● noninterest expense increased $ 1.2 million to $ 26.0 million at december 31 , 2011 , compared to $ 24.8 million at december 31 , 2010. the increase in noninterest expense for the year ended december 31 , 2011 was due to an increase in salaries and benefits of $ 845,000 related to regular annual adjustments as well as salaries and benefits related to the hiring of additional personnel . general . our consolidated results of operations are comprised of earnings on investments and loans and the net income recorded by the bank . our consolidated results of operations depend primarily on net interest and dividend income . net interest and dividend income is the difference between the interest income earned on interest-earning assets and the interest paid on interest-bearing liabilities . interest-earning assets consist primarily of securities , commercial real estate loans , commercial and industrial loans and residential real estate loans . interest-bearing liabilities consist primarily of certificates of deposit and money market account , now account and savings account deposits , borrowings from the federal home loan bank of boston and securities sold under repurchase agreements . the consolidated results of operations also depend on the provision for loan losses , noninterest income , and noninterest expense . noninterest expense includes salaries and employee benefits , occupancy expenses and other general and administrative expenses . noninterest income includes service fees and charges , income on bank-owned life insurance , and gains ( losses ) on securities . 36 critical accounting policies . our accounting policies are disclosed in note 1 to the consolidated financial statements . given our current business strategy and asset/liability structure , the more critical policies are accounting for nonperforming loans , the allowance for loan losses and provision for loan losses , other than temporary impairment of securities , and the valuation of deferred taxes . in addition to the informational disclosure in the notes to the consolidated financial statements , our policy on each of these accounting policies is described in detail in the applicable sections of “ management 's discussion and analysis of financial condition and results of operations . ” senior management has discussed the development and selection of these accounting policies and the related disclosures with the audit committee of our board of directors . our general policy regarding recognition of interest on loans is to discontinue the accrual of interest when principal or interest payments are delinquent 90 days or more , or earlier if the loan is considered impaired . any unpaid amounts previously accrued on these loans are reversed from income . subsequent cash receipts are applied to the outstanding principal balance or to interest income if , in the judgment of management , collection of the principal balance is not in question . loans are returned to accrual status when they become current as to both principal and interest and when subsequent performance reduces the concern as to the collectability of principal and interest . loan fees and certain direct loan origination costs are deferred , and the net fee or cost is recognized as an adjustment to interest income over the estimated average lives of the related loans . the process of evaluating the loan portfolio , classifying loans and determining the allowance and provision is described in detail in part i under “ business – lending activities - allowance for loan losses . ” our methodology for assessing the allocation of the allowance consists of two key components , which are a specific allowance for impaired loans and a formula allowance for the remainder of the portfolio . measurement of impairment can be based on present value of expected future cash flows discounted at the loan 's effective interest rate , the loan 's observable market price or the fair value of the collateral , if the loan is collateral dependent . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change . the allocation of the allowance is also reviewed by management based upon our evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions , such as new loan products , credit quality trends ( including trends in nonperforming loans expected to result from existing conditions ) , collateral values , loan volumes and concentrations , specific industry conditions within portfolio segments that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectability of the loan portfolio . although management believes it has established and maintained the allowance for loan losses at adequate levels , if management 's assumptions and judgments prove to be incorrect due to continued deterioration in economic , real estate and other conditions , and the allowance for loan losses is not adequate to absorb inherent losses , our earnings and capital could be significantly and adversely affected . on a quarterly basis , we review securities with a decline in fair value below the amortized cost of the investment to determine whether the decline in fair value is temporary or other than temporary . declines in the fair value of marketable equity securities below their cost that are deemed to be other than temporary based on the severity and duration of the impairment are reflected in earnings as realized losses . in estimating other than temporary impairment losses for securities , impairment is required to be recognized if ( 1 ) we intend to sell the security ; ( 2 ) it is “ more likely than not ” that we will be required to sell the security before recovery of its amortized cost basis ; or ( 3 ) for debt securities , the present value of expected cash flows is not sufficient to recover the entire amortized cost basis . story_separator_special_tag recoveries of $ 83,000. for the year ended december 31 , 2010 , charge-offs were primarily made up of a $ 7.2 million charge-off on a single commercial real estate loan relationship . although management believes it has established and maintained the allowance for loan losses at appropriate levels , future adjustments may be necessary if economic , real estate and other conditions differ substantially from the current operating environment . noninterest income . noninterest income decreased $ 3.6 million to $ 3.8 million for the year ended december 31 , 2011 compared to $ 7.4 million for the same period in 2010. net gains on the sales of securities decreased $ 3.6 million for the year ended december 31 , 2011 from $ 4.1 million in the comparable 2010 period . the net gains for the year ended december 31 , 2010 were primarily the result of management wanting to take advantage of unrealized gains within the portfolio as well as wanting to restructure the securities portfolio . 43 noninterest expense . noninterest expense for the year ended december 31 , 2011 was $ 26.0 million compared to $ 24.8 million for the same period in 2010. the increase in noninterest expense for the year ended december 31 , 2011 was due to an increase in salaries and benefits of $ 845,000 related to regular annual adjustments as well as salaries and benefits related to the hiring of additional personnel . professional fees increased $ 362,000 to $ 2.0 million for the year ended december 31 , 2011 , compared to $ 1.7 million for the same period in 2010. the increase was due to consulting and legal services involving strategic planning and regulatory compliance . this was partially offset by a $ 304,000 decrease in expenses associated with other real estate owned ( “ oreo ” ) . oreo expenses were related to write-downs and maintenance of foreclosed properties . income taxes . the provision for income taxes increased to $ 1.3 million for the year ended december 31 , 2011 , compared to $ 34,000 for the comparable 2010 period . the effective tax rate was 18.2 % for the year ended december 31 , 2011 and 1.1 % for the same period in 2010. the increase in the tax provision and effective tax rate in the 2011 period is due primarily to higher pre-tax income while maintaining the same level of tax-advantaged income such as boli and tax-exempt municipal obligations . comparison of operating results for years ended december 31 , 2010 and 2009 general . net income for the year ended december 31 , 2010 was $ 3.0 million , or $ 0.11 per diluted share , compared to $ 5.5 million , or $ 0.18 per diluted share , for the same period in 2009. interest and dividend income . total interest and dividend income decreased $ 6.4 million to $ 46.1 million for the year ended december 31 , 2010 , compared to $ 52.5 million for the same period in 2009. the decrease in interest income was primarily the result of a decrease in the average yield on interest-earning assets for the year ended december 31 , 2010 , which was partially offset by an increase in the average balance of interest-earning assets for the same period . the average yield on interest-earning assets , on a tax-equivalent basis , decreased 77 basis points to 4.11 % for the year ended december 31 , 2010 from 4.88 % for the same period in 2009. the cost of interest-bearing liabilities decreased 59 basis points to 1.88 % for the year ended december 31 , 2010 from 2.47 % for the same period in 2009. interest income on securities decreased $ 5.4 million to $ 21.4 million for the year ended december 31 , 2010 from $ 26.8 million for the year ended december 31 , 2009. the tax-equivalent yield on securities decreased 115 basis points from 4.56 % for the year 2009 to 3.41 % for the same period in 2010 due to the enduring low interest rate environment . the decrease in interest rates during 2010 caused an increase in prepayments on investments and the funds were reinvested in a lower rate environment , thus reducing yields . this was partially offset by a $ 49.7 million increase in the average balance of securities from $ 597.8 million for the year ended december 31 , 2009 to $ 647.5 million for the year ended december 31 , 2010. interest income on loans decreased $ 993,000 to $ 24.7 million for the year ended december 31 , 2010 from $ 25.7 million for the year ended december 31 , 2009. the tax-equivalent yield on loans decreased 26 basis points from 5.42 % for the year 2009 to 5.16 % for the same period in 2010 due to the enduring low interest rate environment . the decrease in interest rates during 2010 caused an increase in prepayments on loans and the funds were reinvested in a lower rate environment , thus reducing yields . this was partially offset by a $ 6.0 million increase in the average balance of loans from $ 476.2 million for the year ended december 31 , 2009 to $ 482.2 million for the year ended december 31 , 2010. interest expense . interest expense for the year ended december 31 , 2010 decreased $ 3.3 million to $ 16.7 million from the comparable 2009 period . this was attributable to a decrease in the average cost of interest-bearing liabilities of 59 basis points to 1.88 % for the year ended december 31 , 2010 from 2.47 % for the same period in 2009. the decrease in the cost of interest-bearing liabilities was primarily due to a decrease in rates on time deposits , repurchase agreements and borrowings . net interest and dividend income . net interest and dividend income decreased $ 3.1 million to $ 29.4 million for the

liquidity and capital resources the term “ liquidity ” refers to our ability to generate adequate amounts of cash to fund loan originations , loan purchases , deposit withdrawals and operating expenses . our primary sources of liquidity are deposits , scheduled amortization and prepayments of loan principal and mortgage-backed securities , maturities and calls of investment securities and funds provided by our operations . we also can borrow funds from the fhlbb based on eligible collateral of loans and securities . outstanding borrowings from the fhlbb were $ 196.7 million at december 31 , 2011 and $ 202.2 million at december 31 , 2010. at december 31 , 2011 , we had $ 85.6 million in available borrowing capacity with the fhlbb . we have the ability to increase our borrowing capacity with the fhlbb by pledging investment securities or loans . in addition , we may enter into reverse repurchase agreements with approved broker-dealers . reverse repurchase agreements are agreements that allow us to borrow money using our securities as collateral . we also have outstanding at any time , a significant number of commitments to extend credit and provide financial guarantees to third parties . these arrangements are subject to strict credit control assessments . guarantees specify limits to our obligations . because many commitments and almost all guarantees expire without being funded in whole or in part , the contract amounts are not estimates of future cash flows . we are also obligated under agreements with the fhlbb to repay borrowed funds and are obligated under leases for certain of our branches and equipment .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources the term “ liquidity ” refers to our ability to generate adequate amounts of cash to fund loan originations , loan purchases , deposit withdrawals and operating expenses . our primary sources of liquidity are deposits , scheduled amortization and prepayments of loan principal and mortgage-backed securities , maturities and calls of investment securities and funds provided by our operations . we also can borrow funds from the fhlbb based on eligible collateral of loans and securities . outstanding borrowings from the fhlbb were $ 196.7 million at december 31 , 2011 and $ 202.2 million at december 31 , 2010. at december 31 , 2011 , we had $ 85.6 million in available borrowing capacity with the fhlbb . we have the ability to increase our borrowing capacity with the fhlbb by pledging investment securities or loans . in addition , we may enter into reverse repurchase agreements with approved broker-dealers . reverse repurchase agreements are agreements that allow us to borrow money using our securities as collateral . we also have outstanding at any time , a significant number of commitments to extend credit and provide financial guarantees to third parties . these arrangements are subject to strict credit control assessments . guarantees specify limits to our obligations . because many commitments and almost all guarantees expire without being funded in whole or in part , the contract amounts are not estimates of future cash flows . we are also obligated under agreements with the fhlbb to repay borrowed funds and are obligated under leases for certain of our branches and equipment .
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 Suspicious Activity Report : ● noninterest expense increased $ 1.2 million to $ 26.0 million at december 31 , 2011 , compared to $ 24.8 million at december 31 , 2010. the increase in noninterest expense for the year ended december 31 , 2011 was due to an increase in salaries and benefits of $ 845,000 related to regular annual adjustments as well as salaries and benefits related to the hiring of additional personnel . general . our consolidated results of operations are comprised of earnings on investments and loans and the net income recorded by the bank . our consolidated results of operations depend primarily on net interest and dividend income . net interest and dividend income is the difference between the interest income earned on interest-earning assets and the interest paid on interest-bearing liabilities . interest-earning assets consist primarily of securities , commercial real estate loans , commercial and industrial loans and residential real estate loans . interest-bearing liabilities consist primarily of certificates of deposit and money market account , now account and savings account deposits , borrowings from the federal home loan bank of boston and securities sold under repurchase agreements . the consolidated results of operations also depend on the provision for loan losses , noninterest income , and noninterest expense . noninterest expense includes salaries and employee benefits , occupancy expenses and other general and administrative expenses . noninterest income includes service fees and charges , income on bank-owned life insurance , and gains ( losses ) on securities . 36 critical accounting policies . our accounting policies are disclosed in note 1 to the consolidated financial statements . given our current business strategy and asset/liability structure , the more critical policies are accounting for nonperforming loans , the allowance for loan losses and provision for loan losses , other than temporary impairment of securities , and the valuation of deferred taxes . in addition to the informational disclosure in the notes to the consolidated financial statements , our policy on each of these accounting policies is described in detail in the applicable sections of “ management 's discussion and analysis of financial condition and results of operations . ” senior management has discussed the development and selection of these accounting policies and the related disclosures with the audit committee of our board of directors . our general policy regarding recognition of interest on loans is to discontinue the accrual of interest when principal or interest payments are delinquent 90 days or more , or earlier if the loan is considered impaired . any unpaid amounts previously accrued on these loans are reversed from income . subsequent cash receipts are applied to the outstanding principal balance or to interest income if , in the judgment of management , collection of the principal balance is not in question . loans are returned to accrual status when they become current as to both principal and interest and when subsequent performance reduces the concern as to the collectability of principal and interest . loan fees and certain direct loan origination costs are deferred , and the net fee or cost is recognized as an adjustment to interest income over the estimated average lives of the related loans . the process of evaluating the loan portfolio , classifying loans and determining the allowance and provision is described in detail in part i under “ business – lending activities - allowance for loan losses . ” our methodology for assessing the allocation of the allowance consists of two key components , which are a specific allowance for impaired loans and a formula allowance for the remainder of the portfolio . measurement of impairment can be based on present value of expected future cash flows discounted at the loan 's effective interest rate , the loan 's observable market price or the fair value of the collateral , if the loan is collateral dependent . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change . the allocation of the allowance is also reviewed by management based upon our evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions , such as new loan products , credit quality trends ( including trends in nonperforming loans expected to result from existing conditions ) , collateral values , loan volumes and concentrations , specific industry conditions within portfolio segments that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectability of the loan portfolio . although management believes it has established and maintained the allowance for loan losses at adequate levels , if management 's assumptions and judgments prove to be incorrect due to continued deterioration in economic , real estate and other conditions , and the allowance for loan losses is not adequate to absorb inherent losses , our earnings and capital could be significantly and adversely affected . on a quarterly basis , we review securities with a decline in fair value below the amortized cost of the investment to determine whether the decline in fair value is temporary or other than temporary . declines in the fair value of marketable equity securities below their cost that are deemed to be other than temporary based on the severity and duration of the impairment are reflected in earnings as realized losses . in estimating other than temporary impairment losses for securities , impairment is required to be recognized if ( 1 ) we intend to sell the security ; ( 2 ) it is “ more likely than not ” that we will be required to sell the security before recovery of its amortized cost basis ; or ( 3 ) for debt securities , the present value of expected cash flows is not sufficient to recover the entire amortized cost basis . story_separator_special_tag recoveries of $ 83,000. for the year ended december 31 , 2010 , charge-offs were primarily made up of a $ 7.2 million charge-off on a single commercial real estate loan relationship . although management believes it has established and maintained the allowance for loan losses at appropriate levels , future adjustments may be necessary if economic , real estate and other conditions differ substantially from the current operating environment . noninterest income . noninterest income decreased $ 3.6 million to $ 3.8 million for the year ended december 31 , 2011 compared to $ 7.4 million for the same period in 2010. net gains on the sales of securities decreased $ 3.6 million for the year ended december 31 , 2011 from $ 4.1 million in the comparable 2010 period . the net gains for the year ended december 31 , 2010 were primarily the result of management wanting to take advantage of unrealized gains within the portfolio as well as wanting to restructure the securities portfolio . 43 noninterest expense . noninterest expense for the year ended december 31 , 2011 was $ 26.0 million compared to $ 24.8 million for the same period in 2010. the increase in noninterest expense for the year ended december 31 , 2011 was due to an increase in salaries and benefits of $ 845,000 related to regular annual adjustments as well as salaries and benefits related to the hiring of additional personnel . professional fees increased $ 362,000 to $ 2.0 million for the year ended december 31 , 2011 , compared to $ 1.7 million for the same period in 2010. the increase was due to consulting and legal services involving strategic planning and regulatory compliance . this was partially offset by a $ 304,000 decrease in expenses associated with other real estate owned ( “ oreo ” ) . oreo expenses were related to write-downs and maintenance of foreclosed properties . income taxes . the provision for income taxes increased to $ 1.3 million for the year ended december 31 , 2011 , compared to $ 34,000 for the comparable 2010 period . the effective tax rate was 18.2 % for the year ended december 31 , 2011 and 1.1 % for the same period in 2010. the increase in the tax provision and effective tax rate in the 2011 period is due primarily to higher pre-tax income while maintaining the same level of tax-advantaged income such as boli and tax-exempt municipal obligations . comparison of operating results for years ended december 31 , 2010 and 2009 general . net income for the year ended december 31 , 2010 was $ 3.0 million , or $ 0.11 per diluted share , compared to $ 5.5 million , or $ 0.18 per diluted share , for the same period in 2009. interest and dividend income . total interest and dividend income decreased $ 6.4 million to $ 46.1 million for the year ended december 31 , 2010 , compared to $ 52.5 million for the same period in 2009. the decrease in interest income was primarily the result of a decrease in the average yield on interest-earning assets for the year ended december 31 , 2010 , which was partially offset by an increase in the average balance of interest-earning assets for the same period . the average yield on interest-earning assets , on a tax-equivalent basis , decreased 77 basis points to 4.11 % for the year ended december 31 , 2010 from 4.88 % for the same period in 2009. the cost of interest-bearing liabilities decreased 59 basis points to 1.88 % for the year ended december 31 , 2010 from 2.47 % for the same period in 2009. interest income on securities decreased $ 5.4 million to $ 21.4 million for the year ended december 31 , 2010 from $ 26.8 million for the year ended december 31 , 2009. the tax-equivalent yield on securities decreased 115 basis points from 4.56 % for the year 2009 to 3.41 % for the same period in 2010 due to the enduring low interest rate environment . the decrease in interest rates during 2010 caused an increase in prepayments on investments and the funds were reinvested in a lower rate environment , thus reducing yields . this was partially offset by a $ 49.7 million increase in the average balance of securities from $ 597.8 million for the year ended december 31 , 2009 to $ 647.5 million for the year ended december 31 , 2010. interest income on loans decreased $ 993,000 to $ 24.7 million for the year ended december 31 , 2010 from $ 25.7 million for the year ended december 31 , 2009. the tax-equivalent yield on loans decreased 26 basis points from 5.42 % for the year 2009 to 5.16 % for the same period in 2010 due to the enduring low interest rate environment . the decrease in interest rates during 2010 caused an increase in prepayments on loans and the funds were reinvested in a lower rate environment , thus reducing yields . this was partially offset by a $ 6.0 million increase in the average balance of loans from $ 476.2 million for the year ended december 31 , 2009 to $ 482.2 million for the year ended december 31 , 2010. interest expense . interest expense for the year ended december 31 , 2010 decreased $ 3.3 million to $ 16.7 million from the comparable 2009 period . this was attributable to a decrease in the average cost of interest-bearing liabilities of 59 basis points to 1.88 % for the year ended december 31 , 2010 from 2.47 % for the same period in 2009. the decrease in the cost of interest-bearing liabilities was primarily due to a decrease in rates on time deposits , repurchase agreements and borrowings . net interest and dividend income . net interest and dividend income decreased $ 3.1 million to $ 29.4 million for the

