at december 31 , 2000 , 1999 and 1998 , investment securities totaled $ 81.6 million , $ 79.8 million and $ 51.4 million , respectively . the increase of investment securities in 2000 was primarily attributable to the increase in unrealized gain on securities available for sale of $ 1.9 million from december 31 , 1999 to december 31 , 2000. the increase in 1999 compared with 1998 was primarily attributable to the investment of additional deposit funds and the deposits and investment securities acquired from first american . common shareholders ' equity was $ 29.4 million , $ 28.5 million and $ 23.8 million at december 31 , 2000 , 1999 and 1998 , respectively . the increase in common shareholder 's equity for the year ended december 31 , 2000 reflects earnings retention and an increase in the unrealized gain on securities available for sale offset by the purchase of treasury stock and payment of dividends . -19- results of operation net interest income net interest income represents the amount by which interest income on interest-earning assets , including securities and loans , exceeds interest expense incurred on interest-bearing liabilities , including deposits and other borrowed funds . net interest income is the principal source of the company 's earnings . interest rate fluctuations , as well as changes in the amount and type of earning assets and liabilities , combine to affect net interest income . 2000 versus 1999. net interest income increased from $ 11.1 million in 1999 to $ 12.3 million in 2000 , an increase of $ 1.2 million or 11.0 % , primarily due to a growth in interest income of $ 7.4 million , or 34.5 % , offset by an increase in interest expense of $ 6.2 million , or 59.4 % . this resulted in net interest margins of 3.44 % and 3.93 % and net interest spreads of 2.72 % and 3.12 % for the years ended december 31 , 2000 and 1999 , respectively . the increase in net interest income for 2000 was primarily due to growth in average loans of $ 54.3 million or 25.4 % and growth in average investment securities of $ 26.6 million or 45.7 % , which contributed $ 5.7 million and $ 2.0 million , respectively , to the increase in total interest income . net interest income was negatively affected by lower yields on both loans and securities . the increase in interest expense was due primarily to an increase in average interest-bearing deposits of $ 64.0 million or 28.2 % , along with an increase in cost of funds from 4.55 % in 1999 to 5.42 % in 2000. for the year ended december 31 , 2000 the company also had an increase in average other borrowed funds and long-term debt of $ 8.5 million and $ 5.4 million respectively . 1999 versus 1998. net interest income increased from $ 9.4 million in 1998 to $ 11.1 million in 1999 , an increase of $ 1.7 million or 17.5 % , primarily due to growth in interest income of $ 3.2 million . this increase was partially offset by an increase in interest expense of $ 1.6 million . this resulted in net interest margins of 3.93 % and 4.07 % and net interest spreads of 3.12 % and 3.18 % for 1999 and 1998 , respectively . the increase in net interest income for 1999 was primarily due to growth in average loans of $ 44.0 million or 25.9 % and growth in average investment securities of $ 10.3 million or 21.5 % , which contributed $ 2.9 million and $ 522,000 , respectively , to the increase in total interest income . net interest income was negatively affected by lower yields on both loans and securities . the company also decreased federal funds from an average $ 12.9 million in 1998 to $ 7.7 million in 1999 , causing a decrease in federal funds interest income of $ 304,000 . -20- the following table presents for the periods indicated the total dollar amount of interest income from average interest-earning assets and the resultant yields , as well as the interest expense on average interest-bearing liabilities , expressed both in dollars and rates . no tax equivalent adjustments were made and all average balances are yearly average balances . nonaccruing loans have been included in the tables as loans carrying a zero yield . replace_table_token_4_th -21- the following schedule presents the dollar amount of changes in interest income and interest expense for the major components of interest-earning assets and interest-bearing liabilities and distinguishes between the increase related to higher outstanding balances and the volatility of interest rates . for purposes of this table , changes attributable to both rate and volume , which can be segregated , have been allocated . years ended december 31 , 2000 vs. 1999 1999 vs. 1998 increase ( decrease ) due to increase ( decrease ) due to volume rate total volume rate total ( dollars in thousands ) interest-earnings assets : loans $ 4,438 $ 1,299 $ 5,737 $ 3,768 $ ( 831 ) $ 2,937 securities 1,656 307 1,963 669 ( 147 ) 522 federal funds sold ( 214 ) 38 ( 176 ) ( 275 ) ( 29 ) ( 304 ) interest-bearing deposits in other financial institutions ( 75 )  ( 75 ) 46 ( 1 ) 45 total increase ( decrease ) in interest income 5,805 1,644 7,449 4,208 ( 1,008 ) 3,200 interest-bearing liabilities : now , savings and money market accounts 769 701 1,470 534 22 556 time deposits 2,112 1,456 3,568 1,326 ( 516 ) 810 other borrowed funds 452 146 598 99 90 189 long-term debt 600  600    total increase ( decrease ) in interest expense 3,933 2,303 6,236 1,959 ( 404 ) 1,555 increase ( decrease ) in net interest income $ 1,872 $ ( 659 story_separator_special_tag loans where the interest payments jeopardize the collection of principal are placed on nonaccrual status , unless the loan is both well secured and in the process of collection . cash payments received while a loan is classified as nonaccrual is recorded as a reduction of principal as long as doubt exists as to collection . the company is sometimes required to revise a loan 's interest rate or repayment terms in a troubled debt restructuring , however , the company had no restructured loans at either december 31 , 2000 , december 31 , 1999 or december 31 , 1998. in addition to an internal loan review , the company retains ibs for an annual external review to evaluate the loan portfolio . the company maintains current appraisals on loans secured by real estate , particularly those categorized as nonperforming loans and potential problem loans . in instances where updated appraisals reflect reduced collateral values , an evaluation of the borrower 's overall financial condition is made to determine the need , if any , for possible write-downs or appropriate additions to the allowance for loan losses . the company records other real estate at fair value at the time of acquisition , less estimated costs to sell . the following table presents information regarding nonperforming assets at the dates indicated : replace_table_token_5_th the company has adopted statement of financial accounting standards ( sfas ) no . 114 , accounting by creditors for impairment of a loan , as amended by sfas no . 118 , accounting for creditors for impairment of a loan- income recognition and disclosures . under sfas no . 114 , as amended , a loan is considered impaired based on current information and events , if it is probable that the company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement . the measurement of impaired loans is based on the present value of expected future cash flows discounted at the loan 's effective interest rate or the loan 's observable market price or based on the fair value of the collateral if the loan is collateral-dependent . the implementation of sfas no . 114 did not have a material adverse affect on the company 's financial statements . -27- allowance for loan losses the allowance for loan losses is a reserve established through charges to earnings in the form of a provision for loan losses . management has established an allowance for loan losses , which it believes , is adequate for estimated losses in the company 's loan portfolio . based on an evaluation of the loan portfolio , management presents a quarterly review of the allowance for loan losses to the company 's board of directors , indicating any change in the allowance since the last review and any recommendations as to adjustments in the allowance . in making its evaluation , management considers the diversification by industry of the company 's commercial loan portfolio , the effect of changes in the local real estate market on collateral values , the results of recent regulatory examinations , the effects on the loan portfolio of current economic indicators and their probable impact on borrowers , the amount of charge-offs for the period , the amount of nonperforming loans and related collateral security , the evaluation of its loan portfolio through an annual external loan review conducted by ibs and the annual examination of the company 's financial statements by its independent auditors . charge-offs occur when loans are deemed to be uncollectible . the company follows an internal loan review program to evaluate the credit risk in the loan portfolio . in addition , the company contracts with ibs to annually perform an external loan review . through the loan review process , the company maintains an internally classified loan list , which , along with the delinquency list of loans , helps management assess the overall quality of the loan portfolio and the adequacy of the allowance for loan losses . loans internally classified as substandard or in the more severe categories of doubtful or loss are those loans that at a minimum have clear and defined weaknesses such as a highly-leveraged position , unfavorable financial ratios , uncertain repayment sources or poor financial condition , which may jeopardize recoverability of the debt . at december 31 , 2000 , the company had $ 9.6 million of such loans compared with $ 7.5 million at december 31 , 1999 , a 28.0 % increase . this increase is due primarily to the classification of two credits of approximately $ 1.6 million in loans as substandard during the fourth quarter 2000. these classifications were made due to cash flow deficiencies in these lines of credits and are not expected to remain classified as substandard for an extended period of time . in addition to the internally classified loan list and delinquency list of loans , the company maintains a separate watch list which further aids the company in monitoring loan portfolios . watch list loans show warning elements where the present status portrays one or more deficiencies that require attention in the short term or where pertinent ratios of the loan account have weakened to a point where more frequent monitoring is warranted . these loans do not have all of the characteristics of a classified loan ( substandard or doubtful ) but do show weakened elements as compared with those of a satisfactory credit . the company reviews these loans to assist in assessing the adequacy of the allowance for loan losses . at december 31 , 2000 , the company had $ 2.2 million of such loans compared with $ 3.0 million at december 31 , 1999 , a 26.7 % decrease . in order to determine the adequacy of the allowance for loan losses , management considers the risk classification or delinquency status of loans

capital resources and liquidity capital management consists of providing equity to support both current and future operations . the company is subject to capital adequacy requirements imposed by the federal reserve and the bank is subject to capital adequacy requirements imposed by the fdic and the tdb . both the federal reserve and the fdic have adopted risk-based capital requirements for assessing bank holding company and bank capital adequacy . these standards define capital and establish minimum capital requirements in relation to assets and off-balance sheet exposure , adjusted for credit risk . the risk-based capital standards currently in effect are designed to make regulatory capital requirements more sensitive to differences in risk profiles among bank holding companies and banks , to account for off-balance sheet exposure and to minimize disincentives for holding liquid assets . assets and off-balance sheet items are assigned to broad risk categories , each with appropriate relative risk weights . the resulting capital ratios represent capital as a percentage of total risk-weighted assets and off-balance sheet items . the risk-based capital standards issued by the federal reserve require all bank holding companies to have tier 1 capital of at least 4.0 % and total risk-based capital ( tier 1 and tier 2 ) of at least 8.0 % of total risk-adjusted assets . tier 1 capital generally includes common shareholders ' equity and qualifying perpetual preferred stock together with related surpluses and retained earnings , less deductions for goodwill and various other intangibles . tier 2 capital may consist of a limited amount of intermediate-term preferred stock , a limited amount of term subordinated debt , certain hybrid capital instruments and other debt securities , perpetual preferred stock not qualifying as tier 1 capital , and a limited amount of the general valuation allowance for loan losses . the sum of tier 1 capital and tier 2 capital is total risk-based capital .


 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 and liquidity capital management consists of providing equity to support both current and future operations . the company is subject to capital adequacy requirements imposed by the federal reserve and the bank is subject to capital adequacy requirements imposed by the fdic and the tdb . both the federal reserve and the fdic have adopted risk-based capital requirements for assessing bank holding company and bank capital adequacy . these standards define capital and establish minimum capital requirements in relation to assets and off-balance sheet exposure , adjusted for credit risk . the risk-based capital standards currently in effect are designed to make regulatory capital requirements more sensitive to differences in risk profiles among bank holding companies and banks , to account for off-balance sheet exposure and to minimize disincentives for holding liquid assets . assets and off-balance sheet items are assigned to broad risk categories , each with appropriate relative risk weights . the resulting capital ratios represent capital as a percentage of total risk-weighted assets and off-balance sheet items . the risk-based capital standards issued by the federal reserve require all bank holding companies to have tier 1 capital of at least 4.0 % and total risk-based capital ( tier 1 and tier 2 ) of at least 8.0 % of total risk-adjusted assets . tier 1 capital generally includes common shareholders ' equity and qualifying perpetual preferred stock together with related surpluses and retained earnings , less deductions for goodwill and various other intangibles . tier 2 capital may consist of a limited amount of intermediate-term preferred stock , a limited amount of term subordinated debt , certain hybrid capital instruments and other debt securities , perpetual preferred stock not qualifying as tier 1 capital , and a limited amount of the general valuation allowance for loan losses . the sum of tier 1 capital and tier 2 capital is total risk-based capital .
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 Suspicious Activity Report : at december 31 , 2000 , 1999 and 1998 , investment securities totaled $ 81.6 million , $ 79.8 million and $ 51.4 million , respectively . the increase of investment securities in 2000 was primarily attributable to the increase in unrealized gain on securities available for sale of $ 1.9 million from december 31 , 1999 to december 31 , 2000. the increase in 1999 compared with 1998 was primarily attributable to the investment of additional deposit funds and the deposits and investment securities acquired from first american . common shareholders ' equity was $ 29.4 million , $ 28.5 million and $ 23.8 million at december 31 , 2000 , 1999 and 1998 , respectively . the increase in common shareholder 's equity for the year ended december 31 , 2000 reflects earnings retention and an increase in the unrealized gain on securities available for sale offset by the purchase of treasury stock and payment of dividends . -19- results of operation net interest income net interest income represents the amount by which interest income on interest-earning assets , including securities and loans , exceeds interest expense incurred on interest-bearing liabilities , including deposits and other borrowed funds . net interest income is the principal source of the company 's earnings . interest rate fluctuations , as well as changes in the amount and type of earning assets and liabilities , combine to affect net interest income . 2000 versus 1999. net interest income increased from $ 11.1 million in 1999 to $ 12.3 million in 2000 , an increase of $ 1.2 million or 11.0 % , primarily due to a growth in interest income of $ 7.4 million , or 34.5 % , offset by an increase in interest expense of $ 6.2 million , or 59.4 % . this resulted in net interest margins of 3.44 % and 3.93 % and net interest spreads of 2.72 % and 3.12 % for the years ended december 31 , 2000 and 1999 , respectively . the increase in net interest income for 2000 was primarily due to growth in average loans of $ 54.3 million or 25.4 % and growth in average investment securities of $ 26.6 million or 45.7 % , which contributed $ 5.7 million and $ 2.0 million , respectively , to the increase in total interest income . net interest income was negatively affected by lower yields on both loans and securities . the increase in interest expense was due primarily to an increase in average interest-bearing deposits of $ 64.0 million or 28.2 % , along with an increase in cost of funds from 4.55 % in 1999 to 5.42 % in 2000. for the year ended december 31 , 2000 the company also had an increase in average other borrowed funds and long-term debt of $ 8.5 million and $ 5.4 million respectively . 1999 versus 1998. net interest income increased from $ 9.4 million in 1998 to $ 11.1 million in 1999 , an increase of $ 1.7 million or 17.5 % , primarily due to growth in interest income of $ 3.2 million . this increase was partially offset by an increase in interest expense of $ 1.6 million . this resulted in net interest margins of 3.93 % and 4.07 % and net interest spreads of 3.12 % and 3.18 % for 1999 and 1998 , respectively . the increase in net interest income for 1999 was primarily due to growth in average loans of $ 44.0 million or 25.9 % and growth in average investment securities of $ 10.3 million or 21.5 % , which contributed $ 2.9 million and $ 522,000 , respectively , to the increase in total interest income . net interest income was negatively affected by lower yields on both loans and securities . the company also decreased federal funds from an average $ 12.9 million in 1998 to $ 7.7 million in 1999 , causing a decrease in federal funds interest income of $ 304,000 . -20- the following table presents for the periods indicated the total dollar amount of interest income from average interest-earning assets and the resultant yields , as well as the interest expense on average interest-bearing liabilities , expressed both in dollars and rates . no tax equivalent adjustments were made and all average balances are yearly average balances . nonaccruing loans have been included in the tables as loans carrying a zero yield . replace_table_token_4_th -21- the following schedule presents the dollar amount of changes in interest income and interest expense for the major components of interest-earning assets and interest-bearing liabilities and distinguishes between the increase related to higher outstanding balances and the volatility of interest rates . for purposes of this table , changes attributable to both rate and volume , which can be segregated , have been allocated . years ended december 31 , 2000 vs. 1999 1999 vs. 1998 increase ( decrease ) due to increase ( decrease ) due to volume rate total volume rate total ( dollars in thousands ) interest-earnings assets : loans $ 4,438 $ 1,299 $ 5,737 $ 3,768 $ ( 831 ) $ 2,937 securities 1,656 307 1,963 669 ( 147 ) 522 federal funds sold ( 214 ) 38 ( 176 ) ( 275 ) ( 29 ) ( 304 ) interest-bearing deposits in other financial institutions ( 75 )  ( 75 ) 46 ( 1 ) 45 total increase ( decrease ) in interest income 5,805 1,644 7,449 4,208 ( 1,008 ) 3,200 interest-bearing liabilities : now , savings and money market accounts 769 701 1,470 534 22 556 time deposits 2,112 1,456 3,568 1,326 ( 516 ) 810 other borrowed funds 452 146 598 99 90 189 long-term debt 600  600    total increase ( decrease ) in interest expense 3,933 2,303 6,236 1,959 ( 404 ) 1,555 increase ( decrease ) in net interest income $ 1,872 $ ( 659 story_separator_special_tag loans where the interest payments jeopardize the collection of principal are placed on nonaccrual status , unless the loan is both well secured and in the process of collection . cash payments received while a loan is classified as nonaccrual is recorded as a reduction of principal as long as doubt exists as to collection . the company is sometimes required to revise a loan 's interest rate or repayment terms in a troubled debt restructuring , however , the company had no restructured loans at either december 31 , 2000 , december 31 , 1999 or december 31 , 1998. in addition to an internal loan review , the company retains ibs for an annual external review to evaluate the loan portfolio . the company maintains current appraisals on loans secured by real estate , particularly those categorized as nonperforming loans and potential problem loans . in instances where updated appraisals reflect reduced collateral values , an evaluation of the borrower 's overall financial condition is made to determine the need , if any , for possible write-downs or appropriate additions to the allowance for loan losses . the company records other real estate at fair value at the time of acquisition , less estimated costs to sell . the following table presents information regarding nonperforming assets at the dates indicated : replace_table_token_5_th the company has adopted statement of financial accounting standards ( sfas ) no . 114 , accounting by creditors for impairment of a loan , as amended by sfas no . 118 , accounting for creditors for impairment of a loan- income recognition and disclosures . under sfas no . 114 , as amended , a loan is considered impaired based on current information and events , if it is probable that the company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement . the measurement of impaired loans is based on the present value of expected future cash flows discounted at the loan 's effective interest rate or the loan 's observable market price or based on the fair value of the collateral if the loan is collateral-dependent . the implementation of sfas no . 114 did not have a material adverse affect on the company 's financial statements . -27- allowance for loan losses the allowance for loan losses is a reserve established through charges to earnings in the form of a provision for loan losses . management has established an allowance for loan losses , which it believes , is adequate for estimated losses in the company 's loan portfolio . based on an evaluation of the loan portfolio , management presents a quarterly review of the allowance for loan losses to the company 's board of directors , indicating any change in the allowance since the last review and any recommendations as to adjustments in the allowance . in making its evaluation , management considers the diversification by industry of the company 's commercial loan portfolio , the effect of changes in the local real estate market on collateral values , the results of recent regulatory examinations , the effects on the loan portfolio of current economic indicators and their probable impact on borrowers , the amount of charge-offs for the period , the amount of nonperforming loans and related collateral security , the evaluation of its loan portfolio through an annual external loan review conducted by ibs and the annual examination of the company 's financial statements by its independent auditors . charge-offs occur when loans are deemed to be uncollectible . the company follows an internal loan review program to evaluate the credit risk in the loan portfolio . in addition , the company contracts with ibs to annually perform an external loan review . through the loan review process , the company maintains an internally classified loan list , which , along with the delinquency list of loans , helps management assess the overall quality of the loan portfolio and the adequacy of the allowance for loan losses . loans internally classified as substandard or in the more severe categories of doubtful or loss are those loans that at a minimum have clear and defined weaknesses such as a highly-leveraged position , unfavorable financial ratios , uncertain repayment sources or poor financial condition , which may jeopardize recoverability of the debt . at december 31 , 2000 , the company had $ 9.6 million of such loans compared with $ 7.5 million at december 31 , 1999 , a 28.0 % increase . this increase is due primarily to the classification of two credits of approximately $ 1.6 million in loans as substandard during the fourth quarter 2000. these classifications were made due to cash flow deficiencies in these lines of credits and are not expected to remain classified as substandard for an extended period of time . in addition to the internally classified loan list and delinquency list of loans , the company maintains a separate watch list which further aids the company in monitoring loan portfolios . watch list loans show warning elements where the present status portrays one or more deficiencies that require attention in the short term or where pertinent ratios of the loan account have weakened to a point where more frequent monitoring is warranted . these loans do not have all of the characteristics of a classified loan ( substandard or doubtful ) but do show weakened elements as compared with those of a satisfactory credit . the company reviews these loans to assist in assessing the adequacy of the allowance for loan losses . at december 31 , 2000 , the company had $ 2.2 million of such loans compared with $ 3.0 million at december 31 , 1999 , a 26.7 % decrease . in order to determine the adequacy of the allowance for loan losses , management considers the risk classification or delinquency status of loans

