as a supplement to gaap , the company has provided this non-gaap performance result . the company believes that this non-gaap financial measure is useful because it helps investors to assess the company 's operating performance . although this non-gaap financial measure is intended to enhance investors ' understanding of the company 's business and performance , this non-gaap financial measure should not be considered an alternative to gaap . 43 replace_table_token_10_th ( 1 ) excludes covered loans and covered oreo . for a discussion of covered loans and covered oreo , refer to note 5 of `` notes to consolidated financial statements `` in item 8 of this form 10-k. asset quality , including covered loans and covered oreo , is included in the section titled `` loan portfolio and credit quality `` of this item 7. in a challenged business environment , consistent sales focus helped us to hold loan balances steady as we significantly reduced our exposure to troubled real estate lending categories . our overall credit metrics significantly improved from 2010 as we reduced potential problem credits by almost 30 % during this period . at the same time , transactional deposit growth helped our margins remain over 4 % and our fee-based revenues expand . our net interest margin performance in 2012 will depend , to a large extent , on our ability to redeploy excess cash from lower-yielding , shorter-term investments to higher-yielding loans , as well as maintain transactional deposits . over the course of 2011 , we significantly invested in our businesses , aligned our sales resources to areas of growth and opportunity , and continued to implement operating efficiencies that will help prepare us to benefit from an improving credit environment and economy . these actions , coupled with the redemption of the preferred shares in the fourth quarter of 2011 , better position us to pursue opportunities for growth . performance overview for 2011 compared with 2010 net income for 2011 was $ 36.6 million , before adjustments for preferred dividends and accretion and non-vested restricted shares , and $ 25.4 million , or $ 0.35 per share , applicable to common shareholders after such adjustments . this compares to a net loss of $ 9.7 million and a net loss applicable to common shareholders of $ 19.7 million , or $ 0.27 per share , for 2010. net income for 2011 improved by $ 46.2 million from 2010 , reflecting the steady advancement of our strategic priorities as we benefited from continued , solid earnings and substantially lower credit costs . pre-tax , pre-provision operating earnings of $ 129.9 million for 2011 were down $ 6.6 million , or 4.8 % , compared to 2010 primarily as a result of a $ 15.2 million , or 6.5 % , increase in noninterest expense , excluding losses on sales and 44 write-downs of oreo , integration costs , and severance-related costs . this was partially offset by a $ 7.4 million increase in fee-based revenues with such increase spread across all categories . tax-equivalent net interest margin for 2011 was 4.04 % , a decline of 9 basis points from 4.13 % in 2010. the reduction in margin resulted from a 23 basis point decrease in the average yield on interest-earning assets , largely due to the cumulative effect of prior year securities sales and a lower yield on securities as cash flows from securities paydowns and maturities repriced at lower interest rates . while loans also repriced at lower rates in 2011 , the reduction was more than offset by an increase in the yield on covered loans . this effect was partially offset by a 16 basis point drop in the average rate paid for interest-bearing liabilities , driven by a 14 basis point decline in the average rate paid for time deposits and a 16 basis point reduction in the aggregate rate paid on interest-bearing transaction accounts . as of december 31 , 2011 , our loan-to-deposit ratio was 78.5 % , with 74.4 % of our customer deposits consisting of demand , now , money market , and savings transactional accounts . the rise in noninterest expense was a result of higher loan remediation costs ; increased salaries related to the expansion of commercial , retail , and wealth management sales staff ; and a $ 1.3 million correction of a 2010 actuarial pension expense calculation related to the valuation of future early retirement benefits recorded in fourth quarter 2011. a discussion of net interest income and noninterest income and expense is presented in the following section titled `` earnings performance `` of this item 7. in december 2011 , we completed the purchase of certain chicago-market deposits from old national bank of evansville , indiana ( `` old national `` ) and recorded a gain of $ 1.1 million . the transaction included $ 106.7 million in deposits ( comprised of $ 70.6 million in transactional deposits and $ 36.1 million in time deposits ) and one banking facility . as of december 31 , 2011 , our securities portfolio totaled $ 1.1 billion , decreasing 5.8 % from december 31 , 2010 , following a 15.6 % decrease from december 31 , 2009. our securities portfolio declined over the past three years as we took advantage of opportunities in the market to sell securities at a gain given the low interest rate environment . for a detailed discussion of our securities portfolio , refer to the section titled `` investment portfolio management `` of this item 7. total loans , including covered loans , of $ 5.3 billion as of december 30 , 2011 declined $ 123.7 million , or 2.3 % , from $ 5.5 billion as of december 31 , 2010. the natural decline in covered loan balances accounted for the majority of this reduction . story_separator_special_tag ( 6 ) for a discussion of the gains on fdic-assisted transactions , refer to note 5 of `` notes to consolidated financial statements `` in item 8 of this form 10-k. 2011 compared to 2010 total noninterest income declined 6.1 % for 2011 compared to 2010. the decrease reflects lower net securities gains , a trading loss in 2011 following a trading gain in 2010 , and a gain on an fdic-assisted transaction in 2010 , all of which more than offset increases in operating revenues . 51 fee-based revenues , which comprise the majority of noninterest income , of $ 94.2 million for 2011 rose 8.6 % compared to 2010 as a result of increases in all categories . the growth in service charges on deposit accounts was due primarily to a combination of higher volumes of non-sufficient-funds fees ( including transactions generated by customers obtained in a 2010 fdic-assisted transaction ) and more fees earned on business and personal checking accounts resulting from market-driven pricing increases . average assets under management for 2011 totaled $ 4.4 billion , a $ 346.5 million increase from 2010 , with such growth derived equally from improved equity market performance and new sales initiatives . the increase in average assets under management fueled the year-over-year growth in wealth management fees . a rise in merchant fees , miscellaneous loan fees , and investment revenue led to the increase in other service charges , commissions , and fees . the year-over-year increase in merchant fees was due primarily to a volume increase resulting from customers acquired in an fdic-assisted transaction . we experienced continued growth in card-based fees resulting from both greater volumes and higher average rates per transaction . the increase in rates earned on card-based fees resulted from the migration in late 2010 from multi-merchant networks to an exclusive mastercard network in most areas , which drove higher transaction yields and incentives . the $ 1.1 million gain on acquisition of deposits related to our purchase of certain chicago-market deposits from old national . the transaction closed in december 2011 and included $ 106.7 million in deposits ( comprised of $ 70.6 million in core transactional deposits and $ 36.1 in time deposits ) and one banking facility . 2010 compared to 2009 total noninterest income decreased 11.7 % for 2010 compared to 2009. the decline from 2009 resulted from changes in gains realized from net securities sales , early extinguishment of debt , and fdic-assisted transactions and the fair value adjustment related to our non-qualified deferred compensation plan , which is reflected in trading ( losses ) gains , net . fee-based revenues of $ 86.8 million for 2010 grew by 1.9 % compared to 2009. service charges on deposit accounts declined primarily due to lower overdraft and non-sufficient funds fees . however , this decline was more than offset by increases in other service charges , commissions , and fees ( primarily merchant fee income ) , card-based fees , and wealth management fees . the majority of the decline in service charges on deposit accounts resulted from a $ 2.5 million decline in fees charged to customers with insufficient funds . the decrease was driven by ( i ) regulatory changes that require customers to affirmatively consent to our overdraft services for automated teller machine and one-time debit card transactions before overdraft fees may be assessed and ( ii ) a change from a tiered rate to a flat rate . wealth management fees improved from 2009 to 2010 primarily due to a $ 666.3 million , or 17.5 % , increase in assets under management during this period . approximately $ 102.7 million of the $ 666.3 million increase was attributable to managed assets acquired in an fdic-assisted transaction . higher retail investment advisory fees and merchant processing fees drove the increase in other service charges , commissions , and fees from 2009 to 2010. merchant processing fees improved 18.5 % , and retail investment advisory fees increased 9.9 % for 2010 compared to 2009 . 52 noninterest expense the following table presents the components of noninterest expense for the years ended december 31 , 2011 , 2010 , and 2009. table 5 noninterest expense analysis ( dollar amounts in thousands ) replace_table_token_14_th n/m  not meaningful . ( 1 ) oreo operating expense , net , consists of real estate taxes , commissions on sales , insurance , and maintenance , net of any rental income . ( 2 ) the efficiency ratio expresses noninterest expense , excluding oreo expense , as a percentage of tax-equivalent net interest income plus total fees and other income . 2011 compared to 2010 total noninterest expense for 2011 decreased 6.1 % from 2010. excluding losses on sales and write-downs of oreo , integration costs , and severance-related costs , noninterest expense increased $ 15.2 million , or 6.5 % , as a result of higher loan remediation costs , increased salaries related to the expansion of commercial , retail , and wealth 53 management sales staff and a $ 1.3 million correction of a 2010 actuarial pension expense calculation related to the valuation of future early retirement benefits recorded in fourth quarter 2011. in 2011 , we recorded a $ 2.0 million charge for severance-related costs stemming from an organizational realignment implemented in december 2011. this charge includes $ 1.6 million in salaries and wages , $ 96,000 in retirement and other employee benefits , and $ 274,000 in other professional services . the organizational realignment eliminated approximately 50 open positions and another 50 filled positions . the annual savings in future years is estimated to be $ 5.0 million . the increase in salaries and wages for 2011 compared to 2010 reflected the full year impact of additional staff employed as a result of a third quarter 2010 fdic-assisted transaction , the expansion of commercial sales staff , annual merit increases , higher incentive compensation , and

senior and subordinated debt average senior and subordinated debt increased $ 12.5 million , or 9.1 % , in 2011 compared to 2010 following a $ 70.9 million , or 34.0 % , decline from 2009 to 2010. as further explained in the section titled `` management of capital '' of this item 7 , in november 2011 , we redeemed $ 193.0 million of preferred shares issued to the treasury . the redemption was funded through a combination of existing liquid assets and the proceeds from a $ 115.0 senior debt issuance . interest paid on the new senior debt in 2011 reduced net interest margin by one basis point . in 2009 , we completed an offer to exchange approximately one-third each of our subordinated notes and trust-preferred subordinated debt for newly issued shares of common stock . the exchanges strengthened the composition of our capital base by increasing our tier 1 common and tangible common equity ratios , while also reducing the interest expense associated with the debt securities . as a result of the exchange offers , $ 39.3 million of 6.95 % trust-preferred subordinated debt was retired at a discount of 20 % in exchange for 3,058,410 shares of common stock , and $ 29.5 million of 5.85 % subordinated debt was retired at a discount of 10 % in exchange for 2,584,695 shares of common stock . subsequent to the exchanges , we retired an additional $ 1.0 million of trust-preferred subordinated debt at a discount of 20 % for cash and $ 20.0 million of subordinated notes at a discount of 7 % for cash .


 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.
     ```senior and subordinated debt average senior and subordinated debt increased $ 12.5 million , or 9.1 % , in 2011 compared to 2010 following a $ 70.9 million , or 34.0 % , decline from 2009 to 2010. as further explained in the section titled `` management of capital '' of this item 7 , in november 2011 , we redeemed $ 193.0 million of preferred shares issued to the treasury . the redemption was funded through a combination of existing liquid assets and the proceeds from a $ 115.0 senior debt issuance . interest paid on the new senior debt in 2011 reduced net interest margin by one basis point . in 2009 , we completed an offer to exchange approximately one-third each of our subordinated notes and trust-preferred subordinated debt for newly issued shares of common stock . the exchanges strengthened the composition of our capital base by increasing our tier 1 common and tangible common equity ratios , while also reducing the interest expense associated with the debt securities . as a result of the exchange offers , $ 39.3 million of 6.95 % trust-preferred subordinated debt was retired at a discount of 20 % in exchange for 3,058,410 shares of common stock , and $ 29.5 million of 5.85 % subordinated debt was retired at a discount of 10 % in exchange for 2,584,695 shares of common stock . subsequent to the exchanges , we retired an additional $ 1.0 million of trust-preferred subordinated debt at a discount of 20 % for cash and $ 20.0 million of subordinated notes at a discount of 7 % for cash .
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 Suspicious Activity Report : as a supplement to gaap , the company has provided this non-gaap performance result . the company believes that this non-gaap financial measure is useful because it helps investors to assess the company 's operating performance . although this non-gaap financial measure is intended to enhance investors ' understanding of the company 's business and performance , this non-gaap financial measure should not be considered an alternative to gaap . 43 replace_table_token_10_th ( 1 ) excludes covered loans and covered oreo . for a discussion of covered loans and covered oreo , refer to note 5 of `` notes to consolidated financial statements `` in item 8 of this form 10-k. asset quality , including covered loans and covered oreo , is included in the section titled `` loan portfolio and credit quality `` of this item 7. in a challenged business environment , consistent sales focus helped us to hold loan balances steady as we significantly reduced our exposure to troubled real estate lending categories . our overall credit metrics significantly improved from 2010 as we reduced potential problem credits by almost 30 % during this period . at the same time , transactional deposit growth helped our margins remain over 4 % and our fee-based revenues expand . our net interest margin performance in 2012 will depend , to a large extent , on our ability to redeploy excess cash from lower-yielding , shorter-term investments to higher-yielding loans , as well as maintain transactional deposits . over the course of 2011 , we significantly invested in our businesses , aligned our sales resources to areas of growth and opportunity , and continued to implement operating efficiencies that will help prepare us to benefit from an improving credit environment and economy . these actions , coupled with the redemption of the preferred shares in the fourth quarter of 2011 , better position us to pursue opportunities for growth . performance overview for 2011 compared with 2010 net income for 2011 was $ 36.6 million , before adjustments for preferred dividends and accretion and non-vested restricted shares , and $ 25.4 million , or $ 0.35 per share , applicable to common shareholders after such adjustments . this compares to a net loss of $ 9.7 million and a net loss applicable to common shareholders of $ 19.7 million , or $ 0.27 per share , for 2010. net income for 2011 improved by $ 46.2 million from 2010 , reflecting the steady advancement of our strategic priorities as we benefited from continued , solid earnings and substantially lower credit costs . pre-tax , pre-provision operating earnings of $ 129.9 million for 2011 were down $ 6.6 million , or 4.8 % , compared to 2010 primarily as a result of a $ 15.2 million , or 6.5 % , increase in noninterest expense , excluding losses on sales and 44 write-downs of oreo , integration costs , and severance-related costs . this was partially offset by a $ 7.4 million increase in fee-based revenues with such increase spread across all categories . tax-equivalent net interest margin for 2011 was 4.04 % , a decline of 9 basis points from 4.13 % in 2010. the reduction in margin resulted from a 23 basis point decrease in the average yield on interest-earning assets , largely due to the cumulative effect of prior year securities sales and a lower yield on securities as cash flows from securities paydowns and maturities repriced at lower interest rates . while loans also repriced at lower rates in 2011 , the reduction was more than offset by an increase in the yield on covered loans . this effect was partially offset by a 16 basis point drop in the average rate paid for interest-bearing liabilities , driven by a 14 basis point decline in the average rate paid for time deposits and a 16 basis point reduction in the aggregate rate paid on interest-bearing transaction accounts . as of december 31 , 2011 , our loan-to-deposit ratio was 78.5 % , with 74.4 % of our customer deposits consisting of demand , now , money market , and savings transactional accounts . the rise in noninterest expense was a result of higher loan remediation costs ; increased salaries related to the expansion of commercial , retail , and wealth management sales staff ; and a $ 1.3 million correction of a 2010 actuarial pension expense calculation related to the valuation of future early retirement benefits recorded in fourth quarter 2011. a discussion of net interest income and noninterest income and expense is presented in the following section titled `` earnings performance `` of this item 7. in december 2011 , we completed the purchase of certain chicago-market deposits from old national bank of evansville , indiana ( `` old national `` ) and recorded a gain of $ 1.1 million . the transaction included $ 106.7 million in deposits ( comprised of $ 70.6 million in transactional deposits and $ 36.1 million in time deposits ) and one banking facility . as of december 31 , 2011 , our securities portfolio totaled $ 1.1 billion , decreasing 5.8 % from december 31 , 2010 , following a 15.6 % decrease from december 31 , 2009. our securities portfolio declined over the past three years as we took advantage of opportunities in the market to sell securities at a gain given the low interest rate environment . for a detailed discussion of our securities portfolio , refer to the section titled `` investment portfolio management `` of this item 7. total loans , including covered loans , of $ 5.3 billion as of december 30 , 2011 declined $ 123.7 million , or 2.3 % , from $ 5.5 billion as of december 31 , 2010. the natural decline in covered loan balances accounted for the majority of this reduction . story_separator_special_tag ( 6 ) for a discussion of the gains on fdic-assisted transactions , refer to note 5 of `` notes to consolidated financial statements `` in item 8 of this form 10-k. 2011 compared to 2010 total noninterest income declined 6.1 % for 2011 compared to 2010. the decrease reflects lower net securities gains , a trading loss in 2011 following a trading gain in 2010 , and a gain on an fdic-assisted transaction in 2010 , all of which more than offset increases in operating revenues . 51 fee-based revenues , which comprise the majority of noninterest income , of $ 94.2 million for 2011 rose 8.6 % compared to 2010 as a result of increases in all categories . the growth in service charges on deposit accounts was due primarily to a combination of higher volumes of non-sufficient-funds fees ( including transactions generated by customers obtained in a 2010 fdic-assisted transaction ) and more fees earned on business and personal checking accounts resulting from market-driven pricing increases . average assets under management for 2011 totaled $ 4.4 billion , a $ 346.5 million increase from 2010 , with such growth derived equally from improved equity market performance and new sales initiatives . the increase in average assets under management fueled the year-over-year growth in wealth management fees . a rise in merchant fees , miscellaneous loan fees , and investment revenue led to the increase in other service charges , commissions , and fees . the year-over-year increase in merchant fees was due primarily to a volume increase resulting from customers acquired in an fdic-assisted transaction . we experienced continued growth in card-based fees resulting from both greater volumes and higher average rates per transaction . the increase in rates earned on card-based fees resulted from the migration in late 2010 from multi-merchant networks to an exclusive mastercard network in most areas , which drove higher transaction yields and incentives . the $ 1.1 million gain on acquisition of deposits related to our purchase of certain chicago-market deposits from old national . the transaction closed in december 2011 and included $ 106.7 million in deposits ( comprised of $ 70.6 million in core transactional deposits and $ 36.1 in time deposits ) and one banking facility . 2010 compared to 2009 total noninterest income decreased 11.7 % for 2010 compared to 2009. the decline from 2009 resulted from changes in gains realized from net securities sales , early extinguishment of debt , and fdic-assisted transactions and the fair value adjustment related to our non-qualified deferred compensation plan , which is reflected in trading ( losses ) gains , net . fee-based revenues of $ 86.8 million for 2010 grew by 1.9 % compared to 2009. service charges on deposit accounts declined primarily due to lower overdraft and non-sufficient funds fees . however , this decline was more than offset by increases in other service charges , commissions , and fees ( primarily merchant fee income ) , card-based fees , and wealth management fees . the majority of the decline in service charges on deposit accounts resulted from a $ 2.5 million decline in fees charged to customers with insufficient funds . the decrease was driven by ( i ) regulatory changes that require customers to affirmatively consent to our overdraft services for automated teller machine and one-time debit card transactions before overdraft fees may be assessed and ( ii ) a change from a tiered rate to a flat rate . wealth management fees improved from 2009 to 2010 primarily due to a $ 666.3 million , or 17.5 % , increase in assets under management during this period . approximately $ 102.7 million of the $ 666.3 million increase was attributable to managed assets acquired in an fdic-assisted transaction . higher retail investment advisory fees and merchant processing fees drove the increase in other service charges , commissions , and fees from 2009 to 2010. merchant processing fees improved 18.5 % , and retail investment advisory fees increased 9.9 % for 2010 compared to 2009 . 52 noninterest expense the following table presents the components of noninterest expense for the years ended december 31 , 2011 , 2010 , and 2009. table 5 noninterest expense analysis ( dollar amounts in thousands ) replace_table_token_14_th n/m  not meaningful . ( 1 ) oreo operating expense , net , consists of real estate taxes , commissions on sales , insurance , and maintenance , net of any rental income . ( 2 ) the efficiency ratio expresses noninterest expense , excluding oreo expense , as a percentage of tax-equivalent net interest income plus total fees and other income . 2011 compared to 2010 total noninterest expense for 2011 decreased 6.1 % from 2010. excluding losses on sales and write-downs of oreo , integration costs , and severance-related costs , noninterest expense increased $ 15.2 million , or 6.5 % , as a result of higher loan remediation costs , increased salaries related to the expansion of commercial , retail , and wealth 53 management sales staff and a $ 1.3 million correction of a 2010 actuarial pension expense calculation related to the valuation of future early retirement benefits recorded in fourth quarter 2011. in 2011 , we recorded a $ 2.0 million charge for severance-related costs stemming from an organizational realignment implemented in december 2011. this charge includes $ 1.6 million in salaries and wages , $ 96,000 in retirement and other employee benefits , and $ 274,000 in other professional services . the organizational realignment eliminated approximately 50 open positions and another 50 filled positions . the annual savings in future years is estimated to be $ 5.0 million . the increase in salaries and wages for 2011 compared to 2010 reflected the full year impact of additional staff employed as a result of a third quarter 2010 fdic-assisted transaction , the expansion of commercial sales staff , annual merit increases , higher incentive compensation , and

