pursuant to the terms of the merger agreement , partnership shareholders had the option to receive either 0.34879 shares of the company 's common stock or $ 17.3001 in cash for each outstanding share of partnership common stock , and cash in lieu of any remaining fractional share . the stock versus cash elections by the partnership shareholders were subject to final consideration being made up of approximately $ 14.3 million in cash and 534,659 shares of company common stock , valued at approximately $ 35.3 million ( based on a value of $ 66.03 per share on the closing date ) . on may 15 , 2020 , the company completed a merger with timberwood , a bank holding company headquartered in tomah , wi , pursuant to the agreement and plan of bank merger , dated as of november 20 , 2019 , by and among the company and timberwood , whereby timberwood was merged with and into the company , and timberwood bank , timberwood 's wholly owned banking subsidiary , was merged with and into the bank . timberwood 's principal activity was the ownership and operation of timberwood bank , a state-chartered banking institution that operated one ( 1 ) branch in wisconsin at the time of closing . the merger consideration totaled approximately $ 29.8 million . pursuant to the terms of the merger agreement , timberwood shareholders received 5.1445 shares of the company 's common stock for each outstanding share of timberwood common stock , and cash in lieu of any remaining fractional share . company stock issued totaled 575,641 shares valued at approximately $ 29.4 million , with cash of $ 0.4 million comprising the remainder of merger consideration . the company accounted for these transactions under the acquisition method of accounting , and thus , the financial position and results of operations of partnership and timberwood prior to the consummation date were not included in the accompanying consolidated financial statements . the accounting required assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition . the company determined the fair value of core deposit intangibles , securities , premises and equipment , loans , other assets and liabilities , deposits and borrowings with the assistance of third party valuations , appraisals , and third party advisors . the estimated fair values are subject to refinement for up to one year after the consummation as additional information becomes available relative to the closing date fair values . covid-19 during the first quarter of 2020 , covid-19 was declared a global pandemic by the world health organization and a national public health emergency was declared in the united states . shortly before the end of march 2020 , in response to the covid-19 pandemic , the government of wisconsin and of most other states took preventative or protective actions , such as imposing restrictions on travel and business operations , advising or requiring individuals to limit or forego their time outside of their homes , and ordering temporary closures of businesses that have been deemed to be non-essential . these preventative and protective actions within wisconsin were lifted during may 2020 , but continued uncertainty remains as future actions may be warranted based on the progression of the pandemic . 45 the impact of the covid-19 pandemic on the economy continues to evolve . the covid-19 pandemic and its associated impacts on trade , travel , unemployment , consumer spending , and other economic activities has resulted in less economic activity and could have an adverse effect on our business , financial condition and results of operations . the ultimate extent of the impact of the covid-19 pandemic on our business , financial condition and results of operations is currently uncertain and will depend on various developments and other factors , including , among others , the duration and scope of the pandemic , as well as governmental , regulatory and private sector responses to the pandemic , and the associated impacts on the economy , financial markets and our customers . in response to the covid-19 pandemic , the cares act was signed into law on march 27 , 2020. the cares act provided an estimated $ 2.2 trillion to address the economic impact of the covid-19 pandemic and stimulate the economy by supporting individuals and businesses through loans , grants , tax changes , and other types of relief . the cares act also included provisions to encourage financial institutions to work prudently with borrowers . on december 27 , 2020 , the economic aid act was signed into law . this second coronavirus relief package granted additional funds for a new round of ppp loans . additionally , it expanded the eligibility for loans and allows certain businesses to request a second loan . under the cares act , banks may elect to deem that loan modifications do not result in troubled debt restructurings ( `` tdrs `` ) if they are ( 1 ) related to covid-19 ; ( 2 ) executed on a loan that was not more than 30 days past due as of december 31 , 2019 ; and ( 3 ) executed between march 1 , 2020 and the earlier of ( a ) 60 days after the date of termination of the national emergency declaration or ( b ) december 31 , 2020. additionally , in accordance with the interagency statement on loan modifications and reporting for financial institutions working with customers affected by the coronavirus ( revised ) , other short-term modifications made on a good faith basis in response to covid-19 to borrowers who were current prior to any relief are not tdrs under asc subtopic 310-40. this includes short-term ( e.g . up to six months ) modifications such as payment deferrals , fee waivers , extensions of repayment terms , or delays in payment that are insignificant . story_separator_special_tag this decline was primarily the result of a significantly lower interest rate environment that developed through the first half of 2020. interest expense on interest-bearing deposits decreased by $ 5.4 million to $ 12.5 million for the year ended december 31 , 2020 , from $ 17.9 million for the year ended december 31 , 2019. this decrease was primarily due to the aforementioned lower interest rate environment , allowing the company to significantly reduce crediting interest rates on non-time , interest-bearing deposit accounts . the average cost of interest-bearing deposits was 0.83 % for the year ended december 31 , 2020 , compared to 1.50 % for the year ended december 31 , 2019. provision for loan losses . credit risk is inherent in the business of making loans . we establish an alll through charges to earnings , which are shown in the statements of operations as the provision for loan losses . specifically identifiable and quantifiable known losses are promptly charged off against the allowance . the provision for loan losses is determined by conducting a quarterly evaluation of the adequacy of our alll and charging the shortfall or excess , if any , to the current quarter 's expense . this has the effect of creating variability in the amount and frequency of charges to earnings . the provision for loan losses and level of allowance for each period are dependent upon many factors , including loan growth , net charge-offs , changes in the composition of the loan portfolio , delinquencies , management 's assessment of the quality of the loan portfolio , the valuation of problem loans and the general economic conditions in our market area . the determination of the amount is complex and involves a high degree of judgment and subjectivity . we recorded a provision for loan losses of $ 7.1 million for the year ended december 31 , 2020 , compared to $ 5.3 million for the year ended december 31 , 2019. significant charge-offs occurring during the third quarter of 2019 necessitated increased provisions for loan losses during 2019. these charge-offs were the result of exiting certain relationships during that quarter which were originally acquired as part of the waupaca transaction . despite having significantly reduced charge-offs during 2020 , economic uncertainties as a result of the covid-19 pandemic required a build-up of our alll , resulting in higher provision expense . the alll was $ 17.7 million , or 0.81 % of total loans , at december 31 , 2020 compared to $ 11.4 million , or 0.66 % of total loans at december 31 , 2019 . 50 noninterest income . noninterest income is an important component of our total revenues . a significant portion of our noninterest income is associated with service charges and income from the bank 's unconsolidated subsidiaries , ansay and ufs . other sources of noninterest income include loan servicing fees , gains on sales of mortgage loans , and other income from strategic alliances . noninterest income increased $ 10.9 million to $ 23.5 million in 2020 compared to $ 12.6 million in 2019. service charges increased by $ 1.5 million , or 42.7 % , from 2019 to 2020 , the result of new markets and added scale from three acquisitions in slightly more than three years . income from ansay increased by $ 0.9 million as a result of modestly higher profitability at that organization as well as the increase in our ownership during october 2019. loan servicing income and net gain on sales of mortgage loans increased by $ 0.9 and $ 3.9 million from 2019 to 2020 , the result of a robust residential mortgage lending environment during 2020 spurred by historically low mortgage interest rates . due to uncertainty about liquidity needs in financial markets during the early days of the covid-19 pandemic , the company sold approximately $ 34.0 million in u.s. treasury securities during the second quarter of 2020 , resulting in a gain on sale of securities of $ 3.2 million , an increase of $ 2.6 million over 2019. finally , the company recorded a $ 1.7 million gain on the sale of a branch location during december 2020 , causing other noninterest income to increase year-over-year . the major components of our noninterest income are listed in the table below : replace_table_token_5_th ​ 51 noninterest expense . noninterest expense increased $ 10.6 million to $ 53.4 million for the year ended december 31 , 2020 , up from $ 42.8 million for the year ended december 31 , 2019. year-over-year , personnel expense increased $ 4.4 million , or 19.1 % , occupancy expense increased $ 0.9 million , or 22.3 % , data processing increased $ 1.0 million , or 22.3 % , outside service fees increased $ 1.1 million , or 35.2 % , and amortization of intangibles increased $ 0.6 million , or 53.0 % the result of added scale and expenses from acquisitions of partnership and timberwood during 2019 and 2020. postage , stationary , and supplies increased by $ 0.3 million , or 47.6 % , from 2019 to 2020 as a result of costs associated with the company 's response to the covid-19 pandemic . the company had sales of two large foreclosed properties scheduled to close late in the first quarter of 2020 which would have resulted in modest losses . due to the economic turmoil that resulted during the last several weeks of that quarter , terms of these sales were negatively impacted . rather than hold these properties heading into this time of uncertainty , the company chose to accept the reduced terms , causing significant losses on these sales that were the primary components of $ 1.4 million in total losses on sales and valuations of other real estate owned , compared to gains of $ 0.1 million during 2019. finally , during the second quarter of 2020 the company paid

cash and cash equivalents . cash and cash equivalents increased by $ 83.8 million , or 96.9 % , to $ 170.2 million at december 31 2020 from $ 86.5 million at december 31 , 2019. investment securities . the carrying value of total investment securities decreased by $ 53.5 million to $ 171.7 million at december 31 , 2020 from $ 225.2 million at december 31 , 2019. loans . net loans increased by $ 448.9 million , or 26.0 % , to $ 2.17 billion at december 31 , 2020 from $ 1.72 billion at december 31 , 2019. bank-owned life insurance . at december 31 , 2020 , our investment in bank-owned life insurance was $ 31.4 million , an increase of $ 6.5 million from $ 24.9 million at december 31 , 2019. deposits . deposits increased $ 477.7 million , or 25.9 % , to $ 2.32 billion at december 31 , 2020 from $ 1.84 billion at december 31 , 2019 . 57 borrowings . at december 31 , 2020 , borrowings consisted of advances from the fhlb of chicago and subordinated debt to other banks . at december 31 , 2019 , borrowings also included notes payable to other banks . fhlb borrowings totaled $ 23.5 million at december 31 , 2020. fhlb borrowings and notes payable to other banks totaled $ 39.8 million and $ 10.0 million , respectively , at december 31 , 2019. subordinated debt decreased $ 1.1 million to $ 17.5 million at december 31 , 2020 from $ 18.6 million at december 31 , 2019. stockholders ' equity . total stockholders ' equity increased $ 64.6 million , or 28.1 % , to $ 294.8 million at december 31 , 2020 from $ 230.2 million at december 31 , 2019. loans our lending activities are conducted principally in wisconsin . the bank makes commercial and industrial loans , commercial real estate loans , construction and development loans , residential real estate loans , and a variety of consumer loans and other loans . much of the loans made by the bank are secured by real estate collateral .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash and cash equivalents . cash and cash equivalents increased by $ 83.8 million , or 96.9 % , to $ 170.2 million at december 31 2020 from $ 86.5 million at december 31 , 2019. investment securities . the carrying value of total investment securities decreased by $ 53.5 million to $ 171.7 million at december 31 , 2020 from $ 225.2 million at december 31 , 2019. loans . net loans increased by $ 448.9 million , or 26.0 % , to $ 2.17 billion at december 31 , 2020 from $ 1.72 billion at december 31 , 2019. bank-owned life insurance . at december 31 , 2020 , our investment in bank-owned life insurance was $ 31.4 million , an increase of $ 6.5 million from $ 24.9 million at december 31 , 2019. deposits . deposits increased $ 477.7 million , or 25.9 % , to $ 2.32 billion at december 31 , 2020 from $ 1.84 billion at december 31 , 2019 . 57 borrowings . at december 31 , 2020 , borrowings consisted of advances from the fhlb of chicago and subordinated debt to other banks . at december 31 , 2019 , borrowings also included notes payable to other banks . fhlb borrowings totaled $ 23.5 million at december 31 , 2020. fhlb borrowings and notes payable to other banks totaled $ 39.8 million and $ 10.0 million , respectively , at december 31 , 2019. subordinated debt decreased $ 1.1 million to $ 17.5 million at december 31 , 2020 from $ 18.6 million at december 31 , 2019. stockholders ' equity . total stockholders ' equity increased $ 64.6 million , or 28.1 % , to $ 294.8 million at december 31 , 2020 from $ 230.2 million at december 31 , 2019. loans our lending activities are conducted principally in wisconsin . the bank makes commercial and industrial loans , commercial real estate loans , construction and development loans , residential real estate loans , and a variety of consumer loans and other loans . much of the loans made by the bank are secured by real estate collateral .
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 Suspicious Activity Report : pursuant to the terms of the merger agreement , partnership shareholders had the option to receive either 0.34879 shares of the company 's common stock or $ 17.3001 in cash for each outstanding share of partnership common stock , and cash in lieu of any remaining fractional share . the stock versus cash elections by the partnership shareholders were subject to final consideration being made up of approximately $ 14.3 million in cash and 534,659 shares of company common stock , valued at approximately $ 35.3 million ( based on a value of $ 66.03 per share on the closing date ) . on may 15 , 2020 , the company completed a merger with timberwood , a bank holding company headquartered in tomah , wi , pursuant to the agreement and plan of bank merger , dated as of november 20 , 2019 , by and among the company and timberwood , whereby timberwood was merged with and into the company , and timberwood bank , timberwood 's wholly owned banking subsidiary , was merged with and into the bank . timberwood 's principal activity was the ownership and operation of timberwood bank , a state-chartered banking institution that operated one ( 1 ) branch in wisconsin at the time of closing . the merger consideration totaled approximately $ 29.8 million . pursuant to the terms of the merger agreement , timberwood shareholders received 5.1445 shares of the company 's common stock for each outstanding share of timberwood common stock , and cash in lieu of any remaining fractional share . company stock issued totaled 575,641 shares valued at approximately $ 29.4 million , with cash of $ 0.4 million comprising the remainder of merger consideration . the company accounted for these transactions under the acquisition method of accounting , and thus , the financial position and results of operations of partnership and timberwood prior to the consummation date were not included in the accompanying consolidated financial statements . the accounting required assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition . the company determined the fair value of core deposit intangibles , securities , premises and equipment , loans , other assets and liabilities , deposits and borrowings with the assistance of third party valuations , appraisals , and third party advisors . the estimated fair values are subject to refinement for up to one year after the consummation as additional information becomes available relative to the closing date fair values . covid-19 during the first quarter of 2020 , covid-19 was declared a global pandemic by the world health organization and a national public health emergency was declared in the united states . shortly before the end of march 2020 , in response to the covid-19 pandemic , the government of wisconsin and of most other states took preventative or protective actions , such as imposing restrictions on travel and business operations , advising or requiring individuals to limit or forego their time outside of their homes , and ordering temporary closures of businesses that have been deemed to be non-essential . these preventative and protective actions within wisconsin were lifted during may 2020 , but continued uncertainty remains as future actions may be warranted based on the progression of the pandemic . 45 the impact of the covid-19 pandemic on the economy continues to evolve . the covid-19 pandemic and its associated impacts on trade , travel , unemployment , consumer spending , and other economic activities has resulted in less economic activity and could have an adverse effect on our business , financial condition and results of operations . the ultimate extent of the impact of the covid-19 pandemic on our business , financial condition and results of operations is currently uncertain and will depend on various developments and other factors , including , among others , the duration and scope of the pandemic , as well as governmental , regulatory and private sector responses to the pandemic , and the associated impacts on the economy , financial markets and our customers . in response to the covid-19 pandemic , the cares act was signed into law on march 27 , 2020. the cares act provided an estimated $ 2.2 trillion to address the economic impact of the covid-19 pandemic and stimulate the economy by supporting individuals and businesses through loans , grants , tax changes , and other types of relief . the cares act also included provisions to encourage financial institutions to work prudently with borrowers . on december 27 , 2020 , the economic aid act was signed into law . this second coronavirus relief package granted additional funds for a new round of ppp loans . additionally , it expanded the eligibility for loans and allows certain businesses to request a second loan . under the cares act , banks may elect to deem that loan modifications do not result in troubled debt restructurings ( `` tdrs `` ) if they are ( 1 ) related to covid-19 ; ( 2 ) executed on a loan that was not more than 30 days past due as of december 31 , 2019 ; and ( 3 ) executed between march 1 , 2020 and the earlier of ( a ) 60 days after the date of termination of the national emergency declaration or ( b ) december 31 , 2020. additionally , in accordance with the interagency statement on loan modifications and reporting for financial institutions working with customers affected by the coronavirus ( revised ) , other short-term modifications made on a good faith basis in response to covid-19 to borrowers who were current prior to any relief are not tdrs under asc subtopic 310-40. this includes short-term ( e.g . up to six months ) modifications such as payment deferrals , fee waivers , extensions of repayment terms , or delays in payment that are insignificant . story_separator_special_tag this decline was primarily the result of a significantly lower interest rate environment that developed through the first half of 2020. interest expense on interest-bearing deposits decreased by $ 5.4 million to $ 12.5 million for the year ended december 31 , 2020 , from $ 17.9 million for the year ended december 31 , 2019. this decrease was primarily due to the aforementioned lower interest rate environment , allowing the company to significantly reduce crediting interest rates on non-time , interest-bearing deposit accounts . the average cost of interest-bearing deposits was 0.83 % for the year ended december 31 , 2020 , compared to 1.50 % for the year ended december 31 , 2019. provision for loan losses . credit risk is inherent in the business of making loans . we establish an alll through charges to earnings , which are shown in the statements of operations as the provision for loan losses . specifically identifiable and quantifiable known losses are promptly charged off against the allowance . the provision for loan losses is determined by conducting a quarterly evaluation of the adequacy of our alll and charging the shortfall or excess , if any , to the current quarter 's expense . this has the effect of creating variability in the amount and frequency of charges to earnings . the provision for loan losses and level of allowance for each period are dependent upon many factors , including loan growth , net charge-offs , changes in the composition of the loan portfolio , delinquencies , management 's assessment of the quality of the loan portfolio , the valuation of problem loans and the general economic conditions in our market area . the determination of the amount is complex and involves a high degree of judgment and subjectivity . we recorded a provision for loan losses of $ 7.1 million for the year ended december 31 , 2020 , compared to $ 5.3 million for the year ended december 31 , 2019. significant charge-offs occurring during the third quarter of 2019 necessitated increased provisions for loan losses during 2019. these charge-offs were the result of exiting certain relationships during that quarter which were originally acquired as part of the waupaca transaction . despite having significantly reduced charge-offs during 2020 , economic uncertainties as a result of the covid-19 pandemic required a build-up of our alll , resulting in higher provision expense . the alll was $ 17.7 million , or 0.81 % of total loans , at december 31 , 2020 compared to $ 11.4 million , or 0.66 % of total loans at december 31 , 2019 . 50 noninterest income . noninterest income is an important component of our total revenues . a significant portion of our noninterest income is associated with service charges and income from the bank 's unconsolidated subsidiaries , ansay and ufs . other sources of noninterest income include loan servicing fees , gains on sales of mortgage loans , and other income from strategic alliances . noninterest income increased $ 10.9 million to $ 23.5 million in 2020 compared to $ 12.6 million in 2019. service charges increased by $ 1.5 million , or 42.7 % , from 2019 to 2020 , the result of new markets and added scale from three acquisitions in slightly more than three years . income from ansay increased by $ 0.9 million as a result of modestly higher profitability at that organization as well as the increase in our ownership during october 2019. loan servicing income and net gain on sales of mortgage loans increased by $ 0.9 and $ 3.9 million from 2019 to 2020 , the result of a robust residential mortgage lending environment during 2020 spurred by historically low mortgage interest rates . due to uncertainty about liquidity needs in financial markets during the early days of the covid-19 pandemic , the company sold approximately $ 34.0 million in u.s. treasury securities during the second quarter of 2020 , resulting in a gain on sale of securities of $ 3.2 million , an increase of $ 2.6 million over 2019. finally , the company recorded a $ 1.7 million gain on the sale of a branch location during december 2020 , causing other noninterest income to increase year-over-year . the major components of our noninterest income are listed in the table below : replace_table_token_5_th ​ 51 noninterest expense . noninterest expense increased $ 10.6 million to $ 53.4 million for the year ended december 31 , 2020 , up from $ 42.8 million for the year ended december 31 , 2019. year-over-year , personnel expense increased $ 4.4 million , or 19.1 % , occupancy expense increased $ 0.9 million , or 22.3 % , data processing increased $ 1.0 million , or 22.3 % , outside service fees increased $ 1.1 million , or 35.2 % , and amortization of intangibles increased $ 0.6 million , or 53.0 % the result of added scale and expenses from acquisitions of partnership and timberwood during 2019 and 2020. postage , stationary , and supplies increased by $ 0.3 million , or 47.6 % , from 2019 to 2020 as a result of costs associated with the company 's response to the covid-19 pandemic . the company had sales of two large foreclosed properties scheduled to close late in the first quarter of 2020 which would have resulted in modest losses . due to the economic turmoil that resulted during the last several weeks of that quarter , terms of these sales were negatively impacted . rather than hold these properties heading into this time of uncertainty , the company chose to accept the reduced terms , causing significant losses on these sales that were the primary components of $ 1.4 million in total losses on sales and valuations of other real estate owned , compared to gains of $ 0.1 million during 2019. finally , during the second quarter of 2020 the company paid

