for 2013 , the return on average equity was 6.66 % , compared to 8.42 % for 2012. the return on average assets was 0.68 % for 2013 and 0.89 % for 2012. the results for 2013 included $ 863 thousand in gains on sales of securities , compared to $ 1.1 million in 2012. during 2013 , the company completed the acquisition of all outstanding stock of the retirement planning consultancy national associates , inc. of cleveland , ohio . the company is a leading independent consultant to retirement plans and offers actuarial , plan design , compliance and administrative services . as a third party administrator , nai provides services to 401 ( k ) , defined benefit , profit sharing , flexible spending , 403 ( b ) , esop and other plans . in acquiring nai , the company assumes a professional staff that is highly qualified and credentialed . synergies and the cost savings resulting from the combining of the operations of the companies will help drive an increase of non-interest income . net interest income net interest income , the principal source of the company 's earnings , represents the difference between interest income on interest-earning assets and interest expense on intere st-bearing liabilities . for 2013 , taxable equivalent net interest income decreased $ 822 thousand , or 2.12 % , from 2012. interest-earning assets averaged $ 1.061 billion during 2013 , increasing $ 30.4 million , or 2.95 % , compared to 2012. the company 's interest-bearing liabilities decreased 0.34 % from $ 881.6 million in 2012 to $ 878.7 million in 2013. the company finances its earning assets with a combination of interest-bearing and interest-free funds . the interest-bearing funds are composed of deposits , short-term borrowings and long-term debt . interest paid for the use of these funds is the second factor in the net interest income equation . interest-free funds , such as demand deposits and stockholders ' equity , require no interest expense and , therefore , contribute significantly to net interest income . the profit margin , or spread , on invested funds is a key performance measure . the company monitors two key performance indicators - net interest spread and net interest margin . the net interest spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities . the net interest spread in 2013 was 3.47 % , decreasing from 3.66 % in 2012. the net interest margin represents the overall profit margin – net interest income as a percentage of total interest-earning assets . this performance indicator gives effect to interest earned for all investable funds including the substantial volume of interest-free funds . for 2013 , the net interest margin , measured on a fully taxable equivalent basis , decreased to 3.58 % , compared to 3.76 % in 2012. the decrease in net interest margin is largely a result of interest-earning assets repricing at lower rate . total taxable equivalent interes t income was $ 43.0 million for 2013 , which is $ 2.0 million less than the $ 45.0 million reported in 2012. in comparing the years ending december 31 , 2013 and 2012 , yields on earning assets decreased 31 basis points while the cost of interest bearing liabilities decreased 12 basis points . average loans increased $ 30.6 million , or 5.42 % , in 2013 , however the yields decreased from 5.71 % in 2012 to 5.24 % in 2013. tax equated income from securities , federal funds and other decreased $ 933 thousand , or 7.3 % , in 2013 , farmers saw its yields on these assets decreased from 2.73 % in 2012 to 2.53 % in 2013. the average balance of investment securities and federal funds sold decreased slightly from $ 465.4 million in 2012 to $ 465.2 million in 2013 . 25 total interest expense a mounted to $ 5.1 million for 2013 , a 18.5 % decrease from $ 6.2 million reported in 2012. the decrease in 2013 is the result of lower rates of interest paid on interest-bearing deposits and repurchase agreements . the cost of interest-bearing liabilities decreased from 0.70 % in 2012 to 0.58 % in 2013. management will continue to evaluate future changes in interest rates and the shape of the treasury yield curve so that assets and liabilities may be priced accordingly to minimize the impact on the net interest margin . noninterest income total noninterest income increased by $ 1.3 million in 2013 . the increase in noninterest income is due to several factors . retirement plan consulting fees increased to $ 477 thousand compared to none in 2012 reflecting the income earned from the newly acquired entity , national associates , inc. ( “ nai ” ) . service charges on deposit accounts increased from $ 2.0 million in 2012 to $ 2.4 million in 2013 as the company made adjustments to the service charge structure of its deposit accounts . bank owned life insurance income increased $ 170 thousand as the company received tax free death benefits , which are included in income . insurance agency commissions also increased $ 119 thousand and trust fees increased $ 86 thousand , as management continues to focus on diversifying revenue sources to decrease the reliance on net interest income as the main driver of revenue . other operating income also increased $ 406 thousand , which is primarily the result of a gain on the sale of land that was owned by the company . noninterest expenses noninterest expense for 2013 was $ 39.1 million , compar ed to $ 35.8 million in 2012 , representing an increase of $ 3.3 million , or 9.2 % . most of the increase was a result of an 11.7 % increase in salary and employee benefits , mainly due to $ 1.3 million recorded in severance costs . story_separator_special_tag the allowance allocated to the one-to-four family real estate loan category and the consumer loan category is based upon the company 's allowance methodology for homogeneous loans , and increases and decreases in the balances of those portfolios . in previous years , the indirect installment loan category has represented the largest percentage of loan losses . the consumer loan category represents approximately 21.9 % of total loans and in 2013 , the net loan losses accounted for 66.7 % of the losses of the entire loan portfolio . for the commercial loan category , which represents only 16.7 % of the total loan portfolio , management relies on the bank 's internal loan review procedures and allocates accordingly based on loan classifications . the commercial real estate loan category represents 34.4 % of the total loan portfolio . there were no loans other than those identified above , that management has known information about possible credit problems of borrowers and their ability to comply with the loan repayment terms . management is actively monitoring certain borrowers ' financial condition and loans which management wants to more close ly monitor due to special circumstances . these loans and their potential loss exposure have been considered in management 's analysis of the adequacy of the allowance for loan losses . loan commitments and lines of credit in the normal course of business , the bank has extended various commitments for credit . commitments for mortgages , revolving lines of credit and letters of credit generally are extended for a period of one month up to one year . normally no fees are charged on any unused portion . normally , an annual fee of two percent is charged for the issuance of a letter of credit . as of december 31 , 2013 , there were no concentrations of loans exceeding 10 % of total loans that are not disclosed as a category of loans . as of that date also , there were no other interest-earning assets that are either nonaccrual , past due , restructured or non-performing . investment securities the investment securities portfolio de creased $ 41.1 million in 2013. maturing security funds were used to fund loan portfolio growth . excess balances of federal funds sold were strategically invested throughout the year . the company 's investment strategy is to maintain a diverse investment security portfolio with a higher concentration in mortgage-backed securities that are issued by u.s. government sponsored enterprises and tax-free municipal securities . farmers sold $ 93.1 million in securities in 2013 , resulting in net security gains of $ 863 thousand . farmers recognized market appreciation on faster paying mortgage-backed securities and lower rated municipal securities , and reinvested in new mortgage-backed securities and higher rated municipal securities to further diversify the securities portfolio . farmers ' objective in managing the investment portfolio is to preserve and enhance corporate liquidity through investment in primarily short and intermediate term securities which are readily marketable and of the highest credit quality . in general , investment in securities i s limited to those funds the bank feels it has in excess of funds used to satisfy loan demand and operating considerations . 31 volcker rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution , subject to certain exceptions . the bank does not engage in any of the trading activities or own any of the types of funds regulated by the volcker rule . mortgage-backed securities are created by the pooling of mortgages and issuance of a security . mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages . prepayment estimates for mortgage-backed securities are performed at purchase to ensure that prepayment assumptions are reasonab le considering the underlying collateral for the mortgage-backed securities at issue and current mortgage interest rates and to determine the yield and estimated maturity of the mortgage-backed security portfolio . prepayments that are faster than anticipated may shorten the life of the security and may result in faster amortization of any premiums paid and thereby reduce the net yield on such securities . during periods of declining mortgage interest rates , refinancing generally increases and accelerates the prepayment of the underlying mortgages and the related security . all holdings of mortgage-backed securities were issued by u.s. government sponsored enterprises . the following table shows the carrying value of investment securities by type of obligation at the dates indicated : type replace_table_token_13_th 32 a summary of debt securities held at december 31 , 2013 classified according to maturity and including weighted average yield for each range of maturities is set forth below : replace_table_token_14_th ( 1 ) the weighted average yield has been computed by dividing the total contractual interest income adjusted for amortization of premium or accretion of discount over the life of the security by the par value of the securities outstanding . the weighted average yield of tax-exempt obligations of states and political subdivisions has been calculated on a fully taxable equivalent basis . the amounts of adjustments to interest which are based on the statutory tax rate of 35 % were $ 38 thousand , $ 590 thousand , $ 536 thousand and $ 209 thousand for the four ranges of maturities . ( 2 ) payments based on contractual maturity . premises and equipment premises and equipment de creased $ 1.2 million in 2013. the decrease was the result of normal depreciation and the decision to close two retail branch locations in leetonia and warren , ohio . with declining branch transaction counts and banking trends driving customers towards online banking the decision was made to close the two branches in october 2013 . 33 deposits deposits represent the company 's principal source of funds . the deposit base consists of demand deposits , savings and money market accounts and other time deposits . during the year , the company 's

liquidity farmers maintains , in the opinion of management , liquidity sufficient to satisfy depositors ' requirements and meet the credit needs of customers . the company depends on its ability to maintain its market share of deposits as well as acquiring new funds . the company 's abili ty to attract deposits and borrow funds depends in large measure on its profitability , capitalization and overall financial condition . principal sources of liquidity include assets considered relatively liquid , such as short-term investment securities , federal funds sold and cash and due from banks . 27 along with its liquid assets , farmers has additional sources of liquidity available which help to insure that adequate funds are available as needed . these other sources include , but are not limited to , loan repayments , the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at two major dome stic banks . at december 31 , 2013 , farmers had borrowed $ 6 million against these lines of credit . management feels that its liquidity position is more than adequate and will continue to monitor the position on a monthly basis . the company also has additional borrowing capacity with the fhlb , as well as access to the federal reserve discount window , which provides an additional source of funds . the company views its membership in the fhlb as a solid source of liquidity .


 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 farmers maintains , in the opinion of management , liquidity sufficient to satisfy depositors ' requirements and meet the credit needs of customers . the company depends on its ability to maintain its market share of deposits as well as acquiring new funds . the company 's abili ty to attract deposits and borrow funds depends in large measure on its profitability , capitalization and overall financial condition . principal sources of liquidity include assets considered relatively liquid , such as short-term investment securities , federal funds sold and cash and due from banks . 27 along with its liquid assets , farmers has additional sources of liquidity available which help to insure that adequate funds are available as needed . these other sources include , but are not limited to , loan repayments , the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at two major dome stic banks . at december 31 , 2013 , farmers had borrowed $ 6 million against these lines of credit . management feels that its liquidity position is more than adequate and will continue to monitor the position on a monthly basis . the company also has additional borrowing capacity with the fhlb , as well as access to the federal reserve discount window , which provides an additional source of funds . the company views its membership in the fhlb as a solid source of liquidity .
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 Suspicious Activity Report : for 2013 , the return on average equity was 6.66 % , compared to 8.42 % for 2012. the return on average assets was 0.68 % for 2013 and 0.89 % for 2012. the results for 2013 included $ 863 thousand in gains on sales of securities , compared to $ 1.1 million in 2012. during 2013 , the company completed the acquisition of all outstanding stock of the retirement planning consultancy national associates , inc. of cleveland , ohio . the company is a leading independent consultant to retirement plans and offers actuarial , plan design , compliance and administrative services . as a third party administrator , nai provides services to 401 ( k ) , defined benefit , profit sharing , flexible spending , 403 ( b ) , esop and other plans . in acquiring nai , the company assumes a professional staff that is highly qualified and credentialed . synergies and the cost savings resulting from the combining of the operations of the companies will help drive an increase of non-interest income . net interest income net interest income , the principal source of the company 's earnings , represents the difference between interest income on interest-earning assets and interest expense on intere st-bearing liabilities . for 2013 , taxable equivalent net interest income decreased $ 822 thousand , or 2.12 % , from 2012. interest-earning assets averaged $ 1.061 billion during 2013 , increasing $ 30.4 million , or 2.95 % , compared to 2012. the company 's interest-bearing liabilities decreased 0.34 % from $ 881.6 million in 2012 to $ 878.7 million in 2013. the company finances its earning assets with a combination of interest-bearing and interest-free funds . the interest-bearing funds are composed of deposits , short-term borrowings and long-term debt . interest paid for the use of these funds is the second factor in the net interest income equation . interest-free funds , such as demand deposits and stockholders ' equity , require no interest expense and , therefore , contribute significantly to net interest income . the profit margin , or spread , on invested funds is a key performance measure . the company monitors two key performance indicators - net interest spread and net interest margin . the net interest spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities . the net interest spread in 2013 was 3.47 % , decreasing from 3.66 % in 2012. the net interest margin represents the overall profit margin – net interest income as a percentage of total interest-earning assets . this performance indicator gives effect to interest earned for all investable funds including the substantial volume of interest-free funds . for 2013 , the net interest margin , measured on a fully taxable equivalent basis , decreased to 3.58 % , compared to 3.76 % in 2012. the decrease in net interest margin is largely a result of interest-earning assets repricing at lower rate . total taxable equivalent interes t income was $ 43.0 million for 2013 , which is $ 2.0 million less than the $ 45.0 million reported in 2012. in comparing the years ending december 31 , 2013 and 2012 , yields on earning assets decreased 31 basis points while the cost of interest bearing liabilities decreased 12 basis points . average loans increased $ 30.6 million , or 5.42 % , in 2013 , however the yields decreased from 5.71 % in 2012 to 5.24 % in 2013. tax equated income from securities , federal funds and other decreased $ 933 thousand , or 7.3 % , in 2013 , farmers saw its yields on these assets decreased from 2.73 % in 2012 to 2.53 % in 2013. the average balance of investment securities and federal funds sold decreased slightly from $ 465.4 million in 2012 to $ 465.2 million in 2013 . 25 total interest expense a mounted to $ 5.1 million for 2013 , a 18.5 % decrease from $ 6.2 million reported in 2012. the decrease in 2013 is the result of lower rates of interest paid on interest-bearing deposits and repurchase agreements . the cost of interest-bearing liabilities decreased from 0.70 % in 2012 to 0.58 % in 2013. management will continue to evaluate future changes in interest rates and the shape of the treasury yield curve so that assets and liabilities may be priced accordingly to minimize the impact on the net interest margin . noninterest income total noninterest income increased by $ 1.3 million in 2013 . the increase in noninterest income is due to several factors . retirement plan consulting fees increased to $ 477 thousand compared to none in 2012 reflecting the income earned from the newly acquired entity , national associates , inc. ( “ nai ” ) . service charges on deposit accounts increased from $ 2.0 million in 2012 to $ 2.4 million in 2013 as the company made adjustments to the service charge structure of its deposit accounts . bank owned life insurance income increased $ 170 thousand as the company received tax free death benefits , which are included in income . insurance agency commissions also increased $ 119 thousand and trust fees increased $ 86 thousand , as management continues to focus on diversifying revenue sources to decrease the reliance on net interest income as the main driver of revenue . other operating income also increased $ 406 thousand , which is primarily the result of a gain on the sale of land that was owned by the company . noninterest expenses noninterest expense for 2013 was $ 39.1 million , compar ed to $ 35.8 million in 2012 , representing an increase of $ 3.3 million , or 9.2 % . most of the increase was a result of an 11.7 % increase in salary and employee benefits , mainly due to $ 1.3 million recorded in severance costs . story_separator_special_tag the allowance allocated to the one-to-four family real estate loan category and the consumer loan category is based upon the company 's allowance methodology for homogeneous loans , and increases and decreases in the balances of those portfolios . in previous years , the indirect installment loan category has represented the largest percentage of loan losses . the consumer loan category represents approximately 21.9 % of total loans and in 2013 , the net loan losses accounted for 66.7 % of the losses of the entire loan portfolio . for the commercial loan category , which represents only 16.7 % of the total loan portfolio , management relies on the bank 's internal loan review procedures and allocates accordingly based on loan classifications . the commercial real estate loan category represents 34.4 % of the total loan portfolio . there were no loans other than those identified above , that management has known information about possible credit problems of borrowers and their ability to comply with the loan repayment terms . management is actively monitoring certain borrowers ' financial condition and loans which management wants to more close ly monitor due to special circumstances . these loans and their potential loss exposure have been considered in management 's analysis of the adequacy of the allowance for loan losses . loan commitments and lines of credit in the normal course of business , the bank has extended various commitments for credit . commitments for mortgages , revolving lines of credit and letters of credit generally are extended for a period of one month up to one year . normally no fees are charged on any unused portion . normally , an annual fee of two percent is charged for the issuance of a letter of credit . as of december 31 , 2013 , there were no concentrations of loans exceeding 10 % of total loans that are not disclosed as a category of loans . as of that date also , there were no other interest-earning assets that are either nonaccrual , past due , restructured or non-performing . investment securities the investment securities portfolio de creased $ 41.1 million in 2013. maturing security funds were used to fund loan portfolio growth . excess balances of federal funds sold were strategically invested throughout the year . the company 's investment strategy is to maintain a diverse investment security portfolio with a higher concentration in mortgage-backed securities that are issued by u.s. government sponsored enterprises and tax-free municipal securities . farmers sold $ 93.1 million in securities in 2013 , resulting in net security gains of $ 863 thousand . farmers recognized market appreciation on faster paying mortgage-backed securities and lower rated municipal securities , and reinvested in new mortgage-backed securities and higher rated municipal securities to further diversify the securities portfolio . farmers ' objective in managing the investment portfolio is to preserve and enhance corporate liquidity through investment in primarily short and intermediate term securities which are readily marketable and of the highest credit quality . in general , investment in securities i s limited to those funds the bank feels it has in excess of funds used to satisfy loan demand and operating considerations . 31 volcker rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution , subject to certain exceptions . the bank does not engage in any of the trading activities or own any of the types of funds regulated by the volcker rule . mortgage-backed securities are created by the pooling of mortgages and issuance of a security . mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages . prepayment estimates for mortgage-backed securities are performed at purchase to ensure that prepayment assumptions are reasonab le considering the underlying collateral for the mortgage-backed securities at issue and current mortgage interest rates and to determine the yield and estimated maturity of the mortgage-backed security portfolio . prepayments that are faster than anticipated may shorten the life of the security and may result in faster amortization of any premiums paid and thereby reduce the net yield on such securities . during periods of declining mortgage interest rates , refinancing generally increases and accelerates the prepayment of the underlying mortgages and the related security . all holdings of mortgage-backed securities were issued by u.s. government sponsored enterprises . the following table shows the carrying value of investment securities by type of obligation at the dates indicated : type replace_table_token_13_th 32 a summary of debt securities held at december 31 , 2013 classified according to maturity and including weighted average yield for each range of maturities is set forth below : replace_table_token_14_th ( 1 ) the weighted average yield has been computed by dividing the total contractual interest income adjusted for amortization of premium or accretion of discount over the life of the security by the par value of the securities outstanding . the weighted average yield of tax-exempt obligations of states and political subdivisions has been calculated on a fully taxable equivalent basis . the amounts of adjustments to interest which are based on the statutory tax rate of 35 % were $ 38 thousand , $ 590 thousand , $ 536 thousand and $ 209 thousand for the four ranges of maturities . ( 2 ) payments based on contractual maturity . premises and equipment premises and equipment de creased $ 1.2 million in 2013. the decrease was the result of normal depreciation and the decision to close two retail branch locations in leetonia and warren , ohio . with declining branch transaction counts and banking trends driving customers towards online banking the decision was made to close the two branches in october 2013 . 33 deposits deposits represent the company 's principal source of funds . the deposit base consists of demand deposits , savings and money market accounts and other time deposits . during the year , the company 's

