if one or more of the factors affecting our forward looking information and statements proves incorrect , then our actual results , performance or achievements could differ materially from those expressed in , or implied by , forward looking information and statements contained in this report . you should not place undue reliance on our forward looking information and statements . we will not update the forward looking statements to reflect actual results or changes in the factors affecting the forward looking statements . general the company is a growth oriented , one-bank holding company headquartered in bethesda , maryland . the company provides general commercial and consumer banking services through the bank , its wholly owned banking subsidiary , a maryland chartered bank , which is a member of the federal reserve system . the company was organized in october 1997 , to be the holding company for the bank . the bank was organized as an independent , community oriented , full service banking alternative to the super regional financial institutions , which dominate the primary market area . the company 's philosophy is to provide superior , personalized service to its customers . the company focuses on relationship banking , providing each customer with a number of services , becoming familiar with and addressing customer needs in a proactive , personalized fashion . the bank currently has a total of seventeen branch offices , including seven offices serving montgomery county , maryland , five offices in the district of columbia and five offices in arlington and fairfax counties in virginia . the company has announced plans to open an additional office in alexandria , virginia , which is expected to open in march 2013. the company offers a broad range of commercial banking services to its business and professional clients as well as full service consumer banking services to individuals living and or working primarily in the bank 's market area . the company emphasizes providing commercial banking services to sole proprietors , small and medium-sized businesses , partnerships , corporations , non-profit organizations and associations , and investors living and working in and near the primary service area . these services include the usual deposit functions of commercial banks , including business and personal checking accounts , `` now `` accounts and money market and savings accounts , business , construction , and commercial loans , residential mortgages and consumer loans , and cash management services . the bank is also active in the origination and sale of residential mortgage loans and the origination of small business loans . the residential mortgage loans are originated for sale to third-party investors , generally large mortgage and banking companies , under firm commitments by the investors to purchase the loans subject to compliance with pre-established investor criteria . additionally , the company is active in the origination of small business administration ( `` sba `` ) loans . the company generally sells the insured portion of the sba loan generating noninterest income from the gains on sale , as well as servicing income on the portion participated . bethesda leasing , llc , a subsidiary of the bank , holds title to and manages other real estate owned ( `` oreo `` ) assets . eagle insurance services , llc , a subsidiary of the bank , offers access to insurance products and services through a referral program with a third party insurance broker . additionally , the bank offers investment advisory services through a referral program with a third party . ecv , a subsidiary of the company , provides subordinated financing for the acquisition , development and construction of real estate projects . this lending involves higher levels of risk , together with commensurate expected returns . throughout 2012 , generally weak economic conditions persisted in the u.s. economy and worldwide , with u.s. unemployment levels remaining high , although some improvement occurred ; real estate values remaining a concern , persistent higher than normal levels of home foreclosures , and personal income levels rising only modestly . additionally , significant continued gridlock in washington d.c. politics over concerns of public debt and deficits , tax policy and spending levels added a heighted level of business 38 uncertainty to everyday economic activity . average interest rates declined for a second straight year in 2012 , in part due to the federal reserve 's continued quantitative easing programs involving large purchases of u.s. treasury and mortgaged backed securities . these purchases served to keep residential mortgage interest rates at all-time lows , in the hope that more homeowners might benefit from refinancing existing home mortgages . generally speaking , the company 's primary market , the washington , d.c. metropolitan area , has been relatively less impacted by recessionary type forces than other parts of the country , due in part to the significant economic impact of the federal government , a highly educated work force and a diverse economy . during 2012 , the company 's enhanced its marketplace positioning by remaining proactive in growing client relationships , expanding its branch presence in the northern virginia area , and by the continued addition of experienced lending and sales personnel . the company has had the financial resources and has remained committed to meeting the credit needs of its community , resulting in continued growth in its loan portfolio during 2012. furthermore , the company 's capital position was enhanced in 2012 by successful completion of common stock offerings providing net proceeds of approximately $ 43 million . the company believes its strategies of remaining growth oriented and seeking quality lending and deposit relationships during the difficult economic times of the past few years have proven successful and is evidenced in its financial and performance ratios . additionally , the company believes such focus and strategy of relationship building has fostered future growth opportunities . story_separator_special_tag 42 earning assets is due primarily to a large increase in average loans held for sale . for the year ended december 31 , 2012 , as compared to the same period in 2011 , average loans held for sale , increased $ 77 million , a 122 % increase . the increase in average loans for the year ended december 31 , 2012 as compared to the same period in 2011 is primarily attributable to growth in loans for both investor commercial real estate and construction . increases in average deposits for the year ended december 31 , 2012 , as compared to the same period in 2011 , is attributable to growth in noninterest bearing demand deposits , and money market accounts . average investment securities for the year ended december 31 , 2012 and 2011 amounted to 11 % of average earning assets . the combination of federal funds sold , interest bearing deposits with other banks and loans held for sale , averaged 12 % of average earning assets for the year ended december 31 , 2012 as compared to 13 % for the same period in 2011. for the three months ended december 31 , 2012 , average loans were 76 % of average earning assets as compared to 66 % ( 76 % excluding the effect of the settlement deposit ) for the same period in 2011. average loans increased $ 411 million ( 20 % ) and average deposits increased $ 96 million ( 4 % ) ( $ 493 million and 22 % excluding the effect of the settlement deposit ) , during the three months ended december 31 , 2012 as compared to the same quarter of 2011. the increase in average loans in the fourth quarter of 2012 as compared to the fourth quarter of 2011 is primarily attributable to growth in construction loans . increases in average deposits in the fourth quarter of 2012 , as compared to the fourth quarter of 2011 , is attributable to growth in money market accounts . average investment securities for the three months ended december 31 , 2012 and 2011 amounted to 10 % of average earning assets . the combination of federal funds sold , interest bearing deposits with other banks and loans held for sale , averaged 14 % of average earning assets for the three months ended december 31 , 2012 as compared to 24 % for the same period in 2011 ( 13 % excluding the effect of the settlement deposit ) . the provision for credit losses was $ 16.2 million for the year of 2012 as compared to $ 11.0 million in 2011. at december 31 , 2012 the allowance for credit losses represented 1.50 % of loans outstanding , as compared to 1.44 % at december 31 , 2011. the allowance for credit losses represented 122 % of nonperforming loans at december 31 , 2012 , as compared to 90 % at december 31 , 2011. the higher provisioning in 2012 as compared to 2011 is attributable to the change in loan mix , higher reserves for classified loans , loan growth , and higher net charge-offs in the twelve months of 2012 compared to 2011. for the twelve months ended december 31 , 2012 , net charge-offs totaled $ 8.4 million ( 0.37 % of average loans ) compared to $ 6.1 million ( 0.32 % of average loans ) for the twelve months ended december 31 , 2011. net charge-offs in the twelve months ended december 31 , 2012 were primarily attributable to commercial and industrial loans ( $ 3.1 million ) , construction loans ( $ 2.5 million ) , commercial real estate loans ( $ 1.2 million ) , home equity and consumer loans ( $ 970 thousand ) , owner occupied real estate ( $ 350 thousand ) and the unguaranteed portion of sba loans ( $ 248 thousand ) . for the three months ended december 31 , 2012 , the provision for credit losses was $ 4.1 million as compared to $ 2.8 million for the three months ended december 31 , 2011. the higher provisioning in the fourth quarter of 2012 , as compared to the fourth quarter of 2011 , is due to change in loan mix , loan growth and higher net charge-offs . net charge-offs of $ 2.2 million in the fourth quarter of 2012 represented 0.37 % of average loans as compared to $ 1.7 million or 0.34 % of average loans in the fourth quarter of 2011. net charge-offs in the fourth quarter of 2012 were primarily attributable to commercial and industrial loans ( $ 1.4 million ) , construction loans ( $ 459 thousand ) , home equity and consumer loans ( $ 195 thousand ) , and the unguaranteed portion of sba loans ( $ 111 thousand ) . total noninterest income for the twelve months of 2012 was $ 21.4 million compared to $ 13.5 million in 2011 , an increase of 58 % . this increase was due primarily to an $ 8.0 million increase in gains realized on the sale of residential mortgage loans . service charges on deposit accounts increased $ 619 thousand in 2012 as compared to 2011 , a 19 % increase . other noninterest income increased by $ 652 thousand primarily due to other loan income and atm fees . investment securities gains were $ 690 thousand for the twelve months in 2012 as compared to $ 1.4 million for the same period in 2011. a $ 529 thousand loss on the early extinguishment of debt was realized in 2012 due to restructuring of fhlb advances . excluding 43 investment securities gains and the loss on the early extinguishment of debt , total noninterest income was $ 21.2 million for the twelve months of 2012 as compared to $ 12.1 million for 2011 , a 76 % increase . total noninterest income for

capital resources and adequacy the assessment of capital adequacy depends on a number of factors such as asset quality and mix , liquidity , earnings performance , changing competitive conditions and economic forces , regulatory measures and policy , as well as the overall level of growth and complexity of the balance sheet . the adequacy of the company 's current and future capital needs is monitored by management and discussed with alco on an ongoing basis . management seeks to maintain a capital structure that will assure an adequate level of capital to support anticipated asset growth and to absorb potential losses . the federal banking regulators have issued guidance for those institutions which are deemed to have concentrations in commercial real estate lending . pursuant to the supervisory criteria contained in the guidance for identifying institutions with a potential commercial real estate concentration risk , institutions which have ( 1 ) total reported loans for construction , land development , and other land acquisitions which represent in total 100 % or more of an institution 's total risk-based capital ; or ( 2 ) total commercial real estate loans representing 300 % or more of the institution 's total risk-based capital and the institution 's commercial real estate loan portfolio has increased 50 % or more during the prior 36 months are identified as having potential commercial real estate concentration risk . institutions which are deemed to have concentrations in commercial real estate lending are expected to employ heightened levels of risk management with respect to their commercial real estate portfolios , and may be required to hold higher 72 levels of capital . the company , like many community banks , has a concentration in commercial real estate loans , and the company has experienced significant growth in its commercial real estate portfolio in recent years . at december 31 , 2012 , non-owner-occupied commercial real estate loans ( including construction , land and land development loans ) represent 407 % of total risk based capital . construction , land and land development loans represent 153 % of total risk based capital .


 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 and adequacy the assessment of capital adequacy depends on a number of factors such as asset quality and mix , liquidity , earnings performance , changing competitive conditions and economic forces , regulatory measures and policy , as well as the overall level of growth and complexity of the balance sheet . the adequacy of the company 's current and future capital needs is monitored by management and discussed with alco on an ongoing basis . management seeks to maintain a capital structure that will assure an adequate level of capital to support anticipated asset growth and to absorb potential losses . the federal banking regulators have issued guidance for those institutions which are deemed to have concentrations in commercial real estate lending . pursuant to the supervisory criteria contained in the guidance for identifying institutions with a potential commercial real estate concentration risk , institutions which have ( 1 ) total reported loans for construction , land development , and other land acquisitions which represent in total 100 % or more of an institution 's total risk-based capital ; or ( 2 ) total commercial real estate loans representing 300 % or more of the institution 's total risk-based capital and the institution 's commercial real estate loan portfolio has increased 50 % or more during the prior 36 months are identified as having potential commercial real estate concentration risk . institutions which are deemed to have concentrations in commercial real estate lending are expected to employ heightened levels of risk management with respect to their commercial real estate portfolios , and may be required to hold higher 72 levels of capital . the company , like many community banks , has a concentration in commercial real estate loans , and the company has experienced significant growth in its commercial real estate portfolio in recent years . at december 31 , 2012 , non-owner-occupied commercial real estate loans ( including construction , land and land development loans ) represent 407 % of total risk based capital . construction , land and land development loans represent 153 % of total risk based capital .
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 Suspicious Activity Report : if one or more of the factors affecting our forward looking information and statements proves incorrect , then our actual results , performance or achievements could differ materially from those expressed in , or implied by , forward looking information and statements contained in this report . you should not place undue reliance on our forward looking information and statements . we will not update the forward looking statements to reflect actual results or changes in the factors affecting the forward looking statements . general the company is a growth oriented , one-bank holding company headquartered in bethesda , maryland . the company provides general commercial and consumer banking services through the bank , its wholly owned banking subsidiary , a maryland chartered bank , which is a member of the federal reserve system . the company was organized in october 1997 , to be the holding company for the bank . the bank was organized as an independent , community oriented , full service banking alternative to the super regional financial institutions , which dominate the primary market area . the company 's philosophy is to provide superior , personalized service to its customers . the company focuses on relationship banking , providing each customer with a number of services , becoming familiar with and addressing customer needs in a proactive , personalized fashion . the bank currently has a total of seventeen branch offices , including seven offices serving montgomery county , maryland , five offices in the district of columbia and five offices in arlington and fairfax counties in virginia . the company has announced plans to open an additional office in alexandria , virginia , which is expected to open in march 2013. the company offers a broad range of commercial banking services to its business and professional clients as well as full service consumer banking services to individuals living and or working primarily in the bank 's market area . the company emphasizes providing commercial banking services to sole proprietors , small and medium-sized businesses , partnerships , corporations , non-profit organizations and associations , and investors living and working in and near the primary service area . these services include the usual deposit functions of commercial banks , including business and personal checking accounts , `` now `` accounts and money market and savings accounts , business , construction , and commercial loans , residential mortgages and consumer loans , and cash management services . the bank is also active in the origination and sale of residential mortgage loans and the origination of small business loans . the residential mortgage loans are originated for sale to third-party investors , generally large mortgage and banking companies , under firm commitments by the investors to purchase the loans subject to compliance with pre-established investor criteria . additionally , the company is active in the origination of small business administration ( `` sba `` ) loans . the company generally sells the insured portion of the sba loan generating noninterest income from the gains on sale , as well as servicing income on the portion participated . bethesda leasing , llc , a subsidiary of the bank , holds title to and manages other real estate owned ( `` oreo `` ) assets . eagle insurance services , llc , a subsidiary of the bank , offers access to insurance products and services through a referral program with a third party insurance broker . additionally , the bank offers investment advisory services through a referral program with a third party . ecv , a subsidiary of the company , provides subordinated financing for the acquisition , development and construction of real estate projects . this lending involves higher levels of risk , together with commensurate expected returns . throughout 2012 , generally weak economic conditions persisted in the u.s. economy and worldwide , with u.s. unemployment levels remaining high , although some improvement occurred ; real estate values remaining a concern , persistent higher than normal levels of home foreclosures , and personal income levels rising only modestly . additionally , significant continued gridlock in washington d.c. politics over concerns of public debt and deficits , tax policy and spending levels added a heighted level of business 38 uncertainty to everyday economic activity . average interest rates declined for a second straight year in 2012 , in part due to the federal reserve 's continued quantitative easing programs involving large purchases of u.s. treasury and mortgaged backed securities . these purchases served to keep residential mortgage interest rates at all-time lows , in the hope that more homeowners might benefit from refinancing existing home mortgages . generally speaking , the company 's primary market , the washington , d.c. metropolitan area , has been relatively less impacted by recessionary type forces than other parts of the country , due in part to the significant economic impact of the federal government , a highly educated work force and a diverse economy . during 2012 , the company 's enhanced its marketplace positioning by remaining proactive in growing client relationships , expanding its branch presence in the northern virginia area , and by the continued addition of experienced lending and sales personnel . the company has had the financial resources and has remained committed to meeting the credit needs of its community , resulting in continued growth in its loan portfolio during 2012. furthermore , the company 's capital position was enhanced in 2012 by successful completion of common stock offerings providing net proceeds of approximately $ 43 million . the company believes its strategies of remaining growth oriented and seeking quality lending and deposit relationships during the difficult economic times of the past few years have proven successful and is evidenced in its financial and performance ratios . additionally , the company believes such focus and strategy of relationship building has fostered future growth opportunities . story_separator_special_tag 42 earning assets is due primarily to a large increase in average loans held for sale . for the year ended december 31 , 2012 , as compared to the same period in 2011 , average loans held for sale , increased $ 77 million , a 122 % increase . the increase in average loans for the year ended december 31 , 2012 as compared to the same period in 2011 is primarily attributable to growth in loans for both investor commercial real estate and construction . increases in average deposits for the year ended december 31 , 2012 , as compared to the same period in 2011 , is attributable to growth in noninterest bearing demand deposits , and money market accounts . average investment securities for the year ended december 31 , 2012 and 2011 amounted to 11 % of average earning assets . the combination of federal funds sold , interest bearing deposits with other banks and loans held for sale , averaged 12 % of average earning assets for the year ended december 31 , 2012 as compared to 13 % for the same period in 2011. for the three months ended december 31 , 2012 , average loans were 76 % of average earning assets as compared to 66 % ( 76 % excluding the effect of the settlement deposit ) for the same period in 2011. average loans increased $ 411 million ( 20 % ) and average deposits increased $ 96 million ( 4 % ) ( $ 493 million and 22 % excluding the effect of the settlement deposit ) , during the three months ended december 31 , 2012 as compared to the same quarter of 2011. the increase in average loans in the fourth quarter of 2012 as compared to the fourth quarter of 2011 is primarily attributable to growth in construction loans . increases in average deposits in the fourth quarter of 2012 , as compared to the fourth quarter of 2011 , is attributable to growth in money market accounts . average investment securities for the three months ended december 31 , 2012 and 2011 amounted to 10 % of average earning assets . the combination of federal funds sold , interest bearing deposits with other banks and loans held for sale , averaged 14 % of average earning assets for the three months ended december 31 , 2012 as compared to 24 % for the same period in 2011 ( 13 % excluding the effect of the settlement deposit ) . the provision for credit losses was $ 16.2 million for the year of 2012 as compared to $ 11.0 million in 2011. at december 31 , 2012 the allowance for credit losses represented 1.50 % of loans outstanding , as compared to 1.44 % at december 31 , 2011. the allowance for credit losses represented 122 % of nonperforming loans at december 31 , 2012 , as compared to 90 % at december 31 , 2011. the higher provisioning in 2012 as compared to 2011 is attributable to the change in loan mix , higher reserves for classified loans , loan growth , and higher net charge-offs in the twelve months of 2012 compared to 2011. for the twelve months ended december 31 , 2012 , net charge-offs totaled $ 8.4 million ( 0.37 % of average loans ) compared to $ 6.1 million ( 0.32 % of average loans ) for the twelve months ended december 31 , 2011. net charge-offs in the twelve months ended december 31 , 2012 were primarily attributable to commercial and industrial loans ( $ 3.1 million ) , construction loans ( $ 2.5 million ) , commercial real estate loans ( $ 1.2 million ) , home equity and consumer loans ( $ 970 thousand ) , owner occupied real estate ( $ 350 thousand ) and the unguaranteed portion of sba loans ( $ 248 thousand ) . for the three months ended december 31 , 2012 , the provision for credit losses was $ 4.1 million as compared to $ 2.8 million for the three months ended december 31 , 2011. the higher provisioning in the fourth quarter of 2012 , as compared to the fourth quarter of 2011 , is due to change in loan mix , loan growth and higher net charge-offs . net charge-offs of $ 2.2 million in the fourth quarter of 2012 represented 0.37 % of average loans as compared to $ 1.7 million or 0.34 % of average loans in the fourth quarter of 2011. net charge-offs in the fourth quarter of 2012 were primarily attributable to commercial and industrial loans ( $ 1.4 million ) , construction loans ( $ 459 thousand ) , home equity and consumer loans ( $ 195 thousand ) , and the unguaranteed portion of sba loans ( $ 111 thousand ) . total noninterest income for the twelve months of 2012 was $ 21.4 million compared to $ 13.5 million in 2011 , an increase of 58 % . this increase was due primarily to an $ 8.0 million increase in gains realized on the sale of residential mortgage loans . service charges on deposit accounts increased $ 619 thousand in 2012 as compared to 2011 , a 19 % increase . other noninterest income increased by $ 652 thousand primarily due to other loan income and atm fees . investment securities gains were $ 690 thousand for the twelve months in 2012 as compared to $ 1.4 million for the same period in 2011. a $ 529 thousand loss on the early extinguishment of debt was realized in 2012 due to restructuring of fhlb advances . excluding 43 investment securities gains and the loss on the early extinguishment of debt , total noninterest income was $ 21.2 million for the twelve months of 2012 as compared to $ 12.1 million for 2011 , a 76 % increase . total noninterest income for

