similarly , the “ rate/volume analysis ” table helps demonstrate the impact of changing interest rates and changing volume of assets and liabilities during the years shown . we also track the sensitivity of our various categories of assets and liabilities to changes in interest rates , and we have included a “ sensitivity analysis table ” to help explain this . finally , we have included a number of tables that provide detail about our investment securities , our loans , and our deposits and other borrowings . there are risks inherent in all loans , so we maintain an allowance for loan losses to absorb probable losses on existing loans that may become uncollectible . we establish and maintain this allowance by charging a provision for loan losses against our operating earnings . in the following section we have included a detailed discussion of this process , as well as several tables describing our allowance for loan losses and the allocation of this allowance among our various categories of loans . in addition to earning interest on our loans and investments , we earn income through fees and other expenses we charge to our customers . we describe the various components of this noninterest income , as well as our noninterest expense , in the following discussion . the discussion and analysis also identifies significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements . we encourage you to read this discussion and analysis in conjunction with the financial statements and the related notes and the other statistical information also included in this report . recent developments on february 1 , 2014 , we completed our acquisition of savannah river and its wholly-owned subsidiary , savannah river banking company . under the terms of the agreement and plan of merger , savannah river shareholders received either $ 11.00 in cash or 1.0618 shares of the company 's common stock , or a combination thereof , for each savannah river share they owned immediately prior to the merger , subject to the limitation that 60 % of the outstanding shares of savannah river common stock were exchanged for cash and 40 % of the outstanding shares of savannah river common stock were exchanged for shares of the company 's common stock . the company issued 1,274,200 shares of common stock in the merger . critical accounting policies we have adopted various accounting policies that govern the application of accounting principles generally accepted in the united states and with general practices within the banking industry in the preparation of our financial statements . our significant accounting policies are described in the notes to our consolidated financial statements in this report . certain accounting policies involve significant judgments and assumptions by us that have a material impact on the carrying value of certain assets and liabilities . we consider these accounting policies to be critical accounting policies . the judgment and assumptions we use are based on historical experience and other factors , which we believe to be reasonable under the circumstances . because of the nature of the judgment and assumptions we make , actual results could differ from these judgments and estimates that could have a material impact on the carrying values of our assets and liabilities and our results of operations . we believe the allowance for loan losses is the critical accounting policy that requires the most significant judgment and estimates used in preparation of our consolidated financial statements . some of the more critical judgments supporting the amount of our allowance for loan losses include judgments about the credit worthiness of borrowers , the estimated value of the underlying collateral , the assumptions about cash flow , determination of loss factors for estimating credit losses , the impact of current events , and conditions , and other factors impacting the level of probable inherent losses . under different conditions or using different assumptions , the actual amount of credit losses incurred by us may be different from management 's estimates provided in our consolidated financial statements . refer to the portion of this discussion that addresses our allowance for loan losses for a more complete discussion of our processes and methodology for determining our allowance for loan losses . income taxes are provided for the tax effects of the transactions reported in our consolidated financial statements and consist of taxes currently due plus deferred taxes related to differences between the tax basis and accounting basis of certain assets and liabilities , including available-for-sale securities , allowance for loan losses , write downs of oreo properties , accumulated depreciation , net operating loss carry forwards , accretion income , deferred compensation , intangible assets , and pension plan and post-retirement benefits . the deferred tax assets and liabilities represent the future tax return consequences of those differences , which will either be taxable or deductible when the assets and liabilities are recovered or settled . deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled . a valuation allowance is recorded when it is `` more likely than not `` that a deferred tax asset will not be realized . as changes in tax laws or rates are enacted , deferred tax assets and liabilities are adjusted through the provision for income taxes . we file a consolidated federal income tax return for our subsidiary bank . at december 31 , 2013 , we are in a net deferred tax asset position . we evaluate securities for other-than-temporary impairment at least on a quarterly basis . story_separator_special_tag we also consider subjective issues such as changes in the lending policies and procedures , changes in the local/national economy , changes in volume or type of credits , changes in volume/severity of problem loans , quality of loan review and board of director oversight and concentrations of credit . periodically , we adjust the amount of the allowance based on changing circumstances . we charge recognized losses to the allowance and add subsequent recoveries back to the allowance for loan losses . there can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period , especially considering the overall weakness in the commercial real estate market in our market areas . we perform an analysis quarterly to assess the risk within the loan portfolio . the portfolio is segregated into similar risk components for which historical loss ratios are calculated and adjusted for identified changes in current portfolio characteristics . historical loss ratios are calculated by product type and by regulatory credit risk classification ( see note 5 – loans ) . the annualized weighted average loss ratios over the last 24 months for loans classified substandard , special mention and pass have been approximately 3.08 % , 1.20 % and 0.08 % , respectively . the allowance consists of an allocated and unallocated allowance . the allocated portion is determined by types and ratings of loans within the portfolio . the unallocated portion of the allowance is established for losses that exist in the remainder of the portfolio and compensates for uncertainty in estimating the loan losses . as a result of the economic downturn beginning in 2008 and continuing through 2013 , real estate values have been dramatically impacted . with our loan portfolio consisting of a large percentage of real estate secured loans we , like most financial institutions , continue to experience higher delinquencies and problem loans from pre 2008 historical levels . non-performing assets were $ 12.8 million ( 2.16 % of total assets ) at december 31 , 2011 , $ 8.8 million ( 1.45 % of total assets ) at december 31 , 2012 , and $ 8.8 million ( 1.39 % of total assets ) at december 31 , 2013. we believe these ratios are favorable in comparison to current industry results nationally and specifically in our local markets . as noted below in the “ allocation of the allowance for loan losses ” table , the unallocated portion of the allowance as a percentage of the total allowance has grown over the last several years . the allocated portion of the allowance is based on historical loss experience as well as certain qualitative factors as explained above . the qualitative factors have been established based on certain assumptions made as a result of the current economic conditions and are adjusted as conditions change to be directionally consistent with these changes . the unallocated portion of the allowance is composed of factors based on management 's evaluation of various conditions that are not directly measured in the estimation of probable losses through the experience formula or specific allowances . the unallocated allowance of the portfolio is primarily identified through discussions with senior credit management and through consideration of various portfolio specifics and other uncertainties outside of our markets that could impact the risk inherent in the portfolio . these include factors such as uncertainty as to a sustainable economic recovery , ongoing global economic conditions and sustained levels of high national unemployment . given these uncertainties in economic conditions and particularly real estate valuations , we do not believe it would be prudent to reduce substantially the overall level of our allowance at this time . the unallocated portion as a percentage of the loan portfolio has grown recently , primarily as a result of higher historical loss periods dropping out of our overall analysis accompanied by a relatively flat loan portfolio . as economic conditions show sustainable improvement , we believe the unallocated portion of the allowance should decrease as a percentage of the total allowance . in the near term , however , this percentage may continue to increase slightly . our company has a significant portion of its loan portfolio with real estate as the underlying collateral . at december 31 , 2013 and 2012 , approximately 92.0 % of the loan portfolio had real estate collateral ( see note 15 to financial statements for concentrations of credit ) . when loans , whether commercial or personal , are granted , they are based on the borrower 's ability to generate repayment cash flows from income sources sufficient to service the debt . real estate is generally taken to reinforce the likelihood of the ultimate repayment and as a secondary source of repayment . during this economic cycle many borrowers ' traditional income sources have been impacted negatively and real estate values have dropped significantly . we continue to work closely with all our borrowers that are experiencing economic problems as a result of this cycle and believe we have the processes in place to monitor and identify problem credits . there can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period . the allowance is also subject to examination and testing for adequacy by regulatory agencies , which may consider such factors as the methodology used to determine adequacy and the size of the allowance relative to that of peer institutions . such regulatory agencies could require us to adjust our allowance based on information available to them at the time of their examination . at december 31 , 2013 , 2012 , and 2011 ,

liquidity management liquidity management involves monitoring sources and uses of funds in order to meet our day-to-day cash flow requirements while maximizing profits . liquidity represents our ability to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasing liabilities . liquidity management is made more complicated because different balance sheet components are subject to varying degrees of management control . for example , the timing of maturities of the investment portfolio is very predictable and subject to a high degree of control at the time investment decisions are made . however , net deposit inflows and outflows are far less predictable and are not subject to nearly the same degree of control . asset liquidity is provided by cash and assets which are readily marketable , or which can be pledged , or which will mature in the near future . liability liquidity is provided by access to core funding sources , principally the ability to generate customer deposits in our market area . in addition , liability liquidity is provided through the ability to borrow against approved lines of credit ( federal funds purchased ) from correspondent banks and to borrow on a secured basis through securities sold under agreements to repurchase . the bank is a member of the fhlb and has the ability to obtain advances for various periods of time . these advances are secured by securities pledged by the bank or assignment of loans within the bank 's portfolio .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity management liquidity management involves monitoring sources and uses of funds in order to meet our day-to-day cash flow requirements while maximizing profits . liquidity represents our ability to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasing liabilities . liquidity management is made more complicated because different balance sheet components are subject to varying degrees of management control . for example , the timing of maturities of the investment portfolio is very predictable and subject to a high degree of control at the time investment decisions are made . however , net deposit inflows and outflows are far less predictable and are not subject to nearly the same degree of control . asset liquidity is provided by cash and assets which are readily marketable , or which can be pledged , or which will mature in the near future . liability liquidity is provided by access to core funding sources , principally the ability to generate customer deposits in our market area . in addition , liability liquidity is provided through the ability to borrow against approved lines of credit ( federal funds purchased ) from correspondent banks and to borrow on a secured basis through securities sold under agreements to repurchase . the bank is a member of the fhlb and has the ability to obtain advances for various periods of time . these advances are secured by securities pledged by the bank or assignment of loans within the bank 's portfolio .
```    
 Suspicious Activity Report : similarly , the “ rate/volume analysis ” table helps demonstrate the impact of changing interest rates and changing volume of assets and liabilities during the years shown . we also track the sensitivity of our various categories of assets and liabilities to changes in interest rates , and we have included a “ sensitivity analysis table ” to help explain this . finally , we have included a number of tables that provide detail about our investment securities , our loans , and our deposits and other borrowings . there are risks inherent in all loans , so we maintain an allowance for loan losses to absorb probable losses on existing loans that may become uncollectible . we establish and maintain this allowance by charging a provision for loan losses against our operating earnings . in the following section we have included a detailed discussion of this process , as well as several tables describing our allowance for loan losses and the allocation of this allowance among our various categories of loans . in addition to earning interest on our loans and investments , we earn income through fees and other expenses we charge to our customers . we describe the various components of this noninterest income , as well as our noninterest expense , in the following discussion . the discussion and analysis also identifies significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements . we encourage you to read this discussion and analysis in conjunction with the financial statements and the related notes and the other statistical information also included in this report . recent developments on february 1 , 2014 , we completed our acquisition of savannah river and its wholly-owned subsidiary , savannah river banking company . under the terms of the agreement and plan of merger , savannah river shareholders received either $ 11.00 in cash or 1.0618 shares of the company 's common stock , or a combination thereof , for each savannah river share they owned immediately prior to the merger , subject to the limitation that 60 % of the outstanding shares of savannah river common stock were exchanged for cash and 40 % of the outstanding shares of savannah river common stock were exchanged for shares of the company 's common stock . the company issued 1,274,200 shares of common stock in the merger . critical accounting policies we have adopted various accounting policies that govern the application of accounting principles generally accepted in the united states and with general practices within the banking industry in the preparation of our financial statements . our significant accounting policies are described in the notes to our consolidated financial statements in this report . certain accounting policies involve significant judgments and assumptions by us that have a material impact on the carrying value of certain assets and liabilities . we consider these accounting policies to be critical accounting policies . the judgment and assumptions we use are based on historical experience and other factors , which we believe to be reasonable under the circumstances . because of the nature of the judgment and assumptions we make , actual results could differ from these judgments and estimates that could have a material impact on the carrying values of our assets and liabilities and our results of operations . we believe the allowance for loan losses is the critical accounting policy that requires the most significant judgment and estimates used in preparation of our consolidated financial statements . some of the more critical judgments supporting the amount of our allowance for loan losses include judgments about the credit worthiness of borrowers , the estimated value of the underlying collateral , the assumptions about cash flow , determination of loss factors for estimating credit losses , the impact of current events , and conditions , and other factors impacting the level of probable inherent losses . under different conditions or using different assumptions , the actual amount of credit losses incurred by us may be different from management 's estimates provided in our consolidated financial statements . refer to the portion of this discussion that addresses our allowance for loan losses for a more complete discussion of our processes and methodology for determining our allowance for loan losses . income taxes are provided for the tax effects of the transactions reported in our consolidated financial statements and consist of taxes currently due plus deferred taxes related to differences between the tax basis and accounting basis of certain assets and liabilities , including available-for-sale securities , allowance for loan losses , write downs of oreo properties , accumulated depreciation , net operating loss carry forwards , accretion income , deferred compensation , intangible assets , and pension plan and post-retirement benefits . the deferred tax assets and liabilities represent the future tax return consequences of those differences , which will either be taxable or deductible when the assets and liabilities are recovered or settled . deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled . a valuation allowance is recorded when it is `` more likely than not `` that a deferred tax asset will not be realized . as changes in tax laws or rates are enacted , deferred tax assets and liabilities are adjusted through the provision for income taxes . we file a consolidated federal income tax return for our subsidiary bank . at december 31 , 2013 , we are in a net deferred tax asset position . we evaluate securities for other-than-temporary impairment at least on a quarterly basis . story_separator_special_tag we also consider subjective issues such as changes in the lending policies and procedures , changes in the local/national economy , changes in volume or type of credits , changes in volume/severity of problem loans , quality of loan review and board of director oversight and concentrations of credit . periodically , we adjust the amount of the allowance based on changing circumstances . we charge recognized losses to the allowance and add subsequent recoveries back to the allowance for loan losses . there can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period , especially considering the overall weakness in the commercial real estate market in our market areas . we perform an analysis quarterly to assess the risk within the loan portfolio . the portfolio is segregated into similar risk components for which historical loss ratios are calculated and adjusted for identified changes in current portfolio characteristics . historical loss ratios are calculated by product type and by regulatory credit risk classification ( see note 5 – loans ) . the annualized weighted average loss ratios over the last 24 months for loans classified substandard , special mention and pass have been approximately 3.08 % , 1.20 % and 0.08 % , respectively . the allowance consists of an allocated and unallocated allowance . the allocated portion is determined by types and ratings of loans within the portfolio . the unallocated portion of the allowance is established for losses that exist in the remainder of the portfolio and compensates for uncertainty in estimating the loan losses . as a result of the economic downturn beginning in 2008 and continuing through 2013 , real estate values have been dramatically impacted . with our loan portfolio consisting of a large percentage of real estate secured loans we , like most financial institutions , continue to experience higher delinquencies and problem loans from pre 2008 historical levels . non-performing assets were $ 12.8 million ( 2.16 % of total assets ) at december 31 , 2011 , $ 8.8 million ( 1.45 % of total assets ) at december 31 , 2012 , and $ 8.8 million ( 1.39 % of total assets ) at december 31 , 2013. we believe these ratios are favorable in comparison to current industry results nationally and specifically in our local markets . as noted below in the “ allocation of the allowance for loan losses ” table , the unallocated portion of the allowance as a percentage of the total allowance has grown over the last several years . the allocated portion of the allowance is based on historical loss experience as well as certain qualitative factors as explained above . the qualitative factors have been established based on certain assumptions made as a result of the current economic conditions and are adjusted as conditions change to be directionally consistent with these changes . the unallocated portion of the allowance is composed of factors based on management 's evaluation of various conditions that are not directly measured in the estimation of probable losses through the experience formula or specific allowances . the unallocated allowance of the portfolio is primarily identified through discussions with senior credit management and through consideration of various portfolio specifics and other uncertainties outside of our markets that could impact the risk inherent in the portfolio . these include factors such as uncertainty as to a sustainable economic recovery , ongoing global economic conditions and sustained levels of high national unemployment . given these uncertainties in economic conditions and particularly real estate valuations , we do not believe it would be prudent to reduce substantially the overall level of our allowance at this time . the unallocated portion as a percentage of the loan portfolio has grown recently , primarily as a result of higher historical loss periods dropping out of our overall analysis accompanied by a relatively flat loan portfolio . as economic conditions show sustainable improvement , we believe the unallocated portion of the allowance should decrease as a percentage of the total allowance . in the near term , however , this percentage may continue to increase slightly . our company has a significant portion of its loan portfolio with real estate as the underlying collateral . at december 31 , 2013 and 2012 , approximately 92.0 % of the loan portfolio had real estate collateral ( see note 15 to financial statements for concentrations of credit ) . when loans , whether commercial or personal , are granted , they are based on the borrower 's ability to generate repayment cash flows from income sources sufficient to service the debt . real estate is generally taken to reinforce the likelihood of the ultimate repayment and as a secondary source of repayment . during this economic cycle many borrowers ' traditional income sources have been impacted negatively and real estate values have dropped significantly . we continue to work closely with all our borrowers that are experiencing economic problems as a result of this cycle and believe we have the processes in place to monitor and identify problem credits . there can be no assurance that charge-offs of loans in future periods will not exceed the allowance for loan losses as estimated at any point in time or that provisions for loan losses will not be significant to a particular accounting period . the allowance is also subject to examination and testing for adequacy by regulatory agencies , which may consider such factors as the methodology used to determine adequacy and the size of the allowance relative to that of peer institutions . such regulatory agencies could require us to adjust our allowance based on information available to them at the time of their examination . at december 31 , 2013 , 2012 , and 2011 ,

