during the year ended december 31 , 2020 , we originated $ 54.1 million in one- to four-family residential real estate loans , selling $ 37.3 million in one- to four-family residential real estate loans and recording gains of $ 1.1 million on the sale of those loans . similarly , during the year ended december 31 , 2019 , we originated $ 28.7 million in one- to four-family residential real estate loans , selling $ 8.9 million in one- to four-family residential real estate loans and recording gains of $ 215,000 on the sale of those loans . we intend to continue to sell in the secondary market a portion of the long-term conforming fixed-rate one- to four-family residential real estate loans that we originate to increase non-interest income and manage the interest rate risk of our loan portfolio . increase nonresidential real estate lending . in order to increase the yield on our loan portfolio and reduce the term to repricing , we plan to increase our nonresidential real estate lending while maintaining what we believe are conservative underwriting standards . we will focus our nonresidential real estate lending on small businesses located in our market area , targeting owner-occupied businesses . maintain high asset quality . strong asset quality is critical to the long-term financial success of a community bank . we attribute our high asset quality to maintaining conservative underwriting standards , the diligence of our loan collection personnel and the stability of the local economy . at december 31 , 2020 , our non-performing assets to total assets ratio was 0.41 % . because substantially all of our loans are secured by real estate , and the level of our non-performing loans has been low in recent years , we believe that our allowance for loan losses is adequate to absorb the probable losses inherent in our loan portfolio . increase core deposits , with an emphasis on low-cost commercial demand deposits . deposits are the major source of balance sheet funding for lending and other investments . we have made investments in new products and services , as well as enhancing our electronic delivery solutions including business bill-pay in an effort to become more competitive in the financial services marketplace and attract more core deposits , our least costly source of funds . our ratio of core ( non-time ) deposits to total deposits was 45.10 % at december 31 , 2020. we plan to continue to aggressively market our core deposit accounts , emphasizing our high-quality service and competitive pricing of these products . 35 critical accounting policies the discussion and analysis of the financial condition and results of operations are based on our consolidated financial statements , which are prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities , and the reported amounts of income and expenses . we consider the accounting policies discussed below to be critical accounting policies . the estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions , resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations . on april 5 , 2012 , the jobs act was signed into law . the jobs act contains provisions that , among other things , reduce certain reporting requirements for qualifying public companies . as an emerging growth company we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies . we intend to take advantage of the benefits of this extended transition period . accordingly , our financial statements may not be comparable to companies that comply with such new or revised accounting standards . the following represents our critical accounting policies : allowance for loan losses . the allowance for loan losses is the amount estimated by management as necessary to cover losses inherent in the loan portfolio at the balance sheet date . the allowance is established through the provision for loan losses , which is charged to income . determining the amount of the allowance for loan losses necessarily involves a high degree of judgment . the allowance for loan losses represents management 's estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans . the allowance for loan losses is increased by the provision for loan losses , and decreased by charge-offs , net of recoveries . loans deemed to be uncollectible are charged against the allowance for loan losses , and subsequent recoveries , if any , are credited to the allowance . all , or part , of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all , or part , of the principal balance is highly unlikely . the allowance for loan losses is maintained at a level considered adequate to provide for losses that we have estimated to have been incurred . management performs a quarterly evaluation of the adequacy of the allowance . the allowance is based on the bank 's past loan loss experience , known and inherent risks in the portfolio , adverse situations that may affect the borrower 's ability to repay , the estimated value of any underlying collateral , composition of the loan portfolio , current economic conditions and other relevant factors . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available . story_separator_special_tag our average balance of interest-bearing deposits increased $ 3.0 million , or 2.20 % , to $ 139.6 million for the year ended december 31 , 2020 from $ 136.6 million for the year ended december 31 , 2019. our average rate paid on interest-bearing deposits decreased two basis points to 1.01 % for the year ended december 31 , 2020 from 1.03 % for the year ended december 31 , 2019. our average borrowings with the federal home loan bank increased to $ 7.7 million for the year ended december 31 , 2020 from $ 103,000 for the year ended december 31 , 2019. the average rate paid on the borrowings was 0.86 % for the year ended december 31 , 2020 compared to 1.94 % for the year ended december 31 , 2019. net interest income . net interest income decreased $ 349,000 , or 4.59 % , to $ 7.3 million for the year ended december 31 , 2020 from $ 7.6 million for the year ended december 31 , 2019. the decrease was primarily the result of lower net interest spread and net interest margin offset by a slight increase in our net-interest earning assets . our net interest rate spread decreased by 32 basis points to 3.01 % for the year ended december 31 , 2020 from 3.33 % for the year ended december 31 , 2019 and our net interest margin decreased 35 basis points to 3.33 % for the year ended . december 31 , 2020 from 3.68 % for the year ended december 31 , 2019. our average net-interest earning assets , which represents total interest-earning assets , less total interest-bearing liabilities , increased slightly to $ 71.3 million at december 31 , 2020 from $ 70.8 million at december 31 , 2019 . 42 provisions for loan losses . provisions for loan losses are charged to operations to establish and allowance for loan losses at a level necessary to absorb known and inherent losses in our loan portfolio that are both probable and reasonably estimable at the date of the financial statements . in evaluating the level of the allowance for loan losses , management analyzes several qualitative loan portfolio risk factors , including , but not limited to , management 's ongoing review and grading of loans , facts and issues related to specific loans , historical loan loss and delinquency experience , trends in past due and non-accrual loans , existing risk characteristics of specific loans or loan pools , the fair value of underlying collateral , current economic conditions and other qualitative and quantitative factors which could affect potential credit losses . the allowance for loan losses is assessed on a quarterly basis and provisions are made for loan losses as required in order to maintain the allowance . provision for loan losses increased by $ 175,000 , or 100.00 % , to $ 350,000 for the year ended december 31 , 2020 from a provision for loan losses for the year ended december 31 , 2019 of $ 175,000. we recorded net charge-offs of $ 2,000 for the year ended december 31 , 2020 compared to net recoveries of $ 16,000 for the year ended december 31 , 2019. non-performing loans totaled $ 188,000 for the year ended december 31 , 2020 compared to $ 490,000 at december 31 , 2019. the decrease of $ 302,000 in non-performing loans was primarily the result of a decrease of $ 150,000 in non-performing one-to four-family residential loans , a decrease of $ 76,000 in non-performing home equity loans and lines of credit and decrease of $ 76,000 in nonresidential loans . our non-performing loans to total loans decreased to 0.12 % at december 31 , 2020 from 0.31 % at december 31 , 2019. the increase in the provision for loan losses was necessary due to an increase in our qualitative factors , such as current economic conditions , the adequacy of underlying collateral and the financial strength of our borrowers affected by the covid-19 pandemic . we have provided for losses that are probable and reasonably estimable at december 31 , 2020. non-interest income . non-interest income increased by $ 982,000 to $ 1.6 million for the year ended december 31 , 2020 from $ 592,000 for the year ended december 31 , 2019. the increase was primarily due to an increase of $ 863,000 in gain on sale of loans to $ 1.1 million for the year ended december 31 , 2020 compared to $ 215,000 for the year ended december 31 , 2019 primarily as a result of the increase in refinancing in the residential mortgage market due to the lower rate environment and the gain recorded on the sale of investment securities of $ 143,000 during the year ended december 31 , 2020. non-interest expense . non-interest expense increased by $ 372,000 , or 5.47 % , to $ 7.1 million for the year ended december 31 , 2020 from $ 6.8 million for the year ended december 31 , 2019. salaries , director fees and employee benefits increased $ 463,000 , or 11.02 % , to $ 4.7 million for the year ended december 31 , 2020 from $ 4.2 million for the year ended december 31 , 2019 primarily due to an increase of $ 280,000 in stock-based compensation to $ 712,000 for the year ended december 2020 compared to $ 432,000 for the year ended december 31 , 2019 relating to the 2019 equity incentive plan which was approved in may 2019 , as well as commissions paid to loan officers for the increase in loans originated for sale . professional and legal fees decreased $ 44,000 , or 8.03 % , to $ 504,000 for the year ended december 31 , 2020 from $ 548,000 for the year ended december 31 , 2019 primarily due to lower levels of consulting expenses relating to the company 's public status during the year

cash and cash equivalents . cash and cash equivalents increased $ 41.6 million to $ 47.6 million at december 31 , 2020 from $ 6.0 million at december 31 , 2019. the increase in cash and cash equivalents was primarily driven by the increase in deposits and a decrease in investment securities and loans as discussed in more detail below . time deposits in other banks . time deposits in other banks decreased by $ 1.5 million , or 18.99 % , to $ 6.4 million at december 31 , 2020 from $ 7.9 million at december 31 , 2019. this decrease was due to calls and maturities of $ 1.5 million . investment securities . investment securities decreased $ 20.6 million , or 55.53 % , to $ 16.5 million at december 31 , 2020 from $ 37.1 million at december 31 , 2019. the decrease was due to the sale of municipal securities and residential mortgage backed securities in the amount of $ 7.3 million and principal repayments and calls in the amount of $ 13.6 million . all of our investment securities are currently classified as available for sale . loans held for sale . loans held for sale increased $ 4.4 million to $ 6.1 million at december 31 , 2020 from $ 1.7 million at december 31 , 2019 as a result of an increase in originations of one-to four-family residential real estate loans during the year due to an increase in refinancing in the residential mortgage market due to the lower rate environment . net loans . net loans decreased $ 9.7 million , or 6.13 % , to $ 148.6 million at december 31 , 2020 from $ 158.3 million at december 31 , 2019. one-to four-family residential real estate loans decreased $ 12.6 million , or 16.87 % , to $ 62.1 million at december 31 , 2020 from $ 74.7 million at december 31 , 2019 as higher yielding loans have been repaid and refinanced due to the current low rate environment for residential loans .


 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 cash equivalents . cash and cash equivalents increased $ 41.6 million to $ 47.6 million at december 31 , 2020 from $ 6.0 million at december 31 , 2019. the increase in cash and cash equivalents was primarily driven by the increase in deposits and a decrease in investment securities and loans as discussed in more detail below . time deposits in other banks . time deposits in other banks decreased by $ 1.5 million , or 18.99 % , to $ 6.4 million at december 31 , 2020 from $ 7.9 million at december 31 , 2019. this decrease was due to calls and maturities of $ 1.5 million . investment securities . investment securities decreased $ 20.6 million , or 55.53 % , to $ 16.5 million at december 31 , 2020 from $ 37.1 million at december 31 , 2019. the decrease was due to the sale of municipal securities and residential mortgage backed securities in the amount of $ 7.3 million and principal repayments and calls in the amount of $ 13.6 million . all of our investment securities are currently classified as available for sale . loans held for sale . loans held for sale increased $ 4.4 million to $ 6.1 million at december 31 , 2020 from $ 1.7 million at december 31 , 2019 as a result of an increase in originations of one-to four-family residential real estate loans during the year due to an increase in refinancing in the residential mortgage market due to the lower rate environment . net loans . net loans decreased $ 9.7 million , or 6.13 % , to $ 148.6 million at december 31 , 2020 from $ 158.3 million at december 31 , 2019. one-to four-family residential real estate loans decreased $ 12.6 million , or 16.87 % , to $ 62.1 million at december 31 , 2020 from $ 74.7 million at december 31 , 2019 as higher yielding loans have been repaid and refinanced due to the current low rate environment for residential loans .
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 Suspicious Activity Report : during the year ended december 31 , 2020 , we originated $ 54.1 million in one- to four-family residential real estate loans , selling $ 37.3 million in one- to four-family residential real estate loans and recording gains of $ 1.1 million on the sale of those loans . similarly , during the year ended december 31 , 2019 , we originated $ 28.7 million in one- to four-family residential real estate loans , selling $ 8.9 million in one- to four-family residential real estate loans and recording gains of $ 215,000 on the sale of those loans . we intend to continue to sell in the secondary market a portion of the long-term conforming fixed-rate one- to four-family residential real estate loans that we originate to increase non-interest income and manage the interest rate risk of our loan portfolio . increase nonresidential real estate lending . in order to increase the yield on our loan portfolio and reduce the term to repricing , we plan to increase our nonresidential real estate lending while maintaining what we believe are conservative underwriting standards . we will focus our nonresidential real estate lending on small businesses located in our market area , targeting owner-occupied businesses . maintain high asset quality . strong asset quality is critical to the long-term financial success of a community bank . we attribute our high asset quality to maintaining conservative underwriting standards , the diligence of our loan collection personnel and the stability of the local economy . at december 31 , 2020 , our non-performing assets to total assets ratio was 0.41 % . because substantially all of our loans are secured by real estate , and the level of our non-performing loans has been low in recent years , we believe that our allowance for loan losses is adequate to absorb the probable losses inherent in our loan portfolio . increase core deposits , with an emphasis on low-cost commercial demand deposits . deposits are the major source of balance sheet funding for lending and other investments . we have made investments in new products and services , as well as enhancing our electronic delivery solutions including business bill-pay in an effort to become more competitive in the financial services marketplace and attract more core deposits , our least costly source of funds . our ratio of core ( non-time ) deposits to total deposits was 45.10 % at december 31 , 2020. we plan to continue to aggressively market our core deposit accounts , emphasizing our high-quality service and competitive pricing of these products . 35 critical accounting policies the discussion and analysis of the financial condition and results of operations are based on our consolidated financial statements , which are prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities , and the reported amounts of income and expenses . we consider the accounting policies discussed below to be critical accounting policies . the estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions , resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations . on april 5 , 2012 , the jobs act was signed into law . the jobs act contains provisions that , among other things , reduce certain reporting requirements for qualifying public companies . as an emerging growth company we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies . we intend to take advantage of the benefits of this extended transition period . accordingly , our financial statements may not be comparable to companies that comply with such new or revised accounting standards . the following represents our critical accounting policies : allowance for loan losses . the allowance for loan losses is the amount estimated by management as necessary to cover losses inherent in the loan portfolio at the balance sheet date . the allowance is established through the provision for loan losses , which is charged to income . determining the amount of the allowance for loan losses necessarily involves a high degree of judgment . the allowance for loan losses represents management 's estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans . the allowance for loan losses is increased by the provision for loan losses , and decreased by charge-offs , net of recoveries . loans deemed to be uncollectible are charged against the allowance for loan losses , and subsequent recoveries , if any , are credited to the allowance . all , or part , of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all , or part , of the principal balance is highly unlikely . the allowance for loan losses is maintained at a level considered adequate to provide for losses that we have estimated to have been incurred . management performs a quarterly evaluation of the adequacy of the allowance . the allowance is based on the bank 's past loan loss experience , known and inherent risks in the portfolio , adverse situations that may affect the borrower 's ability to repay , the estimated value of any underlying collateral , composition of the loan portfolio , current economic conditions and other relevant factors . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available . story_separator_special_tag our average balance of interest-bearing deposits increased $ 3.0 million , or 2.20 % , to $ 139.6 million for the year ended december 31 , 2020 from $ 136.6 million for the year ended december 31 , 2019. our average rate paid on interest-bearing deposits decreased two basis points to 1.01 % for the year ended december 31 , 2020 from 1.03 % for the year ended december 31 , 2019. our average borrowings with the federal home loan bank increased to $ 7.7 million for the year ended december 31 , 2020 from $ 103,000 for the year ended december 31 , 2019. the average rate paid on the borrowings was 0.86 % for the year ended december 31 , 2020 compared to 1.94 % for the year ended december 31 , 2019. net interest income . net interest income decreased $ 349,000 , or 4.59 % , to $ 7.3 million for the year ended december 31 , 2020 from $ 7.6 million for the year ended december 31 , 2019. the decrease was primarily the result of lower net interest spread and net interest margin offset by a slight increase in our net-interest earning assets . our net interest rate spread decreased by 32 basis points to 3.01 % for the year ended december 31 , 2020 from 3.33 % for the year ended december 31 , 2019 and our net interest margin decreased 35 basis points to 3.33 % for the year ended . december 31 , 2020 from 3.68 % for the year ended december 31 , 2019. our average net-interest earning assets , which represents total interest-earning assets , less total interest-bearing liabilities , increased slightly to $ 71.3 million at december 31 , 2020 from $ 70.8 million at december 31 , 2019 . 42 provisions for loan losses . provisions for loan losses are charged to operations to establish and allowance for loan losses at a level necessary to absorb known and inherent losses in our loan portfolio that are both probable and reasonably estimable at the date of the financial statements . in evaluating the level of the allowance for loan losses , management analyzes several qualitative loan portfolio risk factors , including , but not limited to , management 's ongoing review and grading of loans , facts and issues related to specific loans , historical loan loss and delinquency experience , trends in past due and non-accrual loans , existing risk characteristics of specific loans or loan pools , the fair value of underlying collateral , current economic conditions and other qualitative and quantitative factors which could affect potential credit losses . the allowance for loan losses is assessed on a quarterly basis and provisions are made for loan losses as required in order to maintain the allowance . provision for loan losses increased by $ 175,000 , or 100.00 % , to $ 350,000 for the year ended december 31 , 2020 from a provision for loan losses for the year ended december 31 , 2019 of $ 175,000. we recorded net charge-offs of $ 2,000 for the year ended december 31 , 2020 compared to net recoveries of $ 16,000 for the year ended december 31 , 2019. non-performing loans totaled $ 188,000 for the year ended december 31 , 2020 compared to $ 490,000 at december 31 , 2019. the decrease of $ 302,000 in non-performing loans was primarily the result of a decrease of $ 150,000 in non-performing one-to four-family residential loans , a decrease of $ 76,000 in non-performing home equity loans and lines of credit and decrease of $ 76,000 in nonresidential loans . our non-performing loans to total loans decreased to 0.12 % at december 31 , 2020 from 0.31 % at december 31 , 2019. the increase in the provision for loan losses was necessary due to an increase in our qualitative factors , such as current economic conditions , the adequacy of underlying collateral and the financial strength of our borrowers affected by the covid-19 pandemic . we have provided for losses that are probable and reasonably estimable at december 31 , 2020. non-interest income . non-interest income increased by $ 982,000 to $ 1.6 million for the year ended december 31 , 2020 from $ 592,000 for the year ended december 31 , 2019. the increase was primarily due to an increase of $ 863,000 in gain on sale of loans to $ 1.1 million for the year ended december 31 , 2020 compared to $ 215,000 for the year ended december 31 , 2019 primarily as a result of the increase in refinancing in the residential mortgage market due to the lower rate environment and the gain recorded on the sale of investment securities of $ 143,000 during the year ended december 31 , 2020. non-interest expense . non-interest expense increased by $ 372,000 , or 5.47 % , to $ 7.1 million for the year ended december 31 , 2020 from $ 6.8 million for the year ended december 31 , 2019. salaries , director fees and employee benefits increased $ 463,000 , or 11.02 % , to $ 4.7 million for the year ended december 31 , 2020 from $ 4.2 million for the year ended december 31 , 2019 primarily due to an increase of $ 280,000 in stock-based compensation to $ 712,000 for the year ended december 2020 compared to $ 432,000 for the year ended december 31 , 2019 relating to the 2019 equity incentive plan which was approved in may 2019 , as well as commissions paid to loan officers for the increase in loans originated for sale . professional and legal fees decreased $ 44,000 , or 8.03 % , to $ 504,000 for the year ended december 31 , 2020 from $ 548,000 for the year ended december 31 , 2019 primarily due to lower levels of consulting expenses relating to the company 's public status during the year

