net interest margin increased to 3.20 % for 2017 , compared with 3.17 % for 2016. in response to the assessment of risk in the loan portfolio , including net loan growth and charge-offs , we recorded a $ 12.9 million provision for loan losses during 2017 , compared to a $ 2.8 million provision during 2016. the increase from 2016 was caused primarily by deterioration in the credit quality of commercial and industrial loans to one borrower . the provision for loan losses represents a charge to earnings necessary to establish an allowance for loan losses that , in management 's evaluation , is adequate to provide coverage for the estimated probable inherent losses on outstanding loans . our allowance for loan losses at december 31 , 2017 was 1.45 % of total loans , compared with 1.24 % of total loans at december 31 , 2016. total noninterest income for 2017 decreased $ 0.2 million , or 1.6 % , compared to 2016 , and comprised 17 % of total revenues . total noninterest expense for 2017 increased $ 0.6 million , or 1.9 % , compared to 2016. our efficiency ratio for 2017 was 64.0 % compared to 66.9 % for 2016. the company 's effective tax rate increased to 75.5 % for 2017 from 33.1 % for 2016. the increase in the effective tax rate is due to a $ 3.6 million write-down of our deferred tax assets resulting from the tax reform act . 38 tangible common equity ( tce ) , a non-gaap measure , is a measure of a company 's capital which is useful in evaluating the quality and adequacy of capital . the ratio of tangible common equity to total tangible assets was 9.84 % as of december 31 , 2017 , compared with 9.34 % at december 31 , 2016. see “ non-gaap financial meas ures ” for a discussion of and reconciliation to the most directly comparable u . s . gaap measure . the following sections provide more details on subjects presented in this overview . critical accounting policies and estimates our consolidated financial statements are prepared based on the application of certain accounting policies , the most significant of which are described in note 1 to our consolidated financial statements for the year ended december 31 , 2017 , which are contained elsewhere in this report . certain of these policies require numerous estimates and strategic or economic assumptions that may prove inaccurate or subject to variation and may materially and adversely affect our reported results and financial position for the current period or future periods . the use of estimates , assumptions , and judgments are necessary when financial assets and liabilities are required to be recorded at , or adjusted to reflect , fair value . assets carried at fair value inherently result in more financial statement volatility . fair values and information used to record valuation adjustments for certain assets and liabilities are either based on quoted market prices or are provided by other independent third-party sources , when available . when such information is not available , management estimates valuation adjustments based upon historical experience and on various other assumptions that we believe to be reasonable under the circumstances . management evaluates our estimates and assumptions on an ongoing basis . changes in underlying factors , assumptions or estimates in any of these areas could have a material impact on our future financial condition and results of operations . we have identified the following accounting policies and estimates that , due to the difficult , subjective or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of our financial statements to those judgments and assumptions , are critical to an understanding of our financial condition and results of operations . we believe that the judgments , estimates and assumptions used in the preparation of our financial statements are reasonable and appropriate . allowance for loan losses we record estimated probable inherent credit losses in the loan portfolio as an allowance for loan losses . the methodologies and assumptions for determining the adequacy of the overall allowance for loan losses involve significant judgments to be made by management . some of the more critical judgments supporting our allowance for loan losses include judgments about the credit-worthiness of borrowers , estimated value of underlying collateral , assumptions about cash flow , determination of loss factors for estimating credit losses , and the impact of current events , conditions , and other factors impacting the level of inherent losses . under different conditions or using different assumptions , the actual or estimated credit losses ultimately realized by us may be different from our estimates . in determining the allowance , we estimate losses on individual impaired loans and on groups of loans that are not impaired , where the probable loss can be identified and reasonably estimated . on a quarterly basis , we assess the risk inherent in our loan portfolio based on qualitative and quantitative trends in the portfolio , including the internal risk classification of loans , historical loss rates , changes in the nature and volume of the loan portfolio , industry or borrower concentrations , delinquency trends , detailed reviews of significant loans with identified weaknesses , and the impacts of local , regional , and national economic factors on the quality of the loan portfolio . based on this analysis , we may record a provision for loan losses in order to maintain the allowance at appropriate levels . for a more complete discussion of the methodology employed to calculate the allowance for loan losses , see note 1 to our consolidated financial statements for the year ended december 31 , 2017 , which is included elsewhere in this report . story_separator_special_tag replace_table_token_9_th 2017 compared to 2016 the largest increase between 2016 and 2017 within noninterest expense was related to the new lease of our corporate headquarters which we moved into in the first quarter of 2017. this new lease resulted in an increase in occupancy expense of 35.2 % . data processing and software expense increased from 2016 to 2017 due to an increase in the volume of transactions and implementation of new software in our mortgage banking line of business . the increase in equipment expense from 2016 to 2017 is related to the increasing cost of managing our it network . a decrease in other operating expense of 12.7 % , in 2017 compared to 2016 was primarily due to the fact that we did not have to significantly adjust contingent consideration expense in 2017. our contingent consideration expense is the result of our acquisition of farmington financial group , llc in 2014. as mortgage origination volumes change from our original estimates the resulting increase or decrease in contingent consideration is recorded in other operating expense . our efficiency ratio ( ratio of noninterest expense to the sum of net interest income and noninterest income ) was 64.0 % and 66.9 % for 2017 and 2016 , respectively . the efficiency ratio measures the amount of expense that is incurred to generate a dollar of revenue . the efficiency ratio was positively impacted by growth in our net interest income and noninterest income that outpaced our increases in expenses . for 2017 , our revenue base ( net interest income plus noninterest income ) grew at rate of approximately three times our noninterest expense . 2016 compared to 2015 the largest increase between 2015 and 2016 within noninterest expense was related to employee costs as salaries and employee benefits increased due to our expanded presence in the nashville msa . at december 31 , 2016 , the number of our full-time equivalent employees had increased to 170 as compared to 162 at december 31 , 2015. the increase in equipment expense from 2015 to 2016 is related to the increasing cost of managing our it network . regulatory fees increased 19.2 % in 2016 compared to 2015 primarily as a result of increasing fdic insurance expense . the fdic modified the way insurance assessments are calculated and this change took place in the third quarter of 2016 , increasing our expense compared to prior periods . an increase in other operating expense of 14.2 % , in 2016 compared to 2015 was primarily the result of increasing contingent consideration expenses associated with our mortgage line of business . our efficiency ratio was 66.9 % and 71.0 % for 2016 and 2015 , respectively . the efficiency ratio was positively impacted by growth in our net interest income and noninterest income that outpaced our increases in expenses . for 2016 , our revenue base ( net interest income plus noninterest income ) grew at rate of approximately two times our noninterest expense . 46 income taxes 2017 compared to 2016 we recorded income tax expense of $ 4.6 million and $ 4.5 million in 2017 and 2016 , respectively . our effective income tax rate for 2017 and 2016 was 75.5 % and 33.1 % , respectively . our effective tax rate differs from the statutory tax rate by our investments in municipal securities , company owned life insurance , state tax credits , net of the effect of certain non-deductible expenses and the recognition of excess tax benefits related to stock compensation and the 2017 tax law change . on december 22 , 2017 , the tax reform act was enacted into law . the tax reform act provides for significant changes to the u.s. tax code that impact businesses . effective january 1 , 2018 , the u.s. federal tax rate for corporations was reduced from 35 % to 21 % , for u.s. taxable income and requires a one-time re-measurement of deferred taxes to reflect their value at a lower tax rate of 21 % . accordingly , the company re-measured its deferred tax assets based on the rates at which they are expected to reverse in the future , which is generally 21 % . as a result of the reduction in the corporate income tax rate , the company is required to revalue its net deferred tax assets to account for the future impact of lower corporate tax rates on this deferred amount and record any change in the value of such assets as a one-time , non-cash charge on its income statement . as a result of the tax reform act , we recorded a $ 3.56 million increase in income tax expense for 2017. if we adjust this $ 3.56 million write-down out of income tax expense , our adjusted effective tax rate for 2017 would have been 17.5 % . this lower adjusted effective tax rate is due to lower taxable income and recognition of excess tax benefits related to stock compensation . however , the company is still analyzing certain aspects of the tax reform act and refining its calculations , which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts . we are required to recognize the effect of the tax law changes in the period of enactment , such as re-measuring our deferred tax assets as well as reassessing the net realizability of our deferred tax assets . in december 2017 , the sec staff issued staff accounting bulletin no . 118 , income tax accounting implications of the tax cuts and jobs act ( sab 118 ) , which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . since the tax reform act was passed late in the fourth quarter of 2017 , and ongoing guidance and accounting interpretation is expected over the next 12 months , we

liquidity risk management liquidity risk is the risk that we will be unable to meet our obligations as they become due because of an inability to liquidate assets or obtain adequate funding . to manage liquidity risk , management has established a comprehensive management process for identifying , measuring , monitoring and controlling liquidity risk . because of its critical importance to the viability of the bank , liquidity risk management is fully integrated into our risk management processes . critical elements of our liquidity risk management include : effective corporate governance consisting of oversight by the board of directors and active involvement by management ; appropriate strategies , policies , procedures , and limits used to manage and mitigate liquidity risk ; comprehensive liquidity risk measurement and monitoring systems ( including assessments of the current and prospective cash flows or sources and uses of funds ) that are commensurate with the complexity and business activities of the bank ; active management of intraday liquidity and collateral ; an appropriately diverse mix of existing and potential future funding sources ; adequate levels of highly liquid marketable securities free of legal , regulatory , or operational impediments , that can be used to meet liquidity needs in stressful situations ; comprehensive contingency funding plans that sufficiently address potential adverse liquidity events and emergency cash flow requirements ; and internal controls and internal audit processes sufficient to determine the adequacy of the institution 's liquidity risk management process . the role of liquidity management is to ensure funds are available to meet depositors ' withdrawal and borrowers ' credit demands while at the same time optimizing financial results within our corporate guidelines . this is accomplished by balancing changes in demand for funds with changes in the supply of those funds . liquidity is provided by short-term liquid assets that can be converted to cash , investment securities available-for-sale , various lines of credit available to us , and the ability to attract funds from external sources , principally deposits .


 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.
     ```liquidity risk management liquidity risk is the risk that we will be unable to meet our obligations as they become due because of an inability to liquidate assets or obtain adequate funding . to manage liquidity risk , management has established a comprehensive management process for identifying , measuring , monitoring and controlling liquidity risk . because of its critical importance to the viability of the bank , liquidity risk management is fully integrated into our risk management processes . critical elements of our liquidity risk management include : effective corporate governance consisting of oversight by the board of directors and active involvement by management ; appropriate strategies , policies , procedures , and limits used to manage and mitigate liquidity risk ; comprehensive liquidity risk measurement and monitoring systems ( including assessments of the current and prospective cash flows or sources and uses of funds ) that are commensurate with the complexity and business activities of the bank ; active management of intraday liquidity and collateral ; an appropriately diverse mix of existing and potential future funding sources ; adequate levels of highly liquid marketable securities free of legal , regulatory , or operational impediments , that can be used to meet liquidity needs in stressful situations ; comprehensive contingency funding plans that sufficiently address potential adverse liquidity events and emergency cash flow requirements ; and internal controls and internal audit processes sufficient to determine the adequacy of the institution 's liquidity risk management process . the role of liquidity management is to ensure funds are available to meet depositors ' withdrawal and borrowers ' credit demands while at the same time optimizing financial results within our corporate guidelines . this is accomplished by balancing changes in demand for funds with changes in the supply of those funds . liquidity is provided by short-term liquid assets that can be converted to cash , investment securities available-for-sale , various lines of credit available to us , and the ability to attract funds from external sources , principally deposits .
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 Suspicious Activity Report : net interest margin increased to 3.20 % for 2017 , compared with 3.17 % for 2016. in response to the assessment of risk in the loan portfolio , including net loan growth and charge-offs , we recorded a $ 12.9 million provision for loan losses during 2017 , compared to a $ 2.8 million provision during 2016. the increase from 2016 was caused primarily by deterioration in the credit quality of commercial and industrial loans to one borrower . the provision for loan losses represents a charge to earnings necessary to establish an allowance for loan losses that , in management 's evaluation , is adequate to provide coverage for the estimated probable inherent losses on outstanding loans . our allowance for loan losses at december 31 , 2017 was 1.45 % of total loans , compared with 1.24 % of total loans at december 31 , 2016. total noninterest income for 2017 decreased $ 0.2 million , or 1.6 % , compared to 2016 , and comprised 17 % of total revenues . total noninterest expense for 2017 increased $ 0.6 million , or 1.9 % , compared to 2016. our efficiency ratio for 2017 was 64.0 % compared to 66.9 % for 2016. the company 's effective tax rate increased to 75.5 % for 2017 from 33.1 % for 2016. the increase in the effective tax rate is due to a $ 3.6 million write-down of our deferred tax assets resulting from the tax reform act . 38 tangible common equity ( tce ) , a non-gaap measure , is a measure of a company 's capital which is useful in evaluating the quality and adequacy of capital . the ratio of tangible common equity to total tangible assets was 9.84 % as of december 31 , 2017 , compared with 9.34 % at december 31 , 2016. see “ non-gaap financial meas ures ” for a discussion of and reconciliation to the most directly comparable u . s . gaap measure . the following sections provide more details on subjects presented in this overview . critical accounting policies and estimates our consolidated financial statements are prepared based on the application of certain accounting policies , the most significant of which are described in note 1 to our consolidated financial statements for the year ended december 31 , 2017 , which are contained elsewhere in this report . certain of these policies require numerous estimates and strategic or economic assumptions that may prove inaccurate or subject to variation and may materially and adversely affect our reported results and financial position for the current period or future periods . the use of estimates , assumptions , and judgments are necessary when financial assets and liabilities are required to be recorded at , or adjusted to reflect , fair value . assets carried at fair value inherently result in more financial statement volatility . fair values and information used to record valuation adjustments for certain assets and liabilities are either based on quoted market prices or are provided by other independent third-party sources , when available . when such information is not available , management estimates valuation adjustments based upon historical experience and on various other assumptions that we believe to be reasonable under the circumstances . management evaluates our estimates and assumptions on an ongoing basis . changes in underlying factors , assumptions or estimates in any of these areas could have a material impact on our future financial condition and results of operations . we have identified the following accounting policies and estimates that , due to the difficult , subjective or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of our financial statements to those judgments and assumptions , are critical to an understanding of our financial condition and results of operations . we believe that the judgments , estimates and assumptions used in the preparation of our financial statements are reasonable and appropriate . allowance for loan losses we record estimated probable inherent credit losses in the loan portfolio as an allowance for loan losses . the methodologies and assumptions for determining the adequacy of the overall allowance for loan losses involve significant judgments to be made by management . some of the more critical judgments supporting our allowance for loan losses include judgments about the credit-worthiness of borrowers , estimated value of underlying collateral , assumptions about cash flow , determination of loss factors for estimating credit losses , and the impact of current events , conditions , and other factors impacting the level of inherent losses . under different conditions or using different assumptions , the actual or estimated credit losses ultimately realized by us may be different from our estimates . in determining the allowance , we estimate losses on individual impaired loans and on groups of loans that are not impaired , where the probable loss can be identified and reasonably estimated . on a quarterly basis , we assess the risk inherent in our loan portfolio based on qualitative and quantitative trends in the portfolio , including the internal risk classification of loans , historical loss rates , changes in the nature and volume of the loan portfolio , industry or borrower concentrations , delinquency trends , detailed reviews of significant loans with identified weaknesses , and the impacts of local , regional , and national economic factors on the quality of the loan portfolio . based on this analysis , we may record a provision for loan losses in order to maintain the allowance at appropriate levels . for a more complete discussion of the methodology employed to calculate the allowance for loan losses , see note 1 to our consolidated financial statements for the year ended december 31 , 2017 , which is included elsewhere in this report . story_separator_special_tag replace_table_token_9_th 2017 compared to 2016 the largest increase between 2016 and 2017 within noninterest expense was related to the new lease of our corporate headquarters which we moved into in the first quarter of 2017. this new lease resulted in an increase in occupancy expense of 35.2 % . data processing and software expense increased from 2016 to 2017 due to an increase in the volume of transactions and implementation of new software in our mortgage banking line of business . the increase in equipment expense from 2016 to 2017 is related to the increasing cost of managing our it network . a decrease in other operating expense of 12.7 % , in 2017 compared to 2016 was primarily due to the fact that we did not have to significantly adjust contingent consideration expense in 2017. our contingent consideration expense is the result of our acquisition of farmington financial group , llc in 2014. as mortgage origination volumes change from our original estimates the resulting increase or decrease in contingent consideration is recorded in other operating expense . our efficiency ratio ( ratio of noninterest expense to the sum of net interest income and noninterest income ) was 64.0 % and 66.9 % for 2017 and 2016 , respectively . the efficiency ratio measures the amount of expense that is incurred to generate a dollar of revenue . the efficiency ratio was positively impacted by growth in our net interest income and noninterest income that outpaced our increases in expenses . for 2017 , our revenue base ( net interest income plus noninterest income ) grew at rate of approximately three times our noninterest expense . 2016 compared to 2015 the largest increase between 2015 and 2016 within noninterest expense was related to employee costs as salaries and employee benefits increased due to our expanded presence in the nashville msa . at december 31 , 2016 , the number of our full-time equivalent employees had increased to 170 as compared to 162 at december 31 , 2015. the increase in equipment expense from 2015 to 2016 is related to the increasing cost of managing our it network . regulatory fees increased 19.2 % in 2016 compared to 2015 primarily as a result of increasing fdic insurance expense . the fdic modified the way insurance assessments are calculated and this change took place in the third quarter of 2016 , increasing our expense compared to prior periods . an increase in other operating expense of 14.2 % , in 2016 compared to 2015 was primarily the result of increasing contingent consideration expenses associated with our mortgage line of business . our efficiency ratio was 66.9 % and 71.0 % for 2016 and 2015 , respectively . the efficiency ratio was positively impacted by growth in our net interest income and noninterest income that outpaced our increases in expenses . for 2016 , our revenue base ( net interest income plus noninterest income ) grew at rate of approximately two times our noninterest expense . 46 income taxes 2017 compared to 2016 we recorded income tax expense of $ 4.6 million and $ 4.5 million in 2017 and 2016 , respectively . our effective income tax rate for 2017 and 2016 was 75.5 % and 33.1 % , respectively . our effective tax rate differs from the statutory tax rate by our investments in municipal securities , company owned life insurance , state tax credits , net of the effect of certain non-deductible expenses and the recognition of excess tax benefits related to stock compensation and the 2017 tax law change . on december 22 , 2017 , the tax reform act was enacted into law . the tax reform act provides for significant changes to the u.s. tax code that impact businesses . effective january 1 , 2018 , the u.s. federal tax rate for corporations was reduced from 35 % to 21 % , for u.s. taxable income and requires a one-time re-measurement of deferred taxes to reflect their value at a lower tax rate of 21 % . accordingly , the company re-measured its deferred tax assets based on the rates at which they are expected to reverse in the future , which is generally 21 % . as a result of the reduction in the corporate income tax rate , the company is required to revalue its net deferred tax assets to account for the future impact of lower corporate tax rates on this deferred amount and record any change in the value of such assets as a one-time , non-cash charge on its income statement . as a result of the tax reform act , we recorded a $ 3.56 million increase in income tax expense for 2017. if we adjust this $ 3.56 million write-down out of income tax expense , our adjusted effective tax rate for 2017 would have been 17.5 % . this lower adjusted effective tax rate is due to lower taxable income and recognition of excess tax benefits related to stock compensation . however , the company is still analyzing certain aspects of the tax reform act and refining its calculations , which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts . we are required to recognize the effect of the tax law changes in the period of enactment , such as re-measuring our deferred tax assets as well as reassessing the net realizability of our deferred tax assets . in december 2017 , the sec staff issued staff accounting bulletin no . 118 , income tax accounting implications of the tax cuts and jobs act ( sab 118 ) , which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . since the tax reform act was passed late in the fourth quarter of 2017 , and ongoing guidance and accounting interpretation is expected over the next 12 months , we

