the most significant accounting policies we follow are presented in note 1 to the consolidated financial statements . application of these principles requires us to make estimates , assumptions , and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes . most accounting policies are not considered by management to be critical accounting policies . several factors are considered in determining whether or not a policy is critical in the preparation of the consolidated financial statements . these factors include among other things , whether the policy requires management to make difficult , subjective , and complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions . the accounting policies which we believe to be most critical in preparing our consolidated financial statements are those that are related to the determination of the reserve for credit losses , fair value estimates , leased asset residual values , and income taxes . reserve for credit losses a consequence of lending activities is that we may incur credit losses . the amount of such losses will vary depending upon the risk characteristics of the loan and lease portfolio as affected by economic conditions such as rising interest rates and the financial performance of borrowers . the reserve for credit losses consists of the allowance for loan and lease losses ( the “ allowance ” ) and the reserve for unfunded commitments ( the “ unfunded reserve ” ) . the allowance provides for probable and estimable losses 20 inherent in our loan and lease portfolio . the allowance is increased or decreased through the provisioning process . there is no exact method of predicting specific losses or amounts that ultimately may be charged-off on particular segments of the loan and lease portfolio . the unfunded reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit . the level of the unfunded reserve is adjusted by recording an expense or recovery in other noninterest expense . management 's evaluation of the adequacy of the reserve for credit losses is often the most critical of accounting estimates for a financial institution . our determination of the amount of the reserve for credit losses is a critical accounting estimate as it requires significant reliance on the accuracy of credit risk ratings on individual borrowers , the use of estimates and significant judgment as to the amount and timing of expected future cash flows on impaired loans , significant reliance on estimated loss rates on homogenous portfolios , and consideration of our quantitative and qualitative evaluation of economic factors and trends . while our methodology in establishing the reserve for credit losses attributes portions of the allowance and unfunded reserve to the commercial and consumer portfolio segments , the entire allowance and unfunded reserve is available to absorb credit losses inherent in the total loan and lease portfolio and total amount of unfunded credit commitments , respectively . the reserve for credit losses related to our commercial portfolio segment is generally most sensitive to the accuracy of credit risk ratings assigned to each borrower . commercial loan risk ratings are evaluated based on each situation by experienced senior credit officers and are subject to periodic review by an independent internal team of credit specialists . the reserve for credit losses related to our consumer portfolio segment is generally most sensitive to economic assumptions and delinquency trends . the reserve for credit losses attributable to each portfolio segment also includes an amount for inherent risks not reflected in the historical analyses . relevant factors include , but are not limited to , concentrations of credit risk ( geographic , large borrower , and industry ) , economic trends and conditions , changes in underwriting standards , experience and depth of lending staff , trends in delinquencies , and the level of criticized and classified loans . see note 4 to the consolidated financial statements and the “ corporate risk profile – credit risk ” section in management 's discussion and analysis of financial condition and results of operations ( “ md & a ” ) for more information on the allowance and the unfunded reserve . fair value measurements fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date . the degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market inputs . for financial instruments that are traded actively and have quoted market prices or observable market inputs , there is minimal subjectivity involved in measuring fair value . however , when quoted market prices or observable market inputs are not fully available , significant management judgment may be necessary to estimate fair value . in developing our fair value measurements , we maximize the use of observable inputs and minimize the use of unobservable inputs . the fair value hierarchy defines level 1 valuations as those based on quoted prices , unadjusted , for identical instruments traded in active markets . level 2 valuations are those based on quoted prices for similar instruments in active markets , quoted prices for identical or similar instruments in markets that are not active , or model-based valuation techniques for which all significant assumptions are observable in the market . level 3 valuations are based on model-based techniques that use at least one significant assumption not observable in the market , or significant management judgment or estimation , some of which may be internally developed . story_separator_special_tag total shareholders ' equity was $ 1.2 billion as of december 31 , 2016 , an increase of $ 45.3 million or 4 % from december 31 , 2015 . we continued to return capital to our shareholders in the form of share repurchases and dividends . during 2016 , we repurchased 906,160 shares of common stock at a total cost of $ 61.8 million under our share repurchase program and from employees and or directors in connection with income tax withholdings related to the vesting of restricted stock , shares purchased for a deferred compensation plan , and stock swaps , less shares distributed from the deferred compensation plan . we also paid cash dividends of $ 81.2 million during 2016 . 25 analysis of statements of income average balances , related income and expenses , and resulting yields and rates are presented in table 1. an analysis of the change in net interest income , on a taxable-equivalent basis , is presented in table 2. replace_table_token_6_th 1 non-performing loans and leases are included in the respective average loan and lease balances . income , if any , on such loans and leases is recognized on a cash basis . 2 comprised of other consumer revolving credit , installment , and consumer lease financing . 3 interest income includes taxable-equivalent basis adjustments , based upon a federal statutory tax rate of 35 % , of $ 12.0 million for 2016 , $ 11.9 million for 2015 , and $ 11.5 million for 2014 . 26 replace_table_token_7_th 1 the change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns . 2 comprised of other consumer revolving credit , installment , and consumer lease financing . 27 net interest income net interest income is affected by the size and mix of our balance sheet components as well as the spread between interest earned on assets and interest paid on liabilities . net interest margin is defined as net interest income , on a taxable-equivalent basis , as a percentage of average earning assets . net interest income was $ 417.6 million in 2016 , an increase of $ 23.5 million or 6 % compared to 2015 . on a taxable-equivalent basis , net interest income was $ 429.6 million in 2016 , an increase of $ 23.6 million or 6 % compared to 2015 . this increase was primarily due to a higher level of earning assets , including growth in both our commercial and consumer lending portfolios , and higher net interest margin . the higher level of earning assets was primarily due to higher deposit balances . in addition , we recorded an additional $ 1.3 million of interest income in the first quarter of 2016 due to the full recovery of a non-performing commercial and industrial loan . net interest margin was 2.83 % in 2016 , a two basis points increase from 2015 , primarily due to our loans , which generally have higher yields than our investment securities , comprising a larger percentage of our earning assets compared to 2015 . the higher margin in 2016 was also due to the aforementioned interest income recovery . yields on our earning assets increased by three basis points in 2016 compared to 2015 primarily due to the aforementioned shift in the mix of our earning assets from investment securities to loans which generally have higher yields . yields on our commercial and industrial portfolio increased by 24 basis points primarily due to higher year-over-year rates on floating rate loans and due to the aforementioned interest income recovered on a non-performing loan in the first quarter of 2016. partially offsetting the overall yield increase in our earning assets were lower yields in our residential mortgage and commercial mortgage portfolios , and slightly higher funding costs . yields on our residential mortgage portfolio decreased by 13 basis points primarily due to continued payoff activity of higher-rate mortgage loans and the addition of lower-rate mortgage loans to our portfolio . yields on our commercial mortgage portfolio decreased by seven basis points , reflective of the low interest rate environment . in addition , yields on our investment securities portfolio decreased by four basis points primarily due to reinvestment of run-off into lower yielding securities , partially offset by lower premium amortization . interest rates paid on our time deposits increased by 22 basis points due to new public time deposits at higher rates . interest rates paid on our securities sold under agreements to repurchase increased by 24 basis points due to a decrease in repurchase agreements with local government entities which have relatively shorter terms at lower interest rates . the remaining balance in our repurchase agreements consists mainly of those with private entities which have relatively longer terms at higher interest rates . these increases to our funding costs were largely offset by growth in our demand and savings deposits , which generally have lower rates than other funding sources . the average balance of these core deposits increased by $ 343.5 million or 5 % in 2016 compared to 2015. average balances of our earning assets increased by $ 690.0 million or 5 % in 2016 compared to 2015 primarily due to an increase in the average balances of our loans and leases . average balances of our loans and leases portfolio increased by $ 938.6 million primarily due to higher average balances in our commercial mortgage , residential mortgage , and home equity portfolios . the average balance of our commercial mortgage portfolio increased by $ 191.7 million primarily due to increased demand from new and existing customers as the real estate market in hawaii continued to improve . the average balance of our residential mortgage portfolio increased by $ 262.3 million primarily due to an increase in loan origination and refinance activity . the average balance of our

debt securities issued by corporations 5.0 1.7 243.0 1.5 25.0 2.4 — — 273.0 1.6 269.2 mortgage-backed securities 2 residential - government agencies 8.9 3.1 130.8 1.9 100.7 2.2 — — 240.4 2.1 243.8 residential - u.s. government-sponsored enterprises — — 302.9 2.3 208.3 2.1 — — 511.2 2.3 507.0 commercial - government agencies — — 15.9 2.0 73.7 1.7 < td


 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.
     ```debt securities issued by corporations 5.0 1.7 243.0 1.5 25.0 2.4 — — 273.0 1.6 269.2 mortgage-backed securities 2 residential - government agencies 8.9 3.1 130.8 1.9 100.7 2.2 — — 240.4 2.1 243.8 residential - u.s. government-sponsored enterprises — — 302.9 2.3 208.3 2.1 — — 511.2 2.3 507.0 commercial - government agencies — — 15.9 2.0 73.7 1.7 < td
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 Suspicious Activity Report : the most significant accounting policies we follow are presented in note 1 to the consolidated financial statements . application of these principles requires us to make estimates , assumptions , and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes . most accounting policies are not considered by management to be critical accounting policies . several factors are considered in determining whether or not a policy is critical in the preparation of the consolidated financial statements . these factors include among other things , whether the policy requires management to make difficult , subjective , and complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions . the accounting policies which we believe to be most critical in preparing our consolidated financial statements are those that are related to the determination of the reserve for credit losses , fair value estimates , leased asset residual values , and income taxes . reserve for credit losses a consequence of lending activities is that we may incur credit losses . the amount of such losses will vary depending upon the risk characteristics of the loan and lease portfolio as affected by economic conditions such as rising interest rates and the financial performance of borrowers . the reserve for credit losses consists of the allowance for loan and lease losses ( the “ allowance ” ) and the reserve for unfunded commitments ( the “ unfunded reserve ” ) . the allowance provides for probable and estimable losses 20 inherent in our loan and lease portfolio . the allowance is increased or decreased through the provisioning process . there is no exact method of predicting specific losses or amounts that ultimately may be charged-off on particular segments of the loan and lease portfolio . the unfunded reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit . the level of the unfunded reserve is adjusted by recording an expense or recovery in other noninterest expense . management 's evaluation of the adequacy of the reserve for credit losses is often the most critical of accounting estimates for a financial institution . our determination of the amount of the reserve for credit losses is a critical accounting estimate as it requires significant reliance on the accuracy of credit risk ratings on individual borrowers , the use of estimates and significant judgment as to the amount and timing of expected future cash flows on impaired loans , significant reliance on estimated loss rates on homogenous portfolios , and consideration of our quantitative and qualitative evaluation of economic factors and trends . while our methodology in establishing the reserve for credit losses attributes portions of the allowance and unfunded reserve to the commercial and consumer portfolio segments , the entire allowance and unfunded reserve is available to absorb credit losses inherent in the total loan and lease portfolio and total amount of unfunded credit commitments , respectively . the reserve for credit losses related to our commercial portfolio segment is generally most sensitive to the accuracy of credit risk ratings assigned to each borrower . commercial loan risk ratings are evaluated based on each situation by experienced senior credit officers and are subject to periodic review by an independent internal team of credit specialists . the reserve for credit losses related to our consumer portfolio segment is generally most sensitive to economic assumptions and delinquency trends . the reserve for credit losses attributable to each portfolio segment also includes an amount for inherent risks not reflected in the historical analyses . relevant factors include , but are not limited to , concentrations of credit risk ( geographic , large borrower , and industry ) , economic trends and conditions , changes in underwriting standards , experience and depth of lending staff , trends in delinquencies , and the level of criticized and classified loans . see note 4 to the consolidated financial statements and the “ corporate risk profile – credit risk ” section in management 's discussion and analysis of financial condition and results of operations ( “ md & a ” ) for more information on the allowance and the unfunded reserve . fair value measurements fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date . the degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market inputs . for financial instruments that are traded actively and have quoted market prices or observable market inputs , there is minimal subjectivity involved in measuring fair value . however , when quoted market prices or observable market inputs are not fully available , significant management judgment may be necessary to estimate fair value . in developing our fair value measurements , we maximize the use of observable inputs and minimize the use of unobservable inputs . the fair value hierarchy defines level 1 valuations as those based on quoted prices , unadjusted , for identical instruments traded in active markets . level 2 valuations are those based on quoted prices for similar instruments in active markets , quoted prices for identical or similar instruments in markets that are not active , or model-based valuation techniques for which all significant assumptions are observable in the market . level 3 valuations are based on model-based techniques that use at least one significant assumption not observable in the market , or significant management judgment or estimation , some of which may be internally developed . story_separator_special_tag total shareholders ' equity was $ 1.2 billion as of december 31 , 2016 , an increase of $ 45.3 million or 4 % from december 31 , 2015 . we continued to return capital to our shareholders in the form of share repurchases and dividends . during 2016 , we repurchased 906,160 shares of common stock at a total cost of $ 61.8 million under our share repurchase program and from employees and or directors in connection with income tax withholdings related to the vesting of restricted stock , shares purchased for a deferred compensation plan , and stock swaps , less shares distributed from the deferred compensation plan . we also paid cash dividends of $ 81.2 million during 2016 . 25 analysis of statements of income average balances , related income and expenses , and resulting yields and rates are presented in table 1. an analysis of the change in net interest income , on a taxable-equivalent basis , is presented in table 2. replace_table_token_6_th 1 non-performing loans and leases are included in the respective average loan and lease balances . income , if any , on such loans and leases is recognized on a cash basis . 2 comprised of other consumer revolving credit , installment , and consumer lease financing . 3 interest income includes taxable-equivalent basis adjustments , based upon a federal statutory tax rate of 35 % , of $ 12.0 million for 2016 , $ 11.9 million for 2015 , and $ 11.5 million for 2014 . 26 replace_table_token_7_th 1 the change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns . 2 comprised of other consumer revolving credit , installment , and consumer lease financing . 27 net interest income net interest income is affected by the size and mix of our balance sheet components as well as the spread between interest earned on assets and interest paid on liabilities . net interest margin is defined as net interest income , on a taxable-equivalent basis , as a percentage of average earning assets . net interest income was $ 417.6 million in 2016 , an increase of $ 23.5 million or 6 % compared to 2015 . on a taxable-equivalent basis , net interest income was $ 429.6 million in 2016 , an increase of $ 23.6 million or 6 % compared to 2015 . this increase was primarily due to a higher level of earning assets , including growth in both our commercial and consumer lending portfolios , and higher net interest margin . the higher level of earning assets was primarily due to higher deposit balances . in addition , we recorded an additional $ 1.3 million of interest income in the first quarter of 2016 due to the full recovery of a non-performing commercial and industrial loan . net interest margin was 2.83 % in 2016 , a two basis points increase from 2015 , primarily due to our loans , which generally have higher yields than our investment securities , comprising a larger percentage of our earning assets compared to 2015 . the higher margin in 2016 was also due to the aforementioned interest income recovery . yields on our earning assets increased by three basis points in 2016 compared to 2015 primarily due to the aforementioned shift in the mix of our earning assets from investment securities to loans which generally have higher yields . yields on our commercial and industrial portfolio increased by 24 basis points primarily due to higher year-over-year rates on floating rate loans and due to the aforementioned interest income recovered on a non-performing loan in the first quarter of 2016. partially offsetting the overall yield increase in our earning assets were lower yields in our residential mortgage and commercial mortgage portfolios , and slightly higher funding costs . yields on our residential mortgage portfolio decreased by 13 basis points primarily due to continued payoff activity of higher-rate mortgage loans and the addition of lower-rate mortgage loans to our portfolio . yields on our commercial mortgage portfolio decreased by seven basis points , reflective of the low interest rate environment . in addition , yields on our investment securities portfolio decreased by four basis points primarily due to reinvestment of run-off into lower yielding securities , partially offset by lower premium amortization . interest rates paid on our time deposits increased by 22 basis points due to new public time deposits at higher rates . interest rates paid on our securities sold under agreements to repurchase increased by 24 basis points due to a decrease in repurchase agreements with local government entities which have relatively shorter terms at lower interest rates . the remaining balance in our repurchase agreements consists mainly of those with private entities which have relatively longer terms at higher interest rates . these increases to our funding costs were largely offset by growth in our demand and savings deposits , which generally have lower rates than other funding sources . the average balance of these core deposits increased by $ 343.5 million or 5 % in 2016 compared to 2015. average balances of our earning assets increased by $ 690.0 million or 5 % in 2016 compared to 2015 primarily due to an increase in the average balances of our loans and leases . average balances of our loans and leases portfolio increased by $ 938.6 million primarily due to higher average balances in our commercial mortgage , residential mortgage , and home equity portfolios . the average balance of our commercial mortgage portfolio increased by $ 191.7 million primarily due to increased demand from new and existing customers as the real estate market in hawaii continued to improve . the average balance of our residential mortgage portfolio increased by $ 262.3 million primarily due to an increase in loan origination and refinance activity . the average balance of our

