2017 compared to 2016 net income was $ 5.0 million in 2017 a decrease from $ 5.8 million in 2016 primarily due to a $ 2.4 million after-tax charge to write down the company 's deferred tax assets as a result of the tax cuts and jobs act of 2017. net income available to common shareholders was $ 4.8 million , or $ 0.55 per diluted common share , in 2017 compared to $ 4.8 million , or $ 0.78 per diluted common share , in 2016 . net interest income to average assets of 3.90 percent in 2017 increased from 3.77 percent in 2016 as a result of a higher percentage of average earning assets to average total assets . noninterest income to average assets of 0.42 percent in 2017 increased slightly from 0.41 percent in 2016 due to higher customer service fees , higher interchange and debit cards fees , and higher other noninterest income . noninterest expense to average assets increased from 3.20 percent in 2016 to 3.29 percent in 2017 primarily due to $ 2.4 million in merger expenses . the resulting pretax income to average assets was 1.00 percent in 2017 compared to 0.95 percent in 2016 . finally , the effective tax rate of 56.2 percent in 2017 was elevated due to a $ 2.4 million after-tax charge to write down the company 's deferred tax assets as a result of the tax cuts and jobs act of 2017 while in 2016 the effective tax rate was 36.70 percent .. net interest income and yield analysis 2018 compared to 2017 net interest income , taxable equivalent , increased to $ 76.8 million in 2018 from $ 46.4 million in 2017 . the increase in net interest income , taxable equivalent , was the result of a significant increase in earning assets primarily from the mergers but also from organic business activity . average earning assets increased from $ 1.1 billion in 2017 to $ 1.7 billion in 2018 . over this period , average loan balances increased by $ 592.1 million and average securities balances increased by $ 33.0 million . in addition , total average interest-bearing deposits increased by $ 543.1 million . net interest income to average assets of 3.90 percent in 2018 was unchanged from 3.90 percent in 2017 . net interest margin , taxable equivalent , was 4.43 percent in 2018 , compared to 4.29 percent in 2017 , with the increase due to higher yields on earning assets . net interest margin , taxable equivalent , was slightly negatively impacted by an increase in the cost of interest bearing liabilities from 0.66 percent in 2017 to 1.10 percent in 2018 . in 2019 we expect net interest income to average assets and net interest margin , taxable equivalent , to experience pressure as there is the potential for pressure to increase deposit rates as short term rates have continued to increase but do anticipate the effect of rate increases will be mitigated on the income side by increases in yields of our floating rate earning assets . 2017 compared to 2016 net interest income , taxable equivalent , increased to $ 46.4 million in 2017 from $ 38.3 million in 2016 . the increase in net interest income , taxable equivalent , was the result of a significant increase in earning assets primarily from the merger but also from organic business activity . average earning assets increased from $ 944.6 million in 2016 to $ 1.1 billion in 2017 . over this period , average loan balances increased by $ 149.6 million and average securities and interest bearing balances decreased by $ 17.3 million . in addition , total average interest-bearing deposits increased by $ 113.8 million . net interest income to average assets of 3.90 percent in 2017 increased from 3.77 percent in 2016 . net interest margin , taxable equivalent , was 4.29 percent in 2017 4.06 percent in 2016 , with the increase due to higher yields on earning assets .. net interest margin , taxable equivalent , was slightly negatively impacted by an increase in the cost of interest bearing liabilities from 0.56 percent in 2016 to 0.66 percent in 2017 . 33 the following table summarizes the major components of net interest income and the related yields and costs for the periods presented . replace_table_token_1_th ( 1 ) loans include nonaccrual loans . yields related to loans exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017 and 2016. the taxable-equivalent adjustment was $ 10 thousand for 2018 , $ 28 thousand for 2017 and $ 16 thousand for 2016 . loan fees included in loan income was $ 2.7 million , $ 2.5 million , and $ 2.6 million for 2018 , 2017 and 2016 , respectively . ( 2 ) yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017 and 2016. the taxable-equivalent adjustment was $ 180 thousand , $ 90 thousand and $ 55 thousand for 2018 , 2017 and 2016 , respectively . ( 3 ) net interest spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities . ( 4 ) net interest margin represents net interest income divided by average interest-earning assets . 34 rate and volume analysis net interest income , taxable equivalent , increased by $ 30.4 million between the years ended december 31 , 2018 and 2017 and by $ 8.1 million between the years ended december 31 , 2017 and 2016 . story_separator_special_tag ” the following table sets forth , based on our best estimate , the allocation of the allowance to types of loans as well as the unallocated portion as of december 31 for each of the past five years and the percentage of loans in each category to total loans ( in thousands ) : replace_table_token_12_th the increase in the overall allowance for loan losses is due to the increased balance of organic loans offset by improvements of our loan portfolio and the reduction of nonperforming loans and net charge-offs , which is largely influenced by the overall improvement in the economies in our market areas . the allocation by category is determined based on the assigned risk rating , if applicable , and environmental factors applicable to each category of loans . for impaired loans , those loans are reviewed for a specific allowance allocation . specific valuation allowances related to impaired loans were approximately $ 534 thousand at december 31 , 2018 , compared to $ 445 thousand at december 31 , 2017 . additional information on the allocation of the allowance between performing and impaired loans is provided in note 4-loans and allowance for loan losses to our audited consolidated financial statements . 41 analysis of the allowance for loan losses the following is a summary of changes in the allowance for loan losses for each of the years in the five-year period ended december 31 , 2018 and the ratio of the allowance for loan losses to total loans as of the end of each period ( in thousands ) : replace_table_token_13_th we assess the adequacy of the allowance at the end of each calendar quarter . this assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance . the level of the allowance is based upon our evaluation of the loan portfolios , past loan loss experience , known and inherent risks in the portfolio , the views of the bank 's regulators , adverse situations that may affect the borrower 's ability to repay ( including the timing of future payments ) , the estimated value of any underlying collateral , composition of the loan portfolio , economic conditions , industry and peer bank loan quality indications and other pertinent factors . this evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change . investment portfolio our investment portfolio which is carried at fair market value , consisting primarily of federal agency bonds , mortgage-backed securities , state and municipal securities and other debt securities amounted to $ 201.7 million and $ 151.9 million at december 31 , 2018 and 2017 , respectively . this increase was a result of purchasing additional investments from liquidity received through the sale of the investment portfolios after the two mergers . in 2016 , the investment portfolio amounted to $ 131.0 million million and it increased in 2017 to $ 151.9 million as a result purchasing additional investments from liquidity received through the sale of the investment portfolios after the capstone merger . our investment to asset ratio has decreased from 12.1 percent at december 31 , 2016 , to 8.8 percent at december 31 , 2017 , and then increased slightly to 8.9 percent at december 31 , 2018 . over the last several years we have reduced the ratio of investments to total assets and the absolute level of investment securities on our balance sheet as we have allocated more funding to loans . our investment portfolio serves many purposes including serving as a potential liquidity source , collateral for public funds , and as a stable source of income . 42 the following table shows the amortized cost of the company 's investment securities . in 2018 , 2017 , and 2016 , all investment securities were classified as available for sale . investment securities ( in thousands ) replace_table_token_14_th the following table presents the contractual maturity of investment securities by contractual maturity date and average yields based on amortized cost ( for all obligations on a fully taxable basis ) . the composition and maturity / repricing distribution of the securities portfolio is subject to change depending on rate sensitivity , capital and liquidity needs . expected maturity of investment securities as of december 31 , 2018 ( in thousands ) replace_table_token_15_th ( 1 ) based on amortized cost , taxable equivalent basis deposits deposits are the primary source of funds for the company 's lending and investing activities . the company provides a range of deposit services to businesses and individuals , including noninterest-bearing checking accounts , interest-bearing checking accounts , savings accounts , money market accounts , individual retirement accounts ( `` iras `` ) and certificates of deposit ( `` cds `` ) . these accounts generally earn interest at rates the company establishes based on market factors and the anticipated amount and timing of funding needs . the establishment or continuity of a core deposit relationship can be a factor in loan pricing decisions . while the company 's primary focus is on establishing customer relationships to attract core deposits , at times , the company uses brokered deposits and other wholesale deposits to supplement its funding sources . as of december 31 , 2018 , brokered deposits represented approximately 12.6 percent of total deposits . the composition of the deposit portfolio , by category , as of december 31 , 2018 was as follows : 33.8 percent in time deposits , 33.4 percent in money market and savings , 16.2 percent in interest-bearing demand deposit , and 16.6 percent in noninterest-bearing demand deposits . the composition of the deposit portfolio , by category , as of december 31 , 2017 was as follows : 30.8 percent in time deposits , 37.8 percent in money market and savings , 16.1

capital resources the company uses leverage analysis to examine the potential of the institution to increase assets and liabilities using the current capital base . the key measurements included in this analysis are the banks ' common equity tier 1 capital , tier 1 capital , leverage and total capital ratios . at december 31 , 2018 and 2017 , our capital ratios , including our banks ' capital ratios , exceeded regulatory minimum capital requirements . from time to time we may be required to support the capital needs of our bank subsidiary . we believe we have various capital raising techniques available to us to provide for the capital needs of our bank , if necessary . additional information on capital is provided in note 14-regulatory matters to our audited consolidated financial statements . 44 off-balance sheet arrangements at december 31 , 2018 , we had $ 333.9 million of pre-approved but unused lines of credit and $ 12.2 million of standby letters of credit . these commitments generally have fixed expiration dates and many will expire without being drawn upon . the total commitment level does not necessarily represent future cash requirements . if needed to fund these outstanding commitments , the bank has the ability to liquidate federal funds sold or securities available-for-sale , or on a short-term basis to borrow and purchase federal funds from other financial institutions . additional information about our off-balance sheet risk exposure is presented in note 13—commitments and contingencies to our audited consolidated financial statements .


 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 company uses leverage analysis to examine the potential of the institution to increase assets and liabilities using the current capital base . the key measurements included in this analysis are the banks ' common equity tier 1 capital , tier 1 capital , leverage and total capital ratios . at december 31 , 2018 and 2017 , our capital ratios , including our banks ' capital ratios , exceeded regulatory minimum capital requirements . from time to time we may be required to support the capital needs of our bank subsidiary . we believe we have various capital raising techniques available to us to provide for the capital needs of our bank , if necessary . additional information on capital is provided in note 14-regulatory matters to our audited consolidated financial statements . 44 off-balance sheet arrangements at december 31 , 2018 , we had $ 333.9 million of pre-approved but unused lines of credit and $ 12.2 million of standby letters of credit . these commitments generally have fixed expiration dates and many will expire without being drawn upon . the total commitment level does not necessarily represent future cash requirements . if needed to fund these outstanding commitments , the bank has the ability to liquidate federal funds sold or securities available-for-sale , or on a short-term basis to borrow and purchase federal funds from other financial institutions . additional information about our off-balance sheet risk exposure is presented in note 13—commitments and contingencies to our audited consolidated financial statements .
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 Suspicious Activity Report : 2017 compared to 2016 net income was $ 5.0 million in 2017 a decrease from $ 5.8 million in 2016 primarily due to a $ 2.4 million after-tax charge to write down the company 's deferred tax assets as a result of the tax cuts and jobs act of 2017. net income available to common shareholders was $ 4.8 million , or $ 0.55 per diluted common share , in 2017 compared to $ 4.8 million , or $ 0.78 per diluted common share , in 2016 . net interest income to average assets of 3.90 percent in 2017 increased from 3.77 percent in 2016 as a result of a higher percentage of average earning assets to average total assets . noninterest income to average assets of 0.42 percent in 2017 increased slightly from 0.41 percent in 2016 due to higher customer service fees , higher interchange and debit cards fees , and higher other noninterest income . noninterest expense to average assets increased from 3.20 percent in 2016 to 3.29 percent in 2017 primarily due to $ 2.4 million in merger expenses . the resulting pretax income to average assets was 1.00 percent in 2017 compared to 0.95 percent in 2016 . finally , the effective tax rate of 56.2 percent in 2017 was elevated due to a $ 2.4 million after-tax charge to write down the company 's deferred tax assets as a result of the tax cuts and jobs act of 2017 while in 2016 the effective tax rate was 36.70 percent .. net interest income and yield analysis 2018 compared to 2017 net interest income , taxable equivalent , increased to $ 76.8 million in 2018 from $ 46.4 million in 2017 . the increase in net interest income , taxable equivalent , was the result of a significant increase in earning assets primarily from the mergers but also from organic business activity . average earning assets increased from $ 1.1 billion in 2017 to $ 1.7 billion in 2018 . over this period , average loan balances increased by $ 592.1 million and average securities balances increased by $ 33.0 million . in addition , total average interest-bearing deposits increased by $ 543.1 million . net interest income to average assets of 3.90 percent in 2018 was unchanged from 3.90 percent in 2017 . net interest margin , taxable equivalent , was 4.43 percent in 2018 , compared to 4.29 percent in 2017 , with the increase due to higher yields on earning assets . net interest margin , taxable equivalent , was slightly negatively impacted by an increase in the cost of interest bearing liabilities from 0.66 percent in 2017 to 1.10 percent in 2018 . in 2019 we expect net interest income to average assets and net interest margin , taxable equivalent , to experience pressure as there is the potential for pressure to increase deposit rates as short term rates have continued to increase but do anticipate the effect of rate increases will be mitigated on the income side by increases in yields of our floating rate earning assets . 2017 compared to 2016 net interest income , taxable equivalent , increased to $ 46.4 million in 2017 from $ 38.3 million in 2016 . the increase in net interest income , taxable equivalent , was the result of a significant increase in earning assets primarily from the merger but also from organic business activity . average earning assets increased from $ 944.6 million in 2016 to $ 1.1 billion in 2017 . over this period , average loan balances increased by $ 149.6 million and average securities and interest bearing balances decreased by $ 17.3 million . in addition , total average interest-bearing deposits increased by $ 113.8 million . net interest income to average assets of 3.90 percent in 2017 increased from 3.77 percent in 2016 . net interest margin , taxable equivalent , was 4.29 percent in 2017 4.06 percent in 2016 , with the increase due to higher yields on earning assets .. net interest margin , taxable equivalent , was slightly negatively impacted by an increase in the cost of interest bearing liabilities from 0.56 percent in 2016 to 0.66 percent in 2017 . 33 the following table summarizes the major components of net interest income and the related yields and costs for the periods presented . replace_table_token_1_th ( 1 ) loans include nonaccrual loans . yields related to loans exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017 and 2016. the taxable-equivalent adjustment was $ 10 thousand for 2018 , $ 28 thousand for 2017 and $ 16 thousand for 2016 . loan fees included in loan income was $ 2.7 million , $ 2.5 million , and $ 2.6 million for 2018 , 2017 and 2016 , respectively . ( 2 ) yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017 and 2016. the taxable-equivalent adjustment was $ 180 thousand , $ 90 thousand and $ 55 thousand for 2018 , 2017 and 2016 , respectively . ( 3 ) net interest spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities . ( 4 ) net interest margin represents net interest income divided by average interest-earning assets . 34 rate and volume analysis net interest income , taxable equivalent , increased by $ 30.4 million between the years ended december 31 , 2018 and 2017 and by $ 8.1 million between the years ended december 31 , 2017 and 2016 . story_separator_special_tag ” the following table sets forth , based on our best estimate , the allocation of the allowance to types of loans as well as the unallocated portion as of december 31 for each of the past five years and the percentage of loans in each category to total loans ( in thousands ) : replace_table_token_12_th the increase in the overall allowance for loan losses is due to the increased balance of organic loans offset by improvements of our loan portfolio and the reduction of nonperforming loans and net charge-offs , which is largely influenced by the overall improvement in the economies in our market areas . the allocation by category is determined based on the assigned risk rating , if applicable , and environmental factors applicable to each category of loans . for impaired loans , those loans are reviewed for a specific allowance allocation . specific valuation allowances related to impaired loans were approximately $ 534 thousand at december 31 , 2018 , compared to $ 445 thousand at december 31 , 2017 . additional information on the allocation of the allowance between performing and impaired loans is provided in note 4-loans and allowance for loan losses to our audited consolidated financial statements . 41 analysis of the allowance for loan losses the following is a summary of changes in the allowance for loan losses for each of the years in the five-year period ended december 31 , 2018 and the ratio of the allowance for loan losses to total loans as of the end of each period ( in thousands ) : replace_table_token_13_th we assess the adequacy of the allowance at the end of each calendar quarter . this assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance . the level of the allowance is based upon our evaluation of the loan portfolios , past loan loss experience , known and inherent risks in the portfolio , the views of the bank 's regulators , adverse situations that may affect the borrower 's ability to repay ( including the timing of future payments ) , the estimated value of any underlying collateral , composition of the loan portfolio , economic conditions , industry and peer bank loan quality indications and other pertinent factors . this evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change . investment portfolio our investment portfolio which is carried at fair market value , consisting primarily of federal agency bonds , mortgage-backed securities , state and municipal securities and other debt securities amounted to $ 201.7 million and $ 151.9 million at december 31 , 2018 and 2017 , respectively . this increase was a result of purchasing additional investments from liquidity received through the sale of the investment portfolios after the two mergers . in 2016 , the investment portfolio amounted to $ 131.0 million million and it increased in 2017 to $ 151.9 million as a result purchasing additional investments from liquidity received through the sale of the investment portfolios after the capstone merger . our investment to asset ratio has decreased from 12.1 percent at december 31 , 2016 , to 8.8 percent at december 31 , 2017 , and then increased slightly to 8.9 percent at december 31 , 2018 . over the last several years we have reduced the ratio of investments to total assets and the absolute level of investment securities on our balance sheet as we have allocated more funding to loans . our investment portfolio serves many purposes including serving as a potential liquidity source , collateral for public funds , and as a stable source of income . 42 the following table shows the amortized cost of the company 's investment securities . in 2018 , 2017 , and 2016 , all investment securities were classified as available for sale . investment securities ( in thousands ) replace_table_token_14_th the following table presents the contractual maturity of investment securities by contractual maturity date and average yields based on amortized cost ( for all obligations on a fully taxable basis ) . the composition and maturity / repricing distribution of the securities portfolio is subject to change depending on rate sensitivity , capital and liquidity needs . expected maturity of investment securities as of december 31 , 2018 ( in thousands ) replace_table_token_15_th ( 1 ) based on amortized cost , taxable equivalent basis deposits deposits are the primary source of funds for the company 's lending and investing activities . the company provides a range of deposit services to businesses and individuals , including noninterest-bearing checking accounts , interest-bearing checking accounts , savings accounts , money market accounts , individual retirement accounts ( `` iras `` ) and certificates of deposit ( `` cds `` ) . these accounts generally earn interest at rates the company establishes based on market factors and the anticipated amount and timing of funding needs . the establishment or continuity of a core deposit relationship can be a factor in loan pricing decisions . while the company 's primary focus is on establishing customer relationships to attract core deposits , at times , the company uses brokered deposits and other wholesale deposits to supplement its funding sources . as of december 31 , 2018 , brokered deposits represented approximately 12.6 percent of total deposits . the composition of the deposit portfolio , by category , as of december 31 , 2018 was as follows : 33.8 percent in time deposits , 33.4 percent in money market and savings , 16.2 percent in interest-bearing demand deposit , and 16.6 percent in noninterest-bearing demand deposits . the composition of the deposit portfolio , by category , as of december 31 , 2017 was as follows : 30.8 percent in time deposits , 37.8 percent in money market and savings , 16.1

