as a result , our net income has not been subject to , and we have not paid , u.s. federal or state income taxes , and we have not been required to make any provision or recognize any liability for u.s. federal income tax in our financial statements . the consummation of our initial public offering resulted in the termination of our status as an s corporation and in our taxation as a c corporation for u.s. federal and state income tax purposes . upon the termination of our status as an s corporation , we commenced paying u.s. federal income tax on our pre-tax net income for each year ( including the short year beginning on the date our status as an s corporation terminated ) , and our financial statements reflect a provision for u.s. federal income tax . as a result of this change , the net income and earnings per share data presented prior to our conversion to a c corporation in 2018 , which do not include any provision for u.s. federal income tax , will not be comparable with our current net income and earnings per share , which is calculated by including a provision for u.s. federal and state income tax . furthermore , we have recognized deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of our existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of the change in tax rates resulting from becoming a c corporation were recognized in income in the quarter the change took place . this difference between the financial statement carrying amounts of assets and liabilities and their respective tax bases was recorded as a net deferred tax asset of $ 2 million ( net of $ 13,000 uncertain tax liability ) on our consolidated balance sheet as of december 31 , 2020 . 31 pro forma income tax expense and net income as a result of our status as an s corporation , we had no u.s. federal income tax expense for the full year ended december 31 , 2018 , but rather only for the short year after conversion to c corporation status ( as discussed earlier ) . the pro forma impact of being taxed as a c corporation is illustrated in the following table : replace_table_token_7_th ( 1 ) a portion of our net income in each of these periods was derived from nontaxable investment income and other nondeductible expenses . ( 2 ) based on a statutory federal income tax rate of 21 % , 21 % and 21 % , for the years ended december 31 , 2020 , 2019 and 2018 , respectively , plus the applicable statutory state income tax rate for each of the respective periods . state income tax was $ 1.6 million and $ 1.2 million , with an effective state tax rate of 4.9 % and 4.4 % for the years ended december 31 , 2020 and 2019 , respectively . state income tax expense would have been approximately $ 1.3 million for the year ended december 31 , 2018 with an effective state tax rate of 4.9 % 2020 highlights for the year ended december 31 , 2020 , we reported pre-tax net income of $ 25.9 million compared to pre-tax net income of $ 15.0 million for the year ended december 31 , 2019. the increase was primarily related to compensation expense from the one-time , non-cash executive stock transaction in 2019. for the year ended december 31 , 2020 , average loans totaled $ 823.2 million , an increase of $ 187.0 million or 29.4 % , from december 31 , 2019. for the year ended december 31 , 2020 , loan yields , excluding loan fee income , were 5.76 % , a decrease of 112 basis points from the same period in 2019 due to decreasing interest rates . loan yield excluding loan fee income is a non-gaap measure . see “ gaap reconciliation and management explanation of non-gaap financial measures ” elsewhere in this report . pre-tax return on average assets and return on average equity was 2.73 % and 25.29 % , respectively for the year ended december 31 , 2020 , as compared to 1.88 % and 15.44 % , respectively , for the same period in 2019. our efficiency ratio for the year ended december 31 , 2020 was 36.03 % as compared to 65.39 % for the year ended december 31 , 2019. the decrease was due to compensation expense from the the one-time , non-cash executive stock transaction in 2019. as of december 31 , 2020 , total loans were $ 836.6 million , an increase of $ 129.3 million , or 18.3 % , from december 31 , 2019. total deposits were $ 905.5 million as of december 31 , 2020 , an increase of $ 148.0 million , or 19.5 % , from december 31 , 2019. tangible book value per share was $ 11.69 as of december 31 , 2020 , an increase of $ 1.91 , or 19.6 % , from december 31 , 2019. tangible book value per share is a non-gaap financial measure . see “ gaap reconciliation and management explanation of non-gaap financial measures ” elsewhere in this report . story_separator_special_tag in cases where a borrower experiences financial difficulties and we make certain concessionary modifications to contractual terms , the loan is classified as a tdr . included in certain loan categories of impaired loans are tdrs on which we have granted certain material concessions to the borrower as a result of the borrower experiencing financial difficulties . the concessions granted by us may include , but are not limited to : ( 1 ) a modification in which the maturity date , timing of payments or frequency of payments is modified , ( 2 ) an interest rate lower than the current market rate for new loans with similar risk , or ( 3 ) a combination of the first two concessions . if a borrower on a restructured accruing loan has demonstrated performance under the previous terms , is not experiencing financial difficulty and shows the capacity to continue to perform under the restructured terms , the loan will remain on accrual status . otherwise , the loan will be placed on nonaccrual status until the borrower demonstrates a sustained period of performance , which generally requires six consecutive months of payments . loans identified as tdrs are evaluated for impairment using the present value of the expected cash flows or the estimated fair value of the collateral , if the loan is collateral dependent . the fair value is determined , when possible , by an appraisal of the property less estimated costs related to liquidation of the collateral . the appraisal amount may also be adjusted for current market conditions . adjustments to reflect the present value of the expected cash flows or the estimated fair value of collateral dependent loans are a component in determining an appropriate allowance , and as such , may result in increases or decreases to the provision for loan losses in current and future earnings . real estate we acquire as a result of foreclosure or by deed-in-lieu of foreclosure is classified as other real estate owned , or oreo , until sold , and is initially recorded at fair value less costs to sell when acquired , establishing a new cost basis . nonperforming loans include nonaccrual loans , loans past due 90 days or more and still accruing interest and loans modified under tdrs that are not performing in accordance with their modified terms . nonperforming assets consist of nonperforming loans plus oreo . loans accounted for on a nonaccrual basis were $ 14.6 million as of december 31 , 2020 , $ 1.8 million as of december 31 , 2019 and $ 2.6 million as of december 31 , 2018. oreo was $ 0 as of december 31 , 2020 , $ 0 as of december 31 , 2019 and $ 110,000 as of december 31 , 2018 . 41 the following table presents information regarding nonperforming assets as of the dates indicated . replace_table_token_18_th the following tables present an aging analysis of loans as of the dates indicated . replace_table_token_19_th replace_table_token_20_th 42 replace_table_token_21_th in addition to the past due and nonaccrual criteria , the company also evaluates loans according to its internal risk grading system . loans are segregated between pass , watch , special mention , and substandard categories . the definitions of those categories are as follows : in addition to the past due and nonaccrual criteria , the company also evaluates loans according to its internal risk grading system . loans are segregated between pass , watch , special mention , and substandard categories . the definitions of those categories are as follows : pass : these loans generally conform to bank policies , are characterized by policy-conforming advance rates on collateral , and have well-defined repayment sources . in addition , these credits are extended to borrowers and guarantors with a strong balance sheet and either substantial liquidity or a reliable income history . watch : these loans are still considered “ pass ” credits ; however , various factors such as industry stress , material changes in cash flow or financial conditions , or deficiencies in loan documentation , or other risk issues determined by the lending officer , commercial loan committee or cqc warrant a heightened sense and frequency of monitoring . special mention : these loans have observable weaknesses or evidence imprudent handling or structural issues . the weaknesses require close attention , and the remediation of those weaknesses is necessary . no risk of probable loss exists . credits in this category are expected to quickly migrate to “ watch ” or “ substandard ” as this is viewed as a transitory loan grade . substandard : these loans are not adequately protected by the sound worth and debt service capacity of the borrower , but may be well-secured . the loans have defined weaknesses relative to cash flow , collateral , financial condition or other factors that might jeopardize repayment of all of the principal and interest on a timely basis . there is the possibility that a future loss will occur if weaknesses are not remediated . substandard loans totaled $ 23.1 million as of december 31 , 2020 , an increase of $ 12.0 million compared to december 31 , 2019. the increase primarily related to two commercial and industrial relationships comprised of one note each totaling $ 14.4 million with no specific reserves and two commercial real estate relationships comprised of one note each totaling $ 5.0 million with no specific reserves . substandard loans totaled $ 11.1 million as of december 31 , 2019 , an increase of $ 2.0 million compared to december 31 , 2018. the increase primarily related to one agricultural relationship comprised of four notes totaling $ 1.8 million with no specific reserve , one agricultural relationship comprised of three notes totaling $ 555,000 with no specific reserve , one mixed relationship comprised of eight notes totaling $ 4.2 million with no specific reserve , and one mixed relationship comprised

liquidity liquidity refers to the measure of our ability to meet the cash flow requirements of depositors and borrowers , while at the same time meeting our operating , capital and strategic cash flow needs , all at a reasonable cost . we continuously monitor our liquidity position to ensure that assets and liabilities are managed in a manner that will meet all short-term and long-term cash requirements . we manage our liquidity position to meet the daily cash flow needs of customers , while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives of our shareholders . 47 our liquidity position is supported by management of liquid assets and access to alternative sources of funds . our liquid assets include cash , interest-bearing deposits in correspondent banks and fed funds sold . other available sources of liquidity include wholesale deposits and borrowings from correspondent banks and fhlb advances . our short-term and long-term liquidity requirements are primarily met through cash flow from operations , redeployment of prepaying and maturing balances in our loan portfolios , and increases in customer deposits . other alternative sources of funds will supplement these primary sources to the extent necessary to meet additional liquidity requirements on either a short-term or long-term basis . as of december 31 , 2020 , we had no unsecured fed funds lines with correspondent depository institutions with no amounts advanced . in addition , based on the values of loans pledged as collateral , we had borrowing availability with the fhlb of $ 64.8 million as of december 31 , 2020 and $ 71.7 million as of december 31 , 2019. capital requirements the bank is subject to various regulatory capital requirements administered by the federal and state banking regulators . failure to meet regulatory capital requirements may result in certain mandatory and possible additional discretionary actions by regulators that , if undertaken , could have a direct material effect on our financial statements .


 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 refers to the measure of our ability to meet the cash flow requirements of depositors and borrowers , while at the same time meeting our operating , capital and strategic cash flow needs , all at a reasonable cost . we continuously monitor our liquidity position to ensure that assets and liabilities are managed in a manner that will meet all short-term and long-term cash requirements . we manage our liquidity position to meet the daily cash flow needs of customers , while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives of our shareholders . 47 our liquidity position is supported by management of liquid assets and access to alternative sources of funds . our liquid assets include cash , interest-bearing deposits in correspondent banks and fed funds sold . other available sources of liquidity include wholesale deposits and borrowings from correspondent banks and fhlb advances . our short-term and long-term liquidity requirements are primarily met through cash flow from operations , redeployment of prepaying and maturing balances in our loan portfolios , and increases in customer deposits . other alternative sources of funds will supplement these primary sources to the extent necessary to meet additional liquidity requirements on either a short-term or long-term basis . as of december 31 , 2020 , we had no unsecured fed funds lines with correspondent depository institutions with no amounts advanced . in addition , based on the values of loans pledged as collateral , we had borrowing availability with the fhlb of $ 64.8 million as of december 31 , 2020 and $ 71.7 million as of december 31 , 2019. capital requirements the bank is subject to various regulatory capital requirements administered by the federal and state banking regulators . failure to meet regulatory capital requirements may result in certain mandatory and possible additional discretionary actions by regulators that , if undertaken , could have a direct material effect on our financial statements .
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 Suspicious Activity Report : as a result , our net income has not been subject to , and we have not paid , u.s. federal or state income taxes , and we have not been required to make any provision or recognize any liability for u.s. federal income tax in our financial statements . the consummation of our initial public offering resulted in the termination of our status as an s corporation and in our taxation as a c corporation for u.s. federal and state income tax purposes . upon the termination of our status as an s corporation , we commenced paying u.s. federal income tax on our pre-tax net income for each year ( including the short year beginning on the date our status as an s corporation terminated ) , and our financial statements reflect a provision for u.s. federal income tax . as a result of this change , the net income and earnings per share data presented prior to our conversion to a c corporation in 2018 , which do not include any provision for u.s. federal income tax , will not be comparable with our current net income and earnings per share , which is calculated by including a provision for u.s. federal and state income tax . furthermore , we have recognized deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of our existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of the change in tax rates resulting from becoming a c corporation were recognized in income in the quarter the change took place . this difference between the financial statement carrying amounts of assets and liabilities and their respective tax bases was recorded as a net deferred tax asset of $ 2 million ( net of $ 13,000 uncertain tax liability ) on our consolidated balance sheet as of december 31 , 2020 . 31 pro forma income tax expense and net income as a result of our status as an s corporation , we had no u.s. federal income tax expense for the full year ended december 31 , 2018 , but rather only for the short year after conversion to c corporation status ( as discussed earlier ) . the pro forma impact of being taxed as a c corporation is illustrated in the following table : replace_table_token_7_th ( 1 ) a portion of our net income in each of these periods was derived from nontaxable investment income and other nondeductible expenses . ( 2 ) based on a statutory federal income tax rate of 21 % , 21 % and 21 % , for the years ended december 31 , 2020 , 2019 and 2018 , respectively , plus the applicable statutory state income tax rate for each of the respective periods . state income tax was $ 1.6 million and $ 1.2 million , with an effective state tax rate of 4.9 % and 4.4 % for the years ended december 31 , 2020 and 2019 , respectively . state income tax expense would have been approximately $ 1.3 million for the year ended december 31 , 2018 with an effective state tax rate of 4.9 % 2020 highlights for the year ended december 31 , 2020 , we reported pre-tax net income of $ 25.9 million compared to pre-tax net income of $ 15.0 million for the year ended december 31 , 2019. the increase was primarily related to compensation expense from the one-time , non-cash executive stock transaction in 2019. for the year ended december 31 , 2020 , average loans totaled $ 823.2 million , an increase of $ 187.0 million or 29.4 % , from december 31 , 2019. for the year ended december 31 , 2020 , loan yields , excluding loan fee income , were 5.76 % , a decrease of 112 basis points from the same period in 2019 due to decreasing interest rates . loan yield excluding loan fee income is a non-gaap measure . see “ gaap reconciliation and management explanation of non-gaap financial measures ” elsewhere in this report . pre-tax return on average assets and return on average equity was 2.73 % and 25.29 % , respectively for the year ended december 31 , 2020 , as compared to 1.88 % and 15.44 % , respectively , for the same period in 2019. our efficiency ratio for the year ended december 31 , 2020 was 36.03 % as compared to 65.39 % for the year ended december 31 , 2019. the decrease was due to compensation expense from the the one-time , non-cash executive stock transaction in 2019. as of december 31 , 2020 , total loans were $ 836.6 million , an increase of $ 129.3 million , or 18.3 % , from december 31 , 2019. total deposits were $ 905.5 million as of december 31 , 2020 , an increase of $ 148.0 million , or 19.5 % , from december 31 , 2019. tangible book value per share was $ 11.69 as of december 31 , 2020 , an increase of $ 1.91 , or 19.6 % , from december 31 , 2019. tangible book value per share is a non-gaap financial measure . see “ gaap reconciliation and management explanation of non-gaap financial measures ” elsewhere in this report . story_separator_special_tag in cases where a borrower experiences financial difficulties and we make certain concessionary modifications to contractual terms , the loan is classified as a tdr . included in certain loan categories of impaired loans are tdrs on which we have granted certain material concessions to the borrower as a result of the borrower experiencing financial difficulties . the concessions granted by us may include , but are not limited to : ( 1 ) a modification in which the maturity date , timing of payments or frequency of payments is modified , ( 2 ) an interest rate lower than the current market rate for new loans with similar risk , or ( 3 ) a combination of the first two concessions . if a borrower on a restructured accruing loan has demonstrated performance under the previous terms , is not experiencing financial difficulty and shows the capacity to continue to perform under the restructured terms , the loan will remain on accrual status . otherwise , the loan will be placed on nonaccrual status until the borrower demonstrates a sustained period of performance , which generally requires six consecutive months of payments . loans identified as tdrs are evaluated for impairment using the present value of the expected cash flows or the estimated fair value of the collateral , if the loan is collateral dependent . the fair value is determined , when possible , by an appraisal of the property less estimated costs related to liquidation of the collateral . the appraisal amount may also be adjusted for current market conditions . adjustments to reflect the present value of the expected cash flows or the estimated fair value of collateral dependent loans are a component in determining an appropriate allowance , and as such , may result in increases or decreases to the provision for loan losses in current and future earnings . real estate we acquire as a result of foreclosure or by deed-in-lieu of foreclosure is classified as other real estate owned , or oreo , until sold , and is initially recorded at fair value less costs to sell when acquired , establishing a new cost basis . nonperforming loans include nonaccrual loans , loans past due 90 days or more and still accruing interest and loans modified under tdrs that are not performing in accordance with their modified terms . nonperforming assets consist of nonperforming loans plus oreo . loans accounted for on a nonaccrual basis were $ 14.6 million as of december 31 , 2020 , $ 1.8 million as of december 31 , 2019 and $ 2.6 million as of december 31 , 2018. oreo was $ 0 as of december 31 , 2020 , $ 0 as of december 31 , 2019 and $ 110,000 as of december 31 , 2018 . 41 the following table presents information regarding nonperforming assets as of the dates indicated . replace_table_token_18_th the following tables present an aging analysis of loans as of the dates indicated . replace_table_token_19_th replace_table_token_20_th 42 replace_table_token_21_th in addition to the past due and nonaccrual criteria , the company also evaluates loans according to its internal risk grading system . loans are segregated between pass , watch , special mention , and substandard categories . the definitions of those categories are as follows : in addition to the past due and nonaccrual criteria , the company also evaluates loans according to its internal risk grading system . loans are segregated between pass , watch , special mention , and substandard categories . the definitions of those categories are as follows : pass : these loans generally conform to bank policies , are characterized by policy-conforming advance rates on collateral , and have well-defined repayment sources . in addition , these credits are extended to borrowers and guarantors with a strong balance sheet and either substantial liquidity or a reliable income history . watch : these loans are still considered “ pass ” credits ; however , various factors such as industry stress , material changes in cash flow or financial conditions , or deficiencies in loan documentation , or other risk issues determined by the lending officer , commercial loan committee or cqc warrant a heightened sense and frequency of monitoring . special mention : these loans have observable weaknesses or evidence imprudent handling or structural issues . the weaknesses require close attention , and the remediation of those weaknesses is necessary . no risk of probable loss exists . credits in this category are expected to quickly migrate to “ watch ” or “ substandard ” as this is viewed as a transitory loan grade . substandard : these loans are not adequately protected by the sound worth and debt service capacity of the borrower , but may be well-secured . the loans have defined weaknesses relative to cash flow , collateral , financial condition or other factors that might jeopardize repayment of all of the principal and interest on a timely basis . there is the possibility that a future loss will occur if weaknesses are not remediated . substandard loans totaled $ 23.1 million as of december 31 , 2020 , an increase of $ 12.0 million compared to december 31 , 2019. the increase primarily related to two commercial and industrial relationships comprised of one note each totaling $ 14.4 million with no specific reserves and two commercial real estate relationships comprised of one note each totaling $ 5.0 million with no specific reserves . substandard loans totaled $ 11.1 million as of december 31 , 2019 , an increase of $ 2.0 million compared to december 31 , 2018. the increase primarily related to one agricultural relationship comprised of four notes totaling $ 1.8 million with no specific reserve , one agricultural relationship comprised of three notes totaling $ 555,000 with no specific reserve , one mixed relationship comprised of eight notes totaling $ 4.2 million with no specific reserve , and one mixed relationship comprised

