we opened four full-service branches in silverdale , bellingham , and bainbridge island , washington and a lending center in seattle , washington . through these new locations , we have realized growth in deposits and expanded our ability to secure customer relationships and lending opportunities outside of our historic market areas in the north olympic peninsula . we also utilize technology to expand our market presence and to service new and existing businesses and consumers . enhancing the loan portfolio . we have significantly increased the origination of commercial real estate , multi-family real estate , and construction and land loans as well as increased our portfolio of commercial business loans . this helped to increase overall net interest income . adding new servicing capabilities . in addition to traditional consumer and business deposit products , we offer remote deposit capture , consumer and small business digital banking , and commercial digital banking capabilities . at our branch locations in forks , port angeles-eastside , silverdale , bainbridge island , and bellingham , washington , and at our main administrative building and downtown locations in port angeles , washington , we have implemented interactive teller machines , allowing our customers to conduct business with a teller through a video monitor . enhancing our infrastructure . we have focused on upgrading our infrastructure , both in terms of equipment and personnel , in order to support our changing lending and deposit capabilities and position ourselves for growth . our objective is to be an independent , high performing bank focused on meeting the needs of individuals , small businesses and community organizations throughout our market areas with exceptional service and competitive products . we intend to implement these strategies to achieve our objective : increasing our portfolio of higher yielding commercial loans . through increased loan originations , we intend to increase our loan to deposit ratio and the percentage of our loan portfolio consisting of higher-yielding commercial real estate and commercial business loans . these loan categories offer higher risk-adjusted returns , shorter maturities and more sensitivity to interest rate fluctuations than traditional fixed-rate , one- to four-family residential loans . our commercial and multifamily real estate and commercial business loans have increased from $ 393.4 million , or 44.5 % of total loans , at december 31 , 2019 , to $ 559.2 million , or 48.5 % of total loans , at december 31 , 2020. the increase resulted in part from building the commercial team by adding talented lenders ; developing relationships with loan referral sources , including our board of directors and loan brokers ; pursuing loan purchase and participation opportunities ; competing successfully in new and existing markets ; and benefiting from the improvement of the economy in northwestern washington . increasing exposure to wholesale assets . we may purchase wholesale assets in order to augment our organic growth strategy . this may include continuing to participate in indirect auto lending and manufactured home programs . we may also purchase pools of residential mortgage loans and manufactured home loans . maintaining our focus on asset quality . we believe that strong asset quality is a key to our long-term financial success . we are focused on monitoring existing performing loans , resolving nonperforming loans , and selling foreclosed assets . nonperforming assets were $ 2.0 million at december 31 , 2019 and $ 2.3 million at december 31 , 2020. we have taken proactive steps to resolve our nonperforming loans , including negotiating repayment plans , forbearances , loan modifications and loan extensions with our borrowers when appropriate . we have also accepted short payoffs on delinquent loans , particularly when such payoffs result in a smaller loss to us than foreclosure . we also retain the services of independent firms to periodically review segments of our loan portfolio and provide comments regarding our loan policies and procedures . 76 attracting core deposits and other deposit products . our strategy is to emphasize relationship banking with our customers to obtain a greater share of their deposits , with specific emphasis on their primary transaction accounts . we believe this emphasis will help to increase our level of core deposits . in addition to our retail branches , we continually upgrade our digital delivery solutions , such as on-line personal financial management , business online banking , business remote deposit products , mobile remote deposit services through smartphones and tablets , account-to-account transfer services between first federal and other banks , and person-to-person funds transfer through smartphones and tablets , enabling us to compete effectively with banks of all sizes . we enhanced our integrated mobile banking platform by introducing applications for both smartphones and tablets , upgraded our business on-line banking platform , and extended banking hours through our interactive teller machines . in 2020 , we significantly increased our level of commercial demand deposits as we added a treasury management department . we intend to further build out this department in 2021 and beyond . expanding our market presence and capturing business opportunities resulting from changes in the competitive environment . by delivering high quality , customer-focused products and services , we believe we can attract additional borrowers and depositors and thus increase our market share and revenue generation in our market areas . we intend to continue our franchise growth . we expect that community bank consolidation will continue to take place and may consider acquiring individual branches or other banks . our primary focus for expansion will be in western washington ; however , we may offer digital delivery in other markets . hiring experienced employees with a customer sales and service focus . our goal is to compete by relying on the strength of our customer service and relationship building . story_separator_special_tag our focus will continue to be on increasing our customer deposits and maintaining a stable source of funding for our continued growth . borrowings decreased $ 3.0 million , or 2.6 % , to $ 110.0 million at december 31 , 2020 , from $ 112.9 million at december 31 , 2019 , as we continued to utilize brokered certificates of deposit during the year to manage our cost of funds and interest rate risk . at december 31 , 2020 , we had $ 50.0 million of long term fhlb advances and $ 60.0 million in short term advances maturing in three months or less . equity . total shareholders ' equity increased $ 9.5 million , or 5.4 % , to $ 186.4 million at december 31 , 2020 , from $ 176.9 million at december 31 , 2019. this increase during the year resulted from net income of $ 10.3 million , an increase of $ 7.0 million due to the change in accumulated other comprehensive loss related to the change in unrealized market value of available for sale securities , net of tax , and an increase of $ 1.3 million related to our stock-based compensation plans . these increases were partially offset by a decrease of $ 7.4 million related to our repurchase of shares and $ 2.2 million in dividends paid in 2020. during the year ended december 31 , 2020 , we repurchased 575,859 shares of common stock at an average cost of $ 12.87 per share , pursuant to the company 's 2017 , 2019 , and 2020 stock repurchase plans . 82 comparison of results of operations for the years ended december 31 , 2020 and 2019 general . the company had net income for the year ended december 31 , 2020 of $ 10.3 million , compared to net income of $ 9.0 million for the year ended december 31 , 2019 , an increase of $ 1.3 million , or 14.7 % . the increase in net income was primarily due to increases in net interest income and noninterest income . we earned $ 1.11 per common share and $ 1.10 per diluted share for the year ended december 31 , 2020 , compared to $ 0.92 per common share and $ 0.91 per diluted share for the year ended december 31 , 2019. the increase in earnings per share year-over-year was the result of an increase in net income combined with lower weighted-average common shares outstanding of 9,348,874 basic and 9,380,294 diluted shares in 2020 , compared to 9,845,021 basic and 9,923,110 diluted shares for the same period in 2019. the decrease in average shares year-over-year is due to our share repurchase program coupled with changes to our share-based compensation plans . net interest income . net interest income increased $ 6.1 million , or 16.1 % , to $ 44.0 million for the year ended december 31 , 2020 , from $ 37.9 million for the year ended december 31 , 2019 , mainly as the result of additional interest income related to the increase in the average balances of loans receivable and investment securities . the average balance of loans receivable increased $ 104.7 million , at an average yield of 4.44 % , for the year ended december 31 , 2020 compared to an average yield of 4.64 % , for the year ended december 31 , 2019. this increase in the volume of loans receivable and resulting interest income during 2020 , and a decrease in the interest-bearing liabilities to 0.70 % for the year ended december 31 , 2020 compared to 1.03 % for the year ended december 31 , 2019 , resulted in a 7 basis point improvement in our net interest margin of 3.27 % at december 31 , 2020 , and 3.20 % at december 31 , 2019. net interest income increased $ 6.1 million during the year ended december 31 , 2020 compared to the year ended december 31 , 2019 , of which $ 6.5 million was the result of an increase in volume , partially offset by a $ 435,000 decrease due to changes in rates . as noted above , loans receivable was the main contributor to the increase in net interest income with $ 4.8 million due to an increase in average volumes offset by a decrease of $ 2.0 million due to decreases in rates . the decrease to the cost of average interest-bearing liabilities for the year ended december 31 , 2020 was due primarily to lower rates paid on certificates of deposit and borrowings , the result of the utilization of brokered certificates of deposit and new long-term borrowing agreements during the year . interest income . interest income increased $ 2.4 million , or 4.8 % , to $ 51.7 million for the year ended december 31 , 2020 from $ 49.3 million for the comparable period in 2019 , primarily due to an increase in the average balance of loans receivable . interest and fees on loans receivable increased $ 2.9 million as a result . interest income on investment securities increased $ 1.6 million to $ 5.7 million for the year ended december 31 , 2020 compared to $ 4.0 million for the year ended december 31 , 2019. while the average balance of investment securities increased $ 106.3 million during the year to $ 227.3 million for the year ended december 31 , 2020 compared to $ 121.0 million for the year ended december 31 , 2019 , the average yield decreased 83 basis points , resulting in higher interest income from the investment securities portfolio . the change in average yields on investment securities does not include the benefit of nontaxable income from municipal bonds . interest income on mortgage-backed and related securities decreased $ 1.9 million to $ 2.7 million for the year ended december 31 , 2020 from $ 4.6 million for the year ended

liquidity management liquidity is the ability to meet current and future financial obligations of a short-term and long-term nature . our primary sources of funds consist of deposit inflows , loan repayments , maturities and sales of securities and borrowings from the fhlb . while maturities and scheduled amortization of loans and securities are usually predictable sources of funds , deposit flows , calls of investment securities and borrowed funds , and prepayments on loans and investment securities are greatly influenced by general interest rates , economic conditions and competition , which can cause those sources of funds to fluctuate . management regularly adjusts our investments in liquid assets based upon an assessment of expected loan demand , expected deposit flows , yields available on interest-earning deposits and securities , and objectives of our interest-rate risk and investment policies . our most liquid assets are cash and cash equivalents followed by available for sale securities . the levels of these assets depend on our operating , financing , lending and investing activities during any given period . at december 31 , 2020 , cash and cash equivalents totaled $ 65.2 million , and securities classified as available-for-sale , which provide additional potential sources of liquidity , had a market value of $ 364.3 million . we have pledged collateral to support borrowings from the fhlb of $ 110.0 million . we have also pledged collateral to the federal reserve bank of san francisco to secure discount window advances ; no funds were borrowed as of december 31 , 2020. at december 31 , 2020 , we had $ 1.6 million in loan commitments outstanding and an additional $ 212.1 million in undisbursed loans , including undisbursed construction commitments , and standby letters of credit . certificates of deposit due within one year of december 31 , 2020 totaled $ 185.8 million , or 60.2 % of certificates of deposit .


 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 management liquidity is the ability to meet current and future financial obligations of a short-term and long-term nature . our primary sources of funds consist of deposit inflows , loan repayments , maturities and sales of securities and borrowings from the fhlb . while maturities and scheduled amortization of loans and securities are usually predictable sources of funds , deposit flows , calls of investment securities and borrowed funds , and prepayments on loans and investment securities are greatly influenced by general interest rates , economic conditions and competition , which can cause those sources of funds to fluctuate . management regularly adjusts our investments in liquid assets based upon an assessment of expected loan demand , expected deposit flows , yields available on interest-earning deposits and securities , and objectives of our interest-rate risk and investment policies . our most liquid assets are cash and cash equivalents followed by available for sale securities . the levels of these assets depend on our operating , financing , lending and investing activities during any given period . at december 31 , 2020 , cash and cash equivalents totaled $ 65.2 million , and securities classified as available-for-sale , which provide additional potential sources of liquidity , had a market value of $ 364.3 million . we have pledged collateral to support borrowings from the fhlb of $ 110.0 million . we have also pledged collateral to the federal reserve bank of san francisco to secure discount window advances ; no funds were borrowed as of december 31 , 2020. at december 31 , 2020 , we had $ 1.6 million in loan commitments outstanding and an additional $ 212.1 million in undisbursed loans , including undisbursed construction commitments , and standby letters of credit . certificates of deposit due within one year of december 31 , 2020 totaled $ 185.8 million , or 60.2 % of certificates of deposit .
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 Suspicious Activity Report : we opened four full-service branches in silverdale , bellingham , and bainbridge island , washington and a lending center in seattle , washington . through these new locations , we have realized growth in deposits and expanded our ability to secure customer relationships and lending opportunities outside of our historic market areas in the north olympic peninsula . we also utilize technology to expand our market presence and to service new and existing businesses and consumers . enhancing the loan portfolio . we have significantly increased the origination of commercial real estate , multi-family real estate , and construction and land loans as well as increased our portfolio of commercial business loans . this helped to increase overall net interest income . adding new servicing capabilities . in addition to traditional consumer and business deposit products , we offer remote deposit capture , consumer and small business digital banking , and commercial digital banking capabilities . at our branch locations in forks , port angeles-eastside , silverdale , bainbridge island , and bellingham , washington , and at our main administrative building and downtown locations in port angeles , washington , we have implemented interactive teller machines , allowing our customers to conduct business with a teller through a video monitor . enhancing our infrastructure . we have focused on upgrading our infrastructure , both in terms of equipment and personnel , in order to support our changing lending and deposit capabilities and position ourselves for growth . our objective is to be an independent , high performing bank focused on meeting the needs of individuals , small businesses and community organizations throughout our market areas with exceptional service and competitive products . we intend to implement these strategies to achieve our objective : increasing our portfolio of higher yielding commercial loans . through increased loan originations , we intend to increase our loan to deposit ratio and the percentage of our loan portfolio consisting of higher-yielding commercial real estate and commercial business loans . these loan categories offer higher risk-adjusted returns , shorter maturities and more sensitivity to interest rate fluctuations than traditional fixed-rate , one- to four-family residential loans . our commercial and multifamily real estate and commercial business loans have increased from $ 393.4 million , or 44.5 % of total loans , at december 31 , 2019 , to $ 559.2 million , or 48.5 % of total loans , at december 31 , 2020. the increase resulted in part from building the commercial team by adding talented lenders ; developing relationships with loan referral sources , including our board of directors and loan brokers ; pursuing loan purchase and participation opportunities ; competing successfully in new and existing markets ; and benefiting from the improvement of the economy in northwestern washington . increasing exposure to wholesale assets . we may purchase wholesale assets in order to augment our organic growth strategy . this may include continuing to participate in indirect auto lending and manufactured home programs . we may also purchase pools of residential mortgage loans and manufactured home loans . maintaining our focus on asset quality . we believe that strong asset quality is a key to our long-term financial success . we are focused on monitoring existing performing loans , resolving nonperforming loans , and selling foreclosed assets . nonperforming assets were $ 2.0 million at december 31 , 2019 and $ 2.3 million at december 31 , 2020. we have taken proactive steps to resolve our nonperforming loans , including negotiating repayment plans , forbearances , loan modifications and loan extensions with our borrowers when appropriate . we have also accepted short payoffs on delinquent loans , particularly when such payoffs result in a smaller loss to us than foreclosure . we also retain the services of independent firms to periodically review segments of our loan portfolio and provide comments regarding our loan policies and procedures . 76 attracting core deposits and other deposit products . our strategy is to emphasize relationship banking with our customers to obtain a greater share of their deposits , with specific emphasis on their primary transaction accounts . we believe this emphasis will help to increase our level of core deposits . in addition to our retail branches , we continually upgrade our digital delivery solutions , such as on-line personal financial management , business online banking , business remote deposit products , mobile remote deposit services through smartphones and tablets , account-to-account transfer services between first federal and other banks , and person-to-person funds transfer through smartphones and tablets , enabling us to compete effectively with banks of all sizes . we enhanced our integrated mobile banking platform by introducing applications for both smartphones and tablets , upgraded our business on-line banking platform , and extended banking hours through our interactive teller machines . in 2020 , we significantly increased our level of commercial demand deposits as we added a treasury management department . we intend to further build out this department in 2021 and beyond . expanding our market presence and capturing business opportunities resulting from changes in the competitive environment . by delivering high quality , customer-focused products and services , we believe we can attract additional borrowers and depositors and thus increase our market share and revenue generation in our market areas . we intend to continue our franchise growth . we expect that community bank consolidation will continue to take place and may consider acquiring individual branches or other banks . our primary focus for expansion will be in western washington ; however , we may offer digital delivery in other markets . hiring experienced employees with a customer sales and service focus . our goal is to compete by relying on the strength of our customer service and relationship building . story_separator_special_tag our focus will continue to be on increasing our customer deposits and maintaining a stable source of funding for our continued growth . borrowings decreased $ 3.0 million , or 2.6 % , to $ 110.0 million at december 31 , 2020 , from $ 112.9 million at december 31 , 2019 , as we continued to utilize brokered certificates of deposit during the year to manage our cost of funds and interest rate risk . at december 31 , 2020 , we had $ 50.0 million of long term fhlb advances and $ 60.0 million in short term advances maturing in three months or less . equity . total shareholders ' equity increased $ 9.5 million , or 5.4 % , to $ 186.4 million at december 31 , 2020 , from $ 176.9 million at december 31 , 2019. this increase during the year resulted from net income of $ 10.3 million , an increase of $ 7.0 million due to the change in accumulated other comprehensive loss related to the change in unrealized market value of available for sale securities , net of tax , and an increase of $ 1.3 million related to our stock-based compensation plans . these increases were partially offset by a decrease of $ 7.4 million related to our repurchase of shares and $ 2.2 million in dividends paid in 2020. during the year ended december 31 , 2020 , we repurchased 575,859 shares of common stock at an average cost of $ 12.87 per share , pursuant to the company 's 2017 , 2019 , and 2020 stock repurchase plans . 82 comparison of results of operations for the years ended december 31 , 2020 and 2019 general . the company had net income for the year ended december 31 , 2020 of $ 10.3 million , compared to net income of $ 9.0 million for the year ended december 31 , 2019 , an increase of $ 1.3 million , or 14.7 % . the increase in net income was primarily due to increases in net interest income and noninterest income . we earned $ 1.11 per common share and $ 1.10 per diluted share for the year ended december 31 , 2020 , compared to $ 0.92 per common share and $ 0.91 per diluted share for the year ended december 31 , 2019. the increase in earnings per share year-over-year was the result of an increase in net income combined with lower weighted-average common shares outstanding of 9,348,874 basic and 9,380,294 diluted shares in 2020 , compared to 9,845,021 basic and 9,923,110 diluted shares for the same period in 2019. the decrease in average shares year-over-year is due to our share repurchase program coupled with changes to our share-based compensation plans . net interest income . net interest income increased $ 6.1 million , or 16.1 % , to $ 44.0 million for the year ended december 31 , 2020 , from $ 37.9 million for the year ended december 31 , 2019 , mainly as the result of additional interest income related to the increase in the average balances of loans receivable and investment securities . the average balance of loans receivable increased $ 104.7 million , at an average yield of 4.44 % , for the year ended december 31 , 2020 compared to an average yield of 4.64 % , for the year ended december 31 , 2019. this increase in the volume of loans receivable and resulting interest income during 2020 , and a decrease in the interest-bearing liabilities to 0.70 % for the year ended december 31 , 2020 compared to 1.03 % for the year ended december 31 , 2019 , resulted in a 7 basis point improvement in our net interest margin of 3.27 % at december 31 , 2020 , and 3.20 % at december 31 , 2019. net interest income increased $ 6.1 million during the year ended december 31 , 2020 compared to the year ended december 31 , 2019 , of which $ 6.5 million was the result of an increase in volume , partially offset by a $ 435,000 decrease due to changes in rates . as noted above , loans receivable was the main contributor to the increase in net interest income with $ 4.8 million due to an increase in average volumes offset by a decrease of $ 2.0 million due to decreases in rates . the decrease to the cost of average interest-bearing liabilities for the year ended december 31 , 2020 was due primarily to lower rates paid on certificates of deposit and borrowings , the result of the utilization of brokered certificates of deposit and new long-term borrowing agreements during the year . interest income . interest income increased $ 2.4 million , or 4.8 % , to $ 51.7 million for the year ended december 31 , 2020 from $ 49.3 million for the comparable period in 2019 , primarily due to an increase in the average balance of loans receivable . interest and fees on loans receivable increased $ 2.9 million as a result . interest income on investment securities increased $ 1.6 million to $ 5.7 million for the year ended december 31 , 2020 compared to $ 4.0 million for the year ended december 31 , 2019. while the average balance of investment securities increased $ 106.3 million during the year to $ 227.3 million for the year ended december 31 , 2020 compared to $ 121.0 million for the year ended december 31 , 2019 , the average yield decreased 83 basis points , resulting in higher interest income from the investment securities portfolio . the change in average yields on investment securities does not include the benefit of nontaxable income from municipal bonds . interest income on mortgage-backed and related securities decreased $ 1.9 million to $ 2.7 million for the year ended december 31 , 2020 from $ 4.6 million for the year ended

