was $ 93.3 million . see item 1a , “ risk factors - our business could suffer if we are unsuccessful in making , continuing and growing relationships with home improvement contractors and dealers ” of this form 10-k. since 2012 , the company has had an emphasis on diversifying lending products by expanding commercial real estate , commercial business and residential lending , while maintaining the current size of the consumer loan portfolio . the company 's lending strategies are intended to take advantage of : ( 1 ) historical strength in indirect consumer lending , ( 2 ) recent market consolidation that has created new lending opportunities and the availability of experienced bankers , and ( 3 ) strength in relationship lending . retail deposits will continue to serve as an important funding source . see item 1 , “ business : lending activities ” and item 1a , “ risk factors - risks related to our business ” in this form 10-k. the company generally underwrites the one-to-four-family loans based on the applicant 's ability to repay . this includes employment and credit history and the appraised value of the subject property . the company lends up to 100 % of the lesser of the appraised value or purchase price for one-to-four-family first mortgage loans . for first mortgage loans with a loan-to-value ratio in excess of 80 % , the company generally requires either private mortgage insurance or government sponsored insurance in order to mitigate the higher risk level associated with higher loan-to-value loans . fixed-rate loans secured by one-to-four-family residences have contractual maturities of up to 30 years and are generally fully amortizing , with payments due monthly . adjustable-rate mortgage loans may pose different credit risks than fixed-rate loans , primarily because as interest rates increase , the borrower 's payments rise , increasing the potential for default . properties securing the one-to-four-family loans are appraised by independent fee appraisers who are selected in accordance with industry and regulatory standards . the company requires borrowers to obtain title and hazard insurance , and flood insurance , if necessary . loans are generally underwritten to the secondary market guidelines with additional requirements as determined by the internal underwriting department . the company is significantly affected by prevailing economic conditions , as well as government policies and regulations concerning , among other things , monetary and fiscal affairs . deposit flows are influenced by a number of factors , including interest rates paid on time deposits , other investments , account maturities , and the overall level of personal income and savings . lending activities are influenced by the demand for funds , the number and quality of lenders , and regional economic cycles . sources of funds for lending activities include primarily deposits , including brokered deposits , borrowings , payments on loans and income provided from operations . the company 's earnings are primarily dependent upon net interest income , the difference between interest income and interest expense . interest income is a function of the balances of loans and investments outstanding during a given period and the yield earned on these loans and investments . interest expense is a function of the amount of deposits and borrowings outstanding during the same period and interest rates paid on these deposits and borrowings . another significant influence on the company 's earnings is fee income from mortgage banking activities . the company 's earnings are also affected by the provision for loan losses , service charges and fees , gains from sales of assets , operating expenses and income taxes . critical accounting policies and estimates certain of the company 's accounting policies are important to the portrayal of the company 's financial condition , since they require management to make difficult , complex or subjective judgments , some of which may relate to matters that are inherently uncertain . estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances . facts and circumstances which could affect these judgments include , but are not limited to , changes in interest rates , changes in the performance of the economy and changes in the financial condition of borrowers . management believes that its critical accounting policies include determining the allowance for loan losses , the fair value of servicing rights , derivatives and hedging activity , and the accounting for deferred income taxes . the company 's accounting policies are discussed in detail in note 1 of the notes to consolidated financial statements included in item 8 , “ financial statements and supplementary data ” of this form 10-k. allowance for loan loss . the allowance for loan losses is the amount estimated by management as necessary to cover probable losses inherent in the loan portfolio at the balance sheet date . the allowance is established through the provision for loan losses , which is charged to income . a high degree of judgment is necessary when determining the amount of the allowance for loan losses . among the material estimates required to establish the allowance are : loss 57 exposure at default ; the amount and timing of future cash flows on impacted loans ; value of collateral ; and determination of loss factors to be applied to the various elements of the portfolio . all of these estimates are susceptible to significant change . story_separator_special_tag at december 31 , 2016 , total debt was $ 22.5 million consisting of borrowings of $ 12.7 million and a subordinated note , net of $ 9.8 million , compared to a total debt of $ 108.6 million at december 31 , 2015. borrowings decreased $ 86.1 million , or 87.2 % , to $ 12.7 million at december 31 , 2016 , from $ 98.8 million at december 31 , 2015 , primarily due to the cash received in the branch purchase being utilized to repay fhlb advances . stockholders ' equity . total stockholders ' equity increased $ 5.7 million , or 7.6 % , to $ 81.0 million at december 31 , 2016 , from $ 75.3 million at december 31 , 2015. the increase in stockholders ' equity was predominately a result of net income of $ 10.5 million , primarily offset by $ 4.9 million in common stock repurchases . during the year ended december 31 , 2016 , the company repurchased 198,000 shares of its common stock , of which 193,000 shares were purchased in accordance with its stock repurchase plan at an average price per share of $ 24.79. the company 's stock repurchase plan announced on july 28 , 2015 , ended on august 31 , 2016. book value per common share was $ 28.32 at december 31 , 2016 , compared to $ 25.18 at december 31 , 2015 . 61 average balances , interest and average yields/cost the following table sets forth for the periods indicated , information regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities , resultant yields , interest rate spread , net interest margin ( otherwise known as net yield on interest-earning assets ) , and the ratio of average interest-earning assets to average interest-bearing liabilities . also presented is the weighted average yield on interest-earning assets , rates paid on interest-bearing liabilities and the resultant spread at december 31 , 2016. income and all average balances are monthly average balances . non-accruing loans have been included in the table as loans carrying a zero yield . replace_table_token_25_th _ ( 1 ) the average loans receivable , net balances include non-accruing loans . 62 rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities . it distinguishes between the changes related to outstanding balances and that due to the changes in interest rates . for each category of interest-earning assets and interest-bearing liabilities , information is provided on changes attributable to ( i ) changes in volume ( i.e . , changes in volume multiplied by old rate ) and ( ii ) changes in rate ( i.e . , changes in rate multiplied by old volume ) . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately to the change due to volume and the change due to rate . replace_table_token_26_th ( 1 ) the average loans receivable , net balances include non-accruing loans . comparison of results of operations for the years ended december 31 , 2016 and 2015 general . net income for the year ended december 31 , 2016 , increased $ 1.6 million , or 18.3 % , to $ 10.5 million , from $ 8.9 million for the year ended december 31 , 2015. the increase in net income was primarily a result of a $ 6.3 million , or 19.9 % increase in interest income , and a 6.0 million , or 34.0 % increase in noninterest income , partially offset by a $ 9.3 million , or 31.3 % increase in noninterest expense , a $ 731,000 , or 15.0 % increase in the provision for income tax expense and $ 505,000 , or 13.8 % increase in interest expense . net interest income . net interest income increased $ 5.8 million , or 20.7 % , to $ 33.9 million for the year ended december 31 , 2016 , from $ 28.0 million for the year ended december 31 , 2015. the increase in net interest income was primarily attributable to a $ 5.4 million , or 17.6 % increase in loan receivable interest income resulting from a $ 127.8 million increase in average loans receivable , net and loans held for sale over the last year , a $ 1.0 million , or 74.4 % increase in interest and dividends on investment securities , and cash and cash equivalents , primarily offset by a $ 539,000 , or 374.3 % increase in subordinated note interest expense . the subordinated note was issued on october 15 , 2015 . 63 the net interest margin ( “ nim ” ) decreased 58 basis points to 4.43 % for the year ended december 31 , 2016 , from 5.01 % for the same period last year . the decreased nim reflects continued growth in diversified , lower yielding assets including loan and investment assets . as a percentage , consumer loans to total loans were 28.9 % at december 31 , 2016 , compared to 31.0 % at december 31 , 2015 , reflecting our loan diversification strategy . the average cost of funds for total interest-bearing liabilities decreased nine basis points to 0.74 % for the year ended december 31 , 2016 , from 0.83 % for the year ended december 31 , 2015. the decrease primarily reflects a significant amount of relatively low cost relationship-based transactional deposits acquired in the branch purchase and the decline in the percentage of higher cost certificates of deposit to total deposits over the last year . the decrease does not reflect the $ 152.9 million in noninterest-bearing deposits that reduced our overall cost of deposits . management remains focused on

liquidity management maintains a liquidity position that it believes will adequately provide funding for loan demand and deposit runoff that may occur in the normal course of business . the company relies on a number of different sources in order to meet potential liquidity demands . the primary sources are increases in deposit accounts , fhlb advances , purchases of fed funds , sale of securities available-for-sale , cash flows from loan payments , sales of one-to-four-family loans held for sale , and maturing securities . at december 31 , 2016 , the bank 's total borrowing capacity was $ 191.1 million with the fhlb of des moines , with unused borrowing capacity of $ 177.5 million at that date . the fhlb borrowing limit is based on certain categories of loans , primarily real estate loans that qualify as collateral for fhlb advances . at december 31 , 2016 , the bank held approximately $ 249.8 million in loans that qualify as collateral for fhlb advances . in addition to the availability of liquidity from the fhlb of des moines , the bank maintained a short-term borrowing line with the federal reserve bank , with a current limit of $ 85.9 million , and a combined credit limit of $ 40.0 million in written fed funds lines of credit through correspondent banking relationships as of december 31 , 2016. the federal reserve bank borrowing limit is based on certain categories of loans , primarily consumer loansthat qualify as collateral for federal reserve bank line of credit .


 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 maintains a liquidity position that it believes will adequately provide funding for loan demand and deposit runoff that may occur in the normal course of business . the company relies on a number of different sources in order to meet potential liquidity demands . the primary sources are increases in deposit accounts , fhlb advances , purchases of fed funds , sale of securities available-for-sale , cash flows from loan payments , sales of one-to-four-family loans held for sale , and maturing securities . at december 31 , 2016 , the bank 's total borrowing capacity was $ 191.1 million with the fhlb of des moines , with unused borrowing capacity of $ 177.5 million at that date . the fhlb borrowing limit is based on certain categories of loans , primarily real estate loans that qualify as collateral for fhlb advances . at december 31 , 2016 , the bank held approximately $ 249.8 million in loans that qualify as collateral for fhlb advances . in addition to the availability of liquidity from the fhlb of des moines , the bank maintained a short-term borrowing line with the federal reserve bank , with a current limit of $ 85.9 million , and a combined credit limit of $ 40.0 million in written fed funds lines of credit through correspondent banking relationships as of december 31 , 2016. the federal reserve bank borrowing limit is based on certain categories of loans , primarily consumer loansthat qualify as collateral for federal reserve bank line of credit .
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 Suspicious Activity Report : the company began originating consumer indirect loans in the state of california in 2012 with $ 2.5 million in these loans originated during 2012. in 2016 , the company originated $ 20.5 million in the state of california and held $ 36.5 million in california originated consumer loans at december 31 , 2016. management has established a concentration limit of no more than 56 100 % of the bank 's total risk-based capital . at december 31 , 2016 , the limit was $ 93.3 million . see item 1a , “ risk factors - our business could suffer if we are unsuccessful in making , continuing and growing relationships with home improvement contractors and dealers ” of this form 10-k. since 2012 , the company has had an emphasis on diversifying lending products by expanding commercial real estate , commercial business and residential lending , while maintaining the current size of the consumer loan portfolio . the company 's lending strategies are intended to take advantage of : ( 1 ) historical strength in indirect consumer lending , ( 2 ) recent market consolidation that has created new lending opportunities and the availability of experienced bankers , and ( 3 ) strength in relationship lending . retail deposits will continue to serve as an important funding source . see item 1 , “ business : lending activities ” and item 1a , “ risk factors - risks related to our business ” in this form 10-k. the company generally underwrites the one-to-four-family loans based on the applicant 's ability to repay . this includes employment and credit history and the appraised value of the subject property . the company lends up to 100 % of the lesser of the appraised value or purchase price for one-to-four-family first mortgage loans . for first mortgage loans with a loan-to-value ratio in excess of 80 % , the company generally requires either private mortgage insurance or government sponsored insurance in order to mitigate the higher risk level associated with higher loan-to-value loans . fixed-rate loans secured by one-to-four-family residences have contractual maturities of up to 30 years and are generally fully amortizing , with payments due monthly . adjustable-rate mortgage loans may pose different credit risks than fixed-rate loans , primarily because as interest rates increase , the borrower 's payments rise , increasing the potential for default . properties securing the one-to-four-family loans are appraised by independent fee appraisers who are selected in accordance with industry and regulatory standards . the company requires borrowers to obtain title and hazard insurance , and flood insurance , if necessary . loans are generally underwritten to the secondary market guidelines with additional requirements as determined by the internal underwriting department . the company is significantly affected by prevailing economic conditions , as well as government policies and regulations concerning , among other things , monetary and fiscal affairs . deposit flows are influenced by a number of factors , including interest rates paid on time deposits , other investments , account maturities , and the overall level of personal income and savings . lending activities are influenced by the demand for funds , the number and quality of lenders , and regional economic cycles . sources of funds for lending activities include primarily deposits , including brokered deposits , borrowings , payments on loans and income provided from operations . the company 's earnings are primarily dependent upon net interest income , the difference between interest income and interest expense . interest income is a function of the balances of loans and investments outstanding during a given period and the yield earned on these loans and investments . interest expense is a function of the amount of deposits and borrowings outstanding during the same period and interest rates paid on these deposits and borrowings . another significant influence on the company 's earnings is fee income from mortgage banking activities . the company 's earnings are also affected by the provision for loan losses , service charges and fees , gains from sales of assets , operating expenses and income taxes . critical accounting policies and estimates certain of the company 's accounting policies are important to the portrayal of the company 's financial condition , since they require management to make difficult , complex or subjective judgments , some of which may relate to matters that are inherently uncertain . estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances . facts and circumstances which could affect these judgments include , but are not limited to , changes in interest rates , changes in the performance of the economy and changes in the financial condition of borrowers . management believes that its critical accounting policies include determining the allowance for loan losses , the fair value of servicing rights , derivatives and hedging activity , and the accounting for deferred income taxes . the company 's accounting policies are discussed in detail in note 1 of the notes to consolidated financial statements included in item 8 , “ financial statements and supplementary data ” of this form 10-k. allowance for loan loss . the allowance for loan losses is the amount estimated by management as necessary to cover probable losses inherent in the loan portfolio at the balance sheet date . the allowance is established through the provision for loan losses , which is charged to income . a high degree of judgment is necessary when determining the amount of the allowance for loan losses . among the material estimates required to establish the allowance are : loss 57 exposure at default ; the amount and timing of future cash flows on impacted loans ; value of collateral ; and determination of loss factors to be applied to the various elements of the portfolio . all of these estimates are susceptible to significant change . story_separator_special_tag at december 31 , 2016 , total debt was $ 22.5 million consisting of borrowings of $ 12.7 million and a subordinated note , net of $ 9.8 million , compared to a total debt of $ 108.6 million at december 31 , 2015. borrowings decreased $ 86.1 million , or 87.2 % , to $ 12.7 million at december 31 , 2016 , from $ 98.8 million at december 31 , 2015 , primarily due to the cash received in the branch purchase being utilized to repay fhlb advances . stockholders ' equity . total stockholders ' equity increased $ 5.7 million , or 7.6 % , to $ 81.0 million at december 31 , 2016 , from $ 75.3 million at december 31 , 2015. the increase in stockholders ' equity was predominately a result of net income of $ 10.5 million , primarily offset by $ 4.9 million in common stock repurchases . during the year ended december 31 , 2016 , the company repurchased 198,000 shares of its common stock , of which 193,000 shares were purchased in accordance with its stock repurchase plan at an average price per share of $ 24.79. the company 's stock repurchase plan announced on july 28 , 2015 , ended on august 31 , 2016. book value per common share was $ 28.32 at december 31 , 2016 , compared to $ 25.18 at december 31 , 2015 . 61 average balances , interest and average yields/cost the following table sets forth for the periods indicated , information regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities , resultant yields , interest rate spread , net interest margin ( otherwise known as net yield on interest-earning assets ) , and the ratio of average interest-earning assets to average interest-bearing liabilities . also presented is the weighted average yield on interest-earning assets , rates paid on interest-bearing liabilities and the resultant spread at december 31 , 2016. income and all average balances are monthly average balances . non-accruing loans have been included in the table as loans carrying a zero yield . replace_table_token_25_th _ ( 1 ) the average loans receivable , net balances include non-accruing loans . 62 rate/volume analysis the following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities . it distinguishes between the changes related to outstanding balances and that due to the changes in interest rates . for each category of interest-earning assets and interest-bearing liabilities , information is provided on changes attributable to ( i ) changes in volume ( i.e . , changes in volume multiplied by old rate ) and ( ii ) changes in rate ( i.e . , changes in rate multiplied by old volume ) . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately to the change due to volume and the change due to rate . replace_table_token_26_th ( 1 ) the average loans receivable , net balances include non-accruing loans . comparison of results of operations for the years ended december 31 , 2016 and 2015 general . net income for the year ended december 31 , 2016 , increased $ 1.6 million , or 18.3 % , to $ 10.5 million , from $ 8.9 million for the year ended december 31 , 2015. the increase in net income was primarily a result of a $ 6.3 million , or 19.9 % increase in interest income , and a 6.0 million , or 34.0 % increase in noninterest income , partially offset by a $ 9.3 million , or 31.3 % increase in noninterest expense , a $ 731,000 , or 15.0 % increase in the provision for income tax expense and $ 505,000 , or 13.8 % increase in interest expense . net interest income . net interest income increased $ 5.8 million , or 20.7 % , to $ 33.9 million for the year ended december 31 , 2016 , from $ 28.0 million for the year ended december 31 , 2015. the increase in net interest income was primarily attributable to a $ 5.4 million , or 17.6 % increase in loan receivable interest income resulting from a $ 127.8 million increase in average loans receivable , net and loans held for sale over the last year , a $ 1.0 million , or 74.4 % increase in interest and dividends on investment securities , and cash and cash equivalents , primarily offset by a $ 539,000 , or 374.3 % increase in subordinated note interest expense . the subordinated note was issued on october 15 , 2015 . 63 the net interest margin ( “ nim ” ) decreased 58 basis points to 4.43 % for the year ended december 31 , 2016 , from 5.01 % for the same period last year . the decreased nim reflects continued growth in diversified , lower yielding assets including loan and investment assets . as a percentage , consumer loans to total loans were 28.9 % at december 31 , 2016 , compared to 31.0 % at december 31 , 2015 , reflecting our loan diversification strategy . the average cost of funds for total interest-bearing liabilities decreased nine basis points to 0.74 % for the year ended december 31 , 2016 , from 0.83 % for the year ended december 31 , 2015. the decrease primarily reflects a significant amount of relatively low cost relationship-based transactional deposits acquired in the branch purchase and the decline in the percentage of higher cost certificates of deposit to total deposits over the last year . the decrease does not reflect the $ 152.9 million in noninterest-bearing deposits that reduced our overall cost of deposits . management remains focused on

