the increase in net income of $ 3.2 million for the twelve months ended december 31 , 2017 compared to the twelve months ended december 31 , 2016 was due primarily to a $ 14.3 million increase in net interest income , but was partially offset by a $ 3.5 million decrease in noninterest income , a $ 5.3 million increase in noninterest expense , a $ 0.5 million increase in provision for loan losses and a $ 1.8 million increase in income tax expense . during the twelve months ended december 31 , 2018 , return on average assets was 0.72 % , compared to 0.66 % for the twelve months ended december 31 , 2017 and 0.74 % for the twelve months ended december 31 , 2016 . during the twelve months ended december 31 , 2018 , return on average shareholders ' equity was 8.44 % , compared to 8.54 % for the twelve months ended december 31 , 2017 and 9.74 % for the twelve months ended december 31 , 2016 . in 2018 , the company recorded a $ 2.4 million write-down of a commercial other real estate owned property that consists of two buildings . the revaluation of the other real estate owned was driven by deteriorating conditions in the market where the property is located and the commencement of a marketing strategy to move the property off the company 's balance sheet . as a 25 result , this write-down decreased 2018 net income by $ 1.9 million and diluted earnings per share by $ 0.20. adjusted for the write-down , 2018 net income was $ 23.8 million and diluted earnings per share was $ 2.50. the write-down also decreased return on average assets by 6 basis points ( “ bps ” ) and return on average shareholders ' equity by 74 bps . adjusted for the write-down , 2018 return on average assets was 0.78 % and return on average shareholders ' equity was 9.18 % . refer to the “ reconciliation of non-gaap financial measures ” section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations . in 2017 , as a result of the tax cuts and jobs act ( “ tax act ” ) , the company 's net deferred tax asset ( “ net dta ” ) was revalued as of december 31 , 2017. the value of the net dta was reduced by $ 1.8 million with the amount of the reduction recognized as additional income tax expense in 2017. consequently , this revaluation decreased 2017 diluted earnings per share by $ 0.26. adjusted for the net dta revaluation , 2017 net income was $ 17.1 million and diluted earnings per share were $ 2.39. the revaluation also decreased return on average assets by 8 bps and return on average shareholders ' equity by 104 bps . adjusted for the net dta revaluation , 2017 return on average assets was 0.74 % and return on average shareholders ' equity was 9.58 % . refer to the “ reconciliation of non-gaap financial measures ” section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations . 26 consolidated average balance sheets and net interest income analyses for the periods presented , the following tables provide the average balances of interest-earning assets and interest-bearing liabilities and the related yields and cost of funds . the tables do not reflect any effect of income taxes . balances are based on the average of daily balances . nonaccrual loans are included in average loan balances . replace_table_token_4_th 1 yield on total interest-earning assets minus cost of total interest-bearing liabilities 2 net interest income divided by average interest-earning assets 3 on a fully-taxable equivalent ( `` fte `` ) basis assuming a 21 % tax rate in 2018 and a 35 % tax rate in 2017 and 2016. refer to the `` reconciliation of non-gaap financial measures `` section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations 27 rate/volume analysis the following table illustrates the impact of changes in the volume of interest-earning assets and interest-bearing liabilities and interest rates on net interest income for the periods indicated . the change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each . rate/volume analysis of net interest income twelve months ended december 31 , 2018 vs. december 31 , 2017 due to changes in twelve months ended december 31 , 2017 vs. december 31 , 2016 due to changes in ( amounts in thousands ) volume rate net volume rate net interest income loans , including loans held-for-sale $ 29,126 $ ( 509 ) $ 28,617 $ 22,580 $ ( 1,169 ) $ 21,411 securities – taxable ( 212 ) 806 594 2,077 633 2,710 securities – non-taxable ( 49 ) 73 24 897 33 930 other earning assets 789 746 1,535 85 662 747 total 29,654 1,116 30,770 25,639 159 25,798 interest expense interest-bearing deposits 9,117 9,392 18,509 5,726 2,396 8,122 other borrowed funds 1,855 2,121 3,976 3,458 ( 75 ) 3,383 total 10,972 11,513 22,485 9,184 2,321 11,505 increase ( decrease ) in net interest income $ 18,682 $ ( 10,397 ) $ 8,285 $ 16,455 $ ( 2,162 ) $ 14,293 2018 v. 2017 net interest income for the twelve months ended december 31 , 2018 was $ 62.3 million , an increase of $ 8.3 million , or 15.3 % , compared to $ 54.0 million for the twelve months ended december 31 , 2017 . story_separator_special_tag in 2018 , both of these initiatives contributed to the increase in total loans as public finance and healthcare finance balances were $ 706.3 million and $ 117.0 million , respectively , at december 31 , 2018. single tenant lease financing had sustained production with balances increasing $ 116.1 million , or 14.5 % , during 2018 as market conditions for this product remained favorable and the company expanded its relationships with borrowers and financing partners . residential mortgage balances increased $ 100.0 million , or 33.3 % , during 2018 due primarily to growth in the company 's local residential construction-to-permanent loan origination efforts . additionally , other consumer loans increased $ 52.2 million , or 23.0 % , during 2018 due to increased originations in horse trailer and recreational vehicle loans . the company completed sales of single tenant lease financing loans , totaling $ 41.1 million in the aggregate in 2018 , resulting in a gain of $ 0.5 million , and totaling $ 24.7 million in the aggregate in 2017 , resulting in a gain of $ 0.4 million . the company also completed sales of portfolio mortgage loans , which consisted of jumbo fixed and adjustable rate mortgages , and supplemented its conventional held-for-sale mortgage production during 2017. these sales totaled $ 42.3 million in the aggregate in 2017 and resulted in a $ 0.3 million gain . loan maturities and rate sensitivity the following table shows the contractual maturity distribution intervals of the outstanding loans in our portfolio as of december 31 , 2018 . replace_table_token_10_th the following table shows the rate sensitivity of the outstanding loans in our portfolio by the contractual maturity distribution intervals as of december 31 , 2018 . beginning in 2017 , the company began hedging certain long-term fixed rate loans with interest rate swaps . refer to note 17 to the company 's consolidated financial statements for further information on derivative financial instruments . the following table does not include the effect of interest rate swaps on fixed-rate loans that have been hedged . replace_table_token_11_th 34 loan approval procedures and authority our lending activities follow written , non-discriminatory policies with loan approval limits approved by the board of directors of the bank . loan officers have underwriting and approval authorization of varying amounts based on their lending experience and product type . additionally , based on the amount of the loan , multiple approvals may be required . based on the company 's legal lending limit , the maximum the bank could lend to any one borrower at december 31 , 2018 was $ 45.6 million . our goal is to have a well-diversified and balanced loan portfolio . in order to manage our loan portfolio risk , we establish concentration limits by borrower , product type , industry and geography . to supplement our internal loan review resources , we have engaged independent third-party loan review groups , which are a key component of our overall risk management process related to credit administration . asset quality replace_table_token_12_th a loan is designated as impaired , in accordance with the impairment accounting guidance when , based on current information or events , it is probable that the company will be unable to collect all amounts due ( principal and interest ) according to the contractual terms of the loan agreement . payments with delays generally not exceeding 90 days outstanding are not considered impaired . certain nonaccrual and substantially all delinquent loans more than 90 days past due may be considered to be impaired . generally , loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings , unless the 35 loan is well secured and in the process of collection . the accrual of interest on impaired and nonaccrual loans is discontinued when , in management 's opinion , the borrower may be unable to meet payments as they become due . impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings ( “ tdrs ” ) where concessions have been granted to borrowers experiencing financial difficulties . these concessions could include a reduction in the interest rate on the loan , payment extensions , forgiveness of principal , forbearance , or other actions intended to maximize collection . nonperforming loans are comprised of total nonaccrual loans and loans 90 days past due and accruing . nonperforming assets include nonperforming loans , other real estate owned and other nonperforming assets , which consist of repossessed assets . nonperforming assets also included investments that were classified as other-than-temporarily impaired . troubled debt restructurings replace_table_token_13_th total nonperforming assets decreased $ 2.4 million , or 40.5 % , from december 31 , 2017. the decrease in total nonperforming assets was due primarily to a $ 2.4 million write-down of one commercial other real estate owned property . the revaluation of the other real estate owned was driven by deteriorating conditions in the market where the property is located and the commencement of a marketing strategy to move the property off the company 's balance sheet . total nonperforming loans increased less than $ 0.1 million compared to december 31 , 2017. the ratio of nonperforming loans to total loans decreased to 0.03 % as of december 31 , 2018 compared to 0.04 % as of december 31 , 2017 . the ratio of nonperforming assets to total assets decreased to 0.10 % as of december 31 , 2018 compared to 0.21 % as of december 31 , 2017 . as of december 31 , 2018 and december 31 , 2017 , the company had the one aforementioned commercial property in other real estate owned with a carrying value of $ 2.1 million and $ 4.5 million , respectively . this balance primarily consists of a property with two buildings which are residential units adjacent to a university campus . as of december 31 , 2018 and 2017 , the

liquidity and capital resources while the company believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for at least the next twelve months , including any cash dividends it may pay , the company intends to continue pursuing its growth strategy , which may require additional capital . if the company is unable to secure such capital at favorable terms , its ability to execute its growth strategy could be adversely affected . liquidity management is the process used by the company to manage the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost while also maintaining safe and sound operations . liquidity , represented by cash and investment securities , is a product of the company 's operating , investing and financing activities . the primary sources of funds are deposits , principal and interest payments on loans and investment securities , maturing loans and investment securities , access to wholesale funding sources and collateralized borrowings . while scheduled payments and maturities of loans and investment securities are relatively predictable sources of funds , deposit flows are greatly influenced by interest rates , general economic conditions and competition . therefore , the company supplements organic deposit growth and enhances interest rate risk management through brokered deposits and borrowings . the company maintains cash and investment securities that qualify as liquid assets to maintain adequate liquidity to ensure safe and sound operations and meet its financial commitments . at december 31 , 2018 , on a consolidated basis , the company had $ 670.1 million in cash and cash equivalents and investment securities available-for-sale , and $ 18.3 million in loans held-for-sale that were generally available for its cash needs .


 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 while the company believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for at least the next twelve months , including any cash dividends it may pay , the company intends to continue pursuing its growth strategy , which may require additional capital . if the company is unable to secure such capital at favorable terms , its ability to execute its growth strategy could be adversely affected . liquidity management is the process used by the company to manage the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost while also maintaining safe and sound operations . liquidity , represented by cash and investment securities , is a product of the company 's operating , investing and financing activities . the primary sources of funds are deposits , principal and interest payments on loans and investment securities , maturing loans and investment securities , access to wholesale funding sources and collateralized borrowings . while scheduled payments and maturities of loans and investment securities are relatively predictable sources of funds , deposit flows are greatly influenced by interest rates , general economic conditions and competition . therefore , the company supplements organic deposit growth and enhances interest rate risk management through brokered deposits and borrowings . the company maintains cash and investment securities that qualify as liquid assets to maintain adequate liquidity to ensure safe and sound operations and meet its financial commitments . at december 31 , 2018 , on a consolidated basis , the company had $ 670.1 million in cash and cash equivalents and investment securities available-for-sale , and $ 18.3 million in loans held-for-sale that were generally available for its cash needs .
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 Suspicious Activity Report : the increase in net income of $ 3.2 million for the twelve months ended december 31 , 2017 compared to the twelve months ended december 31 , 2016 was due primarily to a $ 14.3 million increase in net interest income , but was partially offset by a $ 3.5 million decrease in noninterest income , a $ 5.3 million increase in noninterest expense , a $ 0.5 million increase in provision for loan losses and a $ 1.8 million increase in income tax expense . during the twelve months ended december 31 , 2018 , return on average assets was 0.72 % , compared to 0.66 % for the twelve months ended december 31 , 2017 and 0.74 % for the twelve months ended december 31 , 2016 . during the twelve months ended december 31 , 2018 , return on average shareholders ' equity was 8.44 % , compared to 8.54 % for the twelve months ended december 31 , 2017 and 9.74 % for the twelve months ended december 31 , 2016 . in 2018 , the company recorded a $ 2.4 million write-down of a commercial other real estate owned property that consists of two buildings . the revaluation of the other real estate owned was driven by deteriorating conditions in the market where the property is located and the commencement of a marketing strategy to move the property off the company 's balance sheet . as a 25 result , this write-down decreased 2018 net income by $ 1.9 million and diluted earnings per share by $ 0.20. adjusted for the write-down , 2018 net income was $ 23.8 million and diluted earnings per share was $ 2.50. the write-down also decreased return on average assets by 6 basis points ( “ bps ” ) and return on average shareholders ' equity by 74 bps . adjusted for the write-down , 2018 return on average assets was 0.78 % and return on average shareholders ' equity was 9.18 % . refer to the “ reconciliation of non-gaap financial measures ” section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations . in 2017 , as a result of the tax cuts and jobs act ( “ tax act ” ) , the company 's net deferred tax asset ( “ net dta ” ) was revalued as of december 31 , 2017. the value of the net dta was reduced by $ 1.8 million with the amount of the reduction recognized as additional income tax expense in 2017. consequently , this revaluation decreased 2017 diluted earnings per share by $ 0.26. adjusted for the net dta revaluation , 2017 net income was $ 17.1 million and diluted earnings per share were $ 2.39. the revaluation also decreased return on average assets by 8 bps and return on average shareholders ' equity by 104 bps . adjusted for the net dta revaluation , 2017 return on average assets was 0.74 % and return on average shareholders ' equity was 9.58 % . refer to the “ reconciliation of non-gaap financial measures ” section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations . 26 consolidated average balance sheets and net interest income analyses for the periods presented , the following tables provide the average balances of interest-earning assets and interest-bearing liabilities and the related yields and cost of funds . the tables do not reflect any effect of income taxes . balances are based on the average of daily balances . nonaccrual loans are included in average loan balances . replace_table_token_4_th 1 yield on total interest-earning assets minus cost of total interest-bearing liabilities 2 net interest income divided by average interest-earning assets 3 on a fully-taxable equivalent ( `` fte `` ) basis assuming a 21 % tax rate in 2018 and a 35 % tax rate in 2017 and 2016. refer to the `` reconciliation of non-gaap financial measures `` section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations 27 rate/volume analysis the following table illustrates the impact of changes in the volume of interest-earning assets and interest-bearing liabilities and interest rates on net interest income for the periods indicated . the change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each . rate/volume analysis of net interest income twelve months ended december 31 , 2018 vs. december 31 , 2017 due to changes in twelve months ended december 31 , 2017 vs. december 31 , 2016 due to changes in ( amounts in thousands ) volume rate net volume rate net interest income loans , including loans held-for-sale $ 29,126 $ ( 509 ) $ 28,617 $ 22,580 $ ( 1,169 ) $ 21,411 securities – taxable ( 212 ) 806 594 2,077 633 2,710 securities – non-taxable ( 49 ) 73 24 897 33 930 other earning assets 789 746 1,535 85 662 747 total 29,654 1,116 30,770 25,639 159 25,798 interest expense interest-bearing deposits 9,117 9,392 18,509 5,726 2,396 8,122 other borrowed funds 1,855 2,121 3,976 3,458 ( 75 ) 3,383 total 10,972 11,513 22,485 9,184 2,321 11,505 increase ( decrease ) in net interest income $ 18,682 $ ( 10,397 ) $ 8,285 $ 16,455 $ ( 2,162 ) $ 14,293 2018 v. 2017 net interest income for the twelve months ended december 31 , 2018 was $ 62.3 million , an increase of $ 8.3 million , or 15.3 % , compared to $ 54.0 million for the twelve months ended december 31 , 2017 . story_separator_special_tag in 2018 , both of these initiatives contributed to the increase in total loans as public finance and healthcare finance balances were $ 706.3 million and $ 117.0 million , respectively , at december 31 , 2018. single tenant lease financing had sustained production with balances increasing $ 116.1 million , or 14.5 % , during 2018 as market conditions for this product remained favorable and the company expanded its relationships with borrowers and financing partners . residential mortgage balances increased $ 100.0 million , or 33.3 % , during 2018 due primarily to growth in the company 's local residential construction-to-permanent loan origination efforts . additionally , other consumer loans increased $ 52.2 million , or 23.0 % , during 2018 due to increased originations in horse trailer and recreational vehicle loans . the company completed sales of single tenant lease financing loans , totaling $ 41.1 million in the aggregate in 2018 , resulting in a gain of $ 0.5 million , and totaling $ 24.7 million in the aggregate in 2017 , resulting in a gain of $ 0.4 million . the company also completed sales of portfolio mortgage loans , which consisted of jumbo fixed and adjustable rate mortgages , and supplemented its conventional held-for-sale mortgage production during 2017. these sales totaled $ 42.3 million in the aggregate in 2017 and resulted in a $ 0.3 million gain . loan maturities and rate sensitivity the following table shows the contractual maturity distribution intervals of the outstanding loans in our portfolio as of december 31 , 2018 . replace_table_token_10_th the following table shows the rate sensitivity of the outstanding loans in our portfolio by the contractual maturity distribution intervals as of december 31 , 2018 . beginning in 2017 , the company began hedging certain long-term fixed rate loans with interest rate swaps . refer to note 17 to the company 's consolidated financial statements for further information on derivative financial instruments . the following table does not include the effect of interest rate swaps on fixed-rate loans that have been hedged . replace_table_token_11_th 34 loan approval procedures and authority our lending activities follow written , non-discriminatory policies with loan approval limits approved by the board of directors of the bank . loan officers have underwriting and approval authorization of varying amounts based on their lending experience and product type . additionally , based on the amount of the loan , multiple approvals may be required . based on the company 's legal lending limit , the maximum the bank could lend to any one borrower at december 31 , 2018 was $ 45.6 million . our goal is to have a well-diversified and balanced loan portfolio . in order to manage our loan portfolio risk , we establish concentration limits by borrower , product type , industry and geography . to supplement our internal loan review resources , we have engaged independent third-party loan review groups , which are a key component of our overall risk management process related to credit administration . asset quality replace_table_token_12_th a loan is designated as impaired , in accordance with the impairment accounting guidance when , based on current information or events , it is probable that the company will be unable to collect all amounts due ( principal and interest ) according to the contractual terms of the loan agreement . payments with delays generally not exceeding 90 days outstanding are not considered impaired . certain nonaccrual and substantially all delinquent loans more than 90 days past due may be considered to be impaired . generally , loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings , unless the 35 loan is well secured and in the process of collection . the accrual of interest on impaired and nonaccrual loans is discontinued when , in management 's opinion , the borrower may be unable to meet payments as they become due . impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings ( “ tdrs ” ) where concessions have been granted to borrowers experiencing financial difficulties . these concessions could include a reduction in the interest rate on the loan , payment extensions , forgiveness of principal , forbearance , or other actions intended to maximize collection . nonperforming loans are comprised of total nonaccrual loans and loans 90 days past due and accruing . nonperforming assets include nonperforming loans , other real estate owned and other nonperforming assets , which consist of repossessed assets . nonperforming assets also included investments that were classified as other-than-temporarily impaired . troubled debt restructurings replace_table_token_13_th total nonperforming assets decreased $ 2.4 million , or 40.5 % , from december 31 , 2017. the decrease in total nonperforming assets was due primarily to a $ 2.4 million write-down of one commercial other real estate owned property . the revaluation of the other real estate owned was driven by deteriorating conditions in the market where the property is located and the commencement of a marketing strategy to move the property off the company 's balance sheet . total nonperforming loans increased less than $ 0.1 million compared to december 31 , 2017. the ratio of nonperforming loans to total loans decreased to 0.03 % as of december 31 , 2018 compared to 0.04 % as of december 31 , 2017 . the ratio of nonperforming assets to total assets decreased to 0.10 % as of december 31 , 2018 compared to 0.21 % as of december 31 , 2017 . as of december 31 , 2018 and december 31 , 2017 , the company had the one aforementioned commercial property in other real estate owned with a carrying value of $ 2.1 million and $ 4.5 million , respectively . this balance primarily consists of a property with two buildings which are residential units adjacent to a university campus . as of december 31 , 2018 and 2017 , the

