this business combination is targeted to be completed in the second quarter of 2019 , subject to shareholder and regulatory approval . this is 46 viewed as a complementary market extension business combination that expands berkshire 's presence in southeastern new england , adding a stable deposit franchise and targeting attractive earnings accretion . berkshire increased its quarterly common stock cash dividend by 5 % to $ 0.22 per share in january 2018 , and the common stock dividend was further increased by 5 % to $ 0.23 per share in january 2019. in june , berkshire 's stock was added to the s & p 600 smallcap r index ; this index tracks u.s. small cap companies and is included in the s & p composite 1500 r index . this event widened the visibility of berkshire 's stock . during 2018 , the company obtained an investment grade senior debt rating from a recognized credit rating agency . u.s and regional economic growth were elevated in 2018 compared to prior years . u.s. unemployment fell to the lowest rate in nearly 50 years . the company 's asset quality and credit performance remained favorable throughout the year . the federal reserve board increased its target federal funds interest rate by 0.25 % in each quarter , with the target standing at 2.5 % at year-end . the yield curve flattened , with the ten year treasury rate increasing to 2.63 % from 1.76 % over the course of the year . deposit competition intensified and lending spreads remained pressured in this environment . residential mortgage volumes declined and gain on sale margins remained under pressure . while the company 's interest rate risk position was generally neutral in its static models , the growth of its business and focus on the competitive eastern massachusetts markets resulted in margin pressures as it utilized wholesale funding to build scale , market share , and overall efficiencies across its business lines . comparison of financial condition at december 31 , 2018 and 2017 summary : berkshire offers a competitive mix of loan and deposit products to serve the retail and commercial markets in its regions , and in certain national specialty lending markets . net interest income from these products is its primary revenue source ; the related staff , facilities , and systems are its primary operating expenses . the company emphasizes services and fee revenue business to deepen market and wallet share , diversify revenues , and lessen the requirement for balance sheet liquidity and capital resources . the company has expanded its wholesale lending and deposit practices to provide more product and balance sheet flexibility . the company 's current strategic review includes an assessment of the balance sheet structure and capital management to support earnings and profitability metrics while also supporting liquidity , capital , and interest rate sensitivity objectives . total assets increased by $ 641 million , or 6 % , to $ 12.2 billion in 2018. this was driven by a 9 % increase in total loans and was funded primarily by borrowings , together with a 3 % increase in deposits . shareholders ' equity increased by 4 % , and measured $ 33.30 per common share at year-end . the non-gaap measure of tangible equity per common share increased by 7 % to $ 21.15 , with tangible equity growth outpacing the rate of growth in total assets . investment securities . berkshire 's goal is to maintain a high quality portfolio consisting primarily of liquid investment securities with managed durations . the portfolio generates interest income and provides additional liquidity and interest rate risk management flexibility . the portfolio is managed to contribute to earnings per share and return on equity , taking into account regulatory risk classifications . the company continuously evaluates the portfolio 's size , yield , diversification , risk , and duration . the newly initiated strategic review in 2019 will include a reassessment of the contribution of this portfolio towards the company 's portfolio objectives . the securities portfolio was unchanged at $ 1.9 billion in 2018 , with no significant changes in its composition . some agency mortgage backed securities were shifted from pass throughs to collateralized mortgage backed obligations , and tax advantaged securities declined modestly . the fully taxable equivalent yield of municipal securities decreased due to federal tax reform , but the portfolio generally continued to meet the company 's earnings and liquidity objectives . marketable equity securities increased modestly . based on the adoption of asu 2016-01 in 2018 , unrealized equity gains/losses are reported in current period earnings , and are excluded from the company 's non-gaap measure of adjusted earnings . a stock market decline resulted in a $ 4 million unrealized loss on equity securities recorded to 2018 income . the total net unrealized loss on the investment portfolio was 1.2 % of cost at year-end 2018 , compared to a 0.6 % net unrealized gain at year-end 2017. this reflected generally lower bond prices due to the higher interest rates prevailing at the end of 2018 . 47 the fourth quarter portfolio yield decreased year-to-year to 3.38 % from 3.55 % , while the full year yield decreased to 3.33 % from 3.43 % . due to the federal tax reform , the company had estimated that the fully taxable equivalent yield of the securities portfolio would decrease by approximately 0.15 % . this is primarily due to the municipal bond portfolio , which continues to meet the company 's profitability objectives despite the lower taxable equivalent yield . the year-end weighted average life of the bond portfolio increased slightly to 5.8 years from 5.5 years . the company estimates that the average life of the portfolio would increase to 7.9 years in the event of a 300 basis point increase in interest rates . story_separator_special_tag the commercial loan interest rate swap derivatives include back to back hedges with national bank counterparties , along with risk participation agreements with dealer banks . this represents a 43 % increase related to strong customer demand during the year . derivatives related to mortgage banking decreased by $ 115 million during the year due to a lower volume of mortgage originations . the net fair value of derivatives decreased to $ 2 million from $ 3 million during the year due to the lower mortgage pipeline volume at year-end 2018. stockholders ' equity . berkshire pursues a balance of capital to maintain financial soundness while using common equity efficiently with the goal to produce a strong return on equity and a strong return on tangible equity to support opportunities for franchise growth . long run growth in dividends and in both book value and tangible book value per share are also viewed as elements for shareholder value creation . a sound capital structure reduces risk and enhances shareholder return and access to capital markets to support the company 's banking activities and the markets that it serves . in its payment of dividends , management of treasury shares , issuance of equity compensation , and balancing of capital sources , the company strives to achieve a capital structure that is attractive to the investment community and which satisfies the policy and supervision purposes of the company 's regulators . when berkshire negotiates business combinations , it generally targets to use its common shares as a significant component of merger consideration and to balance the mix of cash and stock to arrive at targeted capital metrics based on the characteristics of the combined banks . the company 's common stock is listed on the new york stock exchange . its preferred shares are non-voting conditionally convertible stock owned by one holder which is also the company 's largest non-institutional holder of common stock as a result of the commerce acquisition . these holdings are restricted pursuant to an agreement filed with the sec . total shareholders ' equity increased by $ 57 million ( or 4 % ) to $ 1.6 billion in 2018 primarily due to the benefit of retained earnings . the non-gaap measure of tangible equity increased by 7 % based on internal capital generation , and slightly exceeded the 6 % increase in total assets . the company focuses on its internal generation of tangible equity to support growth and dividends , as well as to support merger and other non-operating charges . the ratio of 51 equity to assets decreased to 12.7 % from 12.9 % , and the non-gaap ratio of tangible equity to assets increased to 8.6 % from 8.5 % . at year-end , the company had a pending agreement to acquire si financial group . if the merger is completed , each outstanding share of si financial common stock will be converted into the right to receive 0.48 shares of the company 's common stock . the company expects to issue approximately 5.7 million shares as merger consideration . comparison of operating results for the years ended december 31 , 2018 and 2017 summary : berkshire achieved record revenue , earnings , and return on assets in 2018. gaap results included significant charges viewed as non-operating . based on its non-gaap adjusted measures , discussed below , berkshire produced improvement in its earnings per share and roa measures , which are its primary strategic focus . net income increased in 2018 by $ 51 million , or 91 % , to $ 106 million . adjusted net income increased by $ 35 million , or 38 % , to $ 125 million . on a per share basis , net income increased by 65 % to $ 2.29 and adjusted net income per share increased by $ 0.42 , or 18 % , to $ 2.71. this adjusted earnings per share result was consistent with the company 's plan at the start of the year . operations in 2018 benefited from the lower federal tax rate , which reduced the company 's effective tax rate by an estimated 10.8 % . this benefited adjusted net income by approximately $ 17 million , or $ 0.37 per share , and contributed significantly to the year-over-year targeted increase in per share results . this target took into account an estimated $ 0.03 per share cost of an increase in the minimum wage to $ 15/hour which was adopted by the company when the federal tax reform was announced . it also considered the impact of the tax reform on market pricing margins and on the supply and demand for tax advantaged revenue sources , both of which were expected to be adversely affected by tax reform . the operating results of the company further benefited from a full year of fully integrated first choice operations in the mid atlantic and a partial year of the fully integrated commerce operations in eastern massachusetts . the successful integrations of these business combinations were a critical focus for the company . operating results also benefited from organic loan growth and improved efficiency resulting from increased business scale . additionally , most restructuring actions were expected to benefit subsequent earnings , including restructuring actions in 2017 and 2018. operating results were negatively impacted by the $ 19 million decrease in mortgage banking revenue due to lower demand and heightened competition . this negative impact was significantly offset by higher purchased loan accretion resulting from unanticipated high levels of recoveries of purchased credit impaired loans . total purchased loan accretion measured $ 23 million in 2018 , compared to $ 15 million in the prior year . the company expects that the contribution from purchased loan accretion will decrease significantly in 2019 and later years . a strategic review has been initiated to identify opportunities to offset the negative impact of this reduction and lower mortgage banking revenue

capital resources the company and the bank target to maintain sufficient capital to qualify for the “ well capitalized ” designation by federal regulators . berkshire 's long term goal is to use capital efficiently to achieve its objective to become a higher performance company with a targeted return on equity exceeding 10 % . a double digit return on equity is used to benchmark all lending and investment programs , together with all acquisition analyses . the company seeks to maintain a competitive cost of capital and capital structure . the company monitors its ratio of tangible equity/tangible assets . this ratio increased slightly to 8.6 % in 2018 due to strong internal capital generation which supported asset growth , a higher dividend , and improvement in this ratio . berkshire views its internal return on tangible capital as the primary capital resource of the company . the return on tangible equity averaged over 12 % for the four years 2015-2018. the company focuses on internal capital generation to support shareholder dividends and targeted organic growth and also to support non-operating charges and or improvement in its capital ratios . the company has maintained a universal shelf registration of capital securities with the sec . the company sometimes uses issuances of unregistered stock for targeted small contractual payments . the company has an approved stock repurchase program for 500,000 shares . the company normally uses common stock as a significant component of consideration for business combinations . the resulting stock issuances have meaningfully increased the float and market capitalization of the company . due to the stock issuances in 2017 , the company had utilized most of its authorized common and preferred shares .


 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 the company and the bank target to maintain sufficient capital to qualify for the “ well capitalized ” designation by federal regulators . berkshire 's long term goal is to use capital efficiently to achieve its objective to become a higher performance company with a targeted return on equity exceeding 10 % . a double digit return on equity is used to benchmark all lending and investment programs , together with all acquisition analyses . the company seeks to maintain a competitive cost of capital and capital structure . the company monitors its ratio of tangible equity/tangible assets . this ratio increased slightly to 8.6 % in 2018 due to strong internal capital generation which supported asset growth , a higher dividend , and improvement in this ratio . berkshire views its internal return on tangible capital as the primary capital resource of the company . the return on tangible equity averaged over 12 % for the four years 2015-2018. the company focuses on internal capital generation to support shareholder dividends and targeted organic growth and also to support non-operating charges and or improvement in its capital ratios . the company has maintained a universal shelf registration of capital securities with the sec . the company sometimes uses issuances of unregistered stock for targeted small contractual payments . the company has an approved stock repurchase program for 500,000 shares . the company normally uses common stock as a significant component of consideration for business combinations . the resulting stock issuances have meaningfully increased the float and market capitalization of the company . due to the stock issuances in 2017 , the company had utilized most of its authorized common and preferred shares .
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 Suspicious Activity Report : this business combination is targeted to be completed in the second quarter of 2019 , subject to shareholder and regulatory approval . this is 46 viewed as a complementary market extension business combination that expands berkshire 's presence in southeastern new england , adding a stable deposit franchise and targeting attractive earnings accretion . berkshire increased its quarterly common stock cash dividend by 5 % to $ 0.22 per share in january 2018 , and the common stock dividend was further increased by 5 % to $ 0.23 per share in january 2019. in june , berkshire 's stock was added to the s & p 600 smallcap r index ; this index tracks u.s. small cap companies and is included in the s & p composite 1500 r index . this event widened the visibility of berkshire 's stock . during 2018 , the company obtained an investment grade senior debt rating from a recognized credit rating agency . u.s and regional economic growth were elevated in 2018 compared to prior years . u.s. unemployment fell to the lowest rate in nearly 50 years . the company 's asset quality and credit performance remained favorable throughout the year . the federal reserve board increased its target federal funds interest rate by 0.25 % in each quarter , with the target standing at 2.5 % at year-end . the yield curve flattened , with the ten year treasury rate increasing to 2.63 % from 1.76 % over the course of the year . deposit competition intensified and lending spreads remained pressured in this environment . residential mortgage volumes declined and gain on sale margins remained under pressure . while the company 's interest rate risk position was generally neutral in its static models , the growth of its business and focus on the competitive eastern massachusetts markets resulted in margin pressures as it utilized wholesale funding to build scale , market share , and overall efficiencies across its business lines . comparison of financial condition at december 31 , 2018 and 2017 summary : berkshire offers a competitive mix of loan and deposit products to serve the retail and commercial markets in its regions , and in certain national specialty lending markets . net interest income from these products is its primary revenue source ; the related staff , facilities , and systems are its primary operating expenses . the company emphasizes services and fee revenue business to deepen market and wallet share , diversify revenues , and lessen the requirement for balance sheet liquidity and capital resources . the company has expanded its wholesale lending and deposit practices to provide more product and balance sheet flexibility . the company 's current strategic review includes an assessment of the balance sheet structure and capital management to support earnings and profitability metrics while also supporting liquidity , capital , and interest rate sensitivity objectives . total assets increased by $ 641 million , or 6 % , to $ 12.2 billion in 2018. this was driven by a 9 % increase in total loans and was funded primarily by borrowings , together with a 3 % increase in deposits . shareholders ' equity increased by 4 % , and measured $ 33.30 per common share at year-end . the non-gaap measure of tangible equity per common share increased by 7 % to $ 21.15 , with tangible equity growth outpacing the rate of growth in total assets . investment securities . berkshire 's goal is to maintain a high quality portfolio consisting primarily of liquid investment securities with managed durations . the portfolio generates interest income and provides additional liquidity and interest rate risk management flexibility . the portfolio is managed to contribute to earnings per share and return on equity , taking into account regulatory risk classifications . the company continuously evaluates the portfolio 's size , yield , diversification , risk , and duration . the newly initiated strategic review in 2019 will include a reassessment of the contribution of this portfolio towards the company 's portfolio objectives . the securities portfolio was unchanged at $ 1.9 billion in 2018 , with no significant changes in its composition . some agency mortgage backed securities were shifted from pass throughs to collateralized mortgage backed obligations , and tax advantaged securities declined modestly . the fully taxable equivalent yield of municipal securities decreased due to federal tax reform , but the portfolio generally continued to meet the company 's earnings and liquidity objectives . marketable equity securities increased modestly . based on the adoption of asu 2016-01 in 2018 , unrealized equity gains/losses are reported in current period earnings , and are excluded from the company 's non-gaap measure of adjusted earnings . a stock market decline resulted in a $ 4 million unrealized loss on equity securities recorded to 2018 income . the total net unrealized loss on the investment portfolio was 1.2 % of cost at year-end 2018 , compared to a 0.6 % net unrealized gain at year-end 2017. this reflected generally lower bond prices due to the higher interest rates prevailing at the end of 2018 . 47 the fourth quarter portfolio yield decreased year-to-year to 3.38 % from 3.55 % , while the full year yield decreased to 3.33 % from 3.43 % . due to the federal tax reform , the company had estimated that the fully taxable equivalent yield of the securities portfolio would decrease by approximately 0.15 % . this is primarily due to the municipal bond portfolio , which continues to meet the company 's profitability objectives despite the lower taxable equivalent yield . the year-end weighted average life of the bond portfolio increased slightly to 5.8 years from 5.5 years . the company estimates that the average life of the portfolio would increase to 7.9 years in the event of a 300 basis point increase in interest rates . story_separator_special_tag the commercial loan interest rate swap derivatives include back to back hedges with national bank counterparties , along with risk participation agreements with dealer banks . this represents a 43 % increase related to strong customer demand during the year . derivatives related to mortgage banking decreased by $ 115 million during the year due to a lower volume of mortgage originations . the net fair value of derivatives decreased to $ 2 million from $ 3 million during the year due to the lower mortgage pipeline volume at year-end 2018. stockholders ' equity . berkshire pursues a balance of capital to maintain financial soundness while using common equity efficiently with the goal to produce a strong return on equity and a strong return on tangible equity to support opportunities for franchise growth . long run growth in dividends and in both book value and tangible book value per share are also viewed as elements for shareholder value creation . a sound capital structure reduces risk and enhances shareholder return and access to capital markets to support the company 's banking activities and the markets that it serves . in its payment of dividends , management of treasury shares , issuance of equity compensation , and balancing of capital sources , the company strives to achieve a capital structure that is attractive to the investment community and which satisfies the policy and supervision purposes of the company 's regulators . when berkshire negotiates business combinations , it generally targets to use its common shares as a significant component of merger consideration and to balance the mix of cash and stock to arrive at targeted capital metrics based on the characteristics of the combined banks . the company 's common stock is listed on the new york stock exchange . its preferred shares are non-voting conditionally convertible stock owned by one holder which is also the company 's largest non-institutional holder of common stock as a result of the commerce acquisition . these holdings are restricted pursuant to an agreement filed with the sec . total shareholders ' equity increased by $ 57 million ( or 4 % ) to $ 1.6 billion in 2018 primarily due to the benefit of retained earnings . the non-gaap measure of tangible equity increased by 7 % based on internal capital generation , and slightly exceeded the 6 % increase in total assets . the company focuses on its internal generation of tangible equity to support growth and dividends , as well as to support merger and other non-operating charges . the ratio of 51 equity to assets decreased to 12.7 % from 12.9 % , and the non-gaap ratio of tangible equity to assets increased to 8.6 % from 8.5 % . at year-end , the company had a pending agreement to acquire si financial group . if the merger is completed , each outstanding share of si financial common stock will be converted into the right to receive 0.48 shares of the company 's common stock . the company expects to issue approximately 5.7 million shares as merger consideration . comparison of operating results for the years ended december 31 , 2018 and 2017 summary : berkshire achieved record revenue , earnings , and return on assets in 2018. gaap results included significant charges viewed as non-operating . based on its non-gaap adjusted measures , discussed below , berkshire produced improvement in its earnings per share and roa measures , which are its primary strategic focus . net income increased in 2018 by $ 51 million , or 91 % , to $ 106 million . adjusted net income increased by $ 35 million , or 38 % , to $ 125 million . on a per share basis , net income increased by 65 % to $ 2.29 and adjusted net income per share increased by $ 0.42 , or 18 % , to $ 2.71. this adjusted earnings per share result was consistent with the company 's plan at the start of the year . operations in 2018 benefited from the lower federal tax rate , which reduced the company 's effective tax rate by an estimated 10.8 % . this benefited adjusted net income by approximately $ 17 million , or $ 0.37 per share , and contributed significantly to the year-over-year targeted increase in per share results . this target took into account an estimated $ 0.03 per share cost of an increase in the minimum wage to $ 15/hour which was adopted by the company when the federal tax reform was announced . it also considered the impact of the tax reform on market pricing margins and on the supply and demand for tax advantaged revenue sources , both of which were expected to be adversely affected by tax reform . the operating results of the company further benefited from a full year of fully integrated first choice operations in the mid atlantic and a partial year of the fully integrated commerce operations in eastern massachusetts . the successful integrations of these business combinations were a critical focus for the company . operating results also benefited from organic loan growth and improved efficiency resulting from increased business scale . additionally , most restructuring actions were expected to benefit subsequent earnings , including restructuring actions in 2017 and 2018. operating results were negatively impacted by the $ 19 million decrease in mortgage banking revenue due to lower demand and heightened competition . this negative impact was significantly offset by higher purchased loan accretion resulting from unanticipated high levels of recoveries of purchased credit impaired loans . total purchased loan accretion measured $ 23 million in 2018 , compared to $ 15 million in the prior year . the company expects that the contribution from purchased loan accretion will decrease significantly in 2019 and later years . a strategic review has been initiated to identify opportunities to offset the negative impact of this reduction and lower mortgage banking revenue

