Wood rot/damage and/or insect activity?

I see this often at older homes on the floor joists, rims, sills, etc. What causes the tiny holes? How would you write up if it was your report?

Thanks in advance to all.

Josh, That is powder post beetle damage.

Seems like we have been having a lot of insect activity.

Dave is right on!!

I had a professional pest inspector over a few weeks back treating for Carpenter Ants and he was all excited telling me the story of training one of his serviceman when he found active PP Beetle infestation.

This guy Terry, the Bug Man loves bugs and his work and I enjoyed the time he was here.

Yep, powder post beetles

arent they attracted to water damaged wood just like carpenter ants are?

http://www.masscertifiedhomeinspections.com/index.php?D=85

If it were in Western Washington I would say it was Anobiid beetles. Anobiids attack softwood and only require a 13% moisture level. Lyctids (commonly called powder post beetles) usually are found only in hardwooods.