▪ in december 2017 , the company entered into an agreement to sell its entire ownership interest in anchor in a transaction that will result in anchor being majority-owned by members of its management team . the company 's annual goodwill impairment test resulted in a fourth quarter 2017 goodwill impairment charge of $ 24.9 million . the company will receive at closing approximately $ 32 million of cash and future revenue share payments that , at signing , have a net present value of approximately $ 15 million , subject to purchase price adjustments . in addition to the goodwill impairment charge the holding company recorded a $ 1.3 million loss on sale for the estimated closing expenses related to this transaction . this transaction has been approved by the company 's board of directors and is subject to obtaining client consents , anchor raising debt financing , and customary closing conditions . ▪ the company recorded total operating expenses of $ 299.9 million for the year ended december 31 , 2017 , compared to total operating expenses of $ 265.0 million in 2016 . excluding goodwill impairment charges in 2017 and goodwill impairment and restructuring charges in 2016 , total operating expenses increased $ 21.6 million , or 9 % in 2017 from 2016. this increase in operating expense was due to increases in salaries and employee benefits , information systems , occupancy and equipment , and professional fees expenses . ▪ in december 2017 , the tax act was enacted by the u.s. government . substantially all of the provisions of the tax act are effective as of january 1 , 2018. the more significant changes in the tax act that impact the company are the reduction in the federal corporate tax rate from 35 % to 21 % and the changes to the deductibility of executive compensation , both of which are effective as of january 1 , 2018. under asc 740 , the tax effects of changes in tax laws must be recognized in the period in which the law is enacted , or december 2017 for the tax act . asc 740 also requires deferred tax assets and liabilities to be measured at 31 the enacted tax rate expected to apply when temporary differences are to be realized or settled . the company re-measured its deferred tax assets and liabilities at the 21 % federal corporate tax rate , reevaluated its investments in affordable housing projects using the 21 % federal corporate tax rate , and reduced its deferred tax assets associated with executive compensation that is no longer deductible . as a result of these changes , the company recorded a federal tax expense of $ 12.9 million in the fourth quarter of 2017 , which is the primary driver of the higher income tax expense for the year ended december 31 , 2017 as compared to 2016 and 2015 . ▪ assets under management and advisory ( “ aum ” ) , excluding anchor , increased $ 2.4 billion , or 13 % , for the year ended december 31 , 2017 to $ 21.2 billion due to net flows of $ 0.5 billion and market appreciation of $ 2.0 billion . positive net flows were seen in all three wealth management segments . private banking the following table presents a summary of selected financial data for the private banking segment for 2017 , 2016 , and 2015 . replace_table_token_8_th nm - not meaningful ( 1 ) deposits presented in this table do not include intercompany eliminations related to deposits in the bank from wealth and investment affiliates or the holding company . the company 's private banking segment reported net income attributable to the company of $ 53.4 million in the year ended december 31 , 2017 , compared to net income attributable to the company of $ 70.3 million in 2016 and $ 58.0 million in 2015 . the private banking segment reported higher income tax expense due to the re-measurement of deferred tax assets at the new , lower , federal corporate tax rate enacted with the tax act . the re-measurement amounted to $ 14.2 million for the private banking segment and is reflected in the higher income tax expense for the year ended december 31 , 2017 . income before income taxes decreased $ 6.7 million in 2017 as a result of a $ 23.9 million , or 19 % , increase in operating expenses , a decline of $ 8.1 million , or 43 % , in fees and other income , partially offset by an increase of $ 24.6 million , or 12 % in net interest income . the increase in operating expenses we primarily due to increased salaries and employee benefits , information systems , occupancy and equipment , and professional services . the decline in fees in other income was primarily due to lower swap fees . the increase in net interest income was primarily due to increased volume of loans and higher net interest margin . the 2016 increase was due to increased net interest income , increased banking fee income , a higher credit to the provision for loan losses , and a $ 2.9 million gain on sale of offices in southern california , partially offset by increased operating expenses , including in particular higher salaries and employee benefits and occupancy and equipment expenses . total loans at the bank increased $ 0.4 billion , or 6 % , to $ 6.5 billion . total loans were 80 % of total assets at the bank at december 31 , 2017 up from 78 % of total assets at december 31 , 2016 . a discussion of the company 's loan portfolio can be found below in part ii . item 7 . “ management 's discussion and analysis of financial condition and results of operations - loan portfolio and credit quality . story_separator_special_tag in evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount , an entity assesses relevant events and circumstances , such as the following : macroeconomic conditions , such as a deterioration in general economic conditions , limitations on accessing capital , or other developments in equity and credit markets . industry and market considerations , such as a deterioration in the environment in which an entity operates , an increased competitive environment , a decline in market-dependent multiples or metrics ( considered in both absolute terms and relative to peers ) , a change in the market for an entity 's products or services , or a regulatory or political development . overall financial performance , such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods . other relevant entity-specific events , such as changes in management , key personnel , strategy , or customers ; contemplation of bankruptcy ; or litigation . 37 events affecting a reporting unit , such as a change in the composition or carrying amount of its net assets ; a more-likely-than-not expectation of selling or disposing all , or a portion , of a reporting unit ; the testing for recoverability of a significant asset group within a reporting unit ; or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit . if , after assessing the totality of events or circumstances such as those described in the preceding paragraph , an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount , then the quantitative goodwill impairment test , as described below , is unnecessary . goodwill is tested for impairment by estimating the fair value of a reporting unit . significant judgment is applied when goodwill is assessed for impairment . this judgment includes developing cash flow projections , selecting appropriate discount rates , identifying relevant market comparables , incorporating general economic and market conditions , and selecting an appropriate control premium . the selection and weighting of the various fair value techniques may result in a higher or lower fair value . judgment is applied in determining the weightings that are most representative of fair value . quantitative impairment testing requires a comparison of each reporting unit 's fair value to carrying value to identify potential impairment . if the carrying amount of a reporting unit exceeds the reporting unit 's fair value , an impairment loss is recognized . in adopting asu 2017-04 , the company measures that loss as an amount equal to that excess , limited to the total amount of goodwill allocated to that reporting unit . additionally , the company considers the income tax effect from any tax deductible goodwill on the carrying amount of the reporting unit , if applicable , when measuring the goodwill impairment loss . the fair value of the reporting unit is determined using generally accepted approaches to valuation commonly referred to as the income approach , market approach , and cost approach . within each category , a variety of methodologies exist to assist in the estimation of fair value . generally a valuation consultant will be engaged to assist with the valuation . bpfh has three reportable segments that have goodwill : wealth management and trust , investment management , and wealth advisory . boston private wealth is the only reporting unit within the wealth management and trust segment . anchor and dghm are the reporting units within the investment management segment . dghm does not have any remaining goodwill . bos and kls are the reporting units within the wealth advisory segment . because discrete financial information is available and segment management regularly reviews the operating results of anchor , kls , and bos , they are all considered reporting units . for the reporting units within the investment management , wealth advisory , and wealth management and trust segments , the company utilizes both the income and market approaches to determine fair value of the reporting units . the income approach is primarily based on discounted cash flows derived from assumptions of income statement activity . for the market approach , earnings before interest , taxes , depreciation and amortization ( “ ebitda ” ) and revenue multiples of comparable companies are selected and applied to the financial services reporting unit 's applicable metrics . the aggregate fair values of the reporting units are compared to market capitalization as an assessment of the appropriateness of the fair value measurements . a control premium analysis is performed to determine whether the implied control premium was within range of overall control premiums observed in the market place . if the carrying amount of the reporting unit 's goodwill is greater than the fair value of the reporting unit 's goodwill , an impairment loss must be recognized for the excess ( i.e . , recorded goodwill must be written down to the implied fair value of the reporting unit 's goodwill ) . after a goodwill impairment loss for a reporting unit is measured and recognized , the adjusted carrying amount of the reporting unit 's goodwill becomes the new accounting basis for that goodwill . income tax estimates the company accounts for income taxes in accordance with asc 740 , income taxes ( “ asc 740 ” ) . the deferred tax assets and or liabilities are determined by multiplying the differences between the financial reporting and tax reporting basis for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled . the effect on deferred taxes for a change in tax rates is recognized in income tax expense/ ( benefit )

cash and investments . total cash and investments ( consisting of cash and cash equivalents , investment securities , and stock in the fhlb and federal reserve bank ) decreased $ 82.4 million , or 5 % , to $ 1.4 billion , or 17 % of total assets at december 31 , 2017 from $ 1.5 billion , or 19 % of total assets at december 31 , 2016 . the decrease was due to the $ 93.8 million , or 7 % , decrease in available-for-sale securities and the $ 18.5 million , or 20 % , decrease in held-to-maturity securities , partially offset by the $ 15.9 million , or 36 % , increase in stock in the fhlb and federal reserve bank and the $ 14.0 million , or 13 % , increase in cash and cash equivalents . the changes in cash and investments were the net result of short-term fluctuations in liquidity due to changes in levels of deposits , borrowings and loans outstanding . additionally , on july 28 , 2017 , the bank became a member of the federal reserve system , which required the purchase of stock in the federal reserve bank of boston . the majority of the investments held by the company are held by the bank . the bank 's investment policy requires management to maintain a portfolio of securities which will provide liquidity necessary to facilitate funding of loans , to cover deposit fluctuations , and to mitigate the bank 's overall balance sheet exposure to interest rate risk , while at the same time earning a satisfactory return on the funds invested . the securities in which the bank may invest are subject to regulation and are generally limited to securities that are considered “ investment grade. ” purchases of investment securities , net of investment maturities , calls , principal payments , and sales , used $ 109.9 million of cash during the year ended december 31 , 2017 , compared to $ 184.0 million in net purchases for the year ended december 31 , 2016 . net proceeds are generally used to purchase new investments or fund a portion of loan growth .


 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.
     ```cash and investments . total cash and investments ( consisting of cash and cash equivalents , investment securities , and stock in the fhlb and federal reserve bank ) decreased $ 82.4 million , or 5 % , to $ 1.4 billion , or 17 % of total assets at december 31 , 2017 from $ 1.5 billion , or 19 % of total assets at december 31 , 2016 . the decrease was due to the $ 93.8 million , or 7 % , decrease in available-for-sale securities and the $ 18.5 million , or 20 % , decrease in held-to-maturity securities , partially offset by the $ 15.9 million , or 36 % , increase in stock in the fhlb and federal reserve bank and the $ 14.0 million , or 13 % , increase in cash and cash equivalents . the changes in cash and investments were the net result of short-term fluctuations in liquidity due to changes in levels of deposits , borrowings and loans outstanding . additionally , on july 28 , 2017 , the bank became a member of the federal reserve system , which required the purchase of stock in the federal reserve bank of boston . the majority of the investments held by the company are held by the bank . the bank 's investment policy requires management to maintain a portfolio of securities which will provide liquidity necessary to facilitate funding of loans , to cover deposit fluctuations , and to mitigate the bank 's overall balance sheet exposure to interest rate risk , while at the same time earning a satisfactory return on the funds invested . the securities in which the bank may invest are subject to regulation and are generally limited to securities that are considered “ investment grade. ” purchases of investment securities , net of investment maturities , calls , principal payments , and sales , used $ 109.9 million of cash during the year ended december 31 , 2017 , compared to $ 184.0 million in net purchases for the year ended december 31 , 2016 . net proceeds are generally used to purchase new investments or fund a portion of loan growth .
```    
 Suspicious Activity Report : ▪ in december 2017 , the company entered into an agreement to sell its entire ownership interest in anchor in a transaction that will result in anchor being majority-owned by members of its management team . the company 's annual goodwill impairment test resulted in a fourth quarter 2017 goodwill impairment charge of $ 24.9 million . the company will receive at closing approximately $ 32 million of cash and future revenue share payments that , at signing , have a net present value of approximately $ 15 million , subject to purchase price adjustments . in addition to the goodwill impairment charge the holding company recorded a $ 1.3 million loss on sale for the estimated closing expenses related to this transaction . this transaction has been approved by the company 's board of directors and is subject to obtaining client consents , anchor raising debt financing , and customary closing conditions . ▪ the company recorded total operating expenses of $ 299.9 million for the year ended december 31 , 2017 , compared to total operating expenses of $ 265.0 million in 2016 . excluding goodwill impairment charges in 2017 and goodwill impairment and restructuring charges in 2016 , total operating expenses increased $ 21.6 million , or 9 % in 2017 from 2016. this increase in operating expense was due to increases in salaries and employee benefits , information systems , occupancy and equipment , and professional fees expenses . ▪ in december 2017 , the tax act was enacted by the u.s. government . substantially all of the provisions of the tax act are effective as of january 1 , 2018. the more significant changes in the tax act that impact the company are the reduction in the federal corporate tax rate from 35 % to 21 % and the changes to the deductibility of executive compensation , both of which are effective as of january 1 , 2018. under asc 740 , the tax effects of changes in tax laws must be recognized in the period in which the law is enacted , or december 2017 for the tax act . asc 740 also requires deferred tax assets and liabilities to be measured at 31 the enacted tax rate expected to apply when temporary differences are to be realized or settled . the company re-measured its deferred tax assets and liabilities at the 21 % federal corporate tax rate , reevaluated its investments in affordable housing projects using the 21 % federal corporate tax rate , and reduced its deferred tax assets associated with executive compensation that is no longer deductible . as a result of these changes , the company recorded a federal tax expense of $ 12.9 million in the fourth quarter of 2017 , which is the primary driver of the higher income tax expense for the year ended december 31 , 2017 as compared to 2016 and 2015 . ▪ assets under management and advisory ( “ aum ” ) , excluding anchor , increased $ 2.4 billion , or 13 % , for the year ended december 31 , 2017 to $ 21.2 billion due to net flows of $ 0.5 billion and market appreciation of $ 2.0 billion . positive net flows were seen in all three wealth management segments . private banking the following table presents a summary of selected financial data for the private banking segment for 2017 , 2016 , and 2015 . replace_table_token_8_th nm - not meaningful ( 1 ) deposits presented in this table do not include intercompany eliminations related to deposits in the bank from wealth and investment affiliates or the holding company . the company 's private banking segment reported net income attributable to the company of $ 53.4 million in the year ended december 31 , 2017 , compared to net income attributable to the company of $ 70.3 million in 2016 and $ 58.0 million in 2015 . the private banking segment reported higher income tax expense due to the re-measurement of deferred tax assets at the new , lower , federal corporate tax rate enacted with the tax act . the re-measurement amounted to $ 14.2 million for the private banking segment and is reflected in the higher income tax expense for the year ended december 31 , 2017 . income before income taxes decreased $ 6.7 million in 2017 as a result of a $ 23.9 million , or 19 % , increase in operating expenses , a decline of $ 8.1 million , or 43 % , in fees and other income , partially offset by an increase of $ 24.6 million , or 12 % in net interest income . the increase in operating expenses we primarily due to increased salaries and employee benefits , information systems , occupancy and equipment , and professional services . the decline in fees in other income was primarily due to lower swap fees . the increase in net interest income was primarily due to increased volume of loans and higher net interest margin . the 2016 increase was due to increased net interest income , increased banking fee income , a higher credit to the provision for loan losses , and a $ 2.9 million gain on sale of offices in southern california , partially offset by increased operating expenses , including in particular higher salaries and employee benefits and occupancy and equipment expenses . total loans at the bank increased $ 0.4 billion , or 6 % , to $ 6.5 billion . total loans were 80 % of total assets at the bank at december 31 , 2017 up from 78 % of total assets at december 31 , 2016 . a discussion of the company 's loan portfolio can be found below in part ii . item 7 . “ management 's discussion and analysis of financial condition and results of operations - loan portfolio and credit quality . story_separator_special_tag in evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount , an entity assesses relevant events and circumstances , such as the following : macroeconomic conditions , such as a deterioration in general economic conditions , limitations on accessing capital , or other developments in equity and credit markets . industry and market considerations , such as a deterioration in the environment in which an entity operates , an increased competitive environment , a decline in market-dependent multiples or metrics ( considered in both absolute terms and relative to peers ) , a change in the market for an entity 's products or services , or a regulatory or political development . overall financial performance , such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods . other relevant entity-specific events , such as changes in management , key personnel , strategy , or customers ; contemplation of bankruptcy ; or litigation . 37 events affecting a reporting unit , such as a change in the composition or carrying amount of its net assets ; a more-likely-than-not expectation of selling or disposing all , or a portion , of a reporting unit ; the testing for recoverability of a significant asset group within a reporting unit ; or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit . if , after assessing the totality of events or circumstances such as those described in the preceding paragraph , an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount , then the quantitative goodwill impairment test , as described below , is unnecessary . goodwill is tested for impairment by estimating the fair value of a reporting unit . significant judgment is applied when goodwill is assessed for impairment . this judgment includes developing cash flow projections , selecting appropriate discount rates , identifying relevant market comparables , incorporating general economic and market conditions , and selecting an appropriate control premium . the selection and weighting of the various fair value techniques may result in a higher or lower fair value . judgment is applied in determining the weightings that are most representative of fair value . quantitative impairment testing requires a comparison of each reporting unit 's fair value to carrying value to identify potential impairment . if the carrying amount of a reporting unit exceeds the reporting unit 's fair value , an impairment loss is recognized . in adopting asu 2017-04 , the company measures that loss as an amount equal to that excess , limited to the total amount of goodwill allocated to that reporting unit . additionally , the company considers the income tax effect from any tax deductible goodwill on the carrying amount of the reporting unit , if applicable , when measuring the goodwill impairment loss . the fair value of the reporting unit is determined using generally accepted approaches to valuation commonly referred to as the income approach , market approach , and cost approach . within each category , a variety of methodologies exist to assist in the estimation of fair value . generally a valuation consultant will be engaged to assist with the valuation . bpfh has three reportable segments that have goodwill : wealth management and trust , investment management , and wealth advisory . boston private wealth is the only reporting unit within the wealth management and trust segment . anchor and dghm are the reporting units within the investment management segment . dghm does not have any remaining goodwill . bos and kls are the reporting units within the wealth advisory segment . because discrete financial information is available and segment management regularly reviews the operating results of anchor , kls , and bos , they are all considered reporting units . for the reporting units within the investment management , wealth advisory , and wealth management and trust segments , the company utilizes both the income and market approaches to determine fair value of the reporting units . the income approach is primarily based on discounted cash flows derived from assumptions of income statement activity . for the market approach , earnings before interest , taxes , depreciation and amortization ( “ ebitda ” ) and revenue multiples of comparable companies are selected and applied to the financial services reporting unit 's applicable metrics . the aggregate fair values of the reporting units are compared to market capitalization as an assessment of the appropriateness of the fair value measurements . a control premium analysis is performed to determine whether the implied control premium was within range of overall control premiums observed in the market place . if the carrying amount of the reporting unit 's goodwill is greater than the fair value of the reporting unit 's goodwill , an impairment loss must be recognized for the excess ( i.e . , recorded goodwill must be written down to the implied fair value of the reporting unit 's goodwill ) . after a goodwill impairment loss for a reporting unit is measured and recognized , the adjusted carrying amount of the reporting unit 's goodwill becomes the new accounting basis for that goodwill . income tax estimates the company accounts for income taxes in accordance with asc 740 , income taxes ( “ asc 740 ” ) . the deferred tax assets and or liabilities are determined by multiplying the differences between the financial reporting and tax reporting basis for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled . the effect on deferred taxes for a change in tax rates is recognized in income tax expense/ ( benefit )

