net interest and dividend income is the difference between the interest income earned on interest-earning assets and the interest paid on interest-bearing liabilities . interest-earning assets consist primarily of securities , commercial real estate loans , commercial and industrial loans and residential real estate loans . interest-bearing liabilities consist primarily of certificates of deposit and money market account , demand deposit accounts and savings account deposits , borrowings from the fhlbb and securities sold under repurchase agreements . the consolidated results of operations also depend on the provision for loan losses , noninterest income , and noninterest expense . noninterest expense includes salaries and employee benefits , occupancy expenses and other general and administrative expenses . noninterest income includes service fees and charges , income on bank-owned life insurance , and gains ( losses ) on securities . critical accounting policies . our accounting policies are disclosed in note 1 to our consolidated financial statements . given our current business strategy and asset/liability structure , the more critical policies are accounting for nonperforming loans , the allowance for loan losses and provision for loan losses , other than temporary impairment of securities , and the valuation of deferred taxes . in addition to the informational disclosure in the notes to the consolidated financial statements , our policy on each of these accounting policies is described in detail in the applicable sections of “ management 's discussion and analysis of financial condition and results of operations . ” senior management has discussed the development and selection of these accounting policies and the related disclosures with the audit committee of our board of directors . our general policy regarding recognition of interest on loans is to discontinue the accrual of interest when principal or interest payments are delinquent 90 days or more , or earlier if the loan is considered impaired . any unpaid amounts previously accrued on these loans are reversed from income . subsequent cash receipts are applied to the outstanding principal balance or to interest income if , in the judgment of management , collection of the principal balance is not in question . loans are returned to accrual status when they become current as to both principal and interest and when subsequent performance reduces the concern as to the collectability of principal and interest . loan fees and certain direct loan origination costs are deferred , and the net fee or cost is recognized as an adjustment to interest income over the estimated average lives of the related loans . the process of evaluating the loan portfolio , classifying loans and determining the allowance and provision is described in detail in part i under “ business – lending activities - allowance for loan losses . ” our methodology for assessing the allocation of the allowance consists of two key components , which are a specific allowance for impaired loans and an allowance for the remainder of the portfolio . measurement of impairment can be based on present value of expected future cash flows discounted at the loan 's effective interest rate , the loan 's observable market price or the fair value of the collateral , if the loan is collateral dependent . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change . the allocation of the allowance is also reviewed by management based upon our evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions , such as new loan products , credit quality trends ( including trends in nonperforming loans expected to result from existing conditions ) , collateral values , loan volumes and concentrations , specific industry conditions within portfolio segments that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectability of the loan portfolio . although management believes it has established and maintained the allowance for loan losses at adequate levels , if management 's assumptions and judgments prove to be incorrect due to continued deterioration in economic , real estate and other conditions , and the allowance for loan losses is not adequate to absorb inherent losses , our earnings and capital could be significantly and adversely affected . on a quarterly basis , we review securities with a decline in fair value below the amortized cost of the investment to determine whether the decline in fair value is temporary or other than temporary . declines in the fair value of marketable equity securities below their cost that are deemed to be other than temporary based on the severity and duration of the impairment are reflected in earnings as realized losses . in estimating other than temporary impairment losses for securities , impairment is required to be recognized if ( 1 ) we intend to sell the security ; ( 2 ) it is “ more likely than not ” that we will be required to sell the security before recovery of its amortized cost basis ; or ( 3 ) for debt securities , the present value of expected cash flows is not sufficient to recover the entire amortized cost basis . for all impaired available for sale securities that we intend to sell , or more likely than not will be required to sell , the full amount of the other than temporary impairment is recognized through earnings . for other impaired debt securities , credit-related other than temporary impairment is recognized through earnings , while non-credit related other than temporary impairment is recognized in other comprehensive income , net of applicable taxes . 38 we must make certain estimates in determining income tax expense for financial statement purposes . these estimates occur in the calculation of the deferred tax assets and liabilities , which arise from the temporary differences between the tax basis and financial statement basis of our assets and liabilities . story_separator_special_tag the repurchase agreements had a weighted average cost of 3.06 % . the prepayments decreased the cost of funds and improved the net interest margin for the year ended december 31 , 2013. net interest and dividend income . net interest and dividend income increased $ 300,000 to $ 30.7 million for the year ended december 31 , 2013 as compared to $ 30.4 million for same period in 2012. the net interest margin , on a tax-equivalent basis , was 2.58 % and 2.53 % for the years ended december 31 , 2013 and 2012 , respectively . the increase in the net interest margin was due to the cost of interest-bearing liabilities decreasing 26 basis points , while the yield on average interest-bearing assets decreased 12 basis points , both occurring because of the low interest rate environment . provision ( credit ) for loan losses . the provision ( credit ) for loan losses is reviewed by management based upon our evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions , such as new loan products , credit quality trends ( including trends in nonperforming loans expected to result from existing conditions ) , collateral values , loan volumes and concentrations , specific industry conditions within portfolio segments that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectability of the loan portfolio . 44 the amount of the credit provision for loan losses during the year ended december 31 , 2013 was based upon the changes that occurred in the loan portfolio during that same period . the changes in the loan portfolio , described in detail below , include increases in the balances of commercial real estate loans , commercial and industrial loans and residential real estate loans as well as the continuous improvement of the overall risk profile of the commercial loan portfolio . after evaluating these factors , we recorded a credit provision for loan losses of $ 256,000 for the year ended december 31 , 2013 , compared to $ 698,000 in provision expense for the same period in 2012. the allowance was $ 7.5 million at december 31 , 2013 and $ 7.8 million at december 31 , 2012 , respectively . the allowance for loan losses as a percentage of total loans was 1.17 % and 1.31 % at december 31 , 2013 and 2012 , respectively . commercial real estate loans increased $ 18.7 million to $ 264.5 million at december 31 , 2013 from $ 245.8 million at december 31 , 2012. commercial and industrial loans increased $ 9.5 million to $ 135.6 million at december 31 , 2013 from $ 126.1 million at december 31 , 2012. residential real estate loans increased $ 14.4 million to $ 234.1 million at december 31 , 2013. we consider residential real estate loans to contain less credit risk and market risk than commercial real estate and commercial and industrial loans . while the loan portfolio increased by $ 42.9 million to $ 630.0 million at december 31 , 2013 from $ 587.1 million at december 31 , 2012 , the portfolio also experienced an overall positive change in its risk profile throughout the year ended december 31 , 2013. impaired loans that previously carried higher allowances showed considerable improvement resulting in allowances on impaired loans decreasing $ 441,000 to $ 97,000 at december 31 , 2013 from $ 538,000 at december 31 , 2012. for the year ended december 31 , 2013 , we recorded net charge-offs of $ 79,000 compared to net charge-offs of $ 668,000 for the year ended december 31 , 2012. the year ended december 31 , 2013 net charge off was composed of charge-offs of $ 340,000 partially offset by recoveries of $ 261,000. the 2012 period was composed of charge-offs of $ 768,000 partially offset by recoveries of $ 100,000. although management believes it has established and maintained the allowance for loan losses at appropriate levels , future adjustments may be necessary if economic , real estate and other conditions differ substantially from the current operating environment . noninterest income . noninterest income decreased $ 1.7 million to $ 4.3 million for the year ended december 31 , 2013 compared to $ 6.0 million for the same period in 2012. the primary reason for the decrease in noninterest income was due to the net gains on the sales of securities being completely offset by prepayment expenses during the year ended december 31 , 2013 , whereas the 2012 period showed a net overall gain of $ 1.9 million in sales of securities after prepayment expenses . the net gains for the years ended december 31 , 2013 and 2012 were primarily the result of management selling mortgage-backed securities that were expected to prepay rapidly and decrease the expected yield . during 2013 , we also prepaid repurchase agreements in the amount of $ 43.3 million and incurred a prepayment expense of $ 3.4 million . the repurchase agreements had a weighted average cost of 2.99 % . during the last week of 2012 , we prepaid repurchase agreements in the amount of $ 28.0 million and incurred a prepayment expense of $ 1.0 million . the repurchase agreements had a weighted average cost of 3.06 % . the prepayments decreased the cost of funds and improved the net interest margin for the year ended december 31 , 2013. in addition , during the year ended december 31 , 2013 , we recorded gains on the proceeds of boli death benefits of $ 563,000 , as compared to $ 80,000 in the comparable 2012 period . service charges and fees decreased $ 177,000 to $ 2.4 million for the year ended december 31 , 2013 from $ 2.6 million for the year ended december 31 , 2012. the year ended included $ 156,000 related to a written risk

liquidity and capital resources the term “ liquidity ” refers to our ability to generate adequate amounts of cash to fund loan originations , loan purchases , deposit withdrawals and operating expenses . our primary sources of liquidity are deposits , scheduled amortization and prepayments of loan principal and mortgage-backed securities , maturities and calls of investment securities and funds provided by our operations . we also can borrow funds from the fhlbb based on eligible collateral of loans and securities . outstanding borrowings from the fhlbb were $ 252.7 million at december 31 , 2013 , and $ 261.8 million at december 31 , 2012. at december 31 , 2013 , we had $ 83.0 million in available borrowing capacity with the fhlbb . we have the ability to increase our borrowing capacity with the fhlbb by pledging investment securities or loans . in addition , we have a $ 4.0 million line of credit with bbn at an interest rate determined and reset by bbn on a daily basis . at december 31 , 2013 , we did not have an outstanding balance under this line . there was $ 4.0 million outstanding under this line at december 31 , 2012. as part of our contract with bbn , we are required to maintain a reserve balance of $ 300,000 with bbn for our use of this line . in addition , we may enter into reverse repurchase agreements with approved broker-dealers . reverse repurchase agreements are agreements that allow us to borrow money using our securities as collateral . we also have outstanding at any time , a significant number of commitments to extend credit and provide financial guarantees to third parties .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources the term “ liquidity ” refers to our ability to generate adequate amounts of cash to fund loan originations , loan purchases , deposit withdrawals and operating expenses . our primary sources of liquidity are deposits , scheduled amortization and prepayments of loan principal and mortgage-backed securities , maturities and calls of investment securities and funds provided by our operations . we also can borrow funds from the fhlbb based on eligible collateral of loans and securities . outstanding borrowings from the fhlbb were $ 252.7 million at december 31 , 2013 , and $ 261.8 million at december 31 , 2012. at december 31 , 2013 , we had $ 83.0 million in available borrowing capacity with the fhlbb . we have the ability to increase our borrowing capacity with the fhlbb by pledging investment securities or loans . in addition , we have a $ 4.0 million line of credit with bbn at an interest rate determined and reset by bbn on a daily basis . at december 31 , 2013 , we did not have an outstanding balance under this line . there was $ 4.0 million outstanding under this line at december 31 , 2012. as part of our contract with bbn , we are required to maintain a reserve balance of $ 300,000 with bbn for our use of this line . in addition , we may enter into reverse repurchase agreements with approved broker-dealers . reverse repurchase agreements are agreements that allow us to borrow money using our securities as collateral . we also have outstanding at any time , a significant number of commitments to extend credit and provide financial guarantees to third parties .
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 Suspicious Activity Report : net interest and dividend income is the difference between the interest income earned on interest-earning assets and the interest paid on interest-bearing liabilities . interest-earning assets consist primarily of securities , commercial real estate loans , commercial and industrial loans and residential real estate loans . interest-bearing liabilities consist primarily of certificates of deposit and money market account , demand deposit accounts and savings account deposits , borrowings from the fhlbb and securities sold under repurchase agreements . the consolidated results of operations also depend on the provision for loan losses , noninterest income , and noninterest expense . noninterest expense includes salaries and employee benefits , occupancy expenses and other general and administrative expenses . noninterest income includes service fees and charges , income on bank-owned life insurance , and gains ( losses ) on securities . critical accounting policies . our accounting policies are disclosed in note 1 to our consolidated financial statements . given our current business strategy and asset/liability structure , the more critical policies are accounting for nonperforming loans , the allowance for loan losses and provision for loan losses , other than temporary impairment of securities , and the valuation of deferred taxes . in addition to the informational disclosure in the notes to the consolidated financial statements , our policy on each of these accounting policies is described in detail in the applicable sections of “ management 's discussion and analysis of financial condition and results of operations . ” senior management has discussed the development and selection of these accounting policies and the related disclosures with the audit committee of our board of directors . our general policy regarding recognition of interest on loans is to discontinue the accrual of interest when principal or interest payments are delinquent 90 days or more , or earlier if the loan is considered impaired . any unpaid amounts previously accrued on these loans are reversed from income . subsequent cash receipts are applied to the outstanding principal balance or to interest income if , in the judgment of management , collection of the principal balance is not in question . loans are returned to accrual status when they become current as to both principal and interest and when subsequent performance reduces the concern as to the collectability of principal and interest . loan fees and certain direct loan origination costs are deferred , and the net fee or cost is recognized as an adjustment to interest income over the estimated average lives of the related loans . the process of evaluating the loan portfolio , classifying loans and determining the allowance and provision is described in detail in part i under “ business – lending activities - allowance for loan losses . ” our methodology for assessing the allocation of the allowance consists of two key components , which are a specific allowance for impaired loans and an allowance for the remainder of the portfolio . measurement of impairment can be based on present value of expected future cash flows discounted at the loan 's effective interest rate , the loan 's observable market price or the fair value of the collateral , if the loan is collateral dependent . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change . the allocation of the allowance is also reviewed by management based upon our evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions , such as new loan products , credit quality trends ( including trends in nonperforming loans expected to result from existing conditions ) , collateral values , loan volumes and concentrations , specific industry conditions within portfolio segments that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectability of the loan portfolio . although management believes it has established and maintained the allowance for loan losses at adequate levels , if management 's assumptions and judgments prove to be incorrect due to continued deterioration in economic , real estate and other conditions , and the allowance for loan losses is not adequate to absorb inherent losses , our earnings and capital could be significantly and adversely affected . on a quarterly basis , we review securities with a decline in fair value below the amortized cost of the investment to determine whether the decline in fair value is temporary or other than temporary . declines in the fair value of marketable equity securities below their cost that are deemed to be other than temporary based on the severity and duration of the impairment are reflected in earnings as realized losses . in estimating other than temporary impairment losses for securities , impairment is required to be recognized if ( 1 ) we intend to sell the security ; ( 2 ) it is “ more likely than not ” that we will be required to sell the security before recovery of its amortized cost basis ; or ( 3 ) for debt securities , the present value of expected cash flows is not sufficient to recover the entire amortized cost basis . for all impaired available for sale securities that we intend to sell , or more likely than not will be required to sell , the full amount of the other than temporary impairment is recognized through earnings . for other impaired debt securities , credit-related other than temporary impairment is recognized through earnings , while non-credit related other than temporary impairment is recognized in other comprehensive income , net of applicable taxes . 38 we must make certain estimates in determining income tax expense for financial statement purposes . these estimates occur in the calculation of the deferred tax assets and liabilities , which arise from the temporary differences between the tax basis and financial statement basis of our assets and liabilities . story_separator_special_tag the repurchase agreements had a weighted average cost of 3.06 % . the prepayments decreased the cost of funds and improved the net interest margin for the year ended december 31 , 2013. net interest and dividend income . net interest and dividend income increased $ 300,000 to $ 30.7 million for the year ended december 31 , 2013 as compared to $ 30.4 million for same period in 2012. the net interest margin , on a tax-equivalent basis , was 2.58 % and 2.53 % for the years ended december 31 , 2013 and 2012 , respectively . the increase in the net interest margin was due to the cost of interest-bearing liabilities decreasing 26 basis points , while the yield on average interest-bearing assets decreased 12 basis points , both occurring because of the low interest rate environment . provision ( credit ) for loan losses . the provision ( credit ) for loan losses is reviewed by management based upon our evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions , such as new loan products , credit quality trends ( including trends in nonperforming loans expected to result from existing conditions ) , collateral values , loan volumes and concentrations , specific industry conditions within portfolio segments that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectability of the loan portfolio . 44 the amount of the credit provision for loan losses during the year ended december 31 , 2013 was based upon the changes that occurred in the loan portfolio during that same period . the changes in the loan portfolio , described in detail below , include increases in the balances of commercial real estate loans , commercial and industrial loans and residential real estate loans as well as the continuous improvement of the overall risk profile of the commercial loan portfolio . after evaluating these factors , we recorded a credit provision for loan losses of $ 256,000 for the year ended december 31 , 2013 , compared to $ 698,000 in provision expense for the same period in 2012. the allowance was $ 7.5 million at december 31 , 2013 and $ 7.8 million at december 31 , 2012 , respectively . the allowance for loan losses as a percentage of total loans was 1.17 % and 1.31 % at december 31 , 2013 and 2012 , respectively . commercial real estate loans increased $ 18.7 million to $ 264.5 million at december 31 , 2013 from $ 245.8 million at december 31 , 2012. commercial and industrial loans increased $ 9.5 million to $ 135.6 million at december 31 , 2013 from $ 126.1 million at december 31 , 2012. residential real estate loans increased $ 14.4 million to $ 234.1 million at december 31 , 2013. we consider residential real estate loans to contain less credit risk and market risk than commercial real estate and commercial and industrial loans . while the loan portfolio increased by $ 42.9 million to $ 630.0 million at december 31 , 2013 from $ 587.1 million at december 31 , 2012 , the portfolio also experienced an overall positive change in its risk profile throughout the year ended december 31 , 2013. impaired loans that previously carried higher allowances showed considerable improvement resulting in allowances on impaired loans decreasing $ 441,000 to $ 97,000 at december 31 , 2013 from $ 538,000 at december 31 , 2012. for the year ended december 31 , 2013 , we recorded net charge-offs of $ 79,000 compared to net charge-offs of $ 668,000 for the year ended december 31 , 2012. the year ended december 31 , 2013 net charge off was composed of charge-offs of $ 340,000 partially offset by recoveries of $ 261,000. the 2012 period was composed of charge-offs of $ 768,000 partially offset by recoveries of $ 100,000. although management believes it has established and maintained the allowance for loan losses at appropriate levels , future adjustments may be necessary if economic , real estate and other conditions differ substantially from the current operating environment . noninterest income . noninterest income decreased $ 1.7 million to $ 4.3 million for the year ended december 31 , 2013 compared to $ 6.0 million for the same period in 2012. the primary reason for the decrease in noninterest income was due to the net gains on the sales of securities being completely offset by prepayment expenses during the year ended december 31 , 2013 , whereas the 2012 period showed a net overall gain of $ 1.9 million in sales of securities after prepayment expenses . the net gains for the years ended december 31 , 2013 and 2012 were primarily the result of management selling mortgage-backed securities that were expected to prepay rapidly and decrease the expected yield . during 2013 , we also prepaid repurchase agreements in the amount of $ 43.3 million and incurred a prepayment expense of $ 3.4 million . the repurchase agreements had a weighted average cost of 2.99 % . during the last week of 2012 , we prepaid repurchase agreements in the amount of $ 28.0 million and incurred a prepayment expense of $ 1.0 million . the repurchase agreements had a weighted average cost of 3.06 % . the prepayments decreased the cost of funds and improved the net interest margin for the year ended december 31 , 2013. in addition , during the year ended december 31 , 2013 , we recorded gains on the proceeds of boli death benefits of $ 563,000 , as compared to $ 80,000 in the comparable 2012 period . service charges and fees decreased $ 177,000 to $ 2.4 million for the year ended december 31 , 2013 from $ 2.6 million for the year ended december 31 , 2012. the year ended included $ 156,000 related to a written risk

