retained earnings increased $ 2.2 million related to net income less preferred and common stock dividends and accumulated other comprehensive income increased $ 2.2 million resulting from a change in the net unrealized losses on securities available for sale and to a lesser extent the funded status of the corporation 's defined benefit plan . changes in results of operations the corporation reported net income before accumulated preferred stock dividends and discount accretion of $ 3.8 million and $ 3.1 million in 2011 and 2010 , respectively . the following average balance sheet and yield/rate analysis and analysis of changes in net interest income tables should be utilized in conjunction with the discussion of the net interest income and interest expense components of net income . k-22 average balance sheet and yield/rate analysis . the following table sets forth , for the periods indicated , information concerning the total dollar amounts of interest income from interest-earning assets and the resulting average yields , the total dollar amounts of interest expense on interest-bearing liabilities and the resulting average costs , net interest income , interest rate spread and the net interest margin earned on average interest-earning assets . for purposes of this table , average loan balances include non-accrual loans and exclude the allowance for loan losses and interest income includes accretion of net deferred loan fees . interest and yields on tax-exempt loans and securities ( tax-exempt for federal income tax purposes ) are shown on a fully tax equivalent basis . the information is based on average daily balances during the periods presented . replace_table_token_12_th k-23 analysis of changes in net interest income . the following table analyzes the changes in interest income and interest expense in terms of : ( 1 ) changes in volume of interest-earning assets and interest-bearing liabilities and ( 2 ) changes in yields and rates . the table reflects the extent to which changes in the corporation 's interest income and interest expense are attributable to changes in rate ( change in rate multiplied by prior year volume ) , changes in volume ( changes in volume multiplied by prior year rate ) and changes attributable to the combined impact of volume/rate ( change in rate multiplied by change in volume ) . the changes attributable to the combined impact of volume/rate are allocated on a consistent basis between the volume and rate variances . changes in interest income on loans and securities reflect the changes in interest income on a fully tax equivalent basis . replace_table_token_13_th 2011 results compared to 2010 results the corporation reported net income before accumulated preferred stock dividends and discount accretion of $ 3.8 million and $ 3.1 million for 2011 and 2010 , respectively . the $ 764,000 or 24.9 % increase in net income was attributed to an increase in net interest income of $ 624,000 and a decrease in provision for loan losses of $ 886,000 , partially offset by a decrease in noninterest income of $ 365,000 and increases in noninterest expense and provision for income taxes of $ 232,000 and $ 149,000 , respectively . net interest income . the primary source of the corporation 's revenue is net interest income . net interest income is the difference between interest income on earning assets such as loans and securities , and interest expense on liabilities , such as deposits and borrowed funds , used to fund the earning assets . net interest income is impacted by the volume and composition of interest-earning assets and interest-bearing liabilities , and changes in the level of interest rates . tax equivalent net interest income increased $ 749,000 or 4.9 % to $ 16.2 million for 2011 , compared to $ 15.4 million for 2010. this increase in net interest income can be attributed to a decrease in interest expense of $ 1.2 million , partially offset by a decrease in tax equivalent interest income of $ 448,000. interest income . tax equivalent interest income decreased $ 448,000 or 2.0 % to $ 22.0 million for 2011 , compared to $ 22.5 million for 2010. this decrease can be attributed to decreases in interest earned on loans and interest earning deposits of $ 381,000 and $ 104,000 , respectively , partially offset by increases in interest earned on securities and federal bank stocks of $ 28,000 and $ 9,000 , respectively . tax equivalent interest earned on loans receivable decreased $ 381,000 or 2.1 % to $ 17.6 million for 2011 , compared to $ 18.0 million for 2010. during that time , the yield on loans decreased 34 basis points to 5.69 % for 2011 , versus 6.03 % for 2010 causing a $ 1.0 million decrease in interest income . offsetting this unfavorable yield decline , average loans increased $ 11.1 million or 3.7 % , generating $ 651,000 of additional loan interest income . k-24 tax equivalent interest earned on securities increased $ 28,000 to $ 4.2 million for 2011 and 2010. during this time , average securities increased $ 1.6 million or 1.3 % accounting for $ 53,000 in additional security interest income . the average yield on securities decreased 2 basis points to 3.31 % for 2011 , versus 3.33 % for 2010 causing a $ 25,000 decrease in interest income . interest earned on interest-earning deposit accounts decreased $ 104,000 or 37.5 % to $ 173,000 for 2011 , compared to $ 277,000 for 2010. the average yield on these accounts decreased 34 basis points or 32.7 % resulting in an $ 85,000 decrease in interest income . average interest-earning deposits decreased $ 2.0 million or 7.3 % . this decrease caused a $ 19,000 decrease in interest income . interest earned on federal bank stocks increased $ 9,000 or 19.6 % to $ 55,000 for 2011 , compared to $ 46,000 for 2010. interest expense . story_separator_special_tag in the current interest rate environment , liquidity and the maturity structure of the corporation 's assets and liabilities are critical to the maintenance of acceptable performance levels . capital resources total stockholders ' equity increased $ 11.6 million or 29.7 % to $ 50.7 million at december 31 , 2011 from $ 39.1 million at december 31 , 2010. net income of $ 3.8 million in 2011 represented an increase in earnings of $ 764,000 or 24.9 % compared to 2010. returns on average equity and assets were 8.44 % and 0.78 % , respectively , for 2011. the corporation enhanced its already strong capital position as its capital to assets ratio increased to 10.3 % at december 31 , 2011 from 8.1 % at december 31 , 2010. during the first quarter of 2011 , the corporation raised $ 4.6 million in capital , net of expenses through the issuance of 290,004 shares of common stock in a private placement to accredited investors . during the third quarter of 2011 , the corporation received a $ 10.0 million investment from the u.s. treasury department under the sblf , a portion of which was used to fully redeem the $ 7.5 million of preferred stock issued to the u.s. treasury under the cpp . in addition , stockholders have taken part in the corporation 's dividend reinvestment plan introduced during 2003 with 46 % of registered shareholder accounts active in the plan at december 31 , 2011. capital adequacy is intended to enhance the corporation 's ability to support growth while protecting the interest of shareholders and depositors and to ensure that capital ratios are in compliance with regulatory minimum requirements . regulatory agencies have developed certain capital ratio requirements that are used to assist them in monitoring the safety and soundness of financial institutions . at december 31 , 2011 , the corporation and the bank were in excess of all regulatory capital requirements . liquidity the corporation 's primary sources of funds generally have been deposits obtained through the offices of the bank , borrowings from the fhlb , and amortization and prepayments of outstanding loans and maturing securities . during 2011 , the corporation used its sources of funds primarily to fund loan commitments . as of december 31 , 2011 , the corporation had outstanding loan commitments , including undisbursed loans and amounts available under credit lines , totaling $ 43.8 million , and standby letters of credit totaling $ 245,000. the bank is required by the occ to establish policies to monitor and manage liquidity levels to ensure the bank 's ability to meet demands for customer withdrawals and the repayment of short-term borrowings , and the bank is currently in compliance with all liquidity policy limits . at december 31 , 2011 , time deposits amounted to $ 145.5 million or 34.9 % of the corporation 's total consolidated deposits , including approximately $ 40.4 million scheduled to mature within the next year . management of the corporation believes that the corporation has adequate resources to fund all of its commitments , that all of its commitments will be funded as required by related maturity dates and that , based upon past experience and current pricing policies , it can adjust the rates of time deposits to retain a substantial portion of maturing liabilities . k-29 aside from liquidity available from customer deposits or through sales and maturities of securities , the corporation has alternative sources of funds . these sources include a $ 5.5 million line of credit with a correspondent bank of which $ 0 is outstanding , a line of credit and term borrowing capacity from the fhlb and , to a more limited extent , through the sale of loans . at december 31 , 2011 , the corporation 's borrowing capacity with the fhlb , net of funds borrowed , was $ 139.3 million . the corporation paid quarterly cash dividends over the past two years . the corporation paid dividends of $ 0.16 and $ 0.14 per common share for the four quarters of 2011 and 2010 , respectively . on february 15 , 2012 , the corporation declared a quarterly dividend of $ 0.18 per common share payable on march 23 , 2012 to shareholders of record on march 1 , 2012. the determination of future dividends on the corporation 's common stock will depend on conditions existing at that time with consideration given to the corporation 's earnings , capital and liquidity needs , among other factors . management is not aware of any conditions , including any regulatory recommendations or requirements , which would adversely impact its liquidity or its ability to meet funding needs in the ordinary course of business . critical accounting policies the corporation 's consolidated financial statements are prepared in accordance with gaap and follow general practices within the industry in which it operates . application of these principles requires management to make estimates or judgments that affect the amounts reported in the financial statements and accompanying notes . these estimates are based on information available as of the date of the financial statements ; accordingly , as this information changes , the financial statements could reflect different estimates or judgments . certain policies inherently have a greater reliance on the use of estimates , and as such have a greater possibility of producing results that could be materially different than originally reported . estimates or 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 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 . the fair values and the information used to record

cash and cash equivalents . these accounts increased $ 9.2 million or 48.2 % to $ 28.2 million at december 31 , 2011 from $ 19.0 million at december 31 , 2010. this increase primarily related to proceeds from investment security calls received in late december 2011 , which were not redeployed into securities or loans before year-end . typically , cash accounts are increased by net operating results , deposits by customers into savings and checking accounts , loan and security repayments and proceeds from borrowed funds . decreases result from customer deposit withdrawals , new loan originations or other loan fundings , security purchases , repayments of borrowed funds and cash dividends to stockholders . securities . securities decreased $ 2.7 million or 2.1 % to $ 123.2 million at december 31 , 2011 from $ 125.8 million at december 31 , 2010. this decrease was partly related to the utilization of cash received from investment security calls to fund loan originations rather than security purchases . partially offsetting this deployment strategy , net unrealized gains associated with the investment portfolio increased $ 4.2 million to $ 4.5 million at december 31 , 2011 from $ 260,000 at december 31 , 2010 primarily due to the decline in market interest rates during 2011. k-20 loans receivable . net loans receivable increased $ 6.4 million or 2.1 % to $ 312.5 million at december 31 , 2011 from $ 306.2 million at december 31 , 2010 as residential first mortgages increased $ 9.0 million or 10.7 % , commercial real estate loans increased $ 1.7 million or 1.9 % and commercial business loans increased $ 46,000 , partially offset by a $ 4.2 million or 5.6 % decrease in home equity loans and lines of credit and an $ 801,000 decrease in consumer loans . non-performing assets . non-performing assets include non-accrual loans , loans 90 days past due and still accruing , repossessions and real estate owned .


 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.
     ```cash and cash equivalents . these accounts increased $ 9.2 million or 48.2 % to $ 28.2 million at december 31 , 2011 from $ 19.0 million at december 31 , 2010. this increase primarily related to proceeds from investment security calls received in late december 2011 , which were not redeployed into securities or loans before year-end . typically , cash accounts are increased by net operating results , deposits by customers into savings and checking accounts , loan and security repayments and proceeds from borrowed funds . decreases result from customer deposit withdrawals , new loan originations or other loan fundings , security purchases , repayments of borrowed funds and cash dividends to stockholders . securities . securities decreased $ 2.7 million or 2.1 % to $ 123.2 million at december 31 , 2011 from $ 125.8 million at december 31 , 2010. this decrease was partly related to the utilization of cash received from investment security calls to fund loan originations rather than security purchases . partially offsetting this deployment strategy , net unrealized gains associated with the investment portfolio increased $ 4.2 million to $ 4.5 million at december 31 , 2011 from $ 260,000 at december 31 , 2010 primarily due to the decline in market interest rates during 2011. k-20 loans receivable . net loans receivable increased $ 6.4 million or 2.1 % to $ 312.5 million at december 31 , 2011 from $ 306.2 million at december 31 , 2010 as residential first mortgages increased $ 9.0 million or 10.7 % , commercial real estate loans increased $ 1.7 million or 1.9 % and commercial business loans increased $ 46,000 , partially offset by a $ 4.2 million or 5.6 % decrease in home equity loans and lines of credit and an $ 801,000 decrease in consumer loans . non-performing assets . non-performing assets include non-accrual loans , loans 90 days past due and still accruing , repossessions and real estate owned .
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 Suspicious Activity Report : retained earnings increased $ 2.2 million related to net income less preferred and common stock dividends and accumulated other comprehensive income increased $ 2.2 million resulting from a change in the net unrealized losses on securities available for sale and to a lesser extent the funded status of the corporation 's defined benefit plan . changes in results of operations the corporation reported net income before accumulated preferred stock dividends and discount accretion of $ 3.8 million and $ 3.1 million in 2011 and 2010 , respectively . the following average balance sheet and yield/rate analysis and analysis of changes in net interest income tables should be utilized in conjunction with the discussion of the net interest income and interest expense components of net income . k-22 average balance sheet and yield/rate analysis . the following table sets forth , for the periods indicated , information concerning the total dollar amounts of interest income from interest-earning assets and the resulting average yields , the total dollar amounts of interest expense on interest-bearing liabilities and the resulting average costs , net interest income , interest rate spread and the net interest margin earned on average interest-earning assets . for purposes of this table , average loan balances include non-accrual loans and exclude the allowance for loan losses and interest income includes accretion of net deferred loan fees . interest and yields on tax-exempt loans and securities ( tax-exempt for federal income tax purposes ) are shown on a fully tax equivalent basis . the information is based on average daily balances during the periods presented . replace_table_token_12_th k-23 analysis of changes in net interest income . the following table analyzes the changes in interest income and interest expense in terms of : ( 1 ) changes in volume of interest-earning assets and interest-bearing liabilities and ( 2 ) changes in yields and rates . the table reflects the extent to which changes in the corporation 's interest income and interest expense are attributable to changes in rate ( change in rate multiplied by prior year volume ) , changes in volume ( changes in volume multiplied by prior year rate ) and changes attributable to the combined impact of volume/rate ( change in rate multiplied by change in volume ) . the changes attributable to the combined impact of volume/rate are allocated on a consistent basis between the volume and rate variances . changes in interest income on loans and securities reflect the changes in interest income on a fully tax equivalent basis . replace_table_token_13_th 2011 results compared to 2010 results the corporation reported net income before accumulated preferred stock dividends and discount accretion of $ 3.8 million and $ 3.1 million for 2011 and 2010 , respectively . the $ 764,000 or 24.9 % increase in net income was attributed to an increase in net interest income of $ 624,000 and a decrease in provision for loan losses of $ 886,000 , partially offset by a decrease in noninterest income of $ 365,000 and increases in noninterest expense and provision for income taxes of $ 232,000 and $ 149,000 , respectively . net interest income . the primary source of the corporation 's revenue is net interest income . net interest income is the difference between interest income on earning assets such as loans and securities , and interest expense on liabilities , such as deposits and borrowed funds , used to fund the earning assets . net interest income is impacted by the volume and composition of interest-earning assets and interest-bearing liabilities , and changes in the level of interest rates . tax equivalent net interest income increased $ 749,000 or 4.9 % to $ 16.2 million for 2011 , compared to $ 15.4 million for 2010. this increase in net interest income can be attributed to a decrease in interest expense of $ 1.2 million , partially offset by a decrease in tax equivalent interest income of $ 448,000. interest income . tax equivalent interest income decreased $ 448,000 or 2.0 % to $ 22.0 million for 2011 , compared to $ 22.5 million for 2010. this decrease can be attributed to decreases in interest earned on loans and interest earning deposits of $ 381,000 and $ 104,000 , respectively , partially offset by increases in interest earned on securities and federal bank stocks of $ 28,000 and $ 9,000 , respectively . tax equivalent interest earned on loans receivable decreased $ 381,000 or 2.1 % to $ 17.6 million for 2011 , compared to $ 18.0 million for 2010. during that time , the yield on loans decreased 34 basis points to 5.69 % for 2011 , versus 6.03 % for 2010 causing a $ 1.0 million decrease in interest income . offsetting this unfavorable yield decline , average loans increased $ 11.1 million or 3.7 % , generating $ 651,000 of additional loan interest income . k-24 tax equivalent interest earned on securities increased $ 28,000 to $ 4.2 million for 2011 and 2010. during this time , average securities increased $ 1.6 million or 1.3 % accounting for $ 53,000 in additional security interest income . the average yield on securities decreased 2 basis points to 3.31 % for 2011 , versus 3.33 % for 2010 causing a $ 25,000 decrease in interest income . interest earned on interest-earning deposit accounts decreased $ 104,000 or 37.5 % to $ 173,000 for 2011 , compared to $ 277,000 for 2010. the average yield on these accounts decreased 34 basis points or 32.7 % resulting in an $ 85,000 decrease in interest income . average interest-earning deposits decreased $ 2.0 million or 7.3 % . this decrease caused a $ 19,000 decrease in interest income . interest earned on federal bank stocks increased $ 9,000 or 19.6 % to $ 55,000 for 2011 , compared to $ 46,000 for 2010. interest expense . story_separator_special_tag in the current interest rate environment , liquidity and the maturity structure of the corporation 's assets and liabilities are critical to the maintenance of acceptable performance levels . capital resources total stockholders ' equity increased $ 11.6 million or 29.7 % to $ 50.7 million at december 31 , 2011 from $ 39.1 million at december 31 , 2010. net income of $ 3.8 million in 2011 represented an increase in earnings of $ 764,000 or 24.9 % compared to 2010. returns on average equity and assets were 8.44 % and 0.78 % , respectively , for 2011. the corporation enhanced its already strong capital position as its capital to assets ratio increased to 10.3 % at december 31 , 2011 from 8.1 % at december 31 , 2010. during the first quarter of 2011 , the corporation raised $ 4.6 million in capital , net of expenses through the issuance of 290,004 shares of common stock in a private placement to accredited investors . during the third quarter of 2011 , the corporation received a $ 10.0 million investment from the u.s. treasury department under the sblf , a portion of which was used to fully redeem the $ 7.5 million of preferred stock issued to the u.s. treasury under the cpp . in addition , stockholders have taken part in the corporation 's dividend reinvestment plan introduced during 2003 with 46 % of registered shareholder accounts active in the plan at december 31 , 2011. capital adequacy is intended to enhance the corporation 's ability to support growth while protecting the interest of shareholders and depositors and to ensure that capital ratios are in compliance with regulatory minimum requirements . regulatory agencies have developed certain capital ratio requirements that are used to assist them in monitoring the safety and soundness of financial institutions . at december 31 , 2011 , the corporation and the bank were in excess of all regulatory capital requirements . liquidity the corporation 's primary sources of funds generally have been deposits obtained through the offices of the bank , borrowings from the fhlb , and amortization and prepayments of outstanding loans and maturing securities . during 2011 , the corporation used its sources of funds primarily to fund loan commitments . as of december 31 , 2011 , the corporation had outstanding loan commitments , including undisbursed loans and amounts available under credit lines , totaling $ 43.8 million , and standby letters of credit totaling $ 245,000. the bank is required by the occ to establish policies to monitor and manage liquidity levels to ensure the bank 's ability to meet demands for customer withdrawals and the repayment of short-term borrowings , and the bank is currently in compliance with all liquidity policy limits . at december 31 , 2011 , time deposits amounted to $ 145.5 million or 34.9 % of the corporation 's total consolidated deposits , including approximately $ 40.4 million scheduled to mature within the next year . management of the corporation believes that the corporation has adequate resources to fund all of its commitments , that all of its commitments will be funded as required by related maturity dates and that , based upon past experience and current pricing policies , it can adjust the rates of time deposits to retain a substantial portion of maturing liabilities . k-29 aside from liquidity available from customer deposits or through sales and maturities of securities , the corporation has alternative sources of funds . these sources include a $ 5.5 million line of credit with a correspondent bank of which $ 0 is outstanding , a line of credit and term borrowing capacity from the fhlb and , to a more limited extent , through the sale of loans . at december 31 , 2011 , the corporation 's borrowing capacity with the fhlb , net of funds borrowed , was $ 139.3 million . the corporation paid quarterly cash dividends over the past two years . the corporation paid dividends of $ 0.16 and $ 0.14 per common share for the four quarters of 2011 and 2010 , respectively . on february 15 , 2012 , the corporation declared a quarterly dividend of $ 0.18 per common share payable on march 23 , 2012 to shareholders of record on march 1 , 2012. the determination of future dividends on the corporation 's common stock will depend on conditions existing at that time with consideration given to the corporation 's earnings , capital and liquidity needs , among other factors . management is not aware of any conditions , including any regulatory recommendations or requirements , which would adversely impact its liquidity or its ability to meet funding needs in the ordinary course of business . critical accounting policies the corporation 's consolidated financial statements are prepared in accordance with gaap and follow general practices within the industry in which it operates . application of these principles requires management to make estimates or judgments that affect the amounts reported in the financial statements and accompanying notes . these estimates are based on information available as of the date of the financial statements ; accordingly , as this information changes , the financial statements could reflect different estimates or judgments . certain policies inherently have a greater reliance on the use of estimates , and as such have a greater possibility of producing results that could be materially different than originally reported . estimates or 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 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 . the fair values and the information used to record

