on march 16 , 2020 , the fed also announced action to inject more liquidity into the financial system by purchasing up to $ 500 billion of u.s. treasuries and $ 200 billion of mortgage-backed securities . all major stock exchanges experienced dramatic sell-offs . the dow , which had peaked at 29,568 in february , closed on friday , march 20 , 2020 at 19,174 , down 10,394 points , or 35 % . nasdaq was down 30 % , while the s & p 500 was down 32 % . even with a significant equity market recovery since the initial impact of covid-19 , economic conditions remain uncertain . with the closing of non-essential businesses throughout various parts of the country for a number of months and a continued impact to consumer spending , it is anticipated that the financial impact will be long-term . the coronavirus aid relief and economic security act , also known as the cares act , was a $ 2.2 trillion economic stimulus bill passed by congress and signed into law on march 27 , 2020 , by president donald trump . the major provisions of the cares act were direct small business aid for employers with fewer than 500 employees ; direct deposit stimulus payments to american households ; enhanced unemployment compensation benefits ; and direct aid to hospitals and health care 33 enb financial corp management 's discussion and analysis providers . the paycheck protection program ( ppp ) was part of this legislation , which provided relief to businesses and organizations provided they would retain their workforce and act within the provisions of the plan . the ppp was responsible for the corporation generating $ 77.7 million of loans by september 30 , 2020 , which was the highpoint in ppp loans for 2020. by december 31 , 2020 , ppp loan balances declined to $ 48.0 million , as a result of loan forgiveness and payoffs . after december 31 , 2020 , but prior to the filing of this form 10-k , legislation for a second round of ppp loans was passed , which resulted in the corporation 's total ppp loans increasing again in early 2021. consistent with the marketplace , the impact of the second round of ppp was not near as large as the first round . management anticipated that $ 25 million to $ 30 million of ppp loans would be generated in the second round . prior to the filing of this report , the corporation 's total ppp loans had again started to decline due to further loan forgiveness and payoffs . the economic impact of covid-19 had both negative and positive impacts on the corporation 's financial results . the corporation was able to achieve a higher level of earnings in 2020 than in 2019 , but the efficiency of these earnings was reduced . the pandemic caused a very low interest rate environment , which in turn caused a much larger balance sheet with a historic increase in deposits , increasing the corporation 's net interest income , despite a lower net interest margin . the corporation 's net interest income was also increased by the recognition of ppp loan fee income . offsetting the increase in net interest income was a larger increase in the provision for loan losses . as a result of the pandemic , management was guarded about expected increases in loan losses and higher associated provision for loan losses . management did incur $ 2.2 million more provision for loan loss expense in 2020 than it did in 2019 , however much of the provision increase was focused on a very small number of commercial loans . it remains to be determined what the long-term economic impact of covid-19 will be on the corporation 's borrowers and how it will affect the corporation 's forward earnings . the corporation recorded net income of $ 12,299,000 for the year ended december 31 , 2020 , a 7.9 % increase from the $ 11,395,000 earned during the same period in 2019. the 2019 net income was 16.9 % higher than the 2018 net income of $ 9,749,000. earnings per share , basic and diluted , were $ 2.20 in 2020 , compared to $ 2.01 in 2019 , and $ 1.71 in 2018. the increase in the corporation 's 2020 earnings was caused primarily by an increase in mortgage gains from selling mortgage assets on the secondary market . these gains increased by $ 3,914,000 , or 202.2 % in 2020 compared to 2019 due to a high volume of mortgage refinancings stemming from the very low interest rate environment as well as high margins received on loans sold on the secondary market . the corporation 's 2020 earnings were also aided by an increase in net interest income of $ 1,630,000 , or 4.5 % . net interest income accounts for 71 % of the gross income stream of the corporation . the corporation 's net interest margin decreased in 2020 to 3.24 % , from 3.53 % in 2019. loan yields decreased as a result of the federal reserve rate decrease in the first quarter of 2020 , immediately impacting the yields on the corporation 's variable rate loans . the decline in interest expense helped to partially offset the declining asset yields , but to a much smaller degree . the financial services industry uses two primary performance measurements to gauge performance : return on average assets ( roa ) and return on average equity ( roe ) . roa measures how efficiently a bank generates income based on the amount of assets or size of a company . roe measures the efficiency of a company in generating income based on the amount of equity or capital utilized . the latter measurement typically receives more attention from shareholders . the corporation 's 2020 roa was 0.96 % , compared to 1.01 % in 2019. story_separator_special_tag a result of the growth in balances as well as ppp fees that caused an increase in interest and fees on loans . loan pricing was challenging in 2020 as a result of the very low rate environment and competition resulting in fixed-rate loans being priced at very low levels and variable-rate loans priced at the prime rate or below . the prime rate was 4.75 % as of december 31 , 2019 , and was moderately higher than the typical business or commercial five-year fixed rates being extended at that time . the prime rate decreased by 1.50 % in march of 2020 to 3.25 % , which is now comparable to the typical rate of a five-year fixed-rate loan . the commercial or business fixed rates do increase with longer fixed terms or lower credit quality . in terms of the variable rate pricing , nearly all variable rate loans offered are prime-based . management is able to price loan customers with higher levels of credit risk at prime plus pricing , such as prime plus 0.75 % , which amounted to 4.00 % at december 31 , 2020 , still a relatively low rate . however , only a small minority of the loans in the commercial and agricultural portfolios are at these higher rates due to the strong credit quality of the corporation 's borrowers and market competition . competition in the immediate market area has been pricing select shorter-term fixed-rate commercial and agricultural lending rates below 3.25 % for the strongest loan credits . tax equivalent yields on the corporation 's securities decreased by 49 basis points for the year ended december 31 , 2020 , compared to 2019. the corporation 's securities portfolio consists of approximately 79 % fixed income debt instruments and 21 % variable rate product as of december 31 , 2020. the corporation 's taxable securities experienced a 64 basis-point decrease in yield for the year ended december 31 , 2020 , compared to 2019. security reinvestment in 2020 has been occurring at lower rates due to the significant decline in u.s. treasury rates . the sharp growth in the investment portfolio during a period of very low rates also contributed to the decline in average security yield . this large amount of new investment was caused by the significant influx of deposits , which caused excess liquidity . the sharpest growth in the securities portfolio occurred in the fourth quarter . in addition to these negative influences , the corporation 's u.s. agency mortgage-backed securities and collateralized mortgage obligations experience faster principal prepayments as market rates decrease , causing the amortization of premium to increase , effectively decreasing the yield . the yield on tax-exempt securities decreased by 20 basis points in 2020 compared to 2019. for the corporation , these bonds consist entirely of tax-free municipal bonds . while the tax-exempt yields on municipal bonds declined with the tax rate change at the end of 2017 , yields became more attractive again during the latter part of 2019 and throughout 2020. management began investing in more of these bonds in 2020 as yields stood out and provided better returns than other sectors of the portfolio . the interest rate paid on deposits decreased for the year ended december 31 , 2020 , from the same period in 2019. management follows a disciplined pricing strategy on core deposit products that are not rate sensitive , meaning that the balances do not fluctuate significantly when interest rates change . rates on interest-bearing checking accounts and money market accounts were decreased in 2020 , resulting in a decrease in the cost of funds on these accounts of 47 basis points . savings account rates were also decreased during the year resulting in a two basis point reduction in the cost of funds associated with these accounts . additionally , the cost of funds on time deposits decreased by six basis points during 2020. typically , the corporation sees increases in core deposit products during periods when consumers are not confident in the stock market and economic conditions deteriorate . during these periods , there is a “ flight to safety ” to federally insured deposits . this trend occurred in 2020. as the rate between time deposits and core deposits narrowed , many customers chose to transfer funds from maturing time deposits into checking and savings accounts . since the financial crisis , depositors have been more concerned about the financial health of their financial institution . this concern affects their desire to obtain the best possible market interest rates . this trend benefits the corporation 40 enb financial corp management 's discussion and analysis due to its high capital levels and track record of strong and stable earnings . the corporation 's bauer financial rating of 5 , the highest level of their rating scale , has assisted the bank in gaining core deposits over the past several years . the corporation 's average rate on borrowed funds increased by 39 basis points from 2019 to 2020 , as fhlb borrowings were paid off early throughout the year accelerating $ 234,000 of interest expense . provision for loan losses the allowance for credit losses provides for losses inherent in the loan portfolio as determined by a quarterly analysis and calculation of various factors related to the loan portfolio . the amount of the provision reflects the adjustment that management determines is necessary to ensure that the allowance for credit losses is adequate to cover any losses inherent in the loan portfolio . the corporation gives special attention to the level of underperforming loans when calculating the necessary provision for loan losses . the analysis of the credit loss allowance takes into consideration , among other things , the following factors : · levels and trends in delinquencies , non-accruals , and charge-offs , · levels of classified loans , · trends within the loan portfolio , · changes in lending policies

cash and cash equivalents cash and cash equivalents consist of the cash on hand in the corporation 's vaults , operational transaction accounts with the federal reserve bank ( frb ) , and deposits in other banks . the frb requires a specified amount of cash available either in vault cash or in an frb account . known as cash reserves , these funds provide for the daily clearing house activity of the corporation and fluctuate based on the volume of each day 's transactions . beyond these requirements , the corporation maintains additional cash levels as part of management 's active asset liability and liquidity strategy . management has been carrying larger cash balances as a result of the large increase in deposit balances during 2020 with lower levels of loan growth . additionally , higher cash balances provide an immediate hedge against interest rate risk and liquidity risk . as of december 31 , 2020 , the corporation had $ 94.9 million in cash and cash equivalents , compared to $ 41.1 million as of december 31 , 2019. the overnight rate that the federal reserve bank pays on excess cash balances fluctuates as the overnight federal funds rate fluctuates and as of december 31 , 2020 , it stood at 0.10 % . the corporation does not aim to keep excess cash at the frb as the overnight rate is much less then rates received on balances held in correspondent money market accounts . management invests excess cash in three money market accounts at other financial institutions .


 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 consist of the cash on hand in the corporation 's vaults , operational transaction accounts with the federal reserve bank ( frb ) , and deposits in other banks . the frb requires a specified amount of cash available either in vault cash or in an frb account . known as cash reserves , these funds provide for the daily clearing house activity of the corporation and fluctuate based on the volume of each day 's transactions . beyond these requirements , the corporation maintains additional cash levels as part of management 's active asset liability and liquidity strategy . management has been carrying larger cash balances as a result of the large increase in deposit balances during 2020 with lower levels of loan growth . additionally , higher cash balances provide an immediate hedge against interest rate risk and liquidity risk . as of december 31 , 2020 , the corporation had $ 94.9 million in cash and cash equivalents , compared to $ 41.1 million as of december 31 , 2019. the overnight rate that the federal reserve bank pays on excess cash balances fluctuates as the overnight federal funds rate fluctuates and as of december 31 , 2020 , it stood at 0.10 % . the corporation does not aim to keep excess cash at the frb as the overnight rate is much less then rates received on balances held in correspondent money market accounts . management invests excess cash in three money market accounts at other financial institutions .
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 Suspicious Activity Report : on march 16 , 2020 , the fed also announced action to inject more liquidity into the financial system by purchasing up to $ 500 billion of u.s. treasuries and $ 200 billion of mortgage-backed securities . all major stock exchanges experienced dramatic sell-offs . the dow , which had peaked at 29,568 in february , closed on friday , march 20 , 2020 at 19,174 , down 10,394 points , or 35 % . nasdaq was down 30 % , while the s & p 500 was down 32 % . even with a significant equity market recovery since the initial impact of covid-19 , economic conditions remain uncertain . with the closing of non-essential businesses throughout various parts of the country for a number of months and a continued impact to consumer spending , it is anticipated that the financial impact will be long-term . the coronavirus aid relief and economic security act , also known as the cares act , was a $ 2.2 trillion economic stimulus bill passed by congress and signed into law on march 27 , 2020 , by president donald trump . the major provisions of the cares act were direct small business aid for employers with fewer than 500 employees ; direct deposit stimulus payments to american households ; enhanced unemployment compensation benefits ; and direct aid to hospitals and health care 33 enb financial corp management 's discussion and analysis providers . the paycheck protection program ( ppp ) was part of this legislation , which provided relief to businesses and organizations provided they would retain their workforce and act within the provisions of the plan . the ppp was responsible for the corporation generating $ 77.7 million of loans by september 30 , 2020 , which was the highpoint in ppp loans for 2020. by december 31 , 2020 , ppp loan balances declined to $ 48.0 million , as a result of loan forgiveness and payoffs . after december 31 , 2020 , but prior to the filing of this form 10-k , legislation for a second round of ppp loans was passed , which resulted in the corporation 's total ppp loans increasing again in early 2021. consistent with the marketplace , the impact of the second round of ppp was not near as large as the first round . management anticipated that $ 25 million to $ 30 million of ppp loans would be generated in the second round . prior to the filing of this report , the corporation 's total ppp loans had again started to decline due to further loan forgiveness and payoffs . the economic impact of covid-19 had both negative and positive impacts on the corporation 's financial results . the corporation was able to achieve a higher level of earnings in 2020 than in 2019 , but the efficiency of these earnings was reduced . the pandemic caused a very low interest rate environment , which in turn caused a much larger balance sheet with a historic increase in deposits , increasing the corporation 's net interest income , despite a lower net interest margin . the corporation 's net interest income was also increased by the recognition of ppp loan fee income . offsetting the increase in net interest income was a larger increase in the provision for loan losses . as a result of the pandemic , management was guarded about expected increases in loan losses and higher associated provision for loan losses . management did incur $ 2.2 million more provision for loan loss expense in 2020 than it did in 2019 , however much of the provision increase was focused on a very small number of commercial loans . it remains to be determined what the long-term economic impact of covid-19 will be on the corporation 's borrowers and how it will affect the corporation 's forward earnings . the corporation recorded net income of $ 12,299,000 for the year ended december 31 , 2020 , a 7.9 % increase from the $ 11,395,000 earned during the same period in 2019. the 2019 net income was 16.9 % higher than the 2018 net income of $ 9,749,000. earnings per share , basic and diluted , were $ 2.20 in 2020 , compared to $ 2.01 in 2019 , and $ 1.71 in 2018. the increase in the corporation 's 2020 earnings was caused primarily by an increase in mortgage gains from selling mortgage assets on the secondary market . these gains increased by $ 3,914,000 , or 202.2 % in 2020 compared to 2019 due to a high volume of mortgage refinancings stemming from the very low interest rate environment as well as high margins received on loans sold on the secondary market . the corporation 's 2020 earnings were also aided by an increase in net interest income of $ 1,630,000 , or 4.5 % . net interest income accounts for 71 % of the gross income stream of the corporation . the corporation 's net interest margin decreased in 2020 to 3.24 % , from 3.53 % in 2019. loan yields decreased as a result of the federal reserve rate decrease in the first quarter of 2020 , immediately impacting the yields on the corporation 's variable rate loans . the decline in interest expense helped to partially offset the declining asset yields , but to a much smaller degree . the financial services industry uses two primary performance measurements to gauge performance : return on average assets ( roa ) and return on average equity ( roe ) . roa measures how efficiently a bank generates income based on the amount of assets or size of a company . roe measures the efficiency of a company in generating income based on the amount of equity or capital utilized . the latter measurement typically receives more attention from shareholders . the corporation 's 2020 roa was 0.96 % , compared to 1.01 % in 2019. story_separator_special_tag a result of the growth in balances as well as ppp fees that caused an increase in interest and fees on loans . loan pricing was challenging in 2020 as a result of the very low rate environment and competition resulting in fixed-rate loans being priced at very low levels and variable-rate loans priced at the prime rate or below . the prime rate was 4.75 % as of december 31 , 2019 , and was moderately higher than the typical business or commercial five-year fixed rates being extended at that time . the prime rate decreased by 1.50 % in march of 2020 to 3.25 % , which is now comparable to the typical rate of a five-year fixed-rate loan . the commercial or business fixed rates do increase with longer fixed terms or lower credit quality . in terms of the variable rate pricing , nearly all variable rate loans offered are prime-based . management is able to price loan customers with higher levels of credit risk at prime plus pricing , such as prime plus 0.75 % , which amounted to 4.00 % at december 31 , 2020 , still a relatively low rate . however , only a small minority of the loans in the commercial and agricultural portfolios are at these higher rates due to the strong credit quality of the corporation 's borrowers and market competition . competition in the immediate market area has been pricing select shorter-term fixed-rate commercial and agricultural lending rates below 3.25 % for the strongest loan credits . tax equivalent yields on the corporation 's securities decreased by 49 basis points for the year ended december 31 , 2020 , compared to 2019. the corporation 's securities portfolio consists of approximately 79 % fixed income debt instruments and 21 % variable rate product as of december 31 , 2020. the corporation 's taxable securities experienced a 64 basis-point decrease in yield for the year ended december 31 , 2020 , compared to 2019. security reinvestment in 2020 has been occurring at lower rates due to the significant decline in u.s. treasury rates . the sharp growth in the investment portfolio during a period of very low rates also contributed to the decline in average security yield . this large amount of new investment was caused by the significant influx of deposits , which caused excess liquidity . the sharpest growth in the securities portfolio occurred in the fourth quarter . in addition to these negative influences , the corporation 's u.s. agency mortgage-backed securities and collateralized mortgage obligations experience faster principal prepayments as market rates decrease , causing the amortization of premium to increase , effectively decreasing the yield . the yield on tax-exempt securities decreased by 20 basis points in 2020 compared to 2019. for the corporation , these bonds consist entirely of tax-free municipal bonds . while the tax-exempt yields on municipal bonds declined with the tax rate change at the end of 2017 , yields became more attractive again during the latter part of 2019 and throughout 2020. management began investing in more of these bonds in 2020 as yields stood out and provided better returns than other sectors of the portfolio . the interest rate paid on deposits decreased for the year ended december 31 , 2020 , from the same period in 2019. management follows a disciplined pricing strategy on core deposit products that are not rate sensitive , meaning that the balances do not fluctuate significantly when interest rates change . rates on interest-bearing checking accounts and money market accounts were decreased in 2020 , resulting in a decrease in the cost of funds on these accounts of 47 basis points . savings account rates were also decreased during the year resulting in a two basis point reduction in the cost of funds associated with these accounts . additionally , the cost of funds on time deposits decreased by six basis points during 2020. typically , the corporation sees increases in core deposit products during periods when consumers are not confident in the stock market and economic conditions deteriorate . during these periods , there is a “ flight to safety ” to federally insured deposits . this trend occurred in 2020. as the rate between time deposits and core deposits narrowed , many customers chose to transfer funds from maturing time deposits into checking and savings accounts . since the financial crisis , depositors have been more concerned about the financial health of their financial institution . this concern affects their desire to obtain the best possible market interest rates . this trend benefits the corporation 40 enb financial corp management 's discussion and analysis due to its high capital levels and track record of strong and stable earnings . the corporation 's bauer financial rating of 5 , the highest level of their rating scale , has assisted the bank in gaining core deposits over the past several years . the corporation 's average rate on borrowed funds increased by 39 basis points from 2019 to 2020 , as fhlb borrowings were paid off early throughout the year accelerating $ 234,000 of interest expense . provision for loan losses the allowance for credit losses provides for losses inherent in the loan portfolio as determined by a quarterly analysis and calculation of various factors related to the loan portfolio . the amount of the provision reflects the adjustment that management determines is necessary to ensure that the allowance for credit losses is adequate to cover any losses inherent in the loan portfolio . the corporation gives special attention to the level of underperforming loans when calculating the necessary provision for loan losses . the analysis of the credit loss allowance takes into consideration , among other things , the following factors : · levels and trends in delinquencies , non-accruals , and charge-offs , · levels of classified loans , · trends within the loan portfolio , · changes in lending policies

