the negative provision in each period was also impacted by other recoveries from our collection efforts and a continual decline in our historical charge-off levels from prior years . we had our fourth consecutive full year of net recoveries in 2016. the following table reflects the provision for loan losses for the past five years along with certain metrics that impact the determination of the level of the provision for loan losses . replace_table_token_14_th economic conditions in our market areas of grand rapids and holland have improved during the past several years . the state 's unemployment rate at the end of 2016 was 4.5 % . the grand rapids and holland area unemployment rate was 3.1 % at the end of 2016. residential housing values and commercial real estate property values have shown signs of improvement , with some of our newer appraisals tending to reflect values at or above prior year values . it also appears that the housing market in our primary market area is improving . in the grand rapids market during 2016 , there were 65 % more living unit starts than in 2015. similarly , in the holland-grand haven/lakeshore region , there were 27 % more living unit starts in 2016 than in 2015. these improvements are on top of improved results in 2015 over 2014. also , these markets are now also seeing significant activity in duplex , condominium and apartment starts after years of virtually no activity . beginning in 2014 , with our improved financial condition , and earnings growth , our primary focus was on high quality loan portfolio growth . we experienced strong commercial loan growth in the fourth quarter of 2014 and throughout 2015 and 2016. most of our emphasis has been on growing commercial and industrial loans . these loans have increased from $ 274.1 million at december 31 , 2013 to $ 327.7 million at december 31 , 2014 , $ 377.3 million at december 31 , 2015 and $ 449.3 million at december 31 , 2016. commercial real estate loans have increased from $ 472.3 million at december 31 , 2013 to $ 490.5 million at december 31 , 2014 , $ 508.7 million at december 31 , 2015 and $ 518.0 million at december 31 , 2016. consumer loans have increased from $ 295.9 million at december 31 , 2013 to $ 300.3 million at december 31 , 2014 , $ 312.0 million at december 31 , 2015 and $ 313.5 million at december 31 , 2016. we believe we are positioned for continued growth in 2017. results of operations summary : net income was $ 16.0 million ( $ 22.2 million on a pretax basis ) for 2016 , compared to $ 12.8 million ( $ 18.4 million on a pretax basis ) and $ 10.5 million ( $ 15.0 million on a pretax basis ) for 2014. earnings per common share on a diluted basis was $ 0.47 for 2016 , $ 0.38 for 2015 and $ 0.31 for 2014. generally , the improvement in company earnings was the result of growth in revenue while expenses have been held flat . the increase in earnings in 2016 compared to 2015 and 2014 was due primarily to increased net interest income and noninterest income , along with a reduction in noninterest expense . net interest income increased to $ 47.5 million in 2016 compared to $ 44.1 million in 2015 and $ 41.4 million in 2014. we realized a higher level of income from gains on sales of residential mortgages in 2016 and 2015 compared to 2014 due to the extended low interest rate environment . total noninterest expense was $ 45.8 million in 2016 compared to $ 47.0 million in 2015 and $ 45.9 million in 2014. earnings in each period were positively impacted by negative provisions for loan losses ( $ 1.35 million in 2016 , $ 3.5 million in 2015 and $ 3.35 million in 2014 ) . these negative provisions resulted from reduced levels of nonperforming loans , improved asset quality and net loan recoveries realized in each of these periods . these items are discussed more fully below . - 26 - we continued our improvement in nonperforming asset expenses in 2016. costs associated with nonperforming assets were $ 1.3 million in 2016 , compared to $ 3.0 million in 2015 and $ 3.1 million in 2014. lost interest from nonperforming assets decreased to approximately $ 572,000 for 2016 , compared to $ 1.4 million for 2015 and $ 1.9 million for 2014. each of these items are discussed more fully below . net interest income : net interest income totaled $ 47.5 million during 2016 , compared to $ 44.1 million during 2015 and $ 41.4 million in 2014. the increase in net interest income during 2016 compared to 2015 marked our second consecutive year with an increase in net interest income , following several years of declining net interest income . this increase was primarily due to an increase in average earning assets of $ 63.9 million from $ 1.48 billion in 2015 to $ 1.55 billion in 2016. average yield on securities , interest earning assets and net interest margin are presented on a fully taxable equivalent basis . our net interest income as a percentage of average interest-earning assets ( i.e . `` net interest margin `` or `` margin `` ) increased by 10 basis points compared to 2015. the increase in net interest income during 2015 compared to 2014 was due to an increase in average earning assets of $ 129.4 million from $ 1.35 billion in 2014 to $ 1.48 billion in 2015. our net interest margin decreased by 6 basis points in 2015 compared to 2014. the yield on earning assets increased 6 basis points from 3.36 % for 2015 to 3.42 % for 2016 and decreased 12 basis points from 3.48 % for 2014 to 3.36 % story_separator_special_tag story_separator_special_tag loan type and also shows average originated loan size ( dollars in thousands ) : replace_table_token_22_th our loan portfolio is reviewed regularly by our senior management , our loan officers , and an internal loan review team that is independent of our loan originators and credit administration . an administrative loan committee consisting of senior management and seasoned lending and collections personnel meets monthly to manage our internal watch list and proactively manage high risk loans . when reasonable doubt exists concerning collectability of interest or principal of one of our loans , the loan is placed in nonaccrual status . any interest previously accrued but not collected is reversed and charged against current earnings . - 34 - nonperforming assets are comprised of nonperforming loans , foreclosed assets and repossessed assets . at december 31 , 2016 , nonperforming assets totaled $ 12.6 million compared to $ 18.3 million at december 31 , 2015. additions to other real estate owned in 2016 were $ 339,000 , compared to $ 2.5 million in 2015. based on the loans currently in their redemption period , we expect there to be few additions to other real estate owned in 2017. proceeds from sales of foreclosed properties were $ 5.3 million in 2016 , resulting in a net realized gain on sale of $ 645,000. proceeds from sales of foreclosed properties were $ 11.5 million in 2015 resulting in a net realized loss on sale of $ 926,000. we expect the level of sales of foreclosed properties in 2017 to be similar to the levels experienced in 2016. nonperforming loans include loans on nonaccrual status and loans delinquent more than 90 days but still accruing . as of december 31 , 2016 , nonperforming loans totaled $ 300,000 , or 0.04 % of total portfolio loans , compared to $ 756,000 , or 0.06 % of total portfolio loans , at december 31 , 2015. there were no nonperforming loans for development or sale of 1-4 family residential properties at december 31 , 2016 compared to $ 195,000 , or 25.8 % of total nonperforming loans , at december 31 , 2015. the remaining balance of nonperforming loans at december 31 , 2016 consisted of $ 183,000 of commercial real estate loans secured by various types of non-residential real estate , $ 36,000 of commercial and industrial loans , and $ 81,000 of consumer and residential mortgage loans . foreclosed and repossessed assets include assets acquired in settlement of loans . foreclosed assets totaled $ 12.3 million at december 31 , 2016 and $ 17.6 million at december 31 , 2015. of this balance at december 31 , 2016 , there were 34 commercial real estate properties totaling approximately $ 11.7 million . the remaining balance was comprised of 7 residential properties totaling approximately $ 564,000. one commercial real estate property comprised $ 3.4 million , or 28 % , of total other real estate owned at december 31 , 2016. all properties acquired through or in lieu of foreclosure are initially transferred at their fair value less estimated costs to sell and then evaluated monthly for impairment after transfer using a lower of cost or market approach . updated property valuations are obtained at least annually on all foreclosed assets . at december 31 , 2016 , our foreclosed asset portfolio had a weighted average age held in portfolio of 5.35 years . below is a breakout of our foreclosed asset portfolio at december 31 , 2016 and 2015 by property type and the percentages the property has been written down since taken into our possession and the combined writedown percentage , including losses taken when the property was loan collateral ( dollars in thousands ) : replace_table_token_23_th - 35 - the following table shows the composition and amount of our nonperforming assets ( dollars in thousands ) : replace_table_token_24_th the following table shows the composition and amount of our troubled debt restructurings ( “ tdrs ” ) at december 31 , 2016 and 2015 ( dollars in thousands ) : replace_table_token_25_th ( 1 ) included in nonperforming asset table above we had a total of $ 30.0 million and $ 39.1 million of loans whose terms have been modified in tdrs as of december 31 , 2016 and 2015 , respectively . these loans may have involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow . these may also include loans that renewed at existing contractual rates , but below market rates for comparable credit . for each restructuring , a comprehensive credit underwriting analysis of the borrower 's financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt . an analysis is also performed to determine whether the restructured loan should be on accrual status . generally , if the loan is on accrual at the time of restructure , it will remain on accrual after the restructuring . in some cases , a nonaccrual loan may be placed on accrual at restructuring if the loan 's actual payment history demonstrates it would have cash flowed under the restructured terms . after six consecutive payments under the restructured terms , a nonaccrual restructured loan is reviewed for possible upgrade to accruing status . in situations where there is a subsequent modification or renewal and the loan is brought to market terms , including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics , the tdr and impaired designations may be removed . as with other impaired loans , an allowance for loan loss is estimated for each tdr based on the most likely source of repayment for each loan . for impaired commercial real estate loans that are collateral

cash and cash equivalents : our cash and cash equivalents , which include federal funds sold and short-term investments , were $ 89.8 million at december 31 , 2016 compared to $ 181.5 million at december 31 , 2015. this $ 91.7 million decrease was caused by our efforts to grow loans and investments resulting in the deployment of excess liquidity . interest-bearing time deposits with other financial institutions : we opened a $ 20.0 million time deposit account with our primary correspondent bank in the first quarter of 2014. this time deposit matured in february 2016 . - 32 - securities : securities available for sale were $ 184.4 million at december 31 , 2016 compared to $ 166.8 million at december 31 , 2015. the balance at december 31 , 2016 primarily consisted of u.s. agency securities , agency mortgage backed securities and various municipal investments . our held to maturity portfolio increased from $ 51.9 million at december 31 , 2015 to $ 69.4 million at december 31 , 2016. our held to maturity portfolio is comprised of state and municipal bonds . portfolio loans and asset quality : total portfolio loans increased by $ 82.9 million to $ 1.28 billion at december 31 , 2016 compared to $ 1.20 billion at december 31 , 2015. during 2016 , our commercial portfolio increased by $ 81.4 million , while our residential portfolio increased by $ 7.6 million and our consumer portfolio decreased by $ 6.1 million . the volume of residential mortgage loans originated for sale in 2016 increased slightly compared to 2015 due to the mortgage rate environment and our increase in the number of residential mortgage lenders .


 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 : our cash and cash equivalents , which include federal funds sold and short-term investments , were $ 89.8 million at december 31 , 2016 compared to $ 181.5 million at december 31 , 2015. this $ 91.7 million decrease was caused by our efforts to grow loans and investments resulting in the deployment of excess liquidity . interest-bearing time deposits with other financial institutions : we opened a $ 20.0 million time deposit account with our primary correspondent bank in the first quarter of 2014. this time deposit matured in february 2016 . - 32 - securities : securities available for sale were $ 184.4 million at december 31 , 2016 compared to $ 166.8 million at december 31 , 2015. the balance at december 31 , 2016 primarily consisted of u.s. agency securities , agency mortgage backed securities and various municipal investments . our held to maturity portfolio increased from $ 51.9 million at december 31 , 2015 to $ 69.4 million at december 31 , 2016. our held to maturity portfolio is comprised of state and municipal bonds . portfolio loans and asset quality : total portfolio loans increased by $ 82.9 million to $ 1.28 billion at december 31 , 2016 compared to $ 1.20 billion at december 31 , 2015. during 2016 , our commercial portfolio increased by $ 81.4 million , while our residential portfolio increased by $ 7.6 million and our consumer portfolio decreased by $ 6.1 million . the volume of residential mortgage loans originated for sale in 2016 increased slightly compared to 2015 due to the mortgage rate environment and our increase in the number of residential mortgage lenders .
```    
 Suspicious Activity Report : the negative provision in each period was also impacted by other recoveries from our collection efforts and a continual decline in our historical charge-off levels from prior years . we had our fourth consecutive full year of net recoveries in 2016. the following table reflects the provision for loan losses for the past five years along with certain metrics that impact the determination of the level of the provision for loan losses . replace_table_token_14_th economic conditions in our market areas of grand rapids and holland have improved during the past several years . the state 's unemployment rate at the end of 2016 was 4.5 % . the grand rapids and holland area unemployment rate was 3.1 % at the end of 2016. residential housing values and commercial real estate property values have shown signs of improvement , with some of our newer appraisals tending to reflect values at or above prior year values . it also appears that the housing market in our primary market area is improving . in the grand rapids market during 2016 , there were 65 % more living unit starts than in 2015. similarly , in the holland-grand haven/lakeshore region , there were 27 % more living unit starts in 2016 than in 2015. these improvements are on top of improved results in 2015 over 2014. also , these markets are now also seeing significant activity in duplex , condominium and apartment starts after years of virtually no activity . beginning in 2014 , with our improved financial condition , and earnings growth , our primary focus was on high quality loan portfolio growth . we experienced strong commercial loan growth in the fourth quarter of 2014 and throughout 2015 and 2016. most of our emphasis has been on growing commercial and industrial loans . these loans have increased from $ 274.1 million at december 31 , 2013 to $ 327.7 million at december 31 , 2014 , $ 377.3 million at december 31 , 2015 and $ 449.3 million at december 31 , 2016. commercial real estate loans have increased from $ 472.3 million at december 31 , 2013 to $ 490.5 million at december 31 , 2014 , $ 508.7 million at december 31 , 2015 and $ 518.0 million at december 31 , 2016. consumer loans have increased from $ 295.9 million at december 31 , 2013 to $ 300.3 million at december 31 , 2014 , $ 312.0 million at december 31 , 2015 and $ 313.5 million at december 31 , 2016. we believe we are positioned for continued growth in 2017. results of operations summary : net income was $ 16.0 million ( $ 22.2 million on a pretax basis ) for 2016 , compared to $ 12.8 million ( $ 18.4 million on a pretax basis ) and $ 10.5 million ( $ 15.0 million on a pretax basis ) for 2014. earnings per common share on a diluted basis was $ 0.47 for 2016 , $ 0.38 for 2015 and $ 0.31 for 2014. generally , the improvement in company earnings was the result of growth in revenue while expenses have been held flat . the increase in earnings in 2016 compared to 2015 and 2014 was due primarily to increased net interest income and noninterest income , along with a reduction in noninterest expense . net interest income increased to $ 47.5 million in 2016 compared to $ 44.1 million in 2015 and $ 41.4 million in 2014. we realized a higher level of income from gains on sales of residential mortgages in 2016 and 2015 compared to 2014 due to the extended low interest rate environment . total noninterest expense was $ 45.8 million in 2016 compared to $ 47.0 million in 2015 and $ 45.9 million in 2014. earnings in each period were positively impacted by negative provisions for loan losses ( $ 1.35 million in 2016 , $ 3.5 million in 2015 and $ 3.35 million in 2014 ) . these negative provisions resulted from reduced levels of nonperforming loans , improved asset quality and net loan recoveries realized in each of these periods . these items are discussed more fully below . - 26 - we continued our improvement in nonperforming asset expenses in 2016. costs associated with nonperforming assets were $ 1.3 million in 2016 , compared to $ 3.0 million in 2015 and $ 3.1 million in 2014. lost interest from nonperforming assets decreased to approximately $ 572,000 for 2016 , compared to $ 1.4 million for 2015 and $ 1.9 million for 2014. each of these items are discussed more fully below . net interest income : net interest income totaled $ 47.5 million during 2016 , compared to $ 44.1 million during 2015 and $ 41.4 million in 2014. the increase in net interest income during 2016 compared to 2015 marked our second consecutive year with an increase in net interest income , following several years of declining net interest income . this increase was primarily due to an increase in average earning assets of $ 63.9 million from $ 1.48 billion in 2015 to $ 1.55 billion in 2016. average yield on securities , interest earning assets and net interest margin are presented on a fully taxable equivalent basis . our net interest income as a percentage of average interest-earning assets ( i.e . `` net interest margin `` or `` margin `` ) increased by 10 basis points compared to 2015. the increase in net interest income during 2015 compared to 2014 was due to an increase in average earning assets of $ 129.4 million from $ 1.35 billion in 2014 to $ 1.48 billion in 2015. our net interest margin decreased by 6 basis points in 2015 compared to 2014. the yield on earning assets increased 6 basis points from 3.36 % for 2015 to 3.42 % for 2016 and decreased 12 basis points from 3.48 % for 2014 to 3.36 % story_separator_special_tag story_separator_special_tag loan type and also shows average originated loan size ( dollars in thousands ) : replace_table_token_22_th our loan portfolio is reviewed regularly by our senior management , our loan officers , and an internal loan review team that is independent of our loan originators and credit administration . an administrative loan committee consisting of senior management and seasoned lending and collections personnel meets monthly to manage our internal watch list and proactively manage high risk loans . when reasonable doubt exists concerning collectability of interest or principal of one of our loans , the loan is placed in nonaccrual status . any interest previously accrued but not collected is reversed and charged against current earnings . - 34 - nonperforming assets are comprised of nonperforming loans , foreclosed assets and repossessed assets . at december 31 , 2016 , nonperforming assets totaled $ 12.6 million compared to $ 18.3 million at december 31 , 2015. additions to other real estate owned in 2016 were $ 339,000 , compared to $ 2.5 million in 2015. based on the loans currently in their redemption period , we expect there to be few additions to other real estate owned in 2017. proceeds from sales of foreclosed properties were $ 5.3 million in 2016 , resulting in a net realized gain on sale of $ 645,000. proceeds from sales of foreclosed properties were $ 11.5 million in 2015 resulting in a net realized loss on sale of $ 926,000. we expect the level of sales of foreclosed properties in 2017 to be similar to the levels experienced in 2016. nonperforming loans include loans on nonaccrual status and loans delinquent more than 90 days but still accruing . as of december 31 , 2016 , nonperforming loans totaled $ 300,000 , or 0.04 % of total portfolio loans , compared to $ 756,000 , or 0.06 % of total portfolio loans , at december 31 , 2015. there were no nonperforming loans for development or sale of 1-4 family residential properties at december 31 , 2016 compared to $ 195,000 , or 25.8 % of total nonperforming loans , at december 31 , 2015. the remaining balance of nonperforming loans at december 31 , 2016 consisted of $ 183,000 of commercial real estate loans secured by various types of non-residential real estate , $ 36,000 of commercial and industrial loans , and $ 81,000 of consumer and residential mortgage loans . foreclosed and repossessed assets include assets acquired in settlement of loans . foreclosed assets totaled $ 12.3 million at december 31 , 2016 and $ 17.6 million at december 31 , 2015. of this balance at december 31 , 2016 , there were 34 commercial real estate properties totaling approximately $ 11.7 million . the remaining balance was comprised of 7 residential properties totaling approximately $ 564,000. one commercial real estate property comprised $ 3.4 million , or 28 % , of total other real estate owned at december 31 , 2016. all properties acquired through or in lieu of foreclosure are initially transferred at their fair value less estimated costs to sell and then evaluated monthly for impairment after transfer using a lower of cost or market approach . updated property valuations are obtained at least annually on all foreclosed assets . at december 31 , 2016 , our foreclosed asset portfolio had a weighted average age held in portfolio of 5.35 years . below is a breakout of our foreclosed asset portfolio at december 31 , 2016 and 2015 by property type and the percentages the property has been written down since taken into our possession and the combined writedown percentage , including losses taken when the property was loan collateral ( dollars in thousands ) : replace_table_token_23_th - 35 - the following table shows the composition and amount of our nonperforming assets ( dollars in thousands ) : replace_table_token_24_th the following table shows the composition and amount of our troubled debt restructurings ( “ tdrs ” ) at december 31 , 2016 and 2015 ( dollars in thousands ) : replace_table_token_25_th ( 1 ) included in nonperforming asset table above we had a total of $ 30.0 million and $ 39.1 million of loans whose terms have been modified in tdrs as of december 31 , 2016 and 2015 , respectively . these loans may have involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow . these may also include loans that renewed at existing contractual rates , but below market rates for comparable credit . for each restructuring , a comprehensive credit underwriting analysis of the borrower 's financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt . an analysis is also performed to determine whether the restructured loan should be on accrual status . generally , if the loan is on accrual at the time of restructure , it will remain on accrual after the restructuring . in some cases , a nonaccrual loan may be placed on accrual at restructuring if the loan 's actual payment history demonstrates it would have cash flowed under the restructured terms . after six consecutive payments under the restructured terms , a nonaccrual restructured loan is reviewed for possible upgrade to accruing status . in situations where there is a subsequent modification or renewal and the loan is brought to market terms , including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics , the tdr and impaired designations may be removed . as with other impaired loans , an allowance for loan loss is estimated for each tdr based on the most likely source of repayment for each loan . for impaired commercial real estate loans that are collateral

