economic factors that impact the company include the general level of economic activity that can affect the volume and size of invoices processed , the ability to hire and retain qualified staff , and the growth and quality of the loan portfolio . the general level of interest rates also has a significant effect on the revenue of the company . as discussed in greater detail in item 7a , “ quantitative and qualitative disclosures about market risk , ” a decline in the general level of interest rates can have a negative impact on net interest income and conversely , a rise in the general level of interest rates can have a positive impact on net interest income . the cost of fuel is another factor that has a significant impact on the transportation sector . as the price of fuel goes up or down , the company 's earnings increase or decrease with the dollar amount of transportation invoices . in 2020 , total fee revenue and other income decreased $ 9,628,000 , or 9 % , net interest income after provision for credit losses decreased $ 2,651,000 , or 6 % , total operating expenses decreased $ 5,154,000 , or 4 % , and net income decreased $ 5,228,000 , or 17 % . this performance in 2020 was negatively impacted by the covid-19 global pandemic . for payment processing services , business closures have led to a decrease in the number of transactions and dollars processed due to the decline in customers ' business activity , which resulted in a negative effect on total fee revenue and other income . additionally , the federal reserve 's actions to lower the federal funds rate adversely impacted net interest income . total operating expenses decreased as the lower number of transactions processed had a corresponding reduction in personnel expense and covid-19 limited employee travel-related expenses . the asset quality of the company 's loans and investments as of december 31 , 2020 remained strong . currently , management views cass ' major opportunity as the continued expansion of its payment and information processing service offerings and customer base . management intends to accomplish this by maintaining the company 's leadership position in applied technology , which when combined with the security and processing controls of the bank , makes cass unique in the industry . impact of new and not yet adopted accounting pronouncements in june 2016 , the fasb issued asu no . 2016-13 , financial instruments – credit losses ( topic 326 ) : measurement of credit losses on financial instruments ( “ asu 2016-13 ” ) . the standard is effective for fiscal periods beginning after december 15 , 2019. the coronavirus aid , relief , and economic security ( “ cares ” ) act was signed into law on march 27 , 2020 and included provisions that temporarily delayed the required implementation date of asu 2016-13 to the earlier of the end of the national pandemic or december 31 , 2020. the consolidated appropriations act ( “ caa ” ) was signed into law on december 27 , 2020 and extended the deferral of required implementation of asu 2016-13 to the earlier of the first day of a company 's fiscal year that begins after the date the covid-19 national emergency comes to an end or january 1 , 2022. the company elected to defer the adoption of asu 2016-13 until december 31 , 2020 with an effective date of january 1 , 2020. the asu required measurement and recognition of expected credit losses for financial instruments held , as applicable , which include allowances for credit losses expected over the life of the portfolio , rather than incurred losses , which include allowances for current probable and estimable losses within the portfolio . under this standard , the company is required to hold an allowance equal to the expected life-of-loan losses on the loan portfolio . it also applies to off-balance sheet credit exposures 19 such as loan commitments , standby letters of credit and other similar instruments . in addition , asu 2016-13 made changes to the accounting for available-for-sale debt securities . the company adopted asu 2016-13 using a modified retrospective approach . results for annual reporting periods beginning after january 1 , 2020 are presented under asu 2016-13 while prior period amounts continue to be reported in accordance with previously applicable gaap . results for quarterly reporting periods beginning after december 31 , 2020 in the company 's form 10-q will be presented under asu 2016-13 while prior quarterly period amounts continue to be reported in accordance with previously applicable gaap . the company recognized increases of $ 723,000 in the allowance for credit losses and $ 402,000 in the reserve for unfunded commitments , with a corresponding reduction to retained earnings , net of tax , of $ 856,000. no credit loss allowance was required upon adoption for the investment securities portfolio . the following table illustrates the impact of the adoption of asu 2016-13 : replace_table_token_1_th critical accounting policies the company has prepared the consolidated financial statements in this report in accordance with the fasb accounting standards codification ( “ asc ” ) . in preparing the consolidated financial statements , management makes estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . these estimates have been generally accurate in the past , have been consistent and have not required any material changes . there can be no assurances that actual results will not differ from those estimates . the accounting policy that requires significant management estimates and is deemed critical to the company 's results of operations or financial position has been discussed with the audit committee of the board of directors and is described below . story_separator_special_tag federal and state regulatory agencies review the company 's methodology for maintaining the acl . these agencies may require the company to adjust the acl based on their judgments and interpretations about information available to them at the time of their examinations . the following schedule summarizes activity in the acl and the allocation of the allowance to the company 's loan categories . 26 summary of credit loss experience replace_table_token_9_th ( 1 ) although specific allocations exist , the entire allowance is available to absorb losses in any particular loan category . 27 nonperforming assets nonperforming loans are defined as loans on non-accrual status and loans 90 days or more past due but still accruing . nonperforming assets include nonperforming loans plus foreclosed real estate . troubled debt restructurings are not included in nonperforming loans unless they are on non-accrual status or past due 90 days or more . it is the policy of the company to continually monitor its loan portfolio and to discontinue the accrual of interest on any loan for which collection is not probable . subsequent payments received on such loans are applied to principal if collection of principal is not probable ; otherwise , these receipts are recorded as interest income . there was no interest on nonaccrual loans for the years ended december 31 , 2020 and 2019 , respectively . there were no nonaccrual loans or foreclosed assets at december 31 , 2020 or december 31 , 2019. the company does not have any foreign loans . the company 's loan portfolio does not include a significant amount of single family real estate mortgages , as the company does not market its services to retail customers . also , the company had no sub-prime mortgage loans or residential development loans in its portfolio in any of the years presented . the company does not have any other interest-earning assets which would have been included in nonaccrual , past due or restructured loans if such assets were loans . summary of nonperforming assets replace_table_token_10_th ( 1 ) in october 2017 , one nonaccrual loan with a balance of $ 215,000 was paid in full . in february 2016 , one nonaccrual loan with a balance of $ 2,727,000 was paid in full . operating expenses operating expenses in 2020 compared to 2019 include the following significant pre-tax components : personnel expense decreased $ 3,021,000 , or 3 % , to $ 88,062,000 as covid-19 caused a decrease in invoice processing volumes and a corresponding decrease in personnel expense . promotional expense decreased $ 1,654,000 , or 43 % , as employee travel-related expenses were limited throughout the year . income tax expense income tax expense in 2020 totaled $ 5,165,000 compared to $ 7,062,000 in 2019. when measured as a percent of pre-tax income , the company 's effective tax rate was 17 % in 2020 and 19 % in 2019. the decrease in the effective tax rate in 2020 compared to 2019 was primarily due to tax-exempt income from municipal bonds being a larger percentage of total pretax income , in addition to the eligibility of additional tax credits . investment portfolio investment portfolio changes from december 31 , 2019 to december 31 , 2020 : state and political subdivision securities decreased $ 18,473,000 , or 6 % , to $ 305,974,000. u.s. government agency securities decreased $ 45,966,000 to $ 51,752,000. the investment portfolio provides the company with a significant source of earnings , secondary source of liquidity , and mechanisms to manage the effects of changes in loan demand and interest rates . therefore , the size , asset allocation and maturity distribution of the investment portfolio will vary over time depending on management 's assessment of current and future interest rates , changes in loan demand , changes in the 28 company 's sources of funds and the economic outlook . during this period , the company purchased securities totaling $ 20,043,000. there was no single issuer of securities in the investment portfolio at december 31 , 2020 for which the aggregate amortized cost exceeded 10 % of total shareholders ' equity . replace_table_token_11_th replace_table_token_12_th ( 1 ) yields are presented on a tax-equivalent basis assuming a tax rate of 21 % for 2020 , 2019 and 2018. deposits and accounts and drafts payable noninterest-bearing demand deposits increased 41 % from december 31 , 2019 to $ 493,504,000 at december 31 , 2020. the average balances of these deposits increased 29 % in 2020 to $ 356,433,000. the increase in deposits during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . these balances are primarily maintained by commercial customers , faith-based ministries , and new payment and information processing relationships and can fluctuate on a daily basis . interest-bearing deposits increased $ 151,307,000 , or 37 % , to $ 557,352,000 at december 31 , 2020. the average balances of these deposits increased 22 % to $ 480,410,000 in 2020 from $ 394,843,000 in 2019. the increase in deposits during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . accounts and drafts payable generated by the company in its payment processing operations increased $ 151,091,000 , or 22 % , to $ 835,386,000 at december 31 , 2020. the average balance of these funds increased $ 18,403,000 , or 2 % , to $ 803,605,000 in 2020. this increase was the result of continued growth in the customer base . due to the company 's payment processing cycle , average balances are much more indicative of the underlying activity than period-end balances since point-in-time comparisons can be misleading if the comparison dates fall on different days of the week . the composition of average deposits and the average rates paid on those deposits is represented in the table entitled “ distribution of assets , liabilities and shareholders ' equity ; interest rate and

liquidity the discipline of liquidity management as practiced by the company seeks to ensure that funds are available to fulfill all payment obligations relating to invoices processed as they become due and meet depositor withdrawal requests and borrower credit demands while at the same time maximizing profitability . this is accomplished by balancing changes in demand for funds with changes in supply of funds . primary liquidity to meet demand is provided by short-term liquid assets that can be converted to cash , maturing securities and the ability to obtain funds from external sources . the company 's asset/liability 29 committee ( “ alco ” ) has direct oversight responsibility for the company 's liquidity position and profile . management considers both on-balance sheet and off-balance sheet items in its evaluation of liquidity . the balances of liquid assets consist of cash and cash equivalents , which include cash and due from banks , interest-bearing deposits in other financial institutions , federal funds sold , and money market funds , totaled $ 670,528,000 at december 31 , 2020 , an increase of $ 466,574,000 , or 229 % , from december 31 , 2019. the increase during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . at december 31 , 2020 , these assets represented 30 % of total assets . cash and cash equivalents are the company 's and its subsidiaries ' primary source of liquidity to meet future expected and unexpected loan demand , depositor withdrawals or reductions in accounts and drafts payable . secondary sources of liquidity include the investment portfolio and borrowing lines . total investment in debt securities available-for-sale at fair value was $ 357,726,000 at december 31 , 2020 , a decrease of $ 64,939,000 , or 15 % , from december 31 , 2019. these assets represented 16 % of total assets at december 31 , 2020 and were primarily state and political subdivision and treasury securities . of the total portfolio , 14 % mature in one year or less , 28 % mature after one year through five years and 58 % mature after five years .


 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 the discipline of liquidity management as practiced by the company seeks to ensure that funds are available to fulfill all payment obligations relating to invoices processed as they become due and meet depositor withdrawal requests and borrower credit demands while at the same time maximizing profitability . this is accomplished by balancing changes in demand for funds with changes in supply of funds . primary liquidity to meet demand is provided by short-term liquid assets that can be converted to cash , maturing securities and the ability to obtain funds from external sources . the company 's asset/liability 29 committee ( “ alco ” ) has direct oversight responsibility for the company 's liquidity position and profile . management considers both on-balance sheet and off-balance sheet items in its evaluation of liquidity . the balances of liquid assets consist of cash and cash equivalents , which include cash and due from banks , interest-bearing deposits in other financial institutions , federal funds sold , and money market funds , totaled $ 670,528,000 at december 31 , 2020 , an increase of $ 466,574,000 , or 229 % , from december 31 , 2019. the increase during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . at december 31 , 2020 , these assets represented 30 % of total assets . cash and cash equivalents are the company 's and its subsidiaries ' primary source of liquidity to meet future expected and unexpected loan demand , depositor withdrawals or reductions in accounts and drafts payable . secondary sources of liquidity include the investment portfolio and borrowing lines . total investment in debt securities available-for-sale at fair value was $ 357,726,000 at december 31 , 2020 , a decrease of $ 64,939,000 , or 15 % , from december 31 , 2019. these assets represented 16 % of total assets at december 31 , 2020 and were primarily state and political subdivision and treasury securities . of the total portfolio , 14 % mature in one year or less , 28 % mature after one year through five years and 58 % mature after five years .
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 Suspicious Activity Report : economic factors that impact the company include the general level of economic activity that can affect the volume and size of invoices processed , the ability to hire and retain qualified staff , and the growth and quality of the loan portfolio . the general level of interest rates also has a significant effect on the revenue of the company . as discussed in greater detail in item 7a , “ quantitative and qualitative disclosures about market risk , ” a decline in the general level of interest rates can have a negative impact on net interest income and conversely , a rise in the general level of interest rates can have a positive impact on net interest income . the cost of fuel is another factor that has a significant impact on the transportation sector . as the price of fuel goes up or down , the company 's earnings increase or decrease with the dollar amount of transportation invoices . in 2020 , total fee revenue and other income decreased $ 9,628,000 , or 9 % , net interest income after provision for credit losses decreased $ 2,651,000 , or 6 % , total operating expenses decreased $ 5,154,000 , or 4 % , and net income decreased $ 5,228,000 , or 17 % . this performance in 2020 was negatively impacted by the covid-19 global pandemic . for payment processing services , business closures have led to a decrease in the number of transactions and dollars processed due to the decline in customers ' business activity , which resulted in a negative effect on total fee revenue and other income . additionally , the federal reserve 's actions to lower the federal funds rate adversely impacted net interest income . total operating expenses decreased as the lower number of transactions processed had a corresponding reduction in personnel expense and covid-19 limited employee travel-related expenses . the asset quality of the company 's loans and investments as of december 31 , 2020 remained strong . currently , management views cass ' major opportunity as the continued expansion of its payment and information processing service offerings and customer base . management intends to accomplish this by maintaining the company 's leadership position in applied technology , which when combined with the security and processing controls of the bank , makes cass unique in the industry . impact of new and not yet adopted accounting pronouncements in june 2016 , the fasb issued asu no . 2016-13 , financial instruments – credit losses ( topic 326 ) : measurement of credit losses on financial instruments ( “ asu 2016-13 ” ) . the standard is effective for fiscal periods beginning after december 15 , 2019. the coronavirus aid , relief , and economic security ( “ cares ” ) act was signed into law on march 27 , 2020 and included provisions that temporarily delayed the required implementation date of asu 2016-13 to the earlier of the end of the national pandemic or december 31 , 2020. the consolidated appropriations act ( “ caa ” ) was signed into law on december 27 , 2020 and extended the deferral of required implementation of asu 2016-13 to the earlier of the first day of a company 's fiscal year that begins after the date the covid-19 national emergency comes to an end or january 1 , 2022. the company elected to defer the adoption of asu 2016-13 until december 31 , 2020 with an effective date of january 1 , 2020. the asu required measurement and recognition of expected credit losses for financial instruments held , as applicable , which include allowances for credit losses expected over the life of the portfolio , rather than incurred losses , which include allowances for current probable and estimable losses within the portfolio . under this standard , the company is required to hold an allowance equal to the expected life-of-loan losses on the loan portfolio . it also applies to off-balance sheet credit exposures 19 such as loan commitments , standby letters of credit and other similar instruments . in addition , asu 2016-13 made changes to the accounting for available-for-sale debt securities . the company adopted asu 2016-13 using a modified retrospective approach . results for annual reporting periods beginning after january 1 , 2020 are presented under asu 2016-13 while prior period amounts continue to be reported in accordance with previously applicable gaap . results for quarterly reporting periods beginning after december 31 , 2020 in the company 's form 10-q will be presented under asu 2016-13 while prior quarterly period amounts continue to be reported in accordance with previously applicable gaap . the company recognized increases of $ 723,000 in the allowance for credit losses and $ 402,000 in the reserve for unfunded commitments , with a corresponding reduction to retained earnings , net of tax , of $ 856,000. no credit loss allowance was required upon adoption for the investment securities portfolio . the following table illustrates the impact of the adoption of asu 2016-13 : replace_table_token_1_th critical accounting policies the company has prepared the consolidated financial statements in this report in accordance with the fasb accounting standards codification ( “ asc ” ) . in preparing the consolidated financial statements , management makes estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . these estimates have been generally accurate in the past , have been consistent and have not required any material changes . there can be no assurances that actual results will not differ from those estimates . the accounting policy that requires significant management estimates and is deemed critical to the company 's results of operations or financial position has been discussed with the audit committee of the board of directors and is described below . story_separator_special_tag federal and state regulatory agencies review the company 's methodology for maintaining the acl . these agencies may require the company to adjust the acl based on their judgments and interpretations about information available to them at the time of their examinations . the following schedule summarizes activity in the acl and the allocation of the allowance to the company 's loan categories . 26 summary of credit loss experience replace_table_token_9_th ( 1 ) although specific allocations exist , the entire allowance is available to absorb losses in any particular loan category . 27 nonperforming assets nonperforming loans are defined as loans on non-accrual status and loans 90 days or more past due but still accruing . nonperforming assets include nonperforming loans plus foreclosed real estate . troubled debt restructurings are not included in nonperforming loans unless they are on non-accrual status or past due 90 days or more . it is the policy of the company to continually monitor its loan portfolio and to discontinue the accrual of interest on any loan for which collection is not probable . subsequent payments received on such loans are applied to principal if collection of principal is not probable ; otherwise , these receipts are recorded as interest income . there was no interest on nonaccrual loans for the years ended december 31 , 2020 and 2019 , respectively . there were no nonaccrual loans or foreclosed assets at december 31 , 2020 or december 31 , 2019. the company does not have any foreign loans . the company 's loan portfolio does not include a significant amount of single family real estate mortgages , as the company does not market its services to retail customers . also , the company had no sub-prime mortgage loans or residential development loans in its portfolio in any of the years presented . the company does not have any other interest-earning assets which would have been included in nonaccrual , past due or restructured loans if such assets were loans . summary of nonperforming assets replace_table_token_10_th ( 1 ) in october 2017 , one nonaccrual loan with a balance of $ 215,000 was paid in full . in february 2016 , one nonaccrual loan with a balance of $ 2,727,000 was paid in full . operating expenses operating expenses in 2020 compared to 2019 include the following significant pre-tax components : personnel expense decreased $ 3,021,000 , or 3 % , to $ 88,062,000 as covid-19 caused a decrease in invoice processing volumes and a corresponding decrease in personnel expense . promotional expense decreased $ 1,654,000 , or 43 % , as employee travel-related expenses were limited throughout the year . income tax expense income tax expense in 2020 totaled $ 5,165,000 compared to $ 7,062,000 in 2019. when measured as a percent of pre-tax income , the company 's effective tax rate was 17 % in 2020 and 19 % in 2019. the decrease in the effective tax rate in 2020 compared to 2019 was primarily due to tax-exempt income from municipal bonds being a larger percentage of total pretax income , in addition to the eligibility of additional tax credits . investment portfolio investment portfolio changes from december 31 , 2019 to december 31 , 2020 : state and political subdivision securities decreased $ 18,473,000 , or 6 % , to $ 305,974,000. u.s. government agency securities decreased $ 45,966,000 to $ 51,752,000. the investment portfolio provides the company with a significant source of earnings , secondary source of liquidity , and mechanisms to manage the effects of changes in loan demand and interest rates . therefore , the size , asset allocation and maturity distribution of the investment portfolio will vary over time depending on management 's assessment of current and future interest rates , changes in loan demand , changes in the 28 company 's sources of funds and the economic outlook . during this period , the company purchased securities totaling $ 20,043,000. there was no single issuer of securities in the investment portfolio at december 31 , 2020 for which the aggregate amortized cost exceeded 10 % of total shareholders ' equity . replace_table_token_11_th replace_table_token_12_th ( 1 ) yields are presented on a tax-equivalent basis assuming a tax rate of 21 % for 2020 , 2019 and 2018. deposits and accounts and drafts payable noninterest-bearing demand deposits increased 41 % from december 31 , 2019 to $ 493,504,000 at december 31 , 2020. the average balances of these deposits increased 29 % in 2020 to $ 356,433,000. the increase in deposits during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . these balances are primarily maintained by commercial customers , faith-based ministries , and new payment and information processing relationships and can fluctuate on a daily basis . interest-bearing deposits increased $ 151,307,000 , or 37 % , to $ 557,352,000 at december 31 , 2020. the average balances of these deposits increased 22 % to $ 480,410,000 in 2020 from $ 394,843,000 in 2019. the increase in deposits during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . accounts and drafts payable generated by the company in its payment processing operations increased $ 151,091,000 , or 22 % , to $ 835,386,000 at december 31 , 2020. the average balance of these funds increased $ 18,403,000 , or 2 % , to $ 803,605,000 in 2020. this increase was the result of continued growth in the customer base . due to the company 's payment processing cycle , average balances are much more indicative of the underlying activity than period-end balances since point-in-time comparisons can be misleading if the comparison dates fall on different days of the week . the composition of average deposits and the average rates paid on those deposits is represented in the table entitled “ distribution of assets , liabilities and shareholders ' equity ; interest rate and

