economic factors that impact the company include the general level of economic activity that can affect the volume and size of invoices processed , the ability to hire and retain qualified staff , and the growth and quality of the loan portfolio . the general level of interest rates also has a significant effect on the revenue of the company . as discussed in greater detail in item 7a , quantitative and qualitative disclosures about market risk ,  a decline in the general level of interest rates can have a negative impact on net interest income . on january 6 , 2012 , the company acquired the assets of waste reduction consultants , inc. , ( wrc ) a provider of environmental expense management services . this acquisition positions the company to expand its portfolio of services for controlling facility-related expenses and accelerates cass ' leadership position as a back-office business processor . the results of operations for this new service are included in the information services business segment . in 2013 , total fee revenue and other income increased $ 5,434,000 , or 8 % , net interest income after provision for loan losses decreased $ 2,140,000 , or 5 % , and total operating expenses increased $ 3,753,000 , or 5 % . these results were driven by a 4,330,000 , or 9 % , increase in items processed and $ 1,927,296,000 , or 6 % , increase in dollars processed in 2013. gains on sales of investments securities were up significantly , by $ 1,389,000 , or 53 % , as the company took advantage of market gains . the asset quality of the company 's loans and investments as of december 31 , 2013 remained strong . currently , management views cass ' major opportunity as the continued expansion of its payment and information processing service offerings and customer base . management intends to accomplish this by maintaining the company 's leadership position in applied technology , which when combined with the security and processing controls of the bank , makes cass unique in the industry . impact of new and not yet adopted accounting pronouncements the new accounting pronouncements are not applicable to the company and or do not materially impact the company . critical accounting policies the company has prepared the consolidated financial statements in this report in accordance with the fasb accounting standards codification ( asc ) . in preparing the consolidated financial statements , management makes estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . these estimates have been generally accurate in the past , have been consistent and have not required any material changes . there can be no assurances that actual results will not differ from those estimates . certain accounting policies that require significant management estimates and are deemed critical to the company 's results of operations or financial position have been discussed with the audit committee of the board of directors and are described below . 15 investment in debt securities . the company classifies its debt marketable securities as available-for-sale . securities classified as available-for-sale are carried at fair value . unrealized gains and losses , net of the related tax effect , are excluded from earnings and reported in accumulated other comprehensive income , a component of shareholders ' equity . a decline in the fair value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security . to determine whether impairment is other than temporary , the company considers whether it is more likely than not that the company will not be required to sell prior to recovery of the amortized cost basis . evidence considered in this assessment includes the reasons for impairment , the severity and duration of the impairment , changes in value subsequent to year-end and forecasted performance of the investee . allowance for loan losses . the company performs periodic and systematic detailed reviews of its loan portfolio to assess overall collectability . the level of the allowance for loan losses reflects management 's estimate of the collectability of the loan portfolio . although these estimates are based on established methodologies for determining allowance requirements , actual results can differ significantly from estimated results . these policies affect both segments of the company . the impact and associated risks related to these policies on the company 's business operations are discussed in the provision and allowance for loan losses section of this report . the company 's estimates have been materially accurate in the past , and accordingly , the company expects to continue to utilize the present processes . impairment of assets . the company periodically evaluates certain long-term assets such as intangible assets including goodwill , foreclosed assets and assets held for sale for impairment . generally , these assets are initially recorded at cost , and recognition of impairment is required when events and circumstances indicate that the carrying amounts of these assets will not be recoverable in the future . if impairment occurs , various methods of measuring impairment may be called for depending on the circumstances and type of asset , including quoted market prices , estimates based on similar assets , and estimates based on valuation techniques such as discounted projected cash flows . the company had no impairment of goodwill and intangible assets for the fiscal years ended december 31 , 2013 , 2012 , and 2011 and management does not anticipate any future impairment loss . investment securities available-for-sale are measured at fair value as determined by an independent research firm . story_separator_special_tag 21 replace_table_token_11_th 1 although specific allocations exist , the entire allowance is available to absorb losses in any particular loan category . nonperforming assets nonperforming loans are defined as loans on non-accrual status and loans 90 days or more past due but still accruing . nonperforming assets include nonperforming loans plus foreclosed real estate . troubled debt restructurings are not included in nonperforming loans unless they are on non-accrual status or past due 90 days or more . it is the policy of the company to continually monitor its loan portfolio and to discontinue the accrual of interest on any loan for which collection is not probable . subsequent payments received on such loans are applied to principal if collection of principal is not probable ; otherwise , these receipts are recorded as interest income . interest on nonaccrual loans , which would have been recorded under the original terms of the loans , was approximately $ 180,000 and $ 381,000 for the years ended december 31 , 2013 and 2012 , respectively . of this amount , approximately $ 131,000 and $ 141,000 was actually recorded as interest income on such loans during the years ended december 31 , 2013 and 2012 , respectively . total nonaccrual loans at december 31 , 2013 consists of six loans totaling $ 1,797,000 that relate to businesses/churches that have weak financial positions and or are in liquidation . allocations of the allowance for loan losses have been established for the estimated loss exposure . there were no foreclosed assets at december 31 , 2013 . 22 the company does not have any foreign loans . the company 's loan portfolio does not include a significant amount of single family real estate mortgages , as the company does not market its services to retail customers . also , the company had no sub-prime mortgage loans or residential development loans in its portfolio in any of the years presented . the company does not have any other interest-earning assets which would have been included in nonaccrual , past due or restructured loans if such assets were loans . replace_table_token_12_th * in february 2013 , a payment of $ 4,115,000 was received for one nonaccrual loan with a balance of $ 4,198,000 . $ 83,000 was charged off . operating expenses operating expenses in 2013 compared to 2012 include the following significant pre-tax components : salaries and employee benefits expense increased $ 3,159,000 , or 5 % , to $ 65,722,000. an increase in the number of employees to support the additional volume primarily drove this increase . occupancy expense increased $ 717,000 , or 33 % , due to the new company headquarters and bank headquarters . equipment expense increased $ 294,000 to $ 3,810,000 primarily due to depreciation on additional systems software . amortization of intangibles decreased $ 46,000 to $ 535,000. other operating expense decreased $ 371,000 , or 3 % , to $ 11,145,000 primarily due to a decrease in legal fees . operating expenses in 2012 compared to 2011 include the following significant pre-tax components : salaries and employee benefits expense increased $ 5,990,000 , or 11 % , to $ 62,563,000. an increase in the number of employees , including the wrc acquisition , primarily drove this increase . occupancy expense decreased $ 161,000 , or 7 % . equipment expense decreased $ 9,000 , to $ 3,516,000. amortization of intangibles increased $ 474,000 to $ 581,000 due to the purchase of intangible assets in the acquisition of wrc . amortization was $ 107,000 in 2011. other operating expense decreased $ 990,000 , or 8 % , to $ 11,516,000 primarily due to a decrease in legal fees . income tax expense income tax expense in 2013 totaled $ 7,234,000 compared to $ 7,887,000 and $ 8,497,000 in 2012 and 2011 , respectively . when measured as a percent of income , the company 's effective tax rate was 24 % in 2013 , 25 % in 2012 , and 27 % in 2011. the effective tax rate varies from year-to-year primarily due to changes in the company 's pre-tax income and the amount of investment in tax-exempt municipal bonds . investment portfolio investment portfolio changes from december 31 , 2012 to december 31 , 2013 : state and political subdivision securities decreased $ 21,176,000 , or 6 % , to $ 314,017,000. the investment portfolio provides the company with a significant source of earnings , secondary source of liquidity , and mechanisms to manage the effects of changes in loan demand and interest rates . therefore , the size , asset allocation and maturity distribution of the investment portfolio will vary over time depending on management 's assessment of current and future interest rates , changes in loan demand , changes in the company 's sources of funds and the economic outlook . during this period , the company purchased state and political subdivision securities . these securities all had a or better credit ratings and maturities approaching 15 years . with the additional liquidity provided by the increase in deposits and accounts and drafts payable , the company made these purchases to continue to reduce the level of short-term rate sensitive assets . all purchases were made in accordance with the company 's investment policy . as of december 31 , 2013 , the company had no mortgage-backed securities in its portfolio . 23 there was no single issuer of securities in the investment portfolio at december 31 , 2013 for which the aggregate amortized cost exceeded 10 % of total shareholders ' equity . replace_table_token_13_th replace_table_token_14_th 1 weighted average yield is presented on a tax-equivalent basis assuming a tax rate of 35 % . deposits and accounts and drafts payable noninterest-bearing demand deposits decreased less than 1 % from december 31 , 2012 to $ 143,841,000 at december 31 , 2013. the average balances of these deposits increased less than 1 % in 2013 to $

liquidity the discipline of liquidity management as practiced by the company seeks to ensure that funds are available to fulfill all payment obligations relating to invoices processed as they become due and meet depositor withdrawal requests and borrower credit demands while at the same time maximizing profitability . this is accomplished by balancing changes in demand for funds with changes in supply of funds . primary liquidity to meet demand is provided by short-term liquid assets that can be converted to cash , maturing securities and the ability to obtain funds from external sources . the company 's asset/liability committee ( alco ) has direct oversight responsibility for the company 's liquidity position and profile . management considers both on-balance sheet and off-balance sheet items in its evaluation of liquidity . the balances of liquid assets consist of cash and cash equivalents , which include cash and due from banks , interest-bearing deposits in other financial institutions , federal funds sold , and money market funds , totaled $ 225,262,000 at december 31 , 2013 , an increase of $ 84,174,000 , or 60 % , from december 31 , 2012. at december 31 , 2013 , these assets represented 17 % of total assets . cash and cash equivalents are the company 's and its subsidiaries ' primary source of liquidity to meet future expected and unexpected loan demand , depositor withdrawals or reductions in accounts and drafts payable . 24 secondary sources of liquidity include the investment portfolio and borrowing lines . total investment in debt securities available-for-sale at fair value was $ 317,767,000 at december 31 , 2013 , a decrease of $ 24,168,000 , or 7 % , from december 31 , 2012. these assets represented 24 % of total assets at december 31 , 2013 and were primarily state and political subdivision securities . of the total portfolio , 5 % mature in one year or less , 23 % mature after one year through five years and 72 % mature after five years .


 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 the discipline of liquidity management as practiced by the company seeks to ensure that funds are available to fulfill all payment obligations relating to invoices processed as they become due and meet depositor withdrawal requests and borrower credit demands while at the same time maximizing profitability . this is accomplished by balancing changes in demand for funds with changes in supply of funds . primary liquidity to meet demand is provided by short-term liquid assets that can be converted to cash , maturing securities and the ability to obtain funds from external sources . the company 's asset/liability committee ( alco ) has direct oversight responsibility for the company 's liquidity position and profile . management considers both on-balance sheet and off-balance sheet items in its evaluation of liquidity . the balances of liquid assets consist of cash and cash equivalents , which include cash and due from banks , interest-bearing deposits in other financial institutions , federal funds sold , and money market funds , totaled $ 225,262,000 at december 31 , 2013 , an increase of $ 84,174,000 , or 60 % , from december 31 , 2012. at december 31 , 2013 , these assets represented 17 % of total assets . cash and cash equivalents are the company 's and its subsidiaries ' primary source of liquidity to meet future expected and unexpected loan demand , depositor withdrawals or reductions in accounts and drafts payable . 24 secondary sources of liquidity include the investment portfolio and borrowing lines . total investment in debt securities available-for-sale at fair value was $ 317,767,000 at december 31 , 2013 , a decrease of $ 24,168,000 , or 7 % , from december 31 , 2012. these assets represented 24 % of total assets at december 31 , 2013 and were primarily state and political subdivision securities . of the total portfolio , 5 % mature in one year or less , 23 % mature after one year through five years and 72 % mature after five years .
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 Suspicious Activity Report : economic factors that impact the company include the general level of economic activity that can affect the volume and size of invoices processed , the ability to hire and retain qualified staff , and the growth and quality of the loan portfolio . the general level of interest rates also has a significant effect on the revenue of the company . as discussed in greater detail in item 7a , quantitative and qualitative disclosures about market risk ,  a decline in the general level of interest rates can have a negative impact on net interest income . on january 6 , 2012 , the company acquired the assets of waste reduction consultants , inc. , ( wrc ) a provider of environmental expense management services . this acquisition positions the company to expand its portfolio of services for controlling facility-related expenses and accelerates cass ' leadership position as a back-office business processor . the results of operations for this new service are included in the information services business segment . in 2013 , total fee revenue and other income increased $ 5,434,000 , or 8 % , net interest income after provision for loan losses decreased $ 2,140,000 , or 5 % , and total operating expenses increased $ 3,753,000 , or 5 % . these results were driven by a 4,330,000 , or 9 % , increase in items processed and $ 1,927,296,000 , or 6 % , increase in dollars processed in 2013. gains on sales of investments securities were up significantly , by $ 1,389,000 , or 53 % , as the company took advantage of market gains . the asset quality of the company 's loans and investments as of december 31 , 2013 remained strong . currently , management views cass ' major opportunity as the continued expansion of its payment and information processing service offerings and customer base . management intends to accomplish this by maintaining the company 's leadership position in applied technology , which when combined with the security and processing controls of the bank , makes cass unique in the industry . impact of new and not yet adopted accounting pronouncements the new accounting pronouncements are not applicable to the company and or do not materially impact the company . critical accounting policies the company has prepared the consolidated financial statements in this report in accordance with the fasb accounting standards codification ( asc ) . in preparing the consolidated financial statements , management makes estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . these estimates have been generally accurate in the past , have been consistent and have not required any material changes . there can be no assurances that actual results will not differ from those estimates . certain accounting policies that require significant management estimates and are deemed critical to the company 's results of operations or financial position have been discussed with the audit committee of the board of directors and are described below . 15 investment in debt securities . the company classifies its debt marketable securities as available-for-sale . securities classified as available-for-sale are carried at fair value . unrealized gains and losses , net of the related tax effect , are excluded from earnings and reported in accumulated other comprehensive income , a component of shareholders ' equity . a decline in the fair value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security . to determine whether impairment is other than temporary , the company considers whether it is more likely than not that the company will not be required to sell prior to recovery of the amortized cost basis . evidence considered in this assessment includes the reasons for impairment , the severity and duration of the impairment , changes in value subsequent to year-end and forecasted performance of the investee . allowance for loan losses . the company performs periodic and systematic detailed reviews of its loan portfolio to assess overall collectability . the level of the allowance for loan losses reflects management 's estimate of the collectability of the loan portfolio . although these estimates are based on established methodologies for determining allowance requirements , actual results can differ significantly from estimated results . these policies affect both segments of the company . the impact and associated risks related to these policies on the company 's business operations are discussed in the provision and allowance for loan losses section of this report . the company 's estimates have been materially accurate in the past , and accordingly , the company expects to continue to utilize the present processes . impairment of assets . the company periodically evaluates certain long-term assets such as intangible assets including goodwill , foreclosed assets and assets held for sale for impairment . generally , these assets are initially recorded at cost , and recognition of impairment is required when events and circumstances indicate that the carrying amounts of these assets will not be recoverable in the future . if impairment occurs , various methods of measuring impairment may be called for depending on the circumstances and type of asset , including quoted market prices , estimates based on similar assets , and estimates based on valuation techniques such as discounted projected cash flows . the company had no impairment of goodwill and intangible assets for the fiscal years ended december 31 , 2013 , 2012 , and 2011 and management does not anticipate any future impairment loss . investment securities available-for-sale are measured at fair value as determined by an independent research firm . story_separator_special_tag 21 replace_table_token_11_th 1 although specific allocations exist , the entire allowance is available to absorb losses in any particular loan category . nonperforming assets nonperforming loans are defined as loans on non-accrual status and loans 90 days or more past due but still accruing . nonperforming assets include nonperforming loans plus foreclosed real estate . troubled debt restructurings are not included in nonperforming loans unless they are on non-accrual status or past due 90 days or more . it is the policy of the company to continually monitor its loan portfolio and to discontinue the accrual of interest on any loan for which collection is not probable . subsequent payments received on such loans are applied to principal if collection of principal is not probable ; otherwise , these receipts are recorded as interest income . interest on nonaccrual loans , which would have been recorded under the original terms of the loans , was approximately $ 180,000 and $ 381,000 for the years ended december 31 , 2013 and 2012 , respectively . of this amount , approximately $ 131,000 and $ 141,000 was actually recorded as interest income on such loans during the years ended december 31 , 2013 and 2012 , respectively . total nonaccrual loans at december 31 , 2013 consists of six loans totaling $ 1,797,000 that relate to businesses/churches that have weak financial positions and or are in liquidation . allocations of the allowance for loan losses have been established for the estimated loss exposure . there were no foreclosed assets at december 31 , 2013 . 22 the company does not have any foreign loans . the company 's loan portfolio does not include a significant amount of single family real estate mortgages , as the company does not market its services to retail customers . also , the company had no sub-prime mortgage loans or residential development loans in its portfolio in any of the years presented . the company does not have any other interest-earning assets which would have been included in nonaccrual , past due or restructured loans if such assets were loans . replace_table_token_12_th * in february 2013 , a payment of $ 4,115,000 was received for one nonaccrual loan with a balance of $ 4,198,000 . $ 83,000 was charged off . operating expenses operating expenses in 2013 compared to 2012 include the following significant pre-tax components : salaries and employee benefits expense increased $ 3,159,000 , or 5 % , to $ 65,722,000. an increase in the number of employees to support the additional volume primarily drove this increase . occupancy expense increased $ 717,000 , or 33 % , due to the new company headquarters and bank headquarters . equipment expense increased $ 294,000 to $ 3,810,000 primarily due to depreciation on additional systems software . amortization of intangibles decreased $ 46,000 to $ 535,000. other operating expense decreased $ 371,000 , or 3 % , to $ 11,145,000 primarily due to a decrease in legal fees . operating expenses in 2012 compared to 2011 include the following significant pre-tax components : salaries and employee benefits expense increased $ 5,990,000 , or 11 % , to $ 62,563,000. an increase in the number of employees , including the wrc acquisition , primarily drove this increase . occupancy expense decreased $ 161,000 , or 7 % . equipment expense decreased $ 9,000 , to $ 3,516,000. amortization of intangibles increased $ 474,000 to $ 581,000 due to the purchase of intangible assets in the acquisition of wrc . amortization was $ 107,000 in 2011. other operating expense decreased $ 990,000 , or 8 % , to $ 11,516,000 primarily due to a decrease in legal fees . income tax expense income tax expense in 2013 totaled $ 7,234,000 compared to $ 7,887,000 and $ 8,497,000 in 2012 and 2011 , respectively . when measured as a percent of income , the company 's effective tax rate was 24 % in 2013 , 25 % in 2012 , and 27 % in 2011. the effective tax rate varies from year-to-year primarily due to changes in the company 's pre-tax income and the amount of investment in tax-exempt municipal bonds . investment portfolio investment portfolio changes from december 31 , 2012 to december 31 , 2013 : state and political subdivision securities decreased $ 21,176,000 , or 6 % , to $ 314,017,000. the investment portfolio provides the company with a significant source of earnings , secondary source of liquidity , and mechanisms to manage the effects of changes in loan demand and interest rates . therefore , the size , asset allocation and maturity distribution of the investment portfolio will vary over time depending on management 's assessment of current and future interest rates , changes in loan demand , changes in the company 's sources of funds and the economic outlook . during this period , the company purchased state and political subdivision securities . these securities all had a or better credit ratings and maturities approaching 15 years . with the additional liquidity provided by the increase in deposits and accounts and drafts payable , the company made these purchases to continue to reduce the level of short-term rate sensitive assets . all purchases were made in accordance with the company 's investment policy . as of december 31 , 2013 , the company had no mortgage-backed securities in its portfolio . 23 there was no single issuer of securities in the investment portfolio at december 31 , 2013 for which the aggregate amortized cost exceeded 10 % of total shareholders ' equity . replace_table_token_13_th replace_table_token_14_th 1 weighted average yield is presented on a tax-equivalent basis assuming a tax rate of 35 % . deposits and accounts and drafts payable noninterest-bearing demand deposits decreased less than 1 % from december 31 , 2012 to $ 143,841,000 at december 31 , 2013. the average balances of these deposits increased less than 1 % in 2013 to $

