at december 31 , 2012 , 97 % of the new commercial loan portfolio was rated `` pass `` and 99 % of the new residential portfolio was current . the ratio of non-performing , non-covered loans to total non-covered loans was 0.43 % at december 31 , 2012. credit risk related to the covered loans is significantly mitigated by the loss sharing agreements . the company 's capital ratios exceed all regulatory `` well capitalized `` guidelines . the charts below present the company 's regulatory capital ratios compared to regulatory guidelines as of december 31 , 2012 and 2011 : opportunities and challenges management has identified significant opportunities for our company , including : our capital position , market presence and experienced lending team position us well for continued organic growth in florida and the tri-state market . in addition to our core commercial banking franchise , we are building an in-house residential origination channel and have entered the indirect auto and taxi medallion lending businesses . planned expansion of our branch footprint , including three branches in manhattan scheduled to open in the first quarter of 2013. potential growth through strategic acquisitions of financial institutions and complementary businesses . the potential to take advantage of lower market interest rates and the ability to shift deposits into lower cost products to further reduce our cost of funds . the continued enhancement of our infrastructure and technology platforms will enable us to expand product offerings to our customers and increase operational efficiency . we have also identified significant challenges confronting the industry and our company : the current low interest rate environment is likely to put pressure on our net interest margin , particularly as higher-yielding covered assets are liquidated or mature and are replaced with assets originated or purchased at current market rates of interest . 34 economic conditions in the florida market , while improving , remain under stress . continued economic stress may lead to elevated levels of non-performing assets or impact our ability to sustain the trajectory of new loan growth . management expects that the company and the banking industry as a whole may be required by market forces and or regulation to operate with higher capital ratios than in the recent past . uncertainty about the full impact of new regulation may present challenges in the execution of our business strategy and the management of non-interest expense . for additional discussion , see `` regulation and supervision . `` impact of acquisition accounting , aci loan accounting and the loss sharing agreements the application of acquisition accounting , accounting for loans acquired with evidence of deterioration in credit quality since origination ( `` aci `` or `` acquired credit impaired `` loans ) and the provisions of the loss sharing agreements have had a material impact on our financial condition and results of operations . the more significant ways in which our financial statements have been impacted are summarized below and discussed in more detail throughout this `` management 's discussion and analysis of financial condition and results of operations `` : under the acquisition method of accounting , all of the assets acquired and liabilities assumed in the fsb acquisition were initially recorded on the consolidated balance sheet at their estimated fair values as of may 21 , 2009. these estimated fair values differed materially from the carrying amounts of many of the assets acquired and liabilities assumed as reflected in the financial statements of the failed bank immediately prior to the fsb acquisition . in particular , the carrying amount of investment securities , loans , the fdic indemnification asset , goodwill and other intangible assets , net deferred tax assets , deposit liabilities , and fhlb advances were materially impacted by these adjustments , which continue to affect the reported amounts of such assets and liabilities ; interest income , interest expense and the net interest margin reflect the impact of accretion of the fair value adjustments made to the carrying amounts of interest earning assets and interest bearing liabilities in conjunction with the fsb acquisition ; the estimated fair value at which the acquired loans were initially recorded by the company was significantly less than the unpaid principal balances of the loans . no allowance for loan and lease losses was recorded with respect to acquired loans at the fsb acquisition date . the write-down of loans to fair value in conjunction with the application of acquisition accounting and credit protection provided by the loss sharing agreements reduces the impact of the provision for loan losses related to the acquired loans on the results of operations ; acquired investment securities were recorded at their estimated fair values at the fsb acquisition date , significantly reducing the potential for other-than-temporary impairment charges in periods subsequent to the fsb acquisition for the acquired securities . certain of the acquired investment securities are covered under the loss sharing agreements . the impact on results of operations of any future other-than-temporary impairment charges related to covered securities would be significantly mitigated by indemnification by the fdic ; an indemnification asset related to the loss sharing agreements with the fdic was recorded in conjunction with the fsb acquisition . the loss sharing agreements afford the company significant protection against future credit losses related to covered assets ; non-interest income includes the effect of accretion of discount on the indemnification asset ; non-interest income includes gains and losses associated with the resolution of covered assets and the related effect of indemnification under the terms of the loss sharing agreements . story_separator_special_tag changes applicable to both volume and rate have been allocated to volume ( in thousands ) : replace_table_token_8_th year ended december 31 , 2012 compared to year ended december 31 , 2011 net interest income , calculated on a tax-equivalent basis , was $ 605.1 million for the year ended december 31 , 2012 compared to $ 505.0 million for the year ended december 31 , 2011 , an increase of $ 100.1 million . the increase in net interest income was comprised of an increase in interest income of $ 84.4 million and a decrease in interest expense of $ 15.7 million . the increase in tax-equivalent interest income resulted primarily from a $ 74.0 million increase in interest income from loans and an $ 8.2 million increase in interest income from investment securities available for sale . increased interest income from loans was attributable to a $ 1.0 billion increase in the average balance outstanding offset by a decrease in the average yield to 12.02 % for 2012 from 13.34 % for 2011. offsetting factors contributed to the overall decline in the yield on loans : new loans originated at lower market rates of interest comprised a greater percentage of the portfolio in 2012 than in 2011. new loans represented 55.8 % of the average balance of loans outstanding in 2012 as compared to 24.0 % in 2011. the tax equivalent yield on new loans was 4.32 % for the year ended december 31 , 2012 as compared to 4.93 % for the year ended december 31 , 2011. we expect the impact of growth of the new loan portfolio to lead to further declines in the overall yield on loans in future periods . the yield on loans acquired in the fsb acquisition increased to 21.76 % for 2012 as compared to 16.00 % for 2011. this increase resulted from ( i ) generally improved default frequency and 41 severity rates leading to an increase in expected cash flows , ( ii ) covered loans being resolved at a faster rate than previously expected leading to acceleration of both actual and forecasted cash flows and higher accretion and ( iii ) recognition of all proceeds from resolution of loans in the residential pool with a carrying value of zero as interest income , as discussed above . specifically , proceeds of $ 29.9 million from the sale of loans in this pool were recognized as interest income in the fourth quarter of 2012. the average balance of investment securities available for sale increased by $ 1.0 billion for the year ended december 31 , 2012 over the year ended december 31 , 2011 while the yield declined to 2.95 % for 2012 from 3.49 % for 2011. the decline in yield was primarily a result of adding securities to the portfolio at lower prevailing rates . the primary components of the decrease in interest expense for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011 were a $ 9.6 million decline in interest expense on deposits and a $ 6.1 million decline in interest expense on fhlb advances and other borrowings . the most significant factor contributing to the decline in interest expense on deposits was a decline in the average rate paid on interest bearing deposits to 0.94 % in 2012 as compared to 1.20 % in 2011 , partly offset by a $ 0.7 billion increase in the average balance outstanding . the decrease in average rate resulted primarily from a decline in market rates of interest across deposit products . specifically , the average rate paid on savings and money market deposits declined to 0.62 % for the year ended december 31 , 2012 from 0.86 % for the year ended december 31 , 2011 , a decrease of 0.24 % . the average rate paid on time deposits , inclusive of accretion of fair value adjustments , declined by 0.23 % to 1.48 % in 2012 from 1.71 % in 2011. excluding the impact of accretion of fair value adjustments , the average rate paid on time deposits declined by 0.48 % , to 1.50 % from 1.98 % . accretion of fair value adjustments declined by $ 6.5 million for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011. the average rate paid on fhlb advances , inclusive of the impact of cash flow hedges and fair value accretion , declined by 0.25 % , to 2.56 % in 2012 from 2.81 % in 2011. this decline resulted primarily from maturing advances being rolled over at lower market rates , partially offset by a decline of $ 4.3 million in accretion of fair value adjustments . the impact of accretion of fair value adjustments on interest expense will continue to decline as the related borrowings mature . the net interest margin , calculated on a tax-equivalent basis , for the year ended december 31 , 2012 was 6.04 % as compared to 6.21 % for the year ended december 31 , 2011 , a decrease of 17 basis points . the interest rate spread declined to 5.94 % for the year ended december 31 , 2012 from 6.30 % for the year ended december 31 , 2011. the declines in net interest margin and interest rate spread resulted primarily from lower yields on loans and investment securities partly offset by a lower cost of deposits and borrowings , as discussed above . year ended december 31 , 2011 compared to year ended december 31 , 2010 net interest income , calculated on a tax-equivalent basis , increased to $ 505.0 million for the year ended december 31 , 2011 from $ 391.8 million for the year ended december 31 , 2010 , an increase of $ 113.2 million . the increase was comprised of an increase in interest income of $ 83.9 million coupled with a

capital resources since inception , the company 's stockholders ' equity has been impacted primarily by the retention of earnings , and to a lesser extent , proceeds from the issuance of common shares in the ipo and the acquisition of herald , changes in unrealized gains and losses , net of taxes , on investment securities available for sale and cash flow hedges , and the payment of dividends . stockholders ' equity increased $ 271.4 million , or 17.7 % , from $ 1.5 billion at december 31 , 2011 to $ 1.8 billion at december 31 , 2012. the federal reserve board and occ regulate all capital distributions by bankunited and herald to the parent . all quarterly applications to regulatory authorities for the payment of dividends to date have been approved . pursuant to the fdia , the federal banking agencies have adopted regulations setting forth a five-tier system for measuring the capital adequacy of the financial institutions they supervise . at december 31 , 2012 and december 31 , 2011 , bankunited , herald and the company had capital levels that exceeded the well-capitalized guidelines . see note 19 to the consolidated financial statements for more information about the company 's regulatory capital ratios and requirements . liquidity liquidity involves our ability to generate adequate funds to support asset growth , meet deposit withdrawal and other contractual obligations , maintain reserve requirements and otherwise conduct ongoing operations . bankunited 's liquidity needs are primarily met by growth in transaction deposit accounts , its cash position , cash flow from its amortizing investment and loan portfolios and reimbursements under the loss sharing agreements . if necessary , bankunited has the ability to raise liquidity through collateralized borrowings , fhlb advances or the sale of available for sale securities . the asset/liability committee ( `` alco '' ) policy has established several measures of liquidity which are monitored monthly by alco and quarterly by the board of directors . the primary measure of liquidity monitored by management is liquid assets ( defined as cash and cash equivalents and pledgeable securities ) to total assets .


 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 since inception , the company 's stockholders ' equity has been impacted primarily by the retention of earnings , and to a lesser extent , proceeds from the issuance of common shares in the ipo and the acquisition of herald , changes in unrealized gains and losses , net of taxes , on investment securities available for sale and cash flow hedges , and the payment of dividends . stockholders ' equity increased $ 271.4 million , or 17.7 % , from $ 1.5 billion at december 31 , 2011 to $ 1.8 billion at december 31 , 2012. the federal reserve board and occ regulate all capital distributions by bankunited and herald to the parent . all quarterly applications to regulatory authorities for the payment of dividends to date have been approved . pursuant to the fdia , the federal banking agencies have adopted regulations setting forth a five-tier system for measuring the capital adequacy of the financial institutions they supervise . at december 31 , 2012 and december 31 , 2011 , bankunited , herald and the company had capital levels that exceeded the well-capitalized guidelines . see note 19 to the consolidated financial statements for more information about the company 's regulatory capital ratios and requirements . liquidity liquidity involves our ability to generate adequate funds to support asset growth , meet deposit withdrawal and other contractual obligations , maintain reserve requirements and otherwise conduct ongoing operations . bankunited 's liquidity needs are primarily met by growth in transaction deposit accounts , its cash position , cash flow from its amortizing investment and loan portfolios and reimbursements under the loss sharing agreements . if necessary , bankunited has the ability to raise liquidity through collateralized borrowings , fhlb advances or the sale of available for sale securities . the asset/liability committee ( `` alco '' ) policy has established several measures of liquidity which are monitored monthly by alco and quarterly by the board of directors . the primary measure of liquidity monitored by management is liquid assets ( defined as cash and cash equivalents and pledgeable securities ) to total assets .
```    
 Suspicious Activity Report : at december 31 , 2012 , 97 % of the new commercial loan portfolio was rated `` pass `` and 99 % of the new residential portfolio was current . the ratio of non-performing , non-covered loans to total non-covered loans was 0.43 % at december 31 , 2012. credit risk related to the covered loans is significantly mitigated by the loss sharing agreements . the company 's capital ratios exceed all regulatory `` well capitalized `` guidelines . the charts below present the company 's regulatory capital ratios compared to regulatory guidelines as of december 31 , 2012 and 2011 : opportunities and challenges management has identified significant opportunities for our company , including : our capital position , market presence and experienced lending team position us well for continued organic growth in florida and the tri-state market . in addition to our core commercial banking franchise , we are building an in-house residential origination channel and have entered the indirect auto and taxi medallion lending businesses . planned expansion of our branch footprint , including three branches in manhattan scheduled to open in the first quarter of 2013. potential growth through strategic acquisitions of financial institutions and complementary businesses . the potential to take advantage of lower market interest rates and the ability to shift deposits into lower cost products to further reduce our cost of funds . the continued enhancement of our infrastructure and technology platforms will enable us to expand product offerings to our customers and increase operational efficiency . we have also identified significant challenges confronting the industry and our company : the current low interest rate environment is likely to put pressure on our net interest margin , particularly as higher-yielding covered assets are liquidated or mature and are replaced with assets originated or purchased at current market rates of interest . 34 economic conditions in the florida market , while improving , remain under stress . continued economic stress may lead to elevated levels of non-performing assets or impact our ability to sustain the trajectory of new loan growth . management expects that the company and the banking industry as a whole may be required by market forces and or regulation to operate with higher capital ratios than in the recent past . uncertainty about the full impact of new regulation may present challenges in the execution of our business strategy and the management of non-interest expense . for additional discussion , see `` regulation and supervision . `` impact of acquisition accounting , aci loan accounting and the loss sharing agreements the application of acquisition accounting , accounting for loans acquired with evidence of deterioration in credit quality since origination ( `` aci `` or `` acquired credit impaired `` loans ) and the provisions of the loss sharing agreements have had a material impact on our financial condition and results of operations . the more significant ways in which our financial statements have been impacted are summarized below and discussed in more detail throughout this `` management 's discussion and analysis of financial condition and results of operations `` : under the acquisition method of accounting , all of the assets acquired and liabilities assumed in the fsb acquisition were initially recorded on the consolidated balance sheet at their estimated fair values as of may 21 , 2009. these estimated fair values differed materially from the carrying amounts of many of the assets acquired and liabilities assumed as reflected in the financial statements of the failed bank immediately prior to the fsb acquisition . in particular , the carrying amount of investment securities , loans , the fdic indemnification asset , goodwill and other intangible assets , net deferred tax assets , deposit liabilities , and fhlb advances were materially impacted by these adjustments , which continue to affect the reported amounts of such assets and liabilities ; interest income , interest expense and the net interest margin reflect the impact of accretion of the fair value adjustments made to the carrying amounts of interest earning assets and interest bearing liabilities in conjunction with the fsb acquisition ; the estimated fair value at which the acquired loans were initially recorded by the company was significantly less than the unpaid principal balances of the loans . no allowance for loan and lease losses was recorded with respect to acquired loans at the fsb acquisition date . the write-down of loans to fair value in conjunction with the application of acquisition accounting and credit protection provided by the loss sharing agreements reduces the impact of the provision for loan losses related to the acquired loans on the results of operations ; acquired investment securities were recorded at their estimated fair values at the fsb acquisition date , significantly reducing the potential for other-than-temporary impairment charges in periods subsequent to the fsb acquisition for the acquired securities . certain of the acquired investment securities are covered under the loss sharing agreements . the impact on results of operations of any future other-than-temporary impairment charges related to covered securities would be significantly mitigated by indemnification by the fdic ; an indemnification asset related to the loss sharing agreements with the fdic was recorded in conjunction with the fsb acquisition . the loss sharing agreements afford the company significant protection against future credit losses related to covered assets ; non-interest income includes the effect of accretion of discount on the indemnification asset ; non-interest income includes gains and losses associated with the resolution of covered assets and the related effect of indemnification under the terms of the loss sharing agreements . story_separator_special_tag changes applicable to both volume and rate have been allocated to volume ( in thousands ) : replace_table_token_8_th year ended december 31 , 2012 compared to year ended december 31 , 2011 net interest income , calculated on a tax-equivalent basis , was $ 605.1 million for the year ended december 31 , 2012 compared to $ 505.0 million for the year ended december 31 , 2011 , an increase of $ 100.1 million . the increase in net interest income was comprised of an increase in interest income of $ 84.4 million and a decrease in interest expense of $ 15.7 million . the increase in tax-equivalent interest income resulted primarily from a $ 74.0 million increase in interest income from loans and an $ 8.2 million increase in interest income from investment securities available for sale . increased interest income from loans was attributable to a $ 1.0 billion increase in the average balance outstanding offset by a decrease in the average yield to 12.02 % for 2012 from 13.34 % for 2011. offsetting factors contributed to the overall decline in the yield on loans : new loans originated at lower market rates of interest comprised a greater percentage of the portfolio in 2012 than in 2011. new loans represented 55.8 % of the average balance of loans outstanding in 2012 as compared to 24.0 % in 2011. the tax equivalent yield on new loans was 4.32 % for the year ended december 31 , 2012 as compared to 4.93 % for the year ended december 31 , 2011. we expect the impact of growth of the new loan portfolio to lead to further declines in the overall yield on loans in future periods . the yield on loans acquired in the fsb acquisition increased to 21.76 % for 2012 as compared to 16.00 % for 2011. this increase resulted from ( i ) generally improved default frequency and 41 severity rates leading to an increase in expected cash flows , ( ii ) covered loans being resolved at a faster rate than previously expected leading to acceleration of both actual and forecasted cash flows and higher accretion and ( iii ) recognition of all proceeds from resolution of loans in the residential pool with a carrying value of zero as interest income , as discussed above . specifically , proceeds of $ 29.9 million from the sale of loans in this pool were recognized as interest income in the fourth quarter of 2012. the average balance of investment securities available for sale increased by $ 1.0 billion for the year ended december 31 , 2012 over the year ended december 31 , 2011 while the yield declined to 2.95 % for 2012 from 3.49 % for 2011. the decline in yield was primarily a result of adding securities to the portfolio at lower prevailing rates . the primary components of the decrease in interest expense for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011 were a $ 9.6 million decline in interest expense on deposits and a $ 6.1 million decline in interest expense on fhlb advances and other borrowings . the most significant factor contributing to the decline in interest expense on deposits was a decline in the average rate paid on interest bearing deposits to 0.94 % in 2012 as compared to 1.20 % in 2011 , partly offset by a $ 0.7 billion increase in the average balance outstanding . the decrease in average rate resulted primarily from a decline in market rates of interest across deposit products . specifically , the average rate paid on savings and money market deposits declined to 0.62 % for the year ended december 31 , 2012 from 0.86 % for the year ended december 31 , 2011 , a decrease of 0.24 % . the average rate paid on time deposits , inclusive of accretion of fair value adjustments , declined by 0.23 % to 1.48 % in 2012 from 1.71 % in 2011. excluding the impact of accretion of fair value adjustments , the average rate paid on time deposits declined by 0.48 % , to 1.50 % from 1.98 % . accretion of fair value adjustments declined by $ 6.5 million for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011. the average rate paid on fhlb advances , inclusive of the impact of cash flow hedges and fair value accretion , declined by 0.25 % , to 2.56 % in 2012 from 2.81 % in 2011. this decline resulted primarily from maturing advances being rolled over at lower market rates , partially offset by a decline of $ 4.3 million in accretion of fair value adjustments . the impact of accretion of fair value adjustments on interest expense will continue to decline as the related borrowings mature . the net interest margin , calculated on a tax-equivalent basis , for the year ended december 31 , 2012 was 6.04 % as compared to 6.21 % for the year ended december 31 , 2011 , a decrease of 17 basis points . the interest rate spread declined to 5.94 % for the year ended december 31 , 2012 from 6.30 % for the year ended december 31 , 2011. the declines in net interest margin and interest rate spread resulted primarily from lower yields on loans and investment securities partly offset by a lower cost of deposits and borrowings , as discussed above . year ended december 31 , 2011 compared to year ended december 31 , 2010 net interest income , calculated on a tax-equivalent basis , increased to $ 505.0 million for the year ended december 31 , 2011 from $ 391.8 million for the year ended december 31 , 2010 , an increase of $ 113.2 million . the increase was comprised of an increase in interest income of $ 83.9 million coupled with a

