as of june 30 , 2013 , commercial real estate and land loans and commercial business loans represented 34.32 % and 10.04 % of the total loan portfolio , respectively . the purpose of this diversification is to mitigate our dependence on the mortgage market , as well as to improve our ability to manage our interest rate spread . with the acquisition of the sterling bank branches , the investment portfolio grew substantially during the current fiscal year . as such , management is also focused on decreasing the investment portfolio as a percentage of total assets and offset this with growth in the loan portfolio . american federal savings bank 's management recognizes that fee income will also enable it to be less dependent on specialized lending and it now maintains a significant loan serviced portfolio , which provides a steady source of fee income . as of june 30 , 2013 , we had mortgage servicing rights , net of $ 3.19 million compared to $ 2.22 million as of june 30 , 2012. the gain on sale of loans also provides significant fee income in periods of high mortgage loan origination volumes . fee income is also supplemented with fees generated from our deposit accounts . american federal savings bank has a high percentage of non-maturity deposits , such as checking accounts and savings accounts , which allows management flexibility in managing its spread . non-maturity deposits do not automatically reprice as interest rates rise , as do certificates of deposit . for the past three years , management 's focus has been on improving our core earnings . core earnings can be described as income before taxes , with the exclusion of gain on sale of loans and adjustments to the market value of our loans serviced portfolio . management believes that we will need to continue to focus on increasing net interest margin , other areas of fee income , and control operating expenses to achieve earnings growth going forward . management 's strategy of growing the loan portfolio and deposit base is expected to help achieve these goals : loans typically earn higher rates of return than investments ; a larger deposit base will yield higher fee income ; increasing the asset base will reduce the relative impact of fixed operating costs . the biggest challenge to management 's strategy is funding the growth of our balance sheet in an efficient manner . though deposit growth this last year was robust , it may become more difficult to maintain due to significant competition and possible reduced customer demand for deposits as customers may shift into other asset classes . other than in limited circumstances for certain high-credit-quality customers , we do not offer “ interest only ” mortgage loans on one- to four-family residential properties ( where the borrower pays interest but no principal for an initial period , after which the loan converts to a fully amortizing loan ) . we also do not offer loans that provide for negative amortization of principal , such as “ option arm ” loans , where the borrower can pay less than the interest owed on their loan , resulting in an increased principal balance during the life of the loan . we do not offer “ subprime loans ” ( loans that generally target borrowers with weakened credit histories typically characterized by payment delinquencies , previous charge-offs , judgments , bankruptcies , or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios ) or alt-a loans ( traditionally defined as loans having less than full documentation ) . the level and movement of interest rates impacts the bank 's earnings as well . for the 2013 fiscal year the short end of the yield curve was fairly static as the federal open market committee maintained the fed funds rate at a target of 0 to 25 basis points while the long end of the curve moved upward . from time to time the bank has considered growth through mergers or acquisition as an alternative to its strategy of organic growth . in this connection , on june 29 , 2012 , the bank entered into a definitive agreement with sterling savings bank , a washington state-chartered bank , to acquire sterling 's banking operations in the state of montana , including seven branch locations , certain deposit liabilities , loans and other assets and liabilities associated with such branch locations . as a result of this acquisition , which closed on november 30 , 2012 , the bank acquired approximately $ 182.5 million in additional assets , including approximately $ 41.3 million of pass-rated performing loans and assumed $ 181.6 million in new deposits . the bank expects that the increase in its branch network as a result of the sterling branch acquisition will substantially increase its loan origination volume and , due to the substantial increase in deposits , fee income . in addition , the acquisition of the branches is expected to increase certain of the bank 's expenses , including salaries and employee benefits and occupancy and equipment expense . the bank received approximately $ 130.1 million in cash in the transaction , which may not be able to be immediately used to fund loans . while a substantial amount of the cash has been invested in securities , it may require additional time to deploy all of the proceeds to fund loans . the company anticipates that the sterling acquisition will be accretive to earnings per share in the first year after the acquisition . however , the size of the acquisition may cause integration challenges that could delay or reduce the expected benefits of the acquisition . story_separator_special_tag interest and dividend income . total interest and dividend income was $ 14.80 million for the year ended june 30 , 2013 , compared to $ 14.10 million for the year ended june 30 , 2012 , an increase of $ 702,000 , or 4.98 % . interest and fees on loans increased to $ 11.20 million for 2013 from $ 10.88 million for 2012. the increase of $ 316,000 , or 2.90 % , was due to a slight increase in the average balances on loans receivable offset by the decrease in average rates , for the year ended june 30 , 2013. specifically , the average interest rate earned on loans receivable decreased by 40 basis points to 5.37 % from 5.77 % for the prior year . average balances for loans receivable , including loans held for sale , net , for the year ended june 30 , 2013 were $ 208.64 million , compared to $ 188.50 million for the previous year . this represents an increase of $ 20.14 million , or 10.68 % . interest and dividends on investment securities available-for-sale also increased to $ 3.57 million for the year ended june 30 , 2013 from $ 3.19 million for the year ended june 30 , 2012 , an increase of $ 376,000 , or 11.78 % . this increase was the result of higher average balances offset by lower average rates on the afs portfolio during the year . interest earned from deposits at other banks increased slightly for the year ended june 30 , 2013 due to larger average balances . 42 interest expense . total interest expense decreased to $ 2.25 million for the year ended june 30 , 2013 from $ 3.17 million for the year ended june 30 , 2012 , a decrease of $ 918,000 , or 29.0 % . interest on deposits increased to $ 1.20 million for the year ended june 30 , 2013 from $ 1.07 million for the year ended june 30 , 2012. this increase of $ 124,000 , or 11.55 % , was due primarily to an increase in average balances . average balances of deposits increased from $ 192.46 million to $ 291.83 million , a total increase of $ 99.37 million , or 51.63 % . the average cost of deposits decreased 15 basis points , to 0.41 % in 2013 from 0.56 % in 2012. all deposit categories experienced increases in average balances in 2013. the decrease in the average balance of borrowings was augmented by a decrease in the average rate paid and resulted in a decrease in interest paid on borrowings to $ 1.05 million for the year ended june 30 , 2013 from $ 2.09 million for the year ended june 30 , 2012. the average balance of borrowings decreased by $ 20.03 million to $ 38.78 million for the year ended june 30 , 2013 , compared to $ 58.81 million for the year ended june 30 , 2012 and resulted from decreases in fhlb borrowings and other borrowings stemming from significant inflows of retail deposits as funding sources . the average rate paid on borrowings decreased to 2.70 % in 2013 from 3.55 % in 2012. provision for loan losses . provisions for loan losses are charged to earnings to maintain the total allowance for loan losses at a level considered adequate by the bank to provide for probable loan losses based on prior loss experience , volume and type of lending we conduct and past due loans in portfolio . the bank 's policies require the review of assets on a quarterly basis . the bank classifies loans as well as other assets if warranted . while management believes it uses the best information available to make a determination with respect to the allowance for loan losses , it recognizes that future adjustments may be necessary . using this methodology , a provision to increase the allowance for loan loss by $ 678,000 was made for the year ended june 30 , 2013 while a provision of $ 1.10 million was made for the year ended june 30 , 2012. this , management believes , adequately reflected a level of total allowances considered adequate . total classified assets decreased to $ 2.56 million at june 30 , 2013 from $ 6.31 million at june 30 , 2012. total nonperforming loans as a percentage of the total loan portfolio decreased to 0.36 % at june 30 , 2013 , from 1.85 % at june 30 , 2012. as of june 30 , 2013 , american federal savings bank had $ 550,000 ( $ 704,000 net of allowance for valuation losses of $ 154,000 ) in other real estate owned , a decrease of $ 1.81 million from the $ 2.37 million held at june 30 , 2012. noninterest income . total noninterest income increased to $ 10.31 million for the year ended june 30 , 2013 , from $ 4.17 million for the year ended june 30 , 2012 , an increase of $ 6.14 million or 147.10 % . this increase was primarily due to decrease in net gain on sale of loans of $ 3.72 million and a net increase of $ 621,000 in the value of the fair-value-hedge interest rate swap implemented in august 2010. service charges on deposit accounts increased $ 138,000 to $ 810,000 for the year ended june 30 , 2013 from $ 672,000 for the year ended june 30 , 2012. this was primarily due to an increase in overdraft fees . gain on sale of available for sale securities increased $ 771,000. other noninterest income increased $ 775,000 to $ 1.62 million , which primarily was from increased balances in bank owned life insurance . the single largest item in other noninterest income is earnings from bank owned life insurance of $ 360,000. noninterest expense . noninterest expense increased by $ 9.83 million or 89.09 %

liquidity and capital resources eagle 's subsidiary , american federal savings bank , is required to maintain minimum levels of liquid assets as defined by the office of the comptroller of the currency regulations . the liquidity requirement is retained for safety and soundness purposes , and that appropriate levels of liquidity will depend upon the types of activities in which the company engages . for internal reporting purposes , the bank uses policy minimums of 1.0 % , and 8.0 % for “ basic surplus ” and “ basic surplus with fhlb ” as internally defined . in general , the “ basic surplus ” is a calculation of the ratio of unencumbered short-term assets reduced by estimated percentages of cd maturities and other deposits that may leave the bank in the next 90 days divided by total assets . “ basic surplus with fhlb ” adds to “ basic surplus ” the additional borrowing capacity the bank has with the fhlb of seattle . the bank exceeded those minimum ratios as of both june 30 , 2013 and june 30 , 2012. the bank 's primary sources of funds are deposits , repayment of loans and mortgage-backed securities , maturities of investments , funds provided from operations , advances from the fhlb of seattle and other borrowings . scheduled repayments of loans and mortgage-backed securities and maturities of investment securities are generally predictable . however , other sources of funds , such as deposit flows and loan prepayments , can be greatly influenced by the general level of interest rates , economic conditions and competition . the bank uses liquidity resources principally to fund existing and future loan commitments . it also uses them to fund maturing certificates of deposit , demand deposit withdrawals and to invest in other loans and investments , maintain liquidity , and meet operating expenses . net cash used by the company 's operating activities , which is primarily comprised of cash transactions affecting net income , was $ 6.87


 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 and capital resources eagle 's subsidiary , american federal savings bank , is required to maintain minimum levels of liquid assets as defined by the office of the comptroller of the currency regulations . the liquidity requirement is retained for safety and soundness purposes , and that appropriate levels of liquidity will depend upon the types of activities in which the company engages . for internal reporting purposes , the bank uses policy minimums of 1.0 % , and 8.0 % for “ basic surplus ” and “ basic surplus with fhlb ” as internally defined . in general , the “ basic surplus ” is a calculation of the ratio of unencumbered short-term assets reduced by estimated percentages of cd maturities and other deposits that may leave the bank in the next 90 days divided by total assets . “ basic surplus with fhlb ” adds to “ basic surplus ” the additional borrowing capacity the bank has with the fhlb of seattle . the bank exceeded those minimum ratios as of both june 30 , 2013 and june 30 , 2012. the bank 's primary sources of funds are deposits , repayment of loans and mortgage-backed securities , maturities of investments , funds provided from operations , advances from the fhlb of seattle and other borrowings . scheduled repayments of loans and mortgage-backed securities and maturities of investment securities are generally predictable . however , other sources of funds , such as deposit flows and loan prepayments , can be greatly influenced by the general level of interest rates , economic conditions and competition . the bank uses liquidity resources principally to fund existing and future loan commitments . it also uses them to fund maturing certificates of deposit , demand deposit withdrawals and to invest in other loans and investments , maintain liquidity , and meet operating expenses . net cash used by the company 's operating activities , which is primarily comprised of cash transactions affecting net income , was $ 6.87
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 Suspicious Activity Report : as of june 30 , 2013 , commercial real estate and land loans and commercial business loans represented 34.32 % and 10.04 % of the total loan portfolio , respectively . the purpose of this diversification is to mitigate our dependence on the mortgage market , as well as to improve our ability to manage our interest rate spread . with the acquisition of the sterling bank branches , the investment portfolio grew substantially during the current fiscal year . as such , management is also focused on decreasing the investment portfolio as a percentage of total assets and offset this with growth in the loan portfolio . american federal savings bank 's management recognizes that fee income will also enable it to be less dependent on specialized lending and it now maintains a significant loan serviced portfolio , which provides a steady source of fee income . as of june 30 , 2013 , we had mortgage servicing rights , net of $ 3.19 million compared to $ 2.22 million as of june 30 , 2012. the gain on sale of loans also provides significant fee income in periods of high mortgage loan origination volumes . fee income is also supplemented with fees generated from our deposit accounts . american federal savings bank has a high percentage of non-maturity deposits , such as checking accounts and savings accounts , which allows management flexibility in managing its spread . non-maturity deposits do not automatically reprice as interest rates rise , as do certificates of deposit . for the past three years , management 's focus has been on improving our core earnings . core earnings can be described as income before taxes , with the exclusion of gain on sale of loans and adjustments to the market value of our loans serviced portfolio . management believes that we will need to continue to focus on increasing net interest margin , other areas of fee income , and control operating expenses to achieve earnings growth going forward . management 's strategy of growing the loan portfolio and deposit base is expected to help achieve these goals : loans typically earn higher rates of return than investments ; a larger deposit base will yield higher fee income ; increasing the asset base will reduce the relative impact of fixed operating costs . the biggest challenge to management 's strategy is funding the growth of our balance sheet in an efficient manner . though deposit growth this last year was robust , it may become more difficult to maintain due to significant competition and possible reduced customer demand for deposits as customers may shift into other asset classes . other than in limited circumstances for certain high-credit-quality customers , we do not offer “ interest only ” mortgage loans on one- to four-family residential properties ( where the borrower pays interest but no principal for an initial period , after which the loan converts to a fully amortizing loan ) . we also do not offer loans that provide for negative amortization of principal , such as “ option arm ” loans , where the borrower can pay less than the interest owed on their loan , resulting in an increased principal balance during the life of the loan . we do not offer “ subprime loans ” ( loans that generally target borrowers with weakened credit histories typically characterized by payment delinquencies , previous charge-offs , judgments , bankruptcies , or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios ) or alt-a loans ( traditionally defined as loans having less than full documentation ) . the level and movement of interest rates impacts the bank 's earnings as well . for the 2013 fiscal year the short end of the yield curve was fairly static as the federal open market committee maintained the fed funds rate at a target of 0 to 25 basis points while the long end of the curve moved upward . from time to time the bank has considered growth through mergers or acquisition as an alternative to its strategy of organic growth . in this connection , on june 29 , 2012 , the bank entered into a definitive agreement with sterling savings bank , a washington state-chartered bank , to acquire sterling 's banking operations in the state of montana , including seven branch locations , certain deposit liabilities , loans and other assets and liabilities associated with such branch locations . as a result of this acquisition , which closed on november 30 , 2012 , the bank acquired approximately $ 182.5 million in additional assets , including approximately $ 41.3 million of pass-rated performing loans and assumed $ 181.6 million in new deposits . the bank expects that the increase in its branch network as a result of the sterling branch acquisition will substantially increase its loan origination volume and , due to the substantial increase in deposits , fee income . in addition , the acquisition of the branches is expected to increase certain of the bank 's expenses , including salaries and employee benefits and occupancy and equipment expense . the bank received approximately $ 130.1 million in cash in the transaction , which may not be able to be immediately used to fund loans . while a substantial amount of the cash has been invested in securities , it may require additional time to deploy all of the proceeds to fund loans . the company anticipates that the sterling acquisition will be accretive to earnings per share in the first year after the acquisition . however , the size of the acquisition may cause integration challenges that could delay or reduce the expected benefits of the acquisition . story_separator_special_tag interest and dividend income . total interest and dividend income was $ 14.80 million for the year ended june 30 , 2013 , compared to $ 14.10 million for the year ended june 30 , 2012 , an increase of $ 702,000 , or 4.98 % . interest and fees on loans increased to $ 11.20 million for 2013 from $ 10.88 million for 2012. the increase of $ 316,000 , or 2.90 % , was due to a slight increase in the average balances on loans receivable offset by the decrease in average rates , for the year ended june 30 , 2013. specifically , the average interest rate earned on loans receivable decreased by 40 basis points to 5.37 % from 5.77 % for the prior year . average balances for loans receivable , including loans held for sale , net , for the year ended june 30 , 2013 were $ 208.64 million , compared to $ 188.50 million for the previous year . this represents an increase of $ 20.14 million , or 10.68 % . interest and dividends on investment securities available-for-sale also increased to $ 3.57 million for the year ended june 30 , 2013 from $ 3.19 million for the year ended june 30 , 2012 , an increase of $ 376,000 , or 11.78 % . this increase was the result of higher average balances offset by lower average rates on the afs portfolio during the year . interest earned from deposits at other banks increased slightly for the year ended june 30 , 2013 due to larger average balances . 42 interest expense . total interest expense decreased to $ 2.25 million for the year ended june 30 , 2013 from $ 3.17 million for the year ended june 30 , 2012 , a decrease of $ 918,000 , or 29.0 % . interest on deposits increased to $ 1.20 million for the year ended june 30 , 2013 from $ 1.07 million for the year ended june 30 , 2012. this increase of $ 124,000 , or 11.55 % , was due primarily to an increase in average balances . average balances of deposits increased from $ 192.46 million to $ 291.83 million , a total increase of $ 99.37 million , or 51.63 % . the average cost of deposits decreased 15 basis points , to 0.41 % in 2013 from 0.56 % in 2012. all deposit categories experienced increases in average balances in 2013. the decrease in the average balance of borrowings was augmented by a decrease in the average rate paid and resulted in a decrease in interest paid on borrowings to $ 1.05 million for the year ended june 30 , 2013 from $ 2.09 million for the year ended june 30 , 2012. the average balance of borrowings decreased by $ 20.03 million to $ 38.78 million for the year ended june 30 , 2013 , compared to $ 58.81 million for the year ended june 30 , 2012 and resulted from decreases in fhlb borrowings and other borrowings stemming from significant inflows of retail deposits as funding sources . the average rate paid on borrowings decreased to 2.70 % in 2013 from 3.55 % in 2012. provision for loan losses . provisions for loan losses are charged to earnings to maintain the total allowance for loan losses at a level considered adequate by the bank to provide for probable loan losses based on prior loss experience , volume and type of lending we conduct and past due loans in portfolio . the bank 's policies require the review of assets on a quarterly basis . the bank classifies loans as well as other assets if warranted . while management believes it uses the best information available to make a determination with respect to the allowance for loan losses , it recognizes that future adjustments may be necessary . using this methodology , a provision to increase the allowance for loan loss by $ 678,000 was made for the year ended june 30 , 2013 while a provision of $ 1.10 million was made for the year ended june 30 , 2012. this , management believes , adequately reflected a level of total allowances considered adequate . total classified assets decreased to $ 2.56 million at june 30 , 2013 from $ 6.31 million at june 30 , 2012. total nonperforming loans as a percentage of the total loan portfolio decreased to 0.36 % at june 30 , 2013 , from 1.85 % at june 30 , 2012. as of june 30 , 2013 , american federal savings bank had $ 550,000 ( $ 704,000 net of allowance for valuation losses of $ 154,000 ) in other real estate owned , a decrease of $ 1.81 million from the $ 2.37 million held at june 30 , 2012. noninterest income . total noninterest income increased to $ 10.31 million for the year ended june 30 , 2013 , from $ 4.17 million for the year ended june 30 , 2012 , an increase of $ 6.14 million or 147.10 % . this increase was primarily due to decrease in net gain on sale of loans of $ 3.72 million and a net increase of $ 621,000 in the value of the fair-value-hedge interest rate swap implemented in august 2010. service charges on deposit accounts increased $ 138,000 to $ 810,000 for the year ended june 30 , 2013 from $ 672,000 for the year ended june 30 , 2012. this was primarily due to an increase in overdraft fees . gain on sale of available for sale securities increased $ 771,000. other noninterest income increased $ 775,000 to $ 1.62 million , which primarily was from increased balances in bank owned life insurance . the single largest item in other noninterest income is earnings from bank owned life insurance of $ 360,000. noninterest expense . noninterest expense increased by $ 9.83 million or 89.09 %

