since the pandemic has begun , the company donated $ 1.0 million through the open stewardship foundation to support small restaurants in the communities we serve . the company also donated $ 10,000 in contribution from its board of directors and employees to two local non-profit organizations to support families who are most severely impacted by the pandemic . 65 critical accounting policies and estimates our accounting and reporting policies conform to accounting principles generally accepted in the united states of america ( “ gaap ” ) and conform to general practices within the industry in which we operate . to prepare financial statements in conformity with gaap , management makes estimates , assumptions and judgments based on available information . these estimates , assumptions and judgments affect the amounts reported in the financial statements and accompanying notes . these estimates , assumptions and judgments are based on information available as of the date of the financial statements and , as this information changes , actual results could differ from the estimates , assumptions and judgments reflected in the financial statement . in particular , management has identified several accounting policies that , due to the estimates , assumptions and judgments inherent in those policies , are critical in understanding our financial statements . the following is a discussion of the critical accounting policies and significant estimates that require us to make complex and subjective judgments . additional information about these policies can be found in the “ notes to consolidated financial statements , note 1. summary of significant accounting policies . ” allowance for loan losses the allowance for loan losses ( “ all ” ) is a valuation allowance for probable incurred credit losses . loan losses are charged against the all when management believes the uncollectibility of a loan balance is confirmed . subsequent recoveries , if any , are credited to the all . management estimates the all balance required using past loan loss experience , the nature and volume of the portfolio , information about specific borrower situations and estimated collateral values , economic conditions , and other factors . allocations of the all may be made for specific loans , but the entire allowance is available for any loan that , in management 's judgment , should be charged off . the all is maintained at a level that management believes is appropriate to provide for known and inherent incurred loan losses as of the date of the consolidated balance sheet and we have established methodologies for the determination of its adequacy . the methodologies are set forth in a formal policy and take into consideration the need for an overall general valuation allowance as well as specific allowances that are determined on an individual loan basis . the evaluation is inherently subjective , as it requires estimates that are susceptible to significant revision as more information becomes available . while management uses available information to recognize losses on loans , changes in economic or other conditions may necessitate revision of the estimate in future periods . results of operations comparison of results of operations for the years ended december 31 , 2020 and 2019 net income we reported net income for the year ended december 31 , 2020 of $ 13.1 million , compared to net income of $ 16.8 million for the year ended december 31 , 2019. the decrease was primarily due to a $ 4.9 million increase in provision for loan losses , offset by a $ 1.1 million increase in net interest income . replace_table_token_3_th 66 net interest income the management of interest income and expense is fundamental to our financial performance . net interest income , the difference between interest income and interest expense , is the largest component of the company 's total revenue . management closely monitors both total net interest income and the net interest margin ( net interest income divided by average earning assets ) . we seek to maximize net interest income without exposing the company to an excessive level of interest rate risk through our asset and liability policies . interest rate risk is managed by monitoring the pricing , maturity and repricing options of all classes of interest-bearing assets and liabilities . our net interest margin is also adversely impacted by the reversal of interest on nonaccrual loans and the reinvestment of loan payoffs into lower yielding investment securities and other short-term investments . the following table presents , for the periods indicated , information about : ( i ) weighted average balances , the total dollar amount of interest income from interest-earning assets and the resultant average yields ; ( ii ) average balances , the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rates ; ( iii ) net interest income ; ( iv ) the interest rate spread ; and ( v ) the net interest margin . replace_table_token_4_th 67 increases and decreases in interest income and interest expense result from changes in average balances ( volume ) of interest-earning assets and interest-bearing liabilities , as well as changes in average interest rates . the following tables set forth the effects of changing rates and volumes on our net interest income during the period shown . information is provided with respect to ( i ) effects on interest income attributable to changes in volume ( change in volume multiplied by prior rate ) and ( ii ) effects on interest income attributable to changes in rate ( changes in rate multiplied by prior volume ) . change applicable to both volume and rate have been allocated to volume and rate ratably . replace_table_token_5_th net interest income for the year ended december 31 , 2020 was $ 45.4 million compared to $ 44.3 million for the year ended december 31 , 2019 , an increase of $ 1.1 million , or 2.5 % . story_separator_special_tag during the fourth quarter of 2019 , the federal reserve 's cumulative market rate decreased 75 basis points through three rate cuts in each of august , september , and october 2019. the increase in the average yield on loan was primarily due to a greater volume of new loan origination with higher yield during the first 7 months in 2019 than new loan origination during the last 5 months of 2019. the company originated new loans of $ 231.0 million for the first 7 months in 2019 and $ 162.2 million for the last 5 months of 2019. total interest income was $ 58.8 million in 2019 , compared to $ 50.1 million in 2018 , an increase of $ 8.7 million , or 17.4 % . this increase was primarily due to an increase in interest earned on our loan portfolio . interest and fees on loans was $ 55.7 million in 2019 , compared to $ 48.1 million in 2018 , an increase of $ 7.6 million , or 15.8 % . this increase in interest income on loans was primarily due to a 12.0 % increase in the average balance of loans outstanding and a 20 basis point improvement in the average yield on loans . interest income on total investments was $ 3.1 million in 2019 , compared to $ 2.0 million in 2018. interest income on the securities portfolio increased $ 368,000 , or 37.4 % , to $ 1.4 million in 2019 , compared to $ 985.000 in 2018. the increase in interest income on the securities portfolio was primarily due to a 24.9 % increase in the average balance of securities available for sale held by the company and a 22 basis point increase in the average yield on the securities portfolio . interest income on federal funds sold and other investments increased $ 731,000 , or 75.0 % , to $ 1.7 million in 2019 from $ 975,000 in 2018 , due to a 103.3 % increase in the average balance of federal funds sold held by the company , but offset by a 41 basis point decrease in the average yield on the federal funds sold and other investments . a cra qualified mutual fund was reclassified to other investment following the adoption of asu 2016-01 effective january 2018 . 74 total interest expense was $ 14.5 million in 2019 , compared to $ 9.1 million in 2018 , an increase of $ 5.4 million , or 59.2 % . the increase was primarily due to increases in interest expense on deposits . interest expense on deposits was $ 14.5 million in 2019 , compared to $ 9.0 million in 2018 , an increase of $ 5.5 million , or 61.8 % . this increase was primarily due to a 20.5 % increase in the average balance of interest-bearing deposits , coupled with a 54 basis point increase in the average interest rate paid . net interest margins for the years ended december 31 , 2019 and 2018 were 4.19 % and 4.49 % , respectively . provision for loan losses the provision for loan losses was $ 1.10 million for the year ended december 31 , 2019 , compared to $ 1.27 million for the year ended december 31 , 2018. the decrease in the provision for loan losses was primarily due to a decrease to a specific reserve for a sba commercial loan , upon the confirmation of the sba government guarantee , and a decrease in reserve for a commercial loan that was fully charged off , and such decrease was partially offset by an increase in reserve from an increase in our loan portfolio . our gross loans were $ 990.1 million at 2019 , compared to $ 875.1 million at 2018 , an increase of $ 115.1 million , or 13.2 % . the allowance for loan losses as a percentage of loans held for investment was 1.02 % at december 31 , 2019 and 1.10 % at december 31 , 2018. noninterest income noninterest income for the year ended december 31 , 2019 was $ 11.4 million , an increase of $ 2.1 million , or 22.5 % , compared to $ 9.3 million for the year ended december 31 , 2018. the following table sets forth the various components of our noninterest income for the years ended december 31 , 2019 and 2018 : replace_table_token_11_th total gain on sale of loans was $ 5.9 million in the year ended december 31 , 2019 , compared to $ 4.9 million for the same period of 2018 , an increase of $ 1.0 million or 21.0 % . gain on sale of sba loans totaled $ 5.8 million in the year ended december 31 , 2019 , compared to $ 4.8 million for the same period of 2018. we sold $ 85.0 million of sba loans with an average premium of 8.43 % in the year ended december 31 , 2019 , compared to the sale of $ 85.7 million of sba loans with an average premium of 7.19 % in the same period of 2018. we originated $ 110.5 million of sba loans in 2019 , compared to $ 99.4 million in 2018. gain on sale of other loans for both periods were immaterial . loan servicing income , net of amortization , increased by $ 108,000 to $ 1.2 million in 2019 , compared to $ 1.1 million in 2018. the increase in loan servicing income was due to a $ 150,000 increase in servicing fees , partially offset by a $ 43,000 increase in servicing asset amortization expense . our total sba loan servicing portfolio was $ 347.8 million as of december 31 , 2019 , compared to $ 328.5 million as of december 31 , 2018. the increase in the servicing portfolio reflects the sales of sba loans in 2019 . 75 other income and fees for 2019 were $ 2.6

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 . our liquidity position is supported by the management of liquid assets and access to alternative sources of funds . our liquid assets include cash , interest-bearing deposits in correspondent banks , federal funds sold , and fair value of unpledged investment securities . other available sources of liquidity include wholesale deposits , and additional borrowings from correspondent banks , fhlb advances , and the federal reserve discount window . 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 and investment 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 .


 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 . our liquidity position is supported by the management of liquid assets and access to alternative sources of funds . our liquid assets include cash , interest-bearing deposits in correspondent banks , federal funds sold , and fair value of unpledged investment securities . other available sources of liquidity include wholesale deposits , and additional borrowings from correspondent banks , fhlb advances , and the federal reserve discount window . 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 and investment 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 .
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 Suspicious Activity Report : since the pandemic has begun , the company donated $ 1.0 million through the open stewardship foundation to support small restaurants in the communities we serve . the company also donated $ 10,000 in contribution from its board of directors and employees to two local non-profit organizations to support families who are most severely impacted by the pandemic . 65 critical accounting policies and estimates our accounting and reporting policies conform to accounting principles generally accepted in the united states of america ( “ gaap ” ) and conform to general practices within the industry in which we operate . to prepare financial statements in conformity with gaap , management makes estimates , assumptions and judgments based on available information . these estimates , assumptions and judgments affect the amounts reported in the financial statements and accompanying notes . these estimates , assumptions and judgments are based on information available as of the date of the financial statements and , as this information changes , actual results could differ from the estimates , assumptions and judgments reflected in the financial statement . in particular , management has identified several accounting policies that , due to the estimates , assumptions and judgments inherent in those policies , are critical in understanding our financial statements . the following is a discussion of the critical accounting policies and significant estimates that require us to make complex and subjective judgments . additional information about these policies can be found in the “ notes to consolidated financial statements , note 1. summary of significant accounting policies . ” allowance for loan losses the allowance for loan losses ( “ all ” ) is a valuation allowance for probable incurred credit losses . loan losses are charged against the all when management believes the uncollectibility of a loan balance is confirmed . subsequent recoveries , if any , are credited to the all . management estimates the all balance required using past loan loss experience , the nature and volume of the portfolio , information about specific borrower situations and estimated collateral values , economic conditions , and other factors . allocations of the all may be made for specific loans , but the entire allowance is available for any loan that , in management 's judgment , should be charged off . the all is maintained at a level that management believes is appropriate to provide for known and inherent incurred loan losses as of the date of the consolidated balance sheet and we have established methodologies for the determination of its adequacy . the methodologies are set forth in a formal policy and take into consideration the need for an overall general valuation allowance as well as specific allowances that are determined on an individual loan basis . the evaluation is inherently subjective , as it requires estimates that are susceptible to significant revision as more information becomes available . while management uses available information to recognize losses on loans , changes in economic or other conditions may necessitate revision of the estimate in future periods . results of operations comparison of results of operations for the years ended december 31 , 2020 and 2019 net income we reported net income for the year ended december 31 , 2020 of $ 13.1 million , compared to net income of $ 16.8 million for the year ended december 31 , 2019. the decrease was primarily due to a $ 4.9 million increase in provision for loan losses , offset by a $ 1.1 million increase in net interest income . replace_table_token_3_th 66 net interest income the management of interest income and expense is fundamental to our financial performance . net interest income , the difference between interest income and interest expense , is the largest component of the company 's total revenue . management closely monitors both total net interest income and the net interest margin ( net interest income divided by average earning assets ) . we seek to maximize net interest income without exposing the company to an excessive level of interest rate risk through our asset and liability policies . interest rate risk is managed by monitoring the pricing , maturity and repricing options of all classes of interest-bearing assets and liabilities . our net interest margin is also adversely impacted by the reversal of interest on nonaccrual loans and the reinvestment of loan payoffs into lower yielding investment securities and other short-term investments . the following table presents , for the periods indicated , information about : ( i ) weighted average balances , the total dollar amount of interest income from interest-earning assets and the resultant average yields ; ( ii ) average balances , the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rates ; ( iii ) net interest income ; ( iv ) the interest rate spread ; and ( v ) the net interest margin . replace_table_token_4_th 67 increases and decreases in interest income and interest expense result from changes in average balances ( volume ) of interest-earning assets and interest-bearing liabilities , as well as changes in average interest rates . the following tables set forth the effects of changing rates and volumes on our net interest income during the period shown . information is provided with respect to ( i ) effects on interest income attributable to changes in volume ( change in volume multiplied by prior rate ) and ( ii ) effects on interest income attributable to changes in rate ( changes in rate multiplied by prior volume ) . change applicable to both volume and rate have been allocated to volume and rate ratably . replace_table_token_5_th net interest income for the year ended december 31 , 2020 was $ 45.4 million compared to $ 44.3 million for the year ended december 31 , 2019 , an increase of $ 1.1 million , or 2.5 % . story_separator_special_tag during the fourth quarter of 2019 , the federal reserve 's cumulative market rate decreased 75 basis points through three rate cuts in each of august , september , and october 2019. the increase in the average yield on loan was primarily due to a greater volume of new loan origination with higher yield during the first 7 months in 2019 than new loan origination during the last 5 months of 2019. the company originated new loans of $ 231.0 million for the first 7 months in 2019 and $ 162.2 million for the last 5 months of 2019. total interest income was $ 58.8 million in 2019 , compared to $ 50.1 million in 2018 , an increase of $ 8.7 million , or 17.4 % . this increase was primarily due to an increase in interest earned on our loan portfolio . interest and fees on loans was $ 55.7 million in 2019 , compared to $ 48.1 million in 2018 , an increase of $ 7.6 million , or 15.8 % . this increase in interest income on loans was primarily due to a 12.0 % increase in the average balance of loans outstanding and a 20 basis point improvement in the average yield on loans . interest income on total investments was $ 3.1 million in 2019 , compared to $ 2.0 million in 2018. interest income on the securities portfolio increased $ 368,000 , or 37.4 % , to $ 1.4 million in 2019 , compared to $ 985.000 in 2018. the increase in interest income on the securities portfolio was primarily due to a 24.9 % increase in the average balance of securities available for sale held by the company and a 22 basis point increase in the average yield on the securities portfolio . interest income on federal funds sold and other investments increased $ 731,000 , or 75.0 % , to $ 1.7 million in 2019 from $ 975,000 in 2018 , due to a 103.3 % increase in the average balance of federal funds sold held by the company , but offset by a 41 basis point decrease in the average yield on the federal funds sold and other investments . a cra qualified mutual fund was reclassified to other investment following the adoption of asu 2016-01 effective january 2018 . 74 total interest expense was $ 14.5 million in 2019 , compared to $ 9.1 million in 2018 , an increase of $ 5.4 million , or 59.2 % . the increase was primarily due to increases in interest expense on deposits . interest expense on deposits was $ 14.5 million in 2019 , compared to $ 9.0 million in 2018 , an increase of $ 5.5 million , or 61.8 % . this increase was primarily due to a 20.5 % increase in the average balance of interest-bearing deposits , coupled with a 54 basis point increase in the average interest rate paid . net interest margins for the years ended december 31 , 2019 and 2018 were 4.19 % and 4.49 % , respectively . provision for loan losses the provision for loan losses was $ 1.10 million for the year ended december 31 , 2019 , compared to $ 1.27 million for the year ended december 31 , 2018. the decrease in the provision for loan losses was primarily due to a decrease to a specific reserve for a sba commercial loan , upon the confirmation of the sba government guarantee , and a decrease in reserve for a commercial loan that was fully charged off , and such decrease was partially offset by an increase in reserve from an increase in our loan portfolio . our gross loans were $ 990.1 million at 2019 , compared to $ 875.1 million at 2018 , an increase of $ 115.1 million , or 13.2 % . the allowance for loan losses as a percentage of loans held for investment was 1.02 % at december 31 , 2019 and 1.10 % at december 31 , 2018. noninterest income noninterest income for the year ended december 31 , 2019 was $ 11.4 million , an increase of $ 2.1 million , or 22.5 % , compared to $ 9.3 million for the year ended december 31 , 2018. the following table sets forth the various components of our noninterest income for the years ended december 31 , 2019 and 2018 : replace_table_token_11_th total gain on sale of loans was $ 5.9 million in the year ended december 31 , 2019 , compared to $ 4.9 million for the same period of 2018 , an increase of $ 1.0 million or 21.0 % . gain on sale of sba loans totaled $ 5.8 million in the year ended december 31 , 2019 , compared to $ 4.8 million for the same period of 2018. we sold $ 85.0 million of sba loans with an average premium of 8.43 % in the year ended december 31 , 2019 , compared to the sale of $ 85.7 million of sba loans with an average premium of 7.19 % in the same period of 2018. we originated $ 110.5 million of sba loans in 2019 , compared to $ 99.4 million in 2018. gain on sale of other loans for both periods were immaterial . loan servicing income , net of amortization , increased by $ 108,000 to $ 1.2 million in 2019 , compared to $ 1.1 million in 2018. the increase in loan servicing income was due to a $ 150,000 increase in servicing fees , partially offset by a $ 43,000 increase in servicing asset amortization expense . our total sba loan servicing portfolio was $ 347.8 million as of december 31 , 2019 , compared to $ 328.5 million as of december 31 , 2018. the increase in the servicing portfolio reflects the sales of sba loans in 2019 . 75 other income and fees for 2019 were $ 2.6

