in addition , $ 19,000 in non-cash other-than-temporary impairment ( “ otti ” ) charges were realized for the year ended december 31 , 2011 , compared to $ 8.4 million for the same period of 2010. during 2011 , we also recognized a gain of $ 1.4 million from the sale of a portion of the indirect auto loan portfolio . the decreases in expenses and the gain on the sale of indirect auto loans were offset by a decrease of $ 7.4 million in income tax benefit and a decline in net interest income of $ 3.3 million . the decrease in net interest income was driven by an $ 11.7 million reduction in interest income on a fully tax-equivalent ( “ fte ” ) basis attributable to lower levels of loans , the sale of a portion of the indirect auto portfolio and the lower interest rate environment . the net interest margin for the year ended december 31 , 2011 , on an fte basis , increased to 2.96 % from 2.71 % for the year ended december 31 , 2010. the increase in the net interest margin was driven primarily by the strategic plan to reduce cash levels by paying off certain liabilities that matured during 2011 and to change the composition of our deposit mix , focusing on lower cost core deposits . the provision for loan losses was $ 9.2 million for the year ended december 31 , 2011 , compared to $ 15.7 million for fiscal year 2010. the lower provision expense was primarily due to a leveling in the credit quality of our loan portfolio . management continued to make specific allocations for impaired loans where it was determined that the collateral supporting the loans is not adequate to cover the loan balance , and management adjusted the qualitative factors affecting the allowance for loan losses ( the “ all ” ) to reflect changes in the economic environment . [ 25 ] interest expense on our interest-bearing liabilities decreased $ 8.0 million during 2011 when compared to 2010 due primarily to a planned decrease of $ 260.1 million in average interest-bearing deposits and a $ 39.1 million decrease in average debt outstanding . management used cash to repay wholesale deposits and fhlb advances . the decline in expense was also due to the low interest rate environment and our strategy to provide special pricing only to full relationship customers . other operating income increased $ 14.7 million during 2011 when compared to 2010. this increase was primarily attributable to an $ 8.4 million decrease in non-cash credit-related otti charges , and a decrease of $ 6.1 million in net losses related to sales of securities , sales and write downs of other real estate owned and a gain recognized on the sale of a portion of the indirect auto loan portfolio . operating expenses decreased $ 3.2 million during 2011 when compared to the same period of 2010. this decrease was due primarily to a $ 1.1 million decline in salaries and benefits related to a reduction in full-time equivalents through attrition and reduced pension expense and a decline of $ 1.7 million in fdic premiums attributable to the repayment of brokered deposits . comparing december 31 , 2011 to december 31 , 2010 , outstanding loans decreased by $ 38.6 million ( 3.8 % ) , net of the sale of $ 32.5 million of the indirect auto portfolio . cre loans decreased $ 12.4 million as a result of the payoff of several large loans , charge-offs of loan balances and ongoing scheduled principal payments . commercial and industrial ( “ c & i ” ) loans increased $ 8.7 million and residential mortgages declined $ 9.5 million . acquisition and development loans decreased $ 14.0 million due to principal repayments and charge offs . the decrease in the residential mortgage portfolio was attributable to regularly scheduled principal payments on existing loans and management 's decision to use secondary market outlets such as fannie mae for the majority of new , longer-term , fixed-rate residential loan originations . the consumer loan portfolio declined $ 43.9 million due primarily to the sale of $ 32.5 million of retail installment contracts in our indirect auto loan portfolio and $ 11.4 million of repayment activity in the indirect auto portfolio which exceeded new production due to special financing offered by the automotive manufacturers , credit unions and certain large regional banks . at december 31 , 2011 , approximately 64 % of the commercial loan portfolio was collateralized by real estate , compared to approximately 71 % at december 31 , 2010. interest income on loans in 2011 decreased by $ 8.8 million ( on an fte basis ) when compared to 2010 due to the decrease in interest rates and the decline the in loan balances during 2011. interest income on the investment securities decreased by $ 2.7 million ( on an fte basis ) due to reinvesting called securities at lower rates . ( additional information on the composition of interest income is available in table 1 that appears on page 32 ) . total deposits decreased $ 273.9 million during 2011 when compared to deposits at december 31 , 2010. the decline in deposits was due to a strategic decision to use cash to repay wholesale deposits and fhlb advances . the repayment of approximately $ 161 million in wholesale deposits was offset by increases of $ 28.7 million in non-interest bearing deposits , $ 9.0 million in traditional savings accounts and $ 2.1 million in retail money market accounts . time deposits less than $ 100,000 declined $ 62.3 million while time deposits greater than $ 100,000 decreased $ 196.9 million . the decrease was due to a $ 160.4 million decline in brokered certificates of deposit and cdars ® participation , and a decrease of $ 36.5 million in retail certificates of deposit . story_separator_special_tag pension expense and the determination of our projected pension liability are based upon two critical assumptions : the discount rate and the expected return on plan assets . we evaluate each of these [ 29 ] critical assumptions annually . other assumptions impact the determination of pension expense and the projected liability including the primary employee demographics , such as retirement patterns , employee turnover , mortality rates , and estimated employer compensation increases . these factors , along with the critical assumptions , are carefully reviewed by management each year in consultation with our pension plan consultants and actuaries . further information about our pension plan assumptions , the plan 's funded status , and other plan information is included in note 17 to the consolidated financial statements . other than as discussed above , management does not believe that any material changes in our critical accounting policies have occurred since december 31 , 2010. adoption of new accounting standards and effects of new accounting pronouncements note 1 to the consolidated financial statements discusses new accounting pronouncements that , when adopted , could affect our future consolidated financial statements . consolidated statement of income review net interest income net interest income is our largest source of operating revenue . net interest income is the difference between the interest earned on interest-earning assets and the interest expense incurred on interest-bearing liabilities . for analytical and discussion purposes , net interest income is adjusted to an fte basis to facilitate performance comparisons between taxable and tax-exempt assets by increasing tax-exempt income by an amount equal to the federal income taxes that would have been paid if this income were taxable at the statutorily applicable rate . the table below summarizes net interest income ( on a fully taxable equivalent basis ) for the 2011 and 2010. replace_table_token_10_th net interest income on an fte basis decreased $ 3.7 million during the year ended december 31 , 2011 over the same period in 2010 due to an $ 11.7 million ( 16.1 % ) decrease in interest income , which was partially offset by an $ 8.0 million ( 27.3 % ) decrease in interest expense . the decrease in net interest income resulted primarily from a lower level of loans and the lower interest rate environment in 2011 when compared to 2010. average interest-earning assets decreased by $ 264.7 million during 2011. the average yield on our average earning assets increased slightly to 4.54 % at december 31 , 2011 from 4.52 % at december 31 , 2010. this increase was due primarily to our strategy to deploy excess liquidity , invested at lower rates , to repay brokered and wholesale funding at their stated maturities rather than renew . interest expense decreased during 2011 when compared to 2010 due to an overall reduction in interest rates paid on time deposits , driven by our decision to provide special rates only to full relationship customers , as well as lower balances and the shorter duration of the portfolio . the overall decrease of $ 299.2 million in average interest-bearing liabilities in 2011 when compared to 2010 decreased the average rate paid from 1.89 % at december 31 , 2010 to 1.71 % at december 31 , 2011. as shown below , the composition of total interest income between 2011 and 2010 reflects a slight shift toward interest and fees on loans from investment securities . [ 30 ] replace_table_token_11_th table 1 sets forth the average balances , net interest income and expense , and average yields and rates for our interest-earning assets and interest-bearing liabilities for 2011 , 2010 and 2009. table 2 sets forth an analysis of volume and rate changes in interest income and interest expense of our average interest-earning assets and average interest-bearing liabilities for 2011 , 2010 and 2009. table 2 distinguishes between the changes related to average outstanding balances ( changes in volume created by holding the interest rate constant ) and the changes related to average interest rates ( changes in interest income or expense attributed to average rates created by holding the outstanding balance constant ) . [ 31 ] distribution of assets , liabilities and shareholders ' equity interest rates and interest differential – tax equivalent basis table 1 replace_table_token_12_th notes : ( 1 ) the above table reflects the average rates earned or paid stated on an fte basis assuming a tax rate of 35 % for 2011 , 2010 and 2009. the fte adjustments for the years ended december 31 , 2011 , 2010 and 2009 were $ 1,533 , $ 1,983 and $ 1,613 , respectively . ( 2 ) the average balances of non-accrual loans for the years ended december 31 , 2011 , 2010 and 2009 , which were reported in the average loan balances for these years , were $ 39,806 , $ 42,506 and $ 39,851 , respectively . ( 3 ) net interest margin is calculated as net interest income divided by average earning assets . ( 4 ) the average yields on investments are based on amortized cost . [ 32 ] interest variance analysis ( 1 ) table 2 replace_table_token_13_th note : ( 1 ) the change in interest income/expense due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . provision for loan losses the provision for loan losses was $ 9.2 million for the year ended december 31 , 2011 , compared to $ 15.7 million for fiscal year 2010. the lower provision for loan losses resulted primarily from stabilization in our total rolling historical loss rates and qualitative factors utilized in the determination of the all and stabilization in the level of classified assets . approximately $ .6 million of the lower provision for 2011 was related to the sale of $ 32.5 million of our indirect auto portfolio in the second

capital resources the bank and first united corporation are subject to risk-based capital regulations , which were adopted and are monitored by federal banking regulators . these regulations are used to evaluate capital adequacy and require an analysis of an institution 's asset risk profile and off-balance sheet exposures , such as unused loan commitments and stand-by letters of credit . the regulations require that a portion of total capital be tier 1 capital , consisting of common shareholders ' equity , the qualifying portion of trust issued preferred securities , and perpetual preferred stock , less goodwill and certain other deductions . the remaining capital , or tier 2 capital , consists of subordinated debt , mandatory convertible debt , the remaining portion of trust issued preferred securities , grandfathered senior debt and the all , subject to certain limitations . under the risk-based capital regulations , banking organizations are required to maintain a minimum 8 % ( 10 % for well capitalized banks ) total risk-based capital ratio ( total qualifying capital divided by risk-weighted assets ) , including a tier 1 ratio of 4 % ( 6 % for well capitalized banks ) . the risk-based capital rules have been further supplemented by a leverage ratio , defined as tier i capital divided by average assets , after certain adjustments . the minimum leverage ratio is 4 % ( 5 % for well capitalized banks ) for banking organizations that do not anticipate significant growth and have well-diversified risk ( including no undue interest rate risk exposure ) , excellent asset quality , high liquidity and good earnings . other banking organizations not in this category are expected to have ratios of at least 4-5 % , depending on their particular condition and growth plans . regulators may require higher capital ratios when warranted by the particular circumstances or risk profile of a given banking organization . in the current regulatory environment , banking organizations must stay well capitalized in order to receive favorable regulatory treatment on acquisition and other expansion activities and favorable risk-based deposit insurance assessments .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```capital resources the bank and first united corporation are subject to risk-based capital regulations , which were adopted and are monitored by federal banking regulators . these regulations are used to evaluate capital adequacy and require an analysis of an institution 's asset risk profile and off-balance sheet exposures , such as unused loan commitments and stand-by letters of credit . the regulations require that a portion of total capital be tier 1 capital , consisting of common shareholders ' equity , the qualifying portion of trust issued preferred securities , and perpetual preferred stock , less goodwill and certain other deductions . the remaining capital , or tier 2 capital , consists of subordinated debt , mandatory convertible debt , the remaining portion of trust issued preferred securities , grandfathered senior debt and the all , subject to certain limitations . under the risk-based capital regulations , banking organizations are required to maintain a minimum 8 % ( 10 % for well capitalized banks ) total risk-based capital ratio ( total qualifying capital divided by risk-weighted assets ) , including a tier 1 ratio of 4 % ( 6 % for well capitalized banks ) . the risk-based capital rules have been further supplemented by a leverage ratio , defined as tier i capital divided by average assets , after certain adjustments . the minimum leverage ratio is 4 % ( 5 % for well capitalized banks ) for banking organizations that do not anticipate significant growth and have well-diversified risk ( including no undue interest rate risk exposure ) , excellent asset quality , high liquidity and good earnings . other banking organizations not in this category are expected to have ratios of at least 4-5 % , depending on their particular condition and growth plans . regulators may require higher capital ratios when warranted by the particular circumstances or risk profile of a given banking organization . in the current regulatory environment , banking organizations must stay well capitalized in order to receive favorable regulatory treatment on acquisition and other expansion activities and favorable risk-based deposit insurance assessments .
```    
 Suspicious Activity Report : in addition , $ 19,000 in non-cash other-than-temporary impairment ( “ otti ” ) charges were realized for the year ended december 31 , 2011 , compared to $ 8.4 million for the same period of 2010. during 2011 , we also recognized a gain of $ 1.4 million from the sale of a portion of the indirect auto loan portfolio . the decreases in expenses and the gain on the sale of indirect auto loans were offset by a decrease of $ 7.4 million in income tax benefit and a decline in net interest income of $ 3.3 million . the decrease in net interest income was driven by an $ 11.7 million reduction in interest income on a fully tax-equivalent ( “ fte ” ) basis attributable to lower levels of loans , the sale of a portion of the indirect auto portfolio and the lower interest rate environment . the net interest margin for the year ended december 31 , 2011 , on an fte basis , increased to 2.96 % from 2.71 % for the year ended december 31 , 2010. the increase in the net interest margin was driven primarily by the strategic plan to reduce cash levels by paying off certain liabilities that matured during 2011 and to change the composition of our deposit mix , focusing on lower cost core deposits . the provision for loan losses was $ 9.2 million for the year ended december 31 , 2011 , compared to $ 15.7 million for fiscal year 2010. the lower provision expense was primarily due to a leveling in the credit quality of our loan portfolio . management continued to make specific allocations for impaired loans where it was determined that the collateral supporting the loans is not adequate to cover the loan balance , and management adjusted the qualitative factors affecting the allowance for loan losses ( the “ all ” ) to reflect changes in the economic environment . [ 25 ] interest expense on our interest-bearing liabilities decreased $ 8.0 million during 2011 when compared to 2010 due primarily to a planned decrease of $ 260.1 million in average interest-bearing deposits and a $ 39.1 million decrease in average debt outstanding . management used cash to repay wholesale deposits and fhlb advances . the decline in expense was also due to the low interest rate environment and our strategy to provide special pricing only to full relationship customers . other operating income increased $ 14.7 million during 2011 when compared to 2010. this increase was primarily attributable to an $ 8.4 million decrease in non-cash credit-related otti charges , and a decrease of $ 6.1 million in net losses related to sales of securities , sales and write downs of other real estate owned and a gain recognized on the sale of a portion of the indirect auto loan portfolio . operating expenses decreased $ 3.2 million during 2011 when compared to the same period of 2010. this decrease was due primarily to a $ 1.1 million decline in salaries and benefits related to a reduction in full-time equivalents through attrition and reduced pension expense and a decline of $ 1.7 million in fdic premiums attributable to the repayment of brokered deposits . comparing december 31 , 2011 to december 31 , 2010 , outstanding loans decreased by $ 38.6 million ( 3.8 % ) , net of the sale of $ 32.5 million of the indirect auto portfolio . cre loans decreased $ 12.4 million as a result of the payoff of several large loans , charge-offs of loan balances and ongoing scheduled principal payments . commercial and industrial ( “ c & i ” ) loans increased $ 8.7 million and residential mortgages declined $ 9.5 million . acquisition and development loans decreased $ 14.0 million due to principal repayments and charge offs . the decrease in the residential mortgage portfolio was attributable to regularly scheduled principal payments on existing loans and management 's decision to use secondary market outlets such as fannie mae for the majority of new , longer-term , fixed-rate residential loan originations . the consumer loan portfolio declined $ 43.9 million due primarily to the sale of $ 32.5 million of retail installment contracts in our indirect auto loan portfolio and $ 11.4 million of repayment activity in the indirect auto portfolio which exceeded new production due to special financing offered by the automotive manufacturers , credit unions and certain large regional banks . at december 31 , 2011 , approximately 64 % of the commercial loan portfolio was collateralized by real estate , compared to approximately 71 % at december 31 , 2010. interest income on loans in 2011 decreased by $ 8.8 million ( on an fte basis ) when compared to 2010 due to the decrease in interest rates and the decline the in loan balances during 2011. interest income on the investment securities decreased by $ 2.7 million ( on an fte basis ) due to reinvesting called securities at lower rates . ( additional information on the composition of interest income is available in table 1 that appears on page 32 ) . total deposits decreased $ 273.9 million during 2011 when compared to deposits at december 31 , 2010. the decline in deposits was due to a strategic decision to use cash to repay wholesale deposits and fhlb advances . the repayment of approximately $ 161 million in wholesale deposits was offset by increases of $ 28.7 million in non-interest bearing deposits , $ 9.0 million in traditional savings accounts and $ 2.1 million in retail money market accounts . time deposits less than $ 100,000 declined $ 62.3 million while time deposits greater than $ 100,000 decreased $ 196.9 million . the decrease was due to a $ 160.4 million decline in brokered certificates of deposit and cdars ® participation , and a decrease of $ 36.5 million in retail certificates of deposit . story_separator_special_tag pension expense and the determination of our projected pension liability are based upon two critical assumptions : the discount rate and the expected return on plan assets . we evaluate each of these [ 29 ] critical assumptions annually . other assumptions impact the determination of pension expense and the projected liability including the primary employee demographics , such as retirement patterns , employee turnover , mortality rates , and estimated employer compensation increases . these factors , along with the critical assumptions , are carefully reviewed by management each year in consultation with our pension plan consultants and actuaries . further information about our pension plan assumptions , the plan 's funded status , and other plan information is included in note 17 to the consolidated financial statements . other than as discussed above , management does not believe that any material changes in our critical accounting policies have occurred since december 31 , 2010. adoption of new accounting standards and effects of new accounting pronouncements note 1 to the consolidated financial statements discusses new accounting pronouncements that , when adopted , could affect our future consolidated financial statements . consolidated statement of income review net interest income net interest income is our largest source of operating revenue . net interest income is the difference between the interest earned on interest-earning assets and the interest expense incurred on interest-bearing liabilities . for analytical and discussion purposes , net interest income is adjusted to an fte basis to facilitate performance comparisons between taxable and tax-exempt assets by increasing tax-exempt income by an amount equal to the federal income taxes that would have been paid if this income were taxable at the statutorily applicable rate . the table below summarizes net interest income ( on a fully taxable equivalent basis ) for the 2011 and 2010. replace_table_token_10_th net interest income on an fte basis decreased $ 3.7 million during the year ended december 31 , 2011 over the same period in 2010 due to an $ 11.7 million ( 16.1 % ) decrease in interest income , which was partially offset by an $ 8.0 million ( 27.3 % ) decrease in interest expense . the decrease in net interest income resulted primarily from a lower level of loans and the lower interest rate environment in 2011 when compared to 2010. average interest-earning assets decreased by $ 264.7 million during 2011. the average yield on our average earning assets increased slightly to 4.54 % at december 31 , 2011 from 4.52 % at december 31 , 2010. this increase was due primarily to our strategy to deploy excess liquidity , invested at lower rates , to repay brokered and wholesale funding at their stated maturities rather than renew . interest expense decreased during 2011 when compared to 2010 due to an overall reduction in interest rates paid on time deposits , driven by our decision to provide special rates only to full relationship customers , as well as lower balances and the shorter duration of the portfolio . the overall decrease of $ 299.2 million in average interest-bearing liabilities in 2011 when compared to 2010 decreased the average rate paid from 1.89 % at december 31 , 2010 to 1.71 % at december 31 , 2011. as shown below , the composition of total interest income between 2011 and 2010 reflects a slight shift toward interest and fees on loans from investment securities . [ 30 ] replace_table_token_11_th table 1 sets forth the average balances , net interest income and expense , and average yields and rates for our interest-earning assets and interest-bearing liabilities for 2011 , 2010 and 2009. table 2 sets forth an analysis of volume and rate changes in interest income and interest expense of our average interest-earning assets and average interest-bearing liabilities for 2011 , 2010 and 2009. table 2 distinguishes between the changes related to average outstanding balances ( changes in volume created by holding the interest rate constant ) and the changes related to average interest rates ( changes in interest income or expense attributed to average rates created by holding the outstanding balance constant ) . [ 31 ] distribution of assets , liabilities and shareholders ' equity interest rates and interest differential – tax equivalent basis table 1 replace_table_token_12_th notes : ( 1 ) the above table reflects the average rates earned or paid stated on an fte basis assuming a tax rate of 35 % for 2011 , 2010 and 2009. the fte adjustments for the years ended december 31 , 2011 , 2010 and 2009 were $ 1,533 , $ 1,983 and $ 1,613 , respectively . ( 2 ) the average balances of non-accrual loans for the years ended december 31 , 2011 , 2010 and 2009 , which were reported in the average loan balances for these years , were $ 39,806 , $ 42,506 and $ 39,851 , respectively . ( 3 ) net interest margin is calculated as net interest income divided by average earning assets . ( 4 ) the average yields on investments are based on amortized cost . [ 32 ] interest variance analysis ( 1 ) table 2 replace_table_token_13_th note : ( 1 ) the change in interest income/expense due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . provision for loan losses the provision for loan losses was $ 9.2 million for the year ended december 31 , 2011 , compared to $ 15.7 million for fiscal year 2010. the lower provision for loan losses resulted primarily from stabilization in our total rolling historical loss rates and qualitative factors utilized in the determination of the all and stabilization in the level of classified assets . approximately $ .6 million of the lower provision for 2011 was related to the sale of $ 32.5 million of our indirect auto portfolio in the second

