as a consequence , management continues to employ a well-defined credit policy focusing on quality underwriting and close management and board monitoring . see  risk factors  increased emphasis on commercial lending may expose the bank to increased lending risks . 40 enhancing non-interest income management continues to diversify the bank 's product line and expand related resources in order to enhance non-interest income . the bank is currently focused on growth opportunities in trust and asset management services and in bankcard services , which includes interchange revenue , merchant services and atm fees . the bank also offers alternative investment products ( annuities , mutual funds and life insurance ) for sale through its retail branch network . as a result of these initiatives , income from fees and service charges has increased to $ 13.8 million for the year ended december 31 , 2013 as compared to $ 11.4 million for the year ended december 31 , 2008 and only $ 1.4 million for the year ended december 31 , 1997. increasing core deposits the bank seeks to increase core deposit market share in its primary market area by improving market penetration . over the past ten years through december 31 , 2013 , the bank has opened eight branch offices , five in ocean county and three in monmouth county including a full service financial solutions center in red bank . after a comprehensive review of the bank 's branch network in late 2013 , two existing branches were consolidated into newer , in-market , facilities resulting in a non-recurring charge of $ 579,000. the bank is continually evaluating additional strategic office sites within its existing market area . core account development has benefited from bank efforts to attract business deposits in conjunction with its commercial lending operations and from an expanded mix of retail core account products . as a result of these efforts the bank 's core deposit ratio has grown to 87.5 % at december 31 , 2013 as compared to 71.2 % at december 31 , 2008 and only 33.0 % at december 31 , 1997. core deposits are generally considered a less expensive and more stable funding source than certificates of deposit . in addition to the objectives described above , the company determined to more actively manage its capital position to improve return on equity . in the fourth quarter of 2011 , and again in the fourth quarter of 2012 , the company announced its intention to repurchase up to 5 % of its outstanding common stock . for the year ended december 31 , 2013 , the company repurchased 533,018 shares of common stock for $ 8.1 million . at december 31 , 2013 , there were 301,766 shares remaining to be repurchased under the existing stock repurchase plan . summary interest-earning assets , both loans and securities , are generally priced against longer-term indices , while interest-bearing liabilities , primarily deposits and borrowings , are generally priced against shorter-term indices . beginning in the second half of 2011 and through the first quarter of 2013 , the company 's net interest margin had generally contracted . due to the low interest rate environment , high loan refinance volume caused yields on loans and mortgage-backed securities to trend downward . at the same time , the company 's asset mix shifted as higher-yielding loans decreased due to prepayments and the sale of newly-originated , 30-year , fixed-rate , one-to-four family loans while lower-yielding securities increased . in mid-year , the company 's net interest margin stabilized and then expanded at year-end . although high loan refinance volume and shifting asset mix continued into the second quarter of 2013 , the company 's net interest margin nonetheless expanded slightly as the company invested excess liquidity into higher-yielding assets and managed funding costs lower . in the third quarter of 2013 , refinance activity subsided and the company was successful in growing commercial loans , resulting in a shift in asset mix from lower-yielding securities into higher-yielding loans . early in the fourth quarter of 2013 , the company prepaid $ 159.0 million of federal home loan bank advances . this transaction , along with continued growth in commercial loans , improved net interest income and margin in the last quarter of the year . based upon current economic conditions , the federal reserve has indicated that it intends to keep short-term interest rates at current levels , at least as long as the unemployment rate remains above 6.5 % , inflation between one and two years ahead is projected to be no more than one-half percentage point above the 2 percent longer-run goal , and longer-term inflation expectations continue to be well-anchored . additionally , the federal open market 41 committee recently decided to taper their monthly bond buying program , with further reductions expected throughout 2014. longer-term interest rates have increased since earlier in the year , resulting in a steeper yield curve . the recent increase in longer-term interest rates has reduced loan refinance activity , causing a decrease in loan sale volume and lower income from the net gain on the sale of loans . this trend is expected to continue as income from the sale of loans in subsequent quarters will likely fall below comparable prior year levels . in addition to the interest rate environment , the company 's results are affected by national and local economic conditions . recent economic indicators point to some improvement in the economy , which expanded modestly in 2012 and 2013. labor market conditions also improved as the national unemployment rate in 2013 decreased over prior year levels . despite these signs , the pace of economic recovery remains weak . story_separator_special_tag if a security is determined to be other-than-temporarily impaired , the impairment is charged to income during the period the impairment is found to exist , resulting in a reduction to earnings for that period . during 2011 , the company recognized an other-than-temporary impairment loss on equity securities of $ 148,000 as compared to no other-than-temporary impairment loss during 2012 and 2013. as of december 31 , 2013 , the company concluded that any remaining unrealized losses in the securities portfolio were temporary in nature because they were primarily related to market interest rates , market illiquidity and wider credit spreads for these types of securities . additionally , the company does not intend to sell the securities and it is more likely than not that the company will not be required to sell the securities before recovery of their amortized cost . future events that could materially change this conclusion and require an impairment loss to be charged to operations include a change in the credit quality of the issuers or a determination that a market recovery in the foreseeable future is unlikely . analysis of net interest income net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rate earned or paid on them . 46 the following table sets forth certain information relating to the company for each of the years ended december 31 , 2013 , 2012 and 2011. the yields and costs are derived by dividing income or expense by the average balance of assets or liabilities , respectively , for the periods shown except where noted otherwise . average balances are derived from average daily balances . the yields and costs include fees which are considered adjustments to yields . replace_table_token_21_th ( 1 ) amounts are recorded at average amortized cost . ( 2 ) amount is net of deferred loan fees , undisbursed loan funds , discounts and premiums and estimated loan loss allowances and includes loans held-for-sale and non-performing loans . ( 3 ) net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities . ( 4 ) net interest margin represents net interest income divided by average interest-earning assets . 47 rate volume analysis the following table presents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected the company 's interest income and interest expense during the periods indicated . information is provided in each category with respect to : ( i ) changes attributable to changes in volume ( changes in volume multiplied by prior rate ) ; ( ii ) changes attributable to changes in rate ( changes in rate multiplied by prior volume ) ; and ( iii ) the net change . the changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate . replace_table_token_22_th comparison of financial condition at december 31 , 2013 and december 31 , 2012 total assets decreased by $ 19.5 million to $ 2.250 billion at december 31 , 2013 , from $ 2.269 billion at december 31 , 2012. securities , in the aggregate , decreased by $ 8.0 million , to $ 539.4 million at december 31 , 2013 , as compared to $ 547.5 million at december 31 , 2012. during the period , the company reclassified $ 536.0 million of securities available-for-sale to securities held-to-maturity as the company has the intent and ability to hold these securities until maturity . loans receivable , net , increased by $ 18.3 million , to $ 1.542 billion at december 31 , 2013 from $ 1.523 billion at december 31 , 2012 , primarily due to growth in commercial lending of $ 56.4 million and in construction to permanent residential construction loans , net of loans in process , which increased $ 12.7 million as homeowners rebuild from superstorm sandy . this growth was partly offset by a decrease in one-to-four family mortgage loans due to prepayments and the sale of most newly originated 30-year fixed-rate one-to-four family loans . 48 deposits increased by $ 27.1 million , to $ 1.747 billion at december 31 , 2013 , from $ 1.720 billion at december 31 , 2012 with core deposits , ( i.e . all deposits excluding time deposits ) growing by $ 35.4 million . securities sold under agreements to repurchase with retail customers increased by $ 7.5 million , to $ 68.3 million at december 31 , 2013 , from $ 60.8 million at december 31 , 2012. federal home loan bank advances decreased $ 50.0 million , to $ 175.0 million at december 31 , 2013 , from $ 225.0 million at december 31 , 2012. stockholders ' equity decreased to $ 214.4 million at december 31 , 2013 , as compared to $ 219.8 million at december 31 , 2012. net income for the period was offset by an increase in accumulated other comprehensive loss of $ 6.7 million due to the recent rise in interest rates , the repurchase of 533,018 shares of common stock for $ 8.1 million ( average cost per share of $ 15.21 ) and the cash dividends on common stock of $ 8.2 million . the reclassification of most available-for-sale securities to held-to-maturity during the third quarter will reduce the risk of future reductions to stockholders ' equity that could result in the event of additional increases in interest rates . there were no shares repurchased in the fourth quarter of 2013 and at december 31 , 2013 , 301,766 shares were available for repurchase under the stock repurchase program adopted in the fourth quarter of 2012. tangible stockholders ' equity per common share was $ 12.33 at

liquidity and capital resources the company 's primary sources of funds are deposits , principal and interest payments on loans and mortgage-backed securities , proceeds from the sales of loans , fhlb advances and other borrowings and , to a lesser extent , investment maturities . while scheduled amortization of loans is a predictable source of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the company has other sources of liquidity if a need for additional funds arises , including advances from the fhlb and various lines of credit . during the quarter ended september 30 , 2013 , the company transferred $ 536.0 million of previously-designated available-for-sale securities to a held-to-maturity classification . the company does not typically rely on the sale of securities as a source of liquidity and historically there have been no sales of the types of securities transferred to held-to-maturity . at december 31 , 2013 the bank had $ 35.0 million in outstanding overnight borrowings from the fhlb , as compared to no outstanding overnight borrowings at december 31 , 2012. the bank utilizes overnight borrowings from time-to-time to fund short-term liquidity needs . fhlb advances , including the overnight borrowings , totaled $ 175.0 million at december 31 , 2013 , a decrease from $ 225.0 million at december 31 , 2012. in the fourth quarter of 2013 , the company prepaid $ 159.0 million of fhlb advances , incurring a prepayment fee of $ 4.3 million . the prepayment was initially funded with short-term advances which the company plans to replace over the next year with deposit growth and longer-term advances . securities sold under agreements to repurchase with retail customers increased to $ 68.3 million at december 31 , 2013 from $ 60.8 million at december 31 , 2012. like deposit flows , this funding source is dependent upon demand from the bank 's customer base .


 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 company 's primary sources of funds are deposits , principal and interest payments on loans and mortgage-backed securities , proceeds from the sales of loans , fhlb advances and other borrowings and , to a lesser extent , investment maturities . while scheduled amortization of loans is a predictable source of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the company has other sources of liquidity if a need for additional funds arises , including advances from the fhlb and various lines of credit . during the quarter ended september 30 , 2013 , the company transferred $ 536.0 million of previously-designated available-for-sale securities to a held-to-maturity classification . the company does not typically rely on the sale of securities as a source of liquidity and historically there have been no sales of the types of securities transferred to held-to-maturity . at december 31 , 2013 the bank had $ 35.0 million in outstanding overnight borrowings from the fhlb , as compared to no outstanding overnight borrowings at december 31 , 2012. the bank utilizes overnight borrowings from time-to-time to fund short-term liquidity needs . fhlb advances , including the overnight borrowings , totaled $ 175.0 million at december 31 , 2013 , a decrease from $ 225.0 million at december 31 , 2012. in the fourth quarter of 2013 , the company prepaid $ 159.0 million of fhlb advances , incurring a prepayment fee of $ 4.3 million . the prepayment was initially funded with short-term advances which the company plans to replace over the next year with deposit growth and longer-term advances . securities sold under agreements to repurchase with retail customers increased to $ 68.3 million at december 31 , 2013 from $ 60.8 million at december 31 , 2012. like deposit flows , this funding source is dependent upon demand from the bank 's customer base .
```    
 Suspicious Activity Report : as a consequence , management continues to employ a well-defined credit policy focusing on quality underwriting and close management and board monitoring . see  risk factors  increased emphasis on commercial lending may expose the bank to increased lending risks . 40 enhancing non-interest income management continues to diversify the bank 's product line and expand related resources in order to enhance non-interest income . the bank is currently focused on growth opportunities in trust and asset management services and in bankcard services , which includes interchange revenue , merchant services and atm fees . the bank also offers alternative investment products ( annuities , mutual funds and life insurance ) for sale through its retail branch network . as a result of these initiatives , income from fees and service charges has increased to $ 13.8 million for the year ended december 31 , 2013 as compared to $ 11.4 million for the year ended december 31 , 2008 and only $ 1.4 million for the year ended december 31 , 1997. increasing core deposits the bank seeks to increase core deposit market share in its primary market area by improving market penetration . over the past ten years through december 31 , 2013 , the bank has opened eight branch offices , five in ocean county and three in monmouth county including a full service financial solutions center in red bank . after a comprehensive review of the bank 's branch network in late 2013 , two existing branches were consolidated into newer , in-market , facilities resulting in a non-recurring charge of $ 579,000. the bank is continually evaluating additional strategic office sites within its existing market area . core account development has benefited from bank efforts to attract business deposits in conjunction with its commercial lending operations and from an expanded mix of retail core account products . as a result of these efforts the bank 's core deposit ratio has grown to 87.5 % at december 31 , 2013 as compared to 71.2 % at december 31 , 2008 and only 33.0 % at december 31 , 1997. core deposits are generally considered a less expensive and more stable funding source than certificates of deposit . in addition to the objectives described above , the company determined to more actively manage its capital position to improve return on equity . in the fourth quarter of 2011 , and again in the fourth quarter of 2012 , the company announced its intention to repurchase up to 5 % of its outstanding common stock . for the year ended december 31 , 2013 , the company repurchased 533,018 shares of common stock for $ 8.1 million . at december 31 , 2013 , there were 301,766 shares remaining to be repurchased under the existing stock repurchase plan . summary interest-earning assets , both loans and securities , are generally priced against longer-term indices , while interest-bearing liabilities , primarily deposits and borrowings , are generally priced against shorter-term indices . beginning in the second half of 2011 and through the first quarter of 2013 , the company 's net interest margin had generally contracted . due to the low interest rate environment , high loan refinance volume caused yields on loans and mortgage-backed securities to trend downward . at the same time , the company 's asset mix shifted as higher-yielding loans decreased due to prepayments and the sale of newly-originated , 30-year , fixed-rate , one-to-four family loans while lower-yielding securities increased . in mid-year , the company 's net interest margin stabilized and then expanded at year-end . although high loan refinance volume and shifting asset mix continued into the second quarter of 2013 , the company 's net interest margin nonetheless expanded slightly as the company invested excess liquidity into higher-yielding assets and managed funding costs lower . in the third quarter of 2013 , refinance activity subsided and the company was successful in growing commercial loans , resulting in a shift in asset mix from lower-yielding securities into higher-yielding loans . early in the fourth quarter of 2013 , the company prepaid $ 159.0 million of federal home loan bank advances . this transaction , along with continued growth in commercial loans , improved net interest income and margin in the last quarter of the year . based upon current economic conditions , the federal reserve has indicated that it intends to keep short-term interest rates at current levels , at least as long as the unemployment rate remains above 6.5 % , inflation between one and two years ahead is projected to be no more than one-half percentage point above the 2 percent longer-run goal , and longer-term inflation expectations continue to be well-anchored . additionally , the federal open market 41 committee recently decided to taper their monthly bond buying program , with further reductions expected throughout 2014. longer-term interest rates have increased since earlier in the year , resulting in a steeper yield curve . the recent increase in longer-term interest rates has reduced loan refinance activity , causing a decrease in loan sale volume and lower income from the net gain on the sale of loans . this trend is expected to continue as income from the sale of loans in subsequent quarters will likely fall below comparable prior year levels . in addition to the interest rate environment , the company 's results are affected by national and local economic conditions . recent economic indicators point to some improvement in the economy , which expanded modestly in 2012 and 2013. labor market conditions also improved as the national unemployment rate in 2013 decreased over prior year levels . despite these signs , the pace of economic recovery remains weak . story_separator_special_tag if a security is determined to be other-than-temporarily impaired , the impairment is charged to income during the period the impairment is found to exist , resulting in a reduction to earnings for that period . during 2011 , the company recognized an other-than-temporary impairment loss on equity securities of $ 148,000 as compared to no other-than-temporary impairment loss during 2012 and 2013. as of december 31 , 2013 , the company concluded that any remaining unrealized losses in the securities portfolio were temporary in nature because they were primarily related to market interest rates , market illiquidity and wider credit spreads for these types of securities . additionally , the company does not intend to sell the securities and it is more likely than not that the company will not be required to sell the securities before recovery of their amortized cost . future events that could materially change this conclusion and require an impairment loss to be charged to operations include a change in the credit quality of the issuers or a determination that a market recovery in the foreseeable future is unlikely . analysis of net interest income net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rate earned or paid on them . 46 the following table sets forth certain information relating to the company for each of the years ended december 31 , 2013 , 2012 and 2011. the yields and costs are derived by dividing income or expense by the average balance of assets or liabilities , respectively , for the periods shown except where noted otherwise . average balances are derived from average daily balances . the yields and costs include fees which are considered adjustments to yields . replace_table_token_21_th ( 1 ) amounts are recorded at average amortized cost . ( 2 ) amount is net of deferred loan fees , undisbursed loan funds , discounts and premiums and estimated loan loss allowances and includes loans held-for-sale and non-performing loans . ( 3 ) net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities . ( 4 ) net interest margin represents net interest income divided by average interest-earning assets . 47 rate volume analysis the following table presents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected the company 's interest income and interest expense during the periods indicated . information is provided in each category with respect to : ( i ) changes attributable to changes in volume ( changes in volume multiplied by prior rate ) ; ( ii ) changes attributable to changes in rate ( changes in rate multiplied by prior volume ) ; and ( iii ) the net change . the changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate . replace_table_token_22_th comparison of financial condition at december 31 , 2013 and december 31 , 2012 total assets decreased by $ 19.5 million to $ 2.250 billion at december 31 , 2013 , from $ 2.269 billion at december 31 , 2012. securities , in the aggregate , decreased by $ 8.0 million , to $ 539.4 million at december 31 , 2013 , as compared to $ 547.5 million at december 31 , 2012. during the period , the company reclassified $ 536.0 million of securities available-for-sale to securities held-to-maturity as the company has the intent and ability to hold these securities until maturity . loans receivable , net , increased by $ 18.3 million , to $ 1.542 billion at december 31 , 2013 from $ 1.523 billion at december 31 , 2012 , primarily due to growth in commercial lending of $ 56.4 million and in construction to permanent residential construction loans , net of loans in process , which increased $ 12.7 million as homeowners rebuild from superstorm sandy . this growth was partly offset by a decrease in one-to-four family mortgage loans due to prepayments and the sale of most newly originated 30-year fixed-rate one-to-four family loans . 48 deposits increased by $ 27.1 million , to $ 1.747 billion at december 31 , 2013 , from $ 1.720 billion at december 31 , 2012 with core deposits , ( i.e . all deposits excluding time deposits ) growing by $ 35.4 million . securities sold under agreements to repurchase with retail customers increased by $ 7.5 million , to $ 68.3 million at december 31 , 2013 , from $ 60.8 million at december 31 , 2012. federal home loan bank advances decreased $ 50.0 million , to $ 175.0 million at december 31 , 2013 , from $ 225.0 million at december 31 , 2012. stockholders ' equity decreased to $ 214.4 million at december 31 , 2013 , as compared to $ 219.8 million at december 31 , 2012. net income for the period was offset by an increase in accumulated other comprehensive loss of $ 6.7 million due to the recent rise in interest rates , the repurchase of 533,018 shares of common stock for $ 8.1 million ( average cost per share of $ 15.21 ) and the cash dividends on common stock of $ 8.2 million . the reclassification of most available-for-sale securities to held-to-maturity during the third quarter will reduce the risk of future reductions to stockholders ' equity that could result in the event of additional increases in interest rates . there were no shares repurchased in the fourth quarter of 2013 and at december 31 , 2013 , 301,766 shares were available for repurchase under the stock repurchase program adopted in the fourth quarter of 2012. tangible stockholders ' equity per common share was $ 12.33 at

