● in october 2012 , pbi bank entered into a new consent order with the fdic and kdfi . under the new order , the bank agreed to maintain the capital levels required by the june 2011 order and also agreed should the capital levels not be reached , and if directed in writing by the fdic , the bank would develop a plan to immediately raise sufficient capital , or to sell or merge itself into another fdic insured institution . the new consent order also requires the bank to continue to adhere to the plans implemented in response to the june 2011 consent order , and includes the substantive provisions of the june 2011 order . ● in order to comply with the capital requirements of the consent order , management and the board of directors are evaluating appropriate strategies for increasing the company 's capital . these include , among other things , a possible public offering or private placement of common stock to new and existing shareholders . we have engaged sandler o'neill & partners , lp to act as our financial advisor and to assist our board in this evaluation and to assist in evaluating our options for the redemption of our series a preferred stock issued to the us treasury in 2008 under the capital purchase program . 26 ● total assets decreased 20.1 % to $ 1.2 billion at december 31 , 2012 compared with $ 1.5 billion at the 2011 year-end . ● loans decreased 20.9 % to $ 899.1 million compared with $ 1.1 billion at december 31 , 2011 . ● deposits declined 19.5 % to $ 1.1 billion compared with $ 1.3 billion at december 31 , 2011. certificate of deposit balances declined $ 263.8 million to $ 760.6 million at december 31 , 2012 , from $ 1.0 billion at december 31 , 2011. loan proceeds received from the repayment of our commercial real estate and construction and development loans were used primarily to redeem maturing certificates of deposit during the year . demand deposits increased 2.9 % to $ 114.3 million during 2012 compared with $ 111.1 million at december 31 , 2011 . ● net interest margin decreased to 3.31 % for 2012 compared with 3.40 % for 2011. the decrease in margin between periods was due primarily to a reduction in interest earning assets , primarily loans , coupled with lower rates on those assets and elevated non-accrual loan levels . average loans decreased 16.9 % to $ 1.0 billion in 2012 compared with $ 1.2 billion in 2011 . ● non-performing loans increased $ 1.2 million to $ 94.6 million at december 31 , 2012 , compared with $ 93.4 million at december 31 , 2011. the increase was primarily in the commercial real estate segment of our portfolio , partially offset by decreases in the construction and development , and 1-4 family residential real estate segments . non-performing assets increased from $ 134.8 million at december 31 , 2011 , to $ 138.3 million at december 31 , 2012 . ● provision for loan losses decreased $ 22.4 million in 2012 compared with 2011 as the result of shrinking the loan portfolio and lower net loan charge-offs of $ 36.1 million , or 3.50 % of average loans for 2012 , compared with $ 44.3 million , or 3.56 % of average loans for 2011. although lower than the prior year , our provision for loan losses was elevated in 2012 by a strategy change during the third quarter of 2012 related to classified loans which we expect to more quickly remediate by litigation or foreclosure . for loans subject to this expectation , we applied an additional fair value discount ranging from 10 % to 33 % to the underlying collateral in our impairment analysis estimates as resolution of this nature generally results in receiving lower values for real estate collateral in a more aggressive sales environment . this resulted in a provision for loan loss of approximately $ 5.1 million related to these loans . additionally , the provision for loan losses was negatively impacted by the high level of loan charge-offs in our historical loss experience factors , which we use to estimate the general component of our allowance for loan losses as well as additional downgrades within the loan portfolio . ● we continue to execute on our strategy to reduce our commercial real estate and construction and development loans . we reduced construction and development loans by $ 31.2 million to $ 70.3 million , or 82 % of total risk-based capital , at december 31 , 2012 compared with $ 101.5 million , or 85 % of total risk-based capital , at december 31 , 2011. non-owner occupied commercial real estate loans , construction and development loans , and multi-family residential real estate loans as a group were reduced by $ 103.5 million to $ 311.1 million , or 362 % of total risk-based capital , at december 31 , 2012 compared with $ 414.6 million , or 349 % of total risk-based capital , at december 31 , 2011 . ● loans past due 30-59 days increased from $ 17.3 million at december 31 , 2011 to $ 38.2 million at december 31 , 2012 and loans past due 60-89 days increased from $ 3.9 million at december 31 , 2011 , to $ 20.3 million at december 31 , 2012. these increases were primarily in the commercial real estate , construction and development , and multi-family residential real estate segments of our portfolio . story_separator_special_tag based on our annual review , management does not believe our intangible assets are impaired at december 31 , 2012 . 30 stock-based compensation – compensation cost is recognized for stock options and restricted stock awards issued to employees , based on the fair value of these awards at the date of grant . we utilize a black-scholes model , which requires the input of highly subjective assumptions , such as volatility , risk-free interest rates and dividend pay-out rates , to estimate the fair value of stock options , while the market price of the company 's common stock at the date of grant is used for restricted stock awards . compensation cost is recognized over the required service period , generally defined as the vesting period . for awards with graded vesting , compensation cost is recognized on a straight-line basis over the requisite service period for the entire award . valuation of deferred tax asset – we evaluate deferred tax assets for impairment on a quarterly basis . we established a 100 % deferred tax valuation allowance of $ 31.7 million in december 2011 based upon the analysis of our past performance and our expected future performance . we considered all evidence currently available , both positive and negative , in determining , based on the weight of that evidence , the likelihood that the deferred tax asset would be realized . during that review , we determined that the level of our recent historical losses , the level of our non-performing assets , our inability to meet our forecasted levels of earnings in 2011 , our intent to defer payment of dividends on our subordinated debentures and series a preferred stock , and our non-compliance with the capital requirements of our consent order outweighed our forecasted taxable earnings levels for the near and long term . as such , we established a 100 % deferred tax valuation allowance . when evaluating our deferred tax assets for realizability during 2012 , we concluded that a full valuation allowance was still necessary at december 31 , 2012 , due to the additional losses incurred during the year . a return to profitability would enable us to reduce the valuation allowance and thereby offset income tax expense that would otherwise be recognized . examinations of our income tax returns or changes in tax law may impact our deferred tax assets and liabilities as well as our provision for income taxes . contingencies – in the normal course of operations , we are defendants in various legal proceedings . we record contingent liabilities resulting from claims against us when a loss is assessed to be probable and the amount of the loss is reasonably estimable . assessing probability of loss and estimating probable losses requires analysis of multiple factors , including in some cases judgments about the potential actions of third party claimants and courts . recorded contingent liabilities are based on the best information available and actual losses in any future period are inherently uncertain . results of operations the following table summarizes components of income and expense and the change in those components for 2012 compared with 2011 : replace_table_token_5_th net loss of $ 32.9 million for the year ended december 31 , 2012 , decreased $ 74.4 million from net loss of $ 107.3 million for 2011. net loss to common shareholders of $ 33.4 million for the year ended december 31 , 2012 , decreased $ 71.7 million from net loss to common shareholders of $ 105.2 million for 2011. this decrease in net loss was attributable primarily to lower provision for loan losses expense , decreased non-interest expense associated with our oreo , and higher net gain on sales of securities , partially offset by lower net interest income . in addition , the 2011 results included a one-time goodwill impairment charge of $ 23.8 million . 31 the following table summarizes components of income and expense and the change in those components for 2011 compared with 2010 : replace_table_token_6_th net loss of $ 107.3 million for the year ended december 31 , 2011 , increased $ 102.9 million from net loss of $ 4.4 million for 2010. net loss to common shareholders of $ 105.2 million for the year ended december 31 , 2011 , increased $ 99.0 million from net loss to common shareholders of $ 6.2 million for 2010. this decrease in earnings was attributable primarily to a one-time goodwill impairment charge of $ 23.8 million , establishment of a deferred tax asset valuation allowance of $ 31.7 million , increased provision for loan losses expense , and non-interest expenses associated with our oreo . goodwill was determined to be impaired during the second quarter of 2011 as the result of operating losses and a significant drop in value of our common stock which trades on nasdaq . the deferred tax asset is dependent on future levels of income . given our net loss for the past two years , and evaluation of other positive and negative evidence , we established a 100 % valuation allowance for our deferred tax asset in the fourth quarter of 2011. provision for loan losses expense increased $ 32.5 million , or 108.0 % , in comparison with 2010 as a result of an increase in non-performing loans , and an increase in net loan charge-offs to $ 44.3 million , or 3.56 % of average loans for 2011 , compared with $ 22.2 million , or 1.64 % of average loans for 2010. non-interest income decreased $ 261,000 , or 3.7 % , in comparison with 2010 primarily as a result of decreased service charges on deposit accounts . gains on sales of investment securities decreased $ 4.0 million , or 78.5 % in comparison with 2010 due to fewer sales of securities during the year . non-interest expense increased $ 57.8 million , or 124.3 % , in comparison with 2010 primarily as a

liquidity liquidity risk arises from the possibility we may not be able to satisfy current or future financial commitments , or may become unduly reliant on alternative funding sources . the objective of liquidity risk management is to ensure that we meet the cash flow requirements of depositors and borrowers , as well as our operating cash needs , taking into account all on- and off-balance sheet funding demands . liquidity risk management also involves ensuring that we meet our cash flow needs at a reasonable cost . we maintain an investment and funds management policy , which identifies the primary sources of liquidity , establishes procedures for monitoring and measuring liquidity , and establishes minimum liquidity requirements in compliance with regulatory guidance . our asset liability committee continually monitors and reviews our liquidity position . funds are available from a number of sources , including the sale of securities in the available-for-sale portion of the investment portfolio , principal pay-downs on loans and mortgage-backed securities , customer deposit inflows , brokered deposits and other wholesale funding . during 2012 and 2011 , we utilized brokered deposits to supplement our funding strategy . at december 31 , 2012 , these deposits totaled $ 15.0 million compared with $ 118.4 million at december 31 , 2011. we are currently restricted from accepting , renewing , or rolling-over brokered deposits without the prior receipt of a waiver on a case-by-case basis from our regulators . the following table shows at december 31 , 2012 , the amount of our brokered certificates of deposit by time remaining to maturity ( in thousands ) : three months or less $ — three months through six months 15,000 six months through twelve months — over twelve months — total $ 15,000 traditionally , we have borrowed from the fhlb to supplement our funding requirements . at december 31 , 2012 , we had an unused borrowing capacity with the fhlb of $ 23.0 million . after december 31 , 2011 , as a result of our recent financial results , the fhlb changed our collateral arrangements from a blanket pledge of residential mortgage loans to a detailed loan listing requirement .


 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 liquidity risk arises from the possibility we may not be able to satisfy current or future financial commitments , or may become unduly reliant on alternative funding sources . the objective of liquidity risk management is to ensure that we meet the cash flow requirements of depositors and borrowers , as well as our operating cash needs , taking into account all on- and off-balance sheet funding demands . liquidity risk management also involves ensuring that we meet our cash flow needs at a reasonable cost . we maintain an investment and funds management policy , which identifies the primary sources of liquidity , establishes procedures for monitoring and measuring liquidity , and establishes minimum liquidity requirements in compliance with regulatory guidance . our asset liability committee continually monitors and reviews our liquidity position . funds are available from a number of sources , including the sale of securities in the available-for-sale portion of the investment portfolio , principal pay-downs on loans and mortgage-backed securities , customer deposit inflows , brokered deposits and other wholesale funding . during 2012 and 2011 , we utilized brokered deposits to supplement our funding strategy . at december 31 , 2012 , these deposits totaled $ 15.0 million compared with $ 118.4 million at december 31 , 2011. we are currently restricted from accepting , renewing , or rolling-over brokered deposits without the prior receipt of a waiver on a case-by-case basis from our regulators . the following table shows at december 31 , 2012 , the amount of our brokered certificates of deposit by time remaining to maturity ( in thousands ) : three months or less $ — three months through six months 15,000 six months through twelve months — over twelve months — total $ 15,000 traditionally , we have borrowed from the fhlb to supplement our funding requirements . at december 31 , 2012 , we had an unused borrowing capacity with the fhlb of $ 23.0 million . after december 31 , 2011 , as a result of our recent financial results , the fhlb changed our collateral arrangements from a blanket pledge of residential mortgage loans to a detailed loan listing requirement .
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 Suspicious Activity Report : ● in october 2012 , pbi bank entered into a new consent order with the fdic and kdfi . under the new order , the bank agreed to maintain the capital levels required by the june 2011 order and also agreed should the capital levels not be reached , and if directed in writing by the fdic , the bank would develop a plan to immediately raise sufficient capital , or to sell or merge itself into another fdic insured institution . the new consent order also requires the bank to continue to adhere to the plans implemented in response to the june 2011 consent order , and includes the substantive provisions of the june 2011 order . ● in order to comply with the capital requirements of the consent order , management and the board of directors are evaluating appropriate strategies for increasing the company 's capital . these include , among other things , a possible public offering or private placement of common stock to new and existing shareholders . we have engaged sandler o'neill & partners , lp to act as our financial advisor and to assist our board in this evaluation and to assist in evaluating our options for the redemption of our series a preferred stock issued to the us treasury in 2008 under the capital purchase program . 26 ● total assets decreased 20.1 % to $ 1.2 billion at december 31 , 2012 compared with $ 1.5 billion at the 2011 year-end . ● loans decreased 20.9 % to $ 899.1 million compared with $ 1.1 billion at december 31 , 2011 . ● deposits declined 19.5 % to $ 1.1 billion compared with $ 1.3 billion at december 31 , 2011. certificate of deposit balances declined $ 263.8 million to $ 760.6 million at december 31 , 2012 , from $ 1.0 billion at december 31 , 2011. loan proceeds received from the repayment of our commercial real estate and construction and development loans were used primarily to redeem maturing certificates of deposit during the year . demand deposits increased 2.9 % to $ 114.3 million during 2012 compared with $ 111.1 million at december 31 , 2011 . ● net interest margin decreased to 3.31 % for 2012 compared with 3.40 % for 2011. the decrease in margin between periods was due primarily to a reduction in interest earning assets , primarily loans , coupled with lower rates on those assets and elevated non-accrual loan levels . average loans decreased 16.9 % to $ 1.0 billion in 2012 compared with $ 1.2 billion in 2011 . ● non-performing loans increased $ 1.2 million to $ 94.6 million at december 31 , 2012 , compared with $ 93.4 million at december 31 , 2011. the increase was primarily in the commercial real estate segment of our portfolio , partially offset by decreases in the construction and development , and 1-4 family residential real estate segments . non-performing assets increased from $ 134.8 million at december 31 , 2011 , to $ 138.3 million at december 31 , 2012 . ● provision for loan losses decreased $ 22.4 million in 2012 compared with 2011 as the result of shrinking the loan portfolio and lower net loan charge-offs of $ 36.1 million , or 3.50 % of average loans for 2012 , compared with $ 44.3 million , or 3.56 % of average loans for 2011. although lower than the prior year , our provision for loan losses was elevated in 2012 by a strategy change during the third quarter of 2012 related to classified loans which we expect to more quickly remediate by litigation or foreclosure . for loans subject to this expectation , we applied an additional fair value discount ranging from 10 % to 33 % to the underlying collateral in our impairment analysis estimates as resolution of this nature generally results in receiving lower values for real estate collateral in a more aggressive sales environment . this resulted in a provision for loan loss of approximately $ 5.1 million related to these loans . additionally , the provision for loan losses was negatively impacted by the high level of loan charge-offs in our historical loss experience factors , which we use to estimate the general component of our allowance for loan losses as well as additional downgrades within the loan portfolio . ● we continue to execute on our strategy to reduce our commercial real estate and construction and development loans . we reduced construction and development loans by $ 31.2 million to $ 70.3 million , or 82 % of total risk-based capital , at december 31 , 2012 compared with $ 101.5 million , or 85 % of total risk-based capital , at december 31 , 2011. non-owner occupied commercial real estate loans , construction and development loans , and multi-family residential real estate loans as a group were reduced by $ 103.5 million to $ 311.1 million , or 362 % of total risk-based capital , at december 31 , 2012 compared with $ 414.6 million , or 349 % of total risk-based capital , at december 31 , 2011 . ● loans past due 30-59 days increased from $ 17.3 million at december 31 , 2011 to $ 38.2 million at december 31 , 2012 and loans past due 60-89 days increased from $ 3.9 million at december 31 , 2011 , to $ 20.3 million at december 31 , 2012. these increases were primarily in the commercial real estate , construction and development , and multi-family residential real estate segments of our portfolio . story_separator_special_tag based on our annual review , management does not believe our intangible assets are impaired at december 31 , 2012 . 30 stock-based compensation – compensation cost is recognized for stock options and restricted stock awards issued to employees , based on the fair value of these awards at the date of grant . we utilize a black-scholes model , which requires the input of highly subjective assumptions , such as volatility , risk-free interest rates and dividend pay-out rates , to estimate the fair value of stock options , while the market price of the company 's common stock at the date of grant is used for restricted stock awards . compensation cost is recognized over the required service period , generally defined as the vesting period . for awards with graded vesting , compensation cost is recognized on a straight-line basis over the requisite service period for the entire award . valuation of deferred tax asset – we evaluate deferred tax assets for impairment on a quarterly basis . we established a 100 % deferred tax valuation allowance of $ 31.7 million in december 2011 based upon the analysis of our past performance and our expected future performance . we considered all evidence currently available , both positive and negative , in determining , based on the weight of that evidence , the likelihood that the deferred tax asset would be realized . during that review , we determined that the level of our recent historical losses , the level of our non-performing assets , our inability to meet our forecasted levels of earnings in 2011 , our intent to defer payment of dividends on our subordinated debentures and series a preferred stock , and our non-compliance with the capital requirements of our consent order outweighed our forecasted taxable earnings levels for the near and long term . as such , we established a 100 % deferred tax valuation allowance . when evaluating our deferred tax assets for realizability during 2012 , we concluded that a full valuation allowance was still necessary at december 31 , 2012 , due to the additional losses incurred during the year . a return to profitability would enable us to reduce the valuation allowance and thereby offset income tax expense that would otherwise be recognized . examinations of our income tax returns or changes in tax law may impact our deferred tax assets and liabilities as well as our provision for income taxes . contingencies – in the normal course of operations , we are defendants in various legal proceedings . we record contingent liabilities resulting from claims against us when a loss is assessed to be probable and the amount of the loss is reasonably estimable . assessing probability of loss and estimating probable losses requires analysis of multiple factors , including in some cases judgments about the potential actions of third party claimants and courts . recorded contingent liabilities are based on the best information available and actual losses in any future period are inherently uncertain . results of operations the following table summarizes components of income and expense and the change in those components for 2012 compared with 2011 : replace_table_token_5_th net loss of $ 32.9 million for the year ended december 31 , 2012 , decreased $ 74.4 million from net loss of $ 107.3 million for 2011. net loss to common shareholders of $ 33.4 million for the year ended december 31 , 2012 , decreased $ 71.7 million from net loss to common shareholders of $ 105.2 million for 2011. this decrease in net loss was attributable primarily to lower provision for loan losses expense , decreased non-interest expense associated with our oreo , and higher net gain on sales of securities , partially offset by lower net interest income . in addition , the 2011 results included a one-time goodwill impairment charge of $ 23.8 million . 31 the following table summarizes components of income and expense and the change in those components for 2011 compared with 2010 : replace_table_token_6_th net loss of $ 107.3 million for the year ended december 31 , 2011 , increased $ 102.9 million from net loss of $ 4.4 million for 2010. net loss to common shareholders of $ 105.2 million for the year ended december 31 , 2011 , increased $ 99.0 million from net loss to common shareholders of $ 6.2 million for 2010. this decrease in earnings was attributable primarily to a one-time goodwill impairment charge of $ 23.8 million , establishment of a deferred tax asset valuation allowance of $ 31.7 million , increased provision for loan losses expense , and non-interest expenses associated with our oreo . goodwill was determined to be impaired during the second quarter of 2011 as the result of operating losses and a significant drop in value of our common stock which trades on nasdaq . the deferred tax asset is dependent on future levels of income . given our net loss for the past two years , and evaluation of other positive and negative evidence , we established a 100 % valuation allowance for our deferred tax asset in the fourth quarter of 2011. provision for loan losses expense increased $ 32.5 million , or 108.0 % , in comparison with 2010 as a result of an increase in non-performing loans , and an increase in net loan charge-offs to $ 44.3 million , or 3.56 % of average loans for 2011 , compared with $ 22.2 million , or 1.64 % of average loans for 2010. non-interest income decreased $ 261,000 , or 3.7 % , in comparison with 2010 primarily as a result of decreased service charges on deposit accounts . gains on sales of investment securities decreased $ 4.0 million , or 78.5 % in comparison with 2010 due to fewer sales of securities during the year . non-interest expense increased $ 57.8 million , or 124.3 % , in comparison with 2010 primarily as a

