this transaction allowed us to acquire a commercial banking franchise in our backyard . the independence bank branch locations will connect our existing footprint between orange county and the broader coachella valley and represents an important element of our strategic growth plan by providing meaningful operational scale in our core markets . the acquisition also allows us to deploy a portion of our current capital base into a compelling investment which we anticipate will produce attractive returns for shareholders . under the terms of the merger agreement , each share of independence bank common stock was converted into the right to receive $ 13.75 per share in cash or 0.9259 shares of company common stock , or a combination thereof , subject to the overall requirement that approximately 10 % of the consideration will be in the form of cash and approximately 90 % will be in the form of company common stock . the value of the total deal consideration was $ 78.5 million , which includes $ 6.1 million of cash consideration for independence bank common stockholders , $ 1.5 million of aggregate cash consideration to the holders of independence bank stock options and warrants , and the issuance of 4,480,645 shares of the corporation 's common stock , which was valued at $ 70.9 million based on the closing stock price of the company 's common stock on january 26 , 2015 of $ 15.83 per share . critical accounting policies and estimates we have established various accounting policies that govern the application of accounting principles generally accepted in the united states of america in the preparation of the company 's financial statements in item 8 hereof . the company 's significant accounting policies are described in the note 1 to the consolidated financial statements . certain accounting policies require management to make estimates and assumptions that have a material impact on the carrying value of certain assets and liabilities ; management considers these to be critical accounting policies . the estimates and assumptions management uses are based on historical experience and other factors , which management believes to be reasonable under the circumstances . actual results could differ significantly from these estimates and assumptions , which could have a material impact on the carrying value of assets and liabilities at consolidated statements of financial condition dates and the company 's results of operations for future reporting periods . we consider the determination of alll to be among our critical accounting policies that require judicious estimates and assumptions in the preparation of the company 's financial statements that is particularly susceptible to significant change . for further information on the alll , see “ business—allowances for loan losses ” and notes 1 and 5 to the consolidated financial statements in item 8 hereof . allowance for loan losses the company maintains an alll at a level deemed appropriate by management to provide for known or inherent risks in the portfolio at the consolidated statements of financial condition date . the company has implemented and adheres to an internal asset review system and loss allowance methodology designed to provide for the detection of problem assets and an adequate allowance to cover loan losses . management 's determination of the adequacy of alll is based on an evaluation of the composition of the portfolio , actual loss experience , industry charge-off experience on income property loans , current economic conditions , and other relevant factors in the area in which the company 's lending and real estate activities are based . these factors may affect the borrowers ' ability to pay and the value of the underlying collateral . the allowance is calculated by applying loss factors to loans held for investment according to loan program type and loan classification . the loss factors are established based primarily upon the bank 's historical loss experience and the industry charge-off experience and are evaluated on a quarterly basis . various regulatory agencies , as an integral part of their examination process , periodically review the company 's alll . such agencies may require the bank to recognize additions to the allowance based on judgments different from those of management . in the opinion of management , and in accordance with the credit loss allowance methodology , the present allowance is considered adequate to absorb estimable and probable credit losses . additions and reductions to the allowance are reflected in current operations . charge-offs to the allowance are made when specific assets are considered uncollectible or are transferred to oreo and the fair value of the property is less than the loan 's recorded investment . recoveries are credited to the allowance . although management uses the best information available to make these estimates , future adjustments to the allowance may be necessary due to economic , operating , regulatory and other conditions that may be beyond the company 's control . we account for acquisitions under the purchase accounting method . all identifiable assets acquired and liabilities assumed are recorded at fair value . we review each loan or loan pool acquired to determine whether there is evidence of deterioration in credit quality since inception and if it is probable that the company will be unable to collect all amounts due under the contractual loan agreements . we consider expected prepayments and estimated cash flows including principal and interest payments at the date of acquisition . the amount in excess of the estimated future cash flows is not accreted into earnings . the amount in excess of the estimated future cash flows over the book value of the loan is accreted into interest income over the remaining life of the loan ( accretable yield ) . the company records these loans on the acquisition date at their net realizable value . thus , an allowance for estimated future losses is not established on the acquisition date . story_separator_special_tag our efficiency ratio was 61.35 % for 2014 , compared to 64.68 % for 2013 and 57.41 % for 2012. the increase in the efficiency ratio in 2013 compared to 2012 was primarily related to the time required to redeploy the liquidity received from the acquisitions we completed in 2013 and the expansion of our lending platform to increase loan production . income taxes . the company recorded income taxes of $ 10.7 million in 2014 , compared with $ 5.6 million in 2013 and $ 10.0 million in 2012. our effective tax rate was 39.2 % for 2014 , 38.3 % for 2013 , and 38.8 % for 2012. the effective tax rate in each year is affected by various items , including enterprise zone net interest deductions , interest expense related to payments of prior year taxes , and adjustments to income tax reserves related to management 's favorable assessment of our income tax exposure . the net impact of these items were expense reductions of $ 358,000 in 2014 , $ 265,000 in 2013 , $ 755,000 in 2012. see note 11 to the consolidated financial statements included in item 8 hereof for further discussion of income taxes and an explanation of the factors which impact our effective tax rate . financial condition at december 31 , 2014 , total assets of the company were $ 2.0 billion , up $ 324.7 million or 18.9 % from total assets of $ 1.7 billion at december 31 , 2013 the increase in assets since year-end 2013 was primarily related to the increase in loans held for investment of $ 388.5 million associated with organic loan growth and the acquisition of infinity , which added assets at the acquisition date of $ 80.2 million , including $ 78.8 million in loans . partially offsetting these increases in assets was a reduction in investment securities available for sale of $ 54.5 million and cash and cash equivalents of $ 15.9 million . investment securities available for sale totaled $ 201.6 million at december 31 , 2014 , down $ 54.5 million or 21.3 % from december 31 , 2013. the decrease in investment securities since year-end 2013 was primarily due to sales of $ 164.8 million and principal pay downs of $ 28.7 million , partially offset by purchases of $ 135.6 million . in general , the purchase of investment securities primarily related to investing excess liquidity from our banking operations , while the sales were made to help fund loan production , which improved our interest-earning asset mix , and helped to prepare for the independence bank acquisition , which closed in january 2015. the total end of period weighted average interest rate on investments at december 31 , 2014 was 1.95 % , compared to 2.21 % at december 31 , 2013. net loans held for investment totaled $ 1.6 billion at december 31 , 2014 , an increase of $ 384.5 million or 31.2 % from december 31 , 2013. the increase in loans from december 31 , 2013 included $ 78.8 million of c & i loans from our acquisition of infinity , as well as organic growth in real estate loans of $ 110.6 million , c & i loans of $ 241.2 million , warehouse facilities loans of $ 26.3 million and sba loans of $ 17.7 million , partially offset by a decrease in commercial owner occupied loans of $ 10.1 million . the total end of period weighted average interest rate on loans at december 31 , 2014 was 4.91 % , compared to 4.95 % at december 31 , 2013. at december 31 , 2014 , total deposits were $ 1.6 billion , up $ 324.5 million or 24.8 % from december 31 , 2013. the increase in deposits since year-end 2013 included increases in money market of $ 98.7 million , noninterest bearing checking of $ 90.0 million , brokered certificates of deposit of $ 72.4 million and retail certificates of deposit of $ 54.6 million . the brokered deposits were raised in the third and fourth quarter of 2014 to lengthen the overall maturity of our liabilities and support our interest rate risk management strategies . these brokered deposits had a weighted average term of 18 months at closing and at an all-in cost of 66 basis points . these deposit decreased the mix of our transaction accounts to 72.9 % of total deposits at december 31 , 2014 , down from 75.9 % at december 31 , 2013. the total end of period weighted average interest rate on deposits at december 31 , 2014 was 0.36 % , compared to 0.33 % at december 31 , 2013. at december 31 , 2014 , total borrowings amounted to $ 187.0 million , down $ 27.4 million or 12.8 % from december 31 , 2013. the decrease in borrowings at december 31 , 2014 from 2013 was primarily related to a decrease in fhlb overnight advances . on august 29 , 2014 , the company completed the issuance of $ 60 million in aggregate principal amount of 5.75 % subordinated notes due september 3 , 2024 in a private placement transaction . the net proceeds of the offering were approximately $ 59 million and are being used for general corporate purposes , including , but not limited to , contribution of capital to the bank of $ 40 million to support both organic growth as well as acquisition activities . additionally , toward the end of the third quarter of 2014 , we locked in borrowings from the fhlb of $ 25.0 million at 60 basis points for 18 months and $ 25.0 million at 84 basis points for 2 years . these borrowings lengthen the overall maturity of our liabilities and support our interest rate risk management strategies as well as leverage our balance sheet for future growth . at december 31 , 2014 , total borrowings represented

liquidity our primary sources of funds are principal and interest payments on loans , deposits , fhlb advances and other borrowings . while maturities and scheduled amortization of loans are a predictable source of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we seek to maintain a level of liquid assets to ensure a safe and sound operation . our liquid assets are comprised of cash and unpledged investments . as part of our daily monitoring , we calculate a liquidity ratio by dividing the sum of cash balances plus unpledged securities by the sum of deposits that mature in one year or less plus transaction accounts and fhlb advances . at december 31 , 2014 , our liquidity ratio was 14.93 % , compared with 15.90 % at december 31 , 2013. we believe our level of liquid assets is sufficient to meet current anticipated funding needs . at december 31 , 2014 , liquid assets of the company represented approximately 11.8 % of total assets , compared to 13.0 % at december 31 , 2013. at december 31 , 2014 , the company had seven unsecured lines of credit with other correspondent banks to purchase federal funds totaling $ 82.0 million , one reverse repo line with a correspondent bank of $ 50.0 million and access through the federal reserve bank discount window to borrow $ 3.3 million , as business needs dictate . we also have a line of credit with the fhlb allowing us to borrow up to 45 % of the bank 's total assets . at december 31 , 2014 , we had a borrowing capacity of $ 527.4 million , based on collateral pledged at the fhlb , with $ 70.0 million outstanding in fhlb borrowing . the fhlb advance line is collateralized by eligible loans and fhlb stock . at december 31 , 2014 , we had approximately $ 618.6 million of collateral pledged to secure fhlb borrowings .


 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 our primary sources of funds are principal and interest payments on loans , deposits , fhlb advances and other borrowings . while maturities and scheduled amortization of loans are a predictable source of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we seek to maintain a level of liquid assets to ensure a safe and sound operation . our liquid assets are comprised of cash and unpledged investments . as part of our daily monitoring , we calculate a liquidity ratio by dividing the sum of cash balances plus unpledged securities by the sum of deposits that mature in one year or less plus transaction accounts and fhlb advances . at december 31 , 2014 , our liquidity ratio was 14.93 % , compared with 15.90 % at december 31 , 2013. we believe our level of liquid assets is sufficient to meet current anticipated funding needs . at december 31 , 2014 , liquid assets of the company represented approximately 11.8 % of total assets , compared to 13.0 % at december 31 , 2013. at december 31 , 2014 , the company had seven unsecured lines of credit with other correspondent banks to purchase federal funds totaling $ 82.0 million , one reverse repo line with a correspondent bank of $ 50.0 million and access through the federal reserve bank discount window to borrow $ 3.3 million , as business needs dictate . we also have a line of credit with the fhlb allowing us to borrow up to 45 % of the bank 's total assets . at december 31 , 2014 , we had a borrowing capacity of $ 527.4 million , based on collateral pledged at the fhlb , with $ 70.0 million outstanding in fhlb borrowing . the fhlb advance line is collateralized by eligible loans and fhlb stock . at december 31 , 2014 , we had approximately $ 618.6 million of collateral pledged to secure fhlb borrowings .
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 Suspicious Activity Report : this transaction allowed us to acquire a commercial banking franchise in our backyard . the independence bank branch locations will connect our existing footprint between orange county and the broader coachella valley and represents an important element of our strategic growth plan by providing meaningful operational scale in our core markets . the acquisition also allows us to deploy a portion of our current capital base into a compelling investment which we anticipate will produce attractive returns for shareholders . under the terms of the merger agreement , each share of independence bank common stock was converted into the right to receive $ 13.75 per share in cash or 0.9259 shares of company common stock , or a combination thereof , subject to the overall requirement that approximately 10 % of the consideration will be in the form of cash and approximately 90 % will be in the form of company common stock . the value of the total deal consideration was $ 78.5 million , which includes $ 6.1 million of cash consideration for independence bank common stockholders , $ 1.5 million of aggregate cash consideration to the holders of independence bank stock options and warrants , and the issuance of 4,480,645 shares of the corporation 's common stock , which was valued at $ 70.9 million based on the closing stock price of the company 's common stock on january 26 , 2015 of $ 15.83 per share . critical accounting policies and estimates we have established various accounting policies that govern the application of accounting principles generally accepted in the united states of america in the preparation of the company 's financial statements in item 8 hereof . the company 's significant accounting policies are described in the note 1 to the consolidated financial statements . certain accounting policies require management to make estimates and assumptions that have a material impact on the carrying value of certain assets and liabilities ; management considers these to be critical accounting policies . the estimates and assumptions management uses are based on historical experience and other factors , which management believes to be reasonable under the circumstances . actual results could differ significantly from these estimates and assumptions , which could have a material impact on the carrying value of assets and liabilities at consolidated statements of financial condition dates and the company 's results of operations for future reporting periods . we consider the determination of alll to be among our critical accounting policies that require judicious estimates and assumptions in the preparation of the company 's financial statements that is particularly susceptible to significant change . for further information on the alll , see “ business—allowances for loan losses ” and notes 1 and 5 to the consolidated financial statements in item 8 hereof . allowance for loan losses the company maintains an alll at a level deemed appropriate by management to provide for known or inherent risks in the portfolio at the consolidated statements of financial condition date . the company has implemented and adheres to an internal asset review system and loss allowance methodology designed to provide for the detection of problem assets and an adequate allowance to cover loan losses . management 's determination of the adequacy of alll is based on an evaluation of the composition of the portfolio , actual loss experience , industry charge-off experience on income property loans , current economic conditions , and other relevant factors in the area in which the company 's lending and real estate activities are based . these factors may affect the borrowers ' ability to pay and the value of the underlying collateral . the allowance is calculated by applying loss factors to loans held for investment according to loan program type and loan classification . the loss factors are established based primarily upon the bank 's historical loss experience and the industry charge-off experience and are evaluated on a quarterly basis . various regulatory agencies , as an integral part of their examination process , periodically review the company 's alll . such agencies may require the bank to recognize additions to the allowance based on judgments different from those of management . in the opinion of management , and in accordance with the credit loss allowance methodology , the present allowance is considered adequate to absorb estimable and probable credit losses . additions and reductions to the allowance are reflected in current operations . charge-offs to the allowance are made when specific assets are considered uncollectible or are transferred to oreo and the fair value of the property is less than the loan 's recorded investment . recoveries are credited to the allowance . although management uses the best information available to make these estimates , future adjustments to the allowance may be necessary due to economic , operating , regulatory and other conditions that may be beyond the company 's control . we account for acquisitions under the purchase accounting method . all identifiable assets acquired and liabilities assumed are recorded at fair value . we review each loan or loan pool acquired to determine whether there is evidence of deterioration in credit quality since inception and if it is probable that the company will be unable to collect all amounts due under the contractual loan agreements . we consider expected prepayments and estimated cash flows including principal and interest payments at the date of acquisition . the amount in excess of the estimated future cash flows is not accreted into earnings . the amount in excess of the estimated future cash flows over the book value of the loan is accreted into interest income over the remaining life of the loan ( accretable yield ) . the company records these loans on the acquisition date at their net realizable value . thus , an allowance for estimated future losses is not established on the acquisition date . story_separator_special_tag our efficiency ratio was 61.35 % for 2014 , compared to 64.68 % for 2013 and 57.41 % for 2012. the increase in the efficiency ratio in 2013 compared to 2012 was primarily related to the time required to redeploy the liquidity received from the acquisitions we completed in 2013 and the expansion of our lending platform to increase loan production . income taxes . the company recorded income taxes of $ 10.7 million in 2014 , compared with $ 5.6 million in 2013 and $ 10.0 million in 2012. our effective tax rate was 39.2 % for 2014 , 38.3 % for 2013 , and 38.8 % for 2012. the effective tax rate in each year is affected by various items , including enterprise zone net interest deductions , interest expense related to payments of prior year taxes , and adjustments to income tax reserves related to management 's favorable assessment of our income tax exposure . the net impact of these items were expense reductions of $ 358,000 in 2014 , $ 265,000 in 2013 , $ 755,000 in 2012. see note 11 to the consolidated financial statements included in item 8 hereof for further discussion of income taxes and an explanation of the factors which impact our effective tax rate . financial condition at december 31 , 2014 , total assets of the company were $ 2.0 billion , up $ 324.7 million or 18.9 % from total assets of $ 1.7 billion at december 31 , 2013 the increase in assets since year-end 2013 was primarily related to the increase in loans held for investment of $ 388.5 million associated with organic loan growth and the acquisition of infinity , which added assets at the acquisition date of $ 80.2 million , including $ 78.8 million in loans . partially offsetting these increases in assets was a reduction in investment securities available for sale of $ 54.5 million and cash and cash equivalents of $ 15.9 million . investment securities available for sale totaled $ 201.6 million at december 31 , 2014 , down $ 54.5 million or 21.3 % from december 31 , 2013. the decrease in investment securities since year-end 2013 was primarily due to sales of $ 164.8 million and principal pay downs of $ 28.7 million , partially offset by purchases of $ 135.6 million . in general , the purchase of investment securities primarily related to investing excess liquidity from our banking operations , while the sales were made to help fund loan production , which improved our interest-earning asset mix , and helped to prepare for the independence bank acquisition , which closed in january 2015. the total end of period weighted average interest rate on investments at december 31 , 2014 was 1.95 % , compared to 2.21 % at december 31 , 2013. net loans held for investment totaled $ 1.6 billion at december 31 , 2014 , an increase of $ 384.5 million or 31.2 % from december 31 , 2013. the increase in loans from december 31 , 2013 included $ 78.8 million of c & i loans from our acquisition of infinity , as well as organic growth in real estate loans of $ 110.6 million , c & i loans of $ 241.2 million , warehouse facilities loans of $ 26.3 million and sba loans of $ 17.7 million , partially offset by a decrease in commercial owner occupied loans of $ 10.1 million . the total end of period weighted average interest rate on loans at december 31 , 2014 was 4.91 % , compared to 4.95 % at december 31 , 2013. at december 31 , 2014 , total deposits were $ 1.6 billion , up $ 324.5 million or 24.8 % from december 31 , 2013. the increase in deposits since year-end 2013 included increases in money market of $ 98.7 million , noninterest bearing checking of $ 90.0 million , brokered certificates of deposit of $ 72.4 million and retail certificates of deposit of $ 54.6 million . the brokered deposits were raised in the third and fourth quarter of 2014 to lengthen the overall maturity of our liabilities and support our interest rate risk management strategies . these brokered deposits had a weighted average term of 18 months at closing and at an all-in cost of 66 basis points . these deposit decreased the mix of our transaction accounts to 72.9 % of total deposits at december 31 , 2014 , down from 75.9 % at december 31 , 2013. the total end of period weighted average interest rate on deposits at december 31 , 2014 was 0.36 % , compared to 0.33 % at december 31 , 2013. at december 31 , 2014 , total borrowings amounted to $ 187.0 million , down $ 27.4 million or 12.8 % from december 31 , 2013. the decrease in borrowings at december 31 , 2014 from 2013 was primarily related to a decrease in fhlb overnight advances . on august 29 , 2014 , the company completed the issuance of $ 60 million in aggregate principal amount of 5.75 % subordinated notes due september 3 , 2024 in a private placement transaction . the net proceeds of the offering were approximately $ 59 million and are being used for general corporate purposes , including , but not limited to , contribution of capital to the bank of $ 40 million to support both organic growth as well as acquisition activities . additionally , toward the end of the third quarter of 2014 , we locked in borrowings from the fhlb of $ 25.0 million at 60 basis points for 18 months and $ 25.0 million at 84 basis points for 2 years . these borrowings lengthen the overall maturity of our liabilities and support our interest rate risk management strategies as well as leverage our balance sheet for future growth . at december 31 , 2014 , total borrowings represented

