these estimates , assumptions , and judgments are based on information available as of the date of the consolidated financial statements ; accordingly , as this information changes , the consolidated financial statements could reflect different estimates , assumptions , and judgments . certain policies inherently have a greater reliance on the use of estimates , assumptions , and judgments and , as such , have a greater possibility of producing results that could be materially different than originally reported . estimates , assumptions , and judgments are necessary when assets and liabilities are required to be recorded at fair value , when a decline in the value of an asset not carried on the consolidated financial statements at fair value warrants an impairment write-down or valuation reserve to be established , or when an asset or liability needs to be recorded contingent upon a future event . carrying assets and liabilities at fair value inherently results in more financial statement volatility . when applying accounting policies in such areas that are subjective in nature , management must use its best judgment to arrive at the carrying value of certain assets and liabilities . below is a discussion of our critical accounting policies . securities we designate securities into one of three categories at the time of purchase . debt securities that we have the intent and ability to hold to maturity are classified as held to maturity ( “ htm ” ) and recorded at amortized cost . debt and equity securities are classified as trading if bought and held principally for the purpose of sale in the near term . trading securities are reported at estimated fair value , with unrealized gains and losses included in earnings . debt securities not classified as htm and debt and equity securities not classified as trading securities are considered available for sale ( “ afs ” ) and are reported at estimated fair value , with unrealized gains and losses reported as a separate component of stockholders ' equity , net of tax effects , in accumulated other comprehensive loss . afs and htm securities are evaluated periodically to determine whether a decline in their value is other than temporary . the term “ other than temporary ” is not intended to indicate a permanent decline in value . rather , 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 security . 23 the initial indications of other-than-temporary impairment ( “ otti ” ) for both debt and equity securities are a decline in the market value below the amount recorded for a security and the severity and duration of the decline . in determining whether an impairment is other than temporary , we consider the length of time and the extent to which the market value has been below cost , recent events specific to the issuer , including investment downgrades by rating agencies and economic conditions of its industry , our intent to sell the security , and if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis . we also consider the cause of the price decline ( general level of interest rates and industry- and issuer-specific factors ) , the issuer 's financial condition , near-term prospects and current ability to make future payments in a timely manner , the issuer 's ability to service debt , and any change in agencies ' ratings at evaluation date from acquisition date and any likely imminent action . once a decline in value is determined to be other than temporary , the security is segmented into credit- and noncredit-related components . any impairment adjustment due to identified credit-related components is recorded as an adjustment to current period earnings , while noncredit-related fair value adjustments are recorded through accumulated other comprehensive loss . in situations where we intend to sell or it is more likely than not that we will be required to sell the security , the entire otti loss is recognized in earnings . allowance for loan losses the allowance is maintained at an amount that management believes will be adequate to absorb losses on existing loans that may become uncollectible , based on evaluations of the collectability of loans and prior loan loss experience . the evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio , overall portfolio quality , review of specific problem loans , and current economic conditions that may affect the borrowers ' ability to pay . determining the amount of the allowance requires the use of estimates and assumptions . actual results could differ significantly from those estimates . future additions or reductions in the allowance may be necessary based on changes in economic conditions , particularly in anne arundel county and the state of maryland . in addition , various regulatory agencies , as an integral part of their examination process , periodically review the bank 's allowance . such agencies may require the bank to recognize additions to the allowance based on their judgment about information available to them at the time of their examination . the allowance consists of specific and general components . the specific component relates to loans that are classified as impaired . when a real estate secured loan becomes impaired , a decision is made as to whether an updated appraisal of the real estate is necessary . this decision is based on various considerations , including the age of the most recent appraisal , the ltv ratio based on the original appraisal , and the condition of the property . story_separator_special_tag lhfs decreased $ 5.8 million , or 56.0 % , to $ 4.5 million at december 31 , 2017 compared to $ 10.3 million at december 31 , 2016. this decrease was due to the timing of loans pending sale as well as a decreased volume of originations . loans increased $ 57.9 million , or 9.5 % , to $ 668.2 million at december 31 , 2017 compared to $ 610.3 million at december 31 , 2016 due to increased origination activity in 2017. real estate acquired through foreclosure decreased $ 570,000 , or 58.6 % , to $ 403,000 at december 31 , 2017 compared to $ 973,000 at december 31 , 2016. this decrease was due to the sale of several properties . total deposits increased $ 30.3 million , or 5.3 % , to $ 602.2 million at december 31 , 2017 compared to $ 571.9 million at december 31 , 2016. long-term borrowings decreased by $ 15.0 million , or 14.5 % , to $ 88.5 million at december 31 , 2017 compared to $ 103.5 million at december 31 , 2016. these borrowings began to mature in february , 2017 . 29 securities we utilize the securities portfolio as part of our overall asset/liability management practices to enhance interest revenue while providing necessary liquidity for the funding of loan growth or deposit withdrawals . we continually monitor the credit risk associated with investments and diversify the risk in the securities portfolios . we held $ 10.1 million in securities classified as afs as of december 31 , 2017. we did not hold any afs securities as of december 31 , 2016. we held $ 54.3 million and $ 62.8 million in securities classified as htm as of december 31 , 2017 and december 31 , 2016 , respectively . changes in current market conditions , such as interest rates and the economic uncertainties in the mortgage , housing , and banking industries impact the securities market . quarterly , we review each security in our afs portfolio to determine the nature of any decline in value and evaluate if any impairment should be classified as otti . such evaluations resulted in the determination that no otti charges were required during 2017. all of the afs and htm securities that were impaired as of december 31 , 2017 were so due to declines in fair values resulting from changes in interest rates or increased credit/liquidity spreads compared to the time they were purchased . we have the intent to hold these securities to maturity and it is more likely than not that we will not be required to sell the securities before recovery of value . as such , management considers the impairments to be temporary . our afs securities portfolio consists of u.s. government agency notes in the amount of $ 10.1 million at december 31 , 2017. we did not hold any afs securities prior to 2017. our htm securities portfolio composition is as follows at december 31 : replace_table_token_4_th the amortized cost , estimated fair values , and weighted average yields of debt securities at december 31 , 2017 , by contractual maturity , are shown below . actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations . replace_table_token_5_th weighted yields are based on amortized cost . mortgage-backed securities are assigned to maturity categories based on their final maturity . we did not hold any securities with an aggregate book value and market value in excess of 10 % of stockholders ' equity . 30 lhfs we originate residential mortgage loans for sale on the secondary market . at december 31 , 2017 , such lhfs , which are carried at fair value , amounted to $ 4.5 million , the majority of which are subject to purchase commitments from investors . the lhfs balance at december 31 , 2016 was $ 10.3 million and was recorded at lower-of-cost or market value ( “ lcm ” ) . lhfs decreased by $ 5.8 million , or 56.0 % , from december 31 , 2016 to december 31 , 2017 , due to the timing of loans pending sale on the secondary market and decreased originations resulting from the transition from the purchased lead model to an internally-generated lead model . when we sell mortgage loans we make certain representations to the purchaser related to loan ownership , loan compliance and legality , and accurate documentation , among other things . if a loan is found to be out of compliance with any of the representations subsequent to the date of purchase , we may be required to repurchase the loan or indemnify the purchaser for losses related to the loan , depending on the agreement with the purchaser . in addition other factors may cause us to be required to repurchase or “ make-whole ” a loan previously sold . the most common reason for a loan repurchase is due to a documentation error or disagreement with an investor , or on rare occasions for fraud . repurchase requests are negotiated with each investor at the time we are notified of the demand and an appropriate reserve is taken at that time . repurchases amounted to $ 469,000 and $ 343,000 during 2017 and 2016 , respectively . our reserve for potential repurchase losses was $ 63,000 and $ 48,000 as of december 31 , 2017 and 2016 , respectively . we do not expect increases in repurchases or related losses to be a growing trend nor do we see it having a significant impact on our financial results . loans our loan portfolio is expected to produce higher yields than investment securities and other interest-earning assets ; the absolute volume and mix of loans and the volume and mix of loans as a percentage of total earning assets is an important determinant of our net interest margin . the following table sets forth

capital resources total stockholders ' equity increased $ 3.2 million to $ 91.1 million at december 31 , 2017 compared to $ 87.9 million at december 31 , 2016. the increase was principally a result of 2017 net income and the common stock issued for the acquisition of mid-md . series a preferred stock on november 15 , 2008 , the company completed a private placement offering consisting of a total of 70 units , at an offering price of $ 100,000 per unit , for gross proceeds of $ 7.0 million . each unit consists of 6,250 shares of the company 's series a 8.0 % non-cumulative convertible preferred stock . on march 13 , 2018 the company notified holders of its series a preferred stock that the company has exercised its option to convert all 437,500 outstanding shares of series a preferred stock into shares of the company 's common stock . the company intends to convert the series a preferred stock on or before april 2 , 2018. as of the conversion date , the series a preferred stock will no longer be deemed outstanding , and all rights with respect to such stock will cease and terminate , except the right of holders to receive shares of common stock in exchange for their shares of series a preferred stock . series b preferred stock on november 21 , 2008 , we entered into an agreement with the u.s. department of the treasury ( “ treasury ” ) , pursuant to which we issued and sold ( i ) shares of our series b fixed rate cumulative perpetual preferred stock ( “ preferred stock ” ) and ( ii ) a warrant ( the “ warrant ” ) to purchase 556,976 shares of the company 's common stock , par value $ 0.01 per share . as of december 31 , 2016 , the company had redeemed all outstanding shares of the preferred stock and during 2017 , the company repurchased the warrant from the treasury . capital adequacy the bank is subject to various regulatory capital requirements administered by the federal banking agencies .


 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 total stockholders ' equity increased $ 3.2 million to $ 91.1 million at december 31 , 2017 compared to $ 87.9 million at december 31 , 2016. the increase was principally a result of 2017 net income and the common stock issued for the acquisition of mid-md . series a preferred stock on november 15 , 2008 , the company completed a private placement offering consisting of a total of 70 units , at an offering price of $ 100,000 per unit , for gross proceeds of $ 7.0 million . each unit consists of 6,250 shares of the company 's series a 8.0 % non-cumulative convertible preferred stock . on march 13 , 2018 the company notified holders of its series a preferred stock that the company has exercised its option to convert all 437,500 outstanding shares of series a preferred stock into shares of the company 's common stock . the company intends to convert the series a preferred stock on or before april 2 , 2018. as of the conversion date , the series a preferred stock will no longer be deemed outstanding , and all rights with respect to such stock will cease and terminate , except the right of holders to receive shares of common stock in exchange for their shares of series a preferred stock . series b preferred stock on november 21 , 2008 , we entered into an agreement with the u.s. department of the treasury ( “ treasury ” ) , pursuant to which we issued and sold ( i ) shares of our series b fixed rate cumulative perpetual preferred stock ( “ preferred stock ” ) and ( ii ) a warrant ( the “ warrant ” ) to purchase 556,976 shares of the company 's common stock , par value $ 0.01 per share . as of december 31 , 2016 , the company had redeemed all outstanding shares of the preferred stock and during 2017 , the company repurchased the warrant from the treasury . capital adequacy the bank is subject to various regulatory capital requirements administered by the federal banking agencies .
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 Suspicious Activity Report : these estimates , assumptions , and judgments are based on information available as of the date of the consolidated financial statements ; accordingly , as this information changes , the consolidated financial statements could reflect different estimates , assumptions , and judgments . certain policies inherently have a greater reliance on the use of estimates , assumptions , and judgments and , as such , have a greater possibility of producing results that could be materially different than originally reported . estimates , assumptions , and judgments are necessary when assets and liabilities are required to be recorded at fair value , when a decline in the value of an asset not carried on the consolidated financial statements at fair value warrants an impairment write-down or valuation reserve to be established , or when an asset or liability needs to be recorded contingent upon a future event . carrying assets and liabilities at fair value inherently results in more financial statement volatility . when applying accounting policies in such areas that are subjective in nature , management must use its best judgment to arrive at the carrying value of certain assets and liabilities . below is a discussion of our critical accounting policies . securities we designate securities into one of three categories at the time of purchase . debt securities that we have the intent and ability to hold to maturity are classified as held to maturity ( “ htm ” ) and recorded at amortized cost . debt and equity securities are classified as trading if bought and held principally for the purpose of sale in the near term . trading securities are reported at estimated fair value , with unrealized gains and losses included in earnings . debt securities not classified as htm and debt and equity securities not classified as trading securities are considered available for sale ( “ afs ” ) and are reported at estimated fair value , with unrealized gains and losses reported as a separate component of stockholders ' equity , net of tax effects , in accumulated other comprehensive loss . afs and htm securities are evaluated periodically to determine whether a decline in their value is other than temporary . the term “ other than temporary ” is not intended to indicate a permanent decline in value . rather , 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 security . 23 the initial indications of other-than-temporary impairment ( “ otti ” ) for both debt and equity securities are a decline in the market value below the amount recorded for a security and the severity and duration of the decline . in determining whether an impairment is other than temporary , we consider the length of time and the extent to which the market value has been below cost , recent events specific to the issuer , including investment downgrades by rating agencies and economic conditions of its industry , our intent to sell the security , and if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis . we also consider the cause of the price decline ( general level of interest rates and industry- and issuer-specific factors ) , the issuer 's financial condition , near-term prospects and current ability to make future payments in a timely manner , the issuer 's ability to service debt , and any change in agencies ' ratings at evaluation date from acquisition date and any likely imminent action . once a decline in value is determined to be other than temporary , the security is segmented into credit- and noncredit-related components . any impairment adjustment due to identified credit-related components is recorded as an adjustment to current period earnings , while noncredit-related fair value adjustments are recorded through accumulated other comprehensive loss . in situations where we intend to sell or it is more likely than not that we will be required to sell the security , the entire otti loss is recognized in earnings . allowance for loan losses the allowance is maintained at an amount that management believes will be adequate to absorb losses on existing loans that may become uncollectible , based on evaluations of the collectability of loans and prior loan loss experience . the evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio , overall portfolio quality , review of specific problem loans , and current economic conditions that may affect the borrowers ' ability to pay . determining the amount of the allowance requires the use of estimates and assumptions . actual results could differ significantly from those estimates . future additions or reductions in the allowance may be necessary based on changes in economic conditions , particularly in anne arundel county and the state of maryland . in addition , various regulatory agencies , as an integral part of their examination process , periodically review the bank 's allowance . such agencies may require the bank to recognize additions to the allowance based on their judgment about information available to them at the time of their examination . the allowance consists of specific and general components . the specific component relates to loans that are classified as impaired . when a real estate secured loan becomes impaired , a decision is made as to whether an updated appraisal of the real estate is necessary . this decision is based on various considerations , including the age of the most recent appraisal , the ltv ratio based on the original appraisal , and the condition of the property . story_separator_special_tag lhfs decreased $ 5.8 million , or 56.0 % , to $ 4.5 million at december 31 , 2017 compared to $ 10.3 million at december 31 , 2016. this decrease was due to the timing of loans pending sale as well as a decreased volume of originations . loans increased $ 57.9 million , or 9.5 % , to $ 668.2 million at december 31 , 2017 compared to $ 610.3 million at december 31 , 2016 due to increased origination activity in 2017. real estate acquired through foreclosure decreased $ 570,000 , or 58.6 % , to $ 403,000 at december 31 , 2017 compared to $ 973,000 at december 31 , 2016. this decrease was due to the sale of several properties . total deposits increased $ 30.3 million , or 5.3 % , to $ 602.2 million at december 31 , 2017 compared to $ 571.9 million at december 31 , 2016. long-term borrowings decreased by $ 15.0 million , or 14.5 % , to $ 88.5 million at december 31 , 2017 compared to $ 103.5 million at december 31 , 2016. these borrowings began to mature in february , 2017 . 29 securities we utilize the securities portfolio as part of our overall asset/liability management practices to enhance interest revenue while providing necessary liquidity for the funding of loan growth or deposit withdrawals . we continually monitor the credit risk associated with investments and diversify the risk in the securities portfolios . we held $ 10.1 million in securities classified as afs as of december 31 , 2017. we did not hold any afs securities as of december 31 , 2016. we held $ 54.3 million and $ 62.8 million in securities classified as htm as of december 31 , 2017 and december 31 , 2016 , respectively . changes in current market conditions , such as interest rates and the economic uncertainties in the mortgage , housing , and banking industries impact the securities market . quarterly , we review each security in our afs portfolio to determine the nature of any decline in value and evaluate if any impairment should be classified as otti . such evaluations resulted in the determination that no otti charges were required during 2017. all of the afs and htm securities that were impaired as of december 31 , 2017 were so due to declines in fair values resulting from changes in interest rates or increased credit/liquidity spreads compared to the time they were purchased . we have the intent to hold these securities to maturity and it is more likely than not that we will not be required to sell the securities before recovery of value . as such , management considers the impairments to be temporary . our afs securities portfolio consists of u.s. government agency notes in the amount of $ 10.1 million at december 31 , 2017. we did not hold any afs securities prior to 2017. our htm securities portfolio composition is as follows at december 31 : replace_table_token_4_th the amortized cost , estimated fair values , and weighted average yields of debt securities at december 31 , 2017 , by contractual maturity , are shown below . actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations . replace_table_token_5_th weighted yields are based on amortized cost . mortgage-backed securities are assigned to maturity categories based on their final maturity . we did not hold any securities with an aggregate book value and market value in excess of 10 % of stockholders ' equity . 30 lhfs we originate residential mortgage loans for sale on the secondary market . at december 31 , 2017 , such lhfs , which are carried at fair value , amounted to $ 4.5 million , the majority of which are subject to purchase commitments from investors . the lhfs balance at december 31 , 2016 was $ 10.3 million and was recorded at lower-of-cost or market value ( “ lcm ” ) . lhfs decreased by $ 5.8 million , or 56.0 % , from december 31 , 2016 to december 31 , 2017 , due to the timing of loans pending sale on the secondary market and decreased originations resulting from the transition from the purchased lead model to an internally-generated lead model . when we sell mortgage loans we make certain representations to the purchaser related to loan ownership , loan compliance and legality , and accurate documentation , among other things . if a loan is found to be out of compliance with any of the representations subsequent to the date of purchase , we may be required to repurchase the loan or indemnify the purchaser for losses related to the loan , depending on the agreement with the purchaser . in addition other factors may cause us to be required to repurchase or “ make-whole ” a loan previously sold . the most common reason for a loan repurchase is due to a documentation error or disagreement with an investor , or on rare occasions for fraud . repurchase requests are negotiated with each investor at the time we are notified of the demand and an appropriate reserve is taken at that time . repurchases amounted to $ 469,000 and $ 343,000 during 2017 and 2016 , respectively . our reserve for potential repurchase losses was $ 63,000 and $ 48,000 as of december 31 , 2017 and 2016 , respectively . we do not expect increases in repurchases or related losses to be a growing trend nor do we see it having a significant impact on our financial results . loans our loan portfolio is expected to produce higher yields than investment securities and other interest-earning assets ; the absolute volume and mix of loans and the volume and mix of loans as a percentage of total earning assets is an important determinant of our net interest margin . the following table sets forth

