the allowance is based on two principles of accounting : ( 1 ) financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) topic 450 “ contingencies , ” which requires that losses be accrued when they are probable of occurring and are estimable and ( 2 ) fasb asc 310 “ receivables , ” which requires that losses be accrued when it is probable that the company will not collect all principal and interest payments according to the contractual terms of the loan . the loss , if any , is determined by the difference between the loan balance and the value of collateral , the present value of expected future cash flows and values observable in the secondary markets . the allowance for loan loss balance is an estimate based upon management 's evaluation of the loan portfolio . the allowance is comprised of a specific and a general component . the specific component consists of management 's evaluation of certain classified and non-accrual loans and their underlying collateral . management assesses the ability of the borrower to repay the loan based upon all information available . loans are examined to determine a specific allowance based upon the borrower 's payment history , economic conditions specific to the loan or borrower and other factors that would impact the borrower 's ability to repay the loan on its contractual basis . depending on the assessment of the borrower 's ability to pay and the type , condition and value of collateral , management will establish an allowance amount specific to the loan . 40 management uses a risk scale to assign grades to commercial real estate , construction and land development , commercial loans and commercial equipment loans . commercial loan relationships with an aggregate exposure to the bank of $ 750,000 or greater are risk rated . residential first mortgages , home equity and second mortgages and consumer loans are monitored on an ongoing basis based on borrower payment history . consumer loans and residential real estate loans are classified as unrated unless they are part of a larger commercial relationship that requires grading or are troubled debt restructures or nonperforming loans with an other assets especially mentioned or higher risk rating due to a delinquent payment history . the company 's commercial loan portfolio is periodically reviewed by regulators and independent consultants engaged by management . in establishing the general component of the allowance , management analyzes non-impaired loans in the portfolio including changes in the amount and type of loans . this analysis reviews trends by portfolio segment in charge-offs , delinquency , classified loans , loan concentrations and the rate of portfolio segment growth . qualitative factors also include an assessment of the current regulatory environment , the quality of credit administration and loan portfolio management and national and local economic trends . based upon this analysis a loss factor is applied to each loan category and the bank adjusts the loan loss allowance by increasing or decreasing the provision for loan losses . management has significant discretion in making the judgments inherent in the determination of the allowance for loan losses , including the valuation of collateral , assessing a borrower 's prospects of repayment and in establishing loss factors on the general component of the allowance . changes in loss factors have a direct impact on the amount of the provision and on net income . errors in management 's assessment of the global factors and their impact on the portfolio could result in the allowance not being adequate to cover losses in the portfolio , and may result in additional provisions . at december 31 , 2015 , the allowance for loan losses was $ 8.5 million or 0.93 % of total loans . an increase or decrease in the allowance could result in a charge or credit to income before income taxes that materially impacts earnings . for additional information regarding the allowance for loan losses , refer to notes 1 and 6 of the consolidated financial statements and the discussion under the caption “ provision for loan losses ” below . other-than-temporary-impairment ( “ otti ” ) debt securities are evaluated quarterly to determine whether a decline in their value is other-than-temporary . the term “ other-than-temporary ” is not necessarily intended to indicate a permanent decline in value . it means that the prospects for near-term recovery of value are not necessarily favorable , or that there is a lack of evidence to support fair values equal to , or greater than , the carrying value of the investment . accounting guidance indicates that the amount of other-than-temporary impairment that is recognized through earnings for debt securities is determined by comparing the present value of the expected cash flows to the amortized cost of the security . the discount rate used to determine the credit loss is the expected book yield on the security . the company does not evaluate declines in the value of securities of government sponsored enterprises ( “ gses ” ) or investments backed by the full faith and credit of the united states government ( e.g . us treasury bills ) , for other-than-temporary impairment . for additional information regarding otti , refer to notes 1 and 5 of the consolidated financial statements . other real estate owned ( “ oreo ” ) the company maintains a valuation allowance on its other real estate owned . as with the allowance for loan losses , the valuation allowance on oreo is based on fasb asc 450 “ contingencies , ” as well as the accounting guidance on impairment of long-lived assets . these statements require that the company establish a valuation allowance when it has determined that the carrying amount of a foreclosed asset exceeds its fair value . story_separator_special_tag the company 's noninterest expenses for 2015 , excluding oreo charges and the title insurance settlement claim adjustment , were $ 27.2 million which represents a $ 1.3 million , or 5.1 % , increase over the comparable $ 25.9 million for the year ended december 31 , 2014. with these adjustments , noninterest expense as a percentage of average assets decreased three basis points from 2.52 % for the year ended december 31 , 2014 to 2.49 % for the year ended december 31 , 2015. the increased expenses were partially offset by the following positive increases to revenues : · net interest income was $ 36.5 million in 2015 an increase of $ 1.5 million , or 4.2 % , compared to 2014. o interest income increased $ 2.1 million . the increase was driven by increased loan average balances . the bank increased average net loan balances $ 54.8 million to $ 874.2 million in 2015 from $ 819.4 million in 2014. loan volume was partially offset by yield declines . o interest expense increased $ 647,000 which partially offset increased interest income . the primary reason for the increase related to the $ 23.0 million 6.25 % subordinated notes issued during the first quarter of 2015. continued progress in continuing to add transaction deposits mitigated some of the impact of the increased interest expense associated with the subordinated notes . overall deposit cost decreased by eight basis points to 0.48 % compared to the prior year . · the provision for loan losses decreased $ 1.2 million to $ 1.4 million in 2015 due primarily to improvements to baseline charge-off factors for the periods used to evaluate the adequacy of the allowance as well as improvements in other qualitative factors , such as reductions in classified assets . a more detailed analysis comparing the results of operations for the years ended december 31 , 2015 and 2014 follows . 45 net interest income the primary component of the company 's net income is its net interest income , which is the difference between income earned on assets and interest paid on the deposits and borrowings used to fund them . net interest income is affected by the difference between the yields earned on the company 's interest-earning assets and the rates paid on interest-bearing liabilities , as well as the relative amounts of such assets and liabilities . net interest income , divided by average interest-earning assets , represents the company 's net interest margin . net interest income increased to $ 36.5 million for the year ended december 31 , 2015 compared to $ 35.1 million for the year ended december 31 , 2014. the net interest margin was 3.60 % for the year ended december 31 , 2015 , an eight basis point decrease from 3.68 % for the year ended december 31 , 2014. the decrease in net interest margin was largely the result of additional interest expense related to the subordinated notes issued during the first quarter of 2015. the following table shows the components of net interest income and the dollar and percentage changes for the periods presented . replace_table_token_17_th interest and dividend income increased by $ 2.1 million to $ 43.9 million for the year ended december 31 , 2015 compared to $ 41.8 million for the year ended december 31 , 2014 , primarily due to increased income from the growth in the average balance of loans . interest and dividend income on loans increased $ 2.6 million due to growth of $ 54.8 million in the average balance of loans from $ 819.4 million for the year ended december 31 , 2014 to $ 874.2 million for the year ended december 31 , 2015. interest and dividend income on investments increased $ 203,000 during 2015 compared to the prior year as average interest-earning investment balances increased $ 4.7 million and average yields increased from 1.70 % to 1.79 % . these increases to interest income were partially offset by decreased income from reduced yields on loans . average loan yields declined nine basis points from 4.82 % for the year ended december 31 , 2014 to 4.73 % for the year ended december 31 , 2015 , which resulted in a decrease in interest income of $ 684,000. interest expense increased $ 647,000 to $ 7.3 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 due primarily to an increase in interest expense related to the subordinated notes issued during the first quarter of 2015. the average cost of total interest-bearing liabilities was 0.85 % for the year ended december 31 , 2015 compared to 0.83 % for the year ended december 31 , 2014. during the year ended december 31 , 2015 , interest expense increased $ 1.3 million due to the subordinated note issuance and larger short-term debt balances and $ 119,000 due to increased average balances of interest-bearing transaction deposit accounts compared to the same twelve months of 2014. additionally , interest expense increased $ 35,000 on money market accounts , as rates increased modestly from 0.27 % to 0.28 % . the increases to interest expense were partially offset by reductions of $ 228,000 due to lower average balances of long-term debt and time deposits and $ 594,000 due to net decreases in rates paid on time deposits and long-term debt . the average rate paid on debt , which includes long-term debt , trups , subordinated notes , and short-term borrowings , increased from 2.32 % for the year ended december 31 , 2014 to 2.77 % for the year ended december 31 , 2015 . 46 the company continued to make progress in reducing overall deposit costs by increasing transaction deposits as a percentage of overall deposits . average transaction accounts as a percentage of average deposits increased from 52.0 % for the year ended december 31 , 2014 to 56.4 % for

liquidity liquidity is our ability to meet cash demands as they arise . such needs can develop from loan demand , deposit withdrawals or acquisition opportunities . potential obligations resulting from the issuance of standby letters of credit and commitments to fund future borrowings to our loan customers are other factors affecting our liquidity needs . many of these obligations and commitments are expected to expire without being drawn upon ; therefore the total commitment amounts do not necessarily represent future cash requirements affecting our liquidity position . asset liquidity is provided by cash and assets which are readily marketable or which will mature in the near future . liquid assets include cash , federal funds sold , and short-term investments in cash deposits with other banks . liquidity is also provided by access to funding sources , which include core depositors and brokered deposits . other sources of funds include our ability to borrow , such as purchasing federal funds from correspondent banks , sales of securities under agreements to repurchase and advances from the fhlb . at december 31 , 2015 and 2014 , the bank had $ 73.5 million and $ 36.3 million , respectively , in loan commitments outstanding . certificates of deposit due within one year of december 31 , 2015 and 2014 totaled $ 230.6 million or 61.4 % and $ 240.6 million or 62.4 % , respectively , of total certificates of deposit outstanding . if maturing deposits do not remain , the bank will be required to seek other sources of funds , including other certificates of deposit and borrowings . depending on market conditions , we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposits . we believe , however , based on past experience that a significant portion of our certificates of deposit will remain with us . we have the ability to attract and retain deposits by adjusting the interest rates offered . the company 's principal sources of liquidity are cash on hand and dividends received from the bank .


 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 liquidity is our ability to meet cash demands as they arise . such needs can develop from loan demand , deposit withdrawals or acquisition opportunities . potential obligations resulting from the issuance of standby letters of credit and commitments to fund future borrowings to our loan customers are other factors affecting our liquidity needs . many of these obligations and commitments are expected to expire without being drawn upon ; therefore the total commitment amounts do not necessarily represent future cash requirements affecting our liquidity position . asset liquidity is provided by cash and assets which are readily marketable or which will mature in the near future . liquid assets include cash , federal funds sold , and short-term investments in cash deposits with other banks . liquidity is also provided by access to funding sources , which include core depositors and brokered deposits . other sources of funds include our ability to borrow , such as purchasing federal funds from correspondent banks , sales of securities under agreements to repurchase and advances from the fhlb . at december 31 , 2015 and 2014 , the bank had $ 73.5 million and $ 36.3 million , respectively , in loan commitments outstanding . certificates of deposit due within one year of december 31 , 2015 and 2014 totaled $ 230.6 million or 61.4 % and $ 240.6 million or 62.4 % , respectively , of total certificates of deposit outstanding . if maturing deposits do not remain , the bank will be required to seek other sources of funds , including other certificates of deposit and borrowings . depending on market conditions , we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposits . we believe , however , based on past experience that a significant portion of our certificates of deposit will remain with us . we have the ability to attract and retain deposits by adjusting the interest rates offered . the company 's principal sources of liquidity are cash on hand and dividends received from the bank .
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 Suspicious Activity Report : the allowance is based on two principles of accounting : ( 1 ) financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) topic 450 “ contingencies , ” which requires that losses be accrued when they are probable of occurring and are estimable and ( 2 ) fasb asc 310 “ receivables , ” which requires that losses be accrued when it is probable that the company will not collect all principal and interest payments according to the contractual terms of the loan . the loss , if any , is determined by the difference between the loan balance and the value of collateral , the present value of expected future cash flows and values observable in the secondary markets . the allowance for loan loss balance is an estimate based upon management 's evaluation of the loan portfolio . the allowance is comprised of a specific and a general component . the specific component consists of management 's evaluation of certain classified and non-accrual loans and their underlying collateral . management assesses the ability of the borrower to repay the loan based upon all information available . loans are examined to determine a specific allowance based upon the borrower 's payment history , economic conditions specific to the loan or borrower and other factors that would impact the borrower 's ability to repay the loan on its contractual basis . depending on the assessment of the borrower 's ability to pay and the type , condition and value of collateral , management will establish an allowance amount specific to the loan . 40 management uses a risk scale to assign grades to commercial real estate , construction and land development , commercial loans and commercial equipment loans . commercial loan relationships with an aggregate exposure to the bank of $ 750,000 or greater are risk rated . residential first mortgages , home equity and second mortgages and consumer loans are monitored on an ongoing basis based on borrower payment history . consumer loans and residential real estate loans are classified as unrated unless they are part of a larger commercial relationship that requires grading or are troubled debt restructures or nonperforming loans with an other assets especially mentioned or higher risk rating due to a delinquent payment history . the company 's commercial loan portfolio is periodically reviewed by regulators and independent consultants engaged by management . in establishing the general component of the allowance , management analyzes non-impaired loans in the portfolio including changes in the amount and type of loans . this analysis reviews trends by portfolio segment in charge-offs , delinquency , classified loans , loan concentrations and the rate of portfolio segment growth . qualitative factors also include an assessment of the current regulatory environment , the quality of credit administration and loan portfolio management and national and local economic trends . based upon this analysis a loss factor is applied to each loan category and the bank adjusts the loan loss allowance by increasing or decreasing the provision for loan losses . management has significant discretion in making the judgments inherent in the determination of the allowance for loan losses , including the valuation of collateral , assessing a borrower 's prospects of repayment and in establishing loss factors on the general component of the allowance . changes in loss factors have a direct impact on the amount of the provision and on net income . errors in management 's assessment of the global factors and their impact on the portfolio could result in the allowance not being adequate to cover losses in the portfolio , and may result in additional provisions . at december 31 , 2015 , the allowance for loan losses was $ 8.5 million or 0.93 % of total loans . an increase or decrease in the allowance could result in a charge or credit to income before income taxes that materially impacts earnings . for additional information regarding the allowance for loan losses , refer to notes 1 and 6 of the consolidated financial statements and the discussion under the caption “ provision for loan losses ” below . other-than-temporary-impairment ( “ otti ” ) debt securities are evaluated quarterly to determine whether a decline in their value is other-than-temporary . the term “ other-than-temporary ” is not necessarily intended to indicate a permanent decline in value . it means that the prospects for near-term recovery of value are not necessarily favorable , or that there is a lack of evidence to support fair values equal to , or greater than , the carrying value of the investment . accounting guidance indicates that the amount of other-than-temporary impairment that is recognized through earnings for debt securities is determined by comparing the present value of the expected cash flows to the amortized cost of the security . the discount rate used to determine the credit loss is the expected book yield on the security . the company does not evaluate declines in the value of securities of government sponsored enterprises ( “ gses ” ) or investments backed by the full faith and credit of the united states government ( e.g . us treasury bills ) , for other-than-temporary impairment . for additional information regarding otti , refer to notes 1 and 5 of the consolidated financial statements . other real estate owned ( “ oreo ” ) the company maintains a valuation allowance on its other real estate owned . as with the allowance for loan losses , the valuation allowance on oreo is based on fasb asc 450 “ contingencies , ” as well as the accounting guidance on impairment of long-lived assets . these statements require that the company establish a valuation allowance when it has determined that the carrying amount of a foreclosed asset exceeds its fair value . story_separator_special_tag the company 's noninterest expenses for 2015 , excluding oreo charges and the title insurance settlement claim adjustment , were $ 27.2 million which represents a $ 1.3 million , or 5.1 % , increase over the comparable $ 25.9 million for the year ended december 31 , 2014. with these adjustments , noninterest expense as a percentage of average assets decreased three basis points from 2.52 % for the year ended december 31 , 2014 to 2.49 % for the year ended december 31 , 2015. the increased expenses were partially offset by the following positive increases to revenues : · net interest income was $ 36.5 million in 2015 an increase of $ 1.5 million , or 4.2 % , compared to 2014. o interest income increased $ 2.1 million . the increase was driven by increased loan average balances . the bank increased average net loan balances $ 54.8 million to $ 874.2 million in 2015 from $ 819.4 million in 2014. loan volume was partially offset by yield declines . o interest expense increased $ 647,000 which partially offset increased interest income . the primary reason for the increase related to the $ 23.0 million 6.25 % subordinated notes issued during the first quarter of 2015. continued progress in continuing to add transaction deposits mitigated some of the impact of the increased interest expense associated with the subordinated notes . overall deposit cost decreased by eight basis points to 0.48 % compared to the prior year . · the provision for loan losses decreased $ 1.2 million to $ 1.4 million in 2015 due primarily to improvements to baseline charge-off factors for the periods used to evaluate the adequacy of the allowance as well as improvements in other qualitative factors , such as reductions in classified assets . a more detailed analysis comparing the results of operations for the years ended december 31 , 2015 and 2014 follows . 45 net interest income the primary component of the company 's net income is its net interest income , which is the difference between income earned on assets and interest paid on the deposits and borrowings used to fund them . net interest income is affected by the difference between the yields earned on the company 's interest-earning assets and the rates paid on interest-bearing liabilities , as well as the relative amounts of such assets and liabilities . net interest income , divided by average interest-earning assets , represents the company 's net interest margin . net interest income increased to $ 36.5 million for the year ended december 31 , 2015 compared to $ 35.1 million for the year ended december 31 , 2014. the net interest margin was 3.60 % for the year ended december 31 , 2015 , an eight basis point decrease from 3.68 % for the year ended december 31 , 2014. the decrease in net interest margin was largely the result of additional interest expense related to the subordinated notes issued during the first quarter of 2015. the following table shows the components of net interest income and the dollar and percentage changes for the periods presented . replace_table_token_17_th interest and dividend income increased by $ 2.1 million to $ 43.9 million for the year ended december 31 , 2015 compared to $ 41.8 million for the year ended december 31 , 2014 , primarily due to increased income from the growth in the average balance of loans . interest and dividend income on loans increased $ 2.6 million due to growth of $ 54.8 million in the average balance of loans from $ 819.4 million for the year ended december 31 , 2014 to $ 874.2 million for the year ended december 31 , 2015. interest and dividend income on investments increased $ 203,000 during 2015 compared to the prior year as average interest-earning investment balances increased $ 4.7 million and average yields increased from 1.70 % to 1.79 % . these increases to interest income were partially offset by decreased income from reduced yields on loans . average loan yields declined nine basis points from 4.82 % for the year ended december 31 , 2014 to 4.73 % for the year ended december 31 , 2015 , which resulted in a decrease in interest income of $ 684,000. interest expense increased $ 647,000 to $ 7.3 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 due primarily to an increase in interest expense related to the subordinated notes issued during the first quarter of 2015. the average cost of total interest-bearing liabilities was 0.85 % for the year ended december 31 , 2015 compared to 0.83 % for the year ended december 31 , 2014. during the year ended december 31 , 2015 , interest expense increased $ 1.3 million due to the subordinated note issuance and larger short-term debt balances and $ 119,000 due to increased average balances of interest-bearing transaction deposit accounts compared to the same twelve months of 2014. additionally , interest expense increased $ 35,000 on money market accounts , as rates increased modestly from 0.27 % to 0.28 % . the increases to interest expense were partially offset by reductions of $ 228,000 due to lower average balances of long-term debt and time deposits and $ 594,000 due to net decreases in rates paid on time deposits and long-term debt . the average rate paid on debt , which includes long-term debt , trups , subordinated notes , and short-term borrowings , increased from 2.32 % for the year ended december 31 , 2014 to 2.77 % for the year ended december 31 , 2015 . 46 the company continued to make progress in reducing overall deposit costs by increasing transaction deposits as a percentage of overall deposits . average transaction accounts as a percentage of average deposits increased from 52.0 % for the year ended december 31 , 2014 to 56.4 % for

