we have also geographically expanded our loan portfolio through loan purchases or loan participations of commercial and multifamily real estate loans , as well as consumer classic car loans , that are outside of our primary market area . through our efforts to geographically diversify our loan portfolio with direct loan originations , loan participations , or loan purchases , our portfolio includes $ 140.7 million of loans to borrowers or secured by properties located in 43 other states , including concentrations in california , utah , oregon , georgia and florida of $ 34.8 million , $ 16.0 million , $ 11.4 million , $ 8.4 million and $ 8.0 million , respectively at december 31 , 2020. net income for the year ended december 31 , 2020 , was $ 8.6 million , or $ 0.88 per diluted share , compared to $ 10.4 million , or $ 1.03 per diluted share , for the year ended december 31 , 2019. the most significant contributor to this decrease was a $ 2.2 million increase in the provision for loan losses in 2020. primarily as a result of changes in qualitative economic factors utilized to calculate our general reserves for the alll and declines in the risk grades on certain loans , reflecting the probable loan losses due to the covid-19 pandemic based upon the financial conditions and economic outlook that existed as of december 31 , 2020. net interest income increased by $ 1.6 million , primarily as a result of reductions in the cost of our deposit liabilities . noninterest expenses increased by $ 2.1 million , reflecting continued growth in our operations . our primary source of revenue is interest income , which is the income that we earn on our loans and investments . interest expense is the interest that we pay on our deposits and borrowings . net interest income is the difference between interest income and interest expense . changes in levels of interest rates affect interest income and interest expense differently and , thus , impacts our net interest income . first financial northwest bank is generally liability-sensitive , meaning our interest-bearing liabilities reprice at a faster rate than our interest-earning assets . the significant 150 basis point reduction in the targeted federal funds rate during the quarter ended march 31 , 2020 resulted in a larger impact to our interest-earning assets than to our interest-bearing liabilities , thereby decreasing our net interest margin to 3.15 % for the year ended december 31 , 2020 , as compared to 3.19 % for the year ended december 31 , 2019. in addition , our net interest margin was adversely impacted by the low loan yields from the ppp loan portfolio . the ongoing low interest rate environment is expected to continue to put downward pressure on loan yields and the yields on other floating rate interest earning assets as well . further , because the length of the covid-19 pandemic and the efficacy of the extraordinary measures put in place to address its economic consequences are unknown , until the pandemic subsides , the company expects its net interest income and net interest margin may be adversely affected in the near term , if not longer . an offset to net interest income is the provision for loan losses , or the recapture of the provision for loan losses , that is required to establish the alll at a level that adequately provides for probable losses inherent in our loan portfolio . as our loan portfolio increases , or due to an increase for probable losses inherent in our loan portfolio , our alll may increase , resulting in a decrease to net interest income after the provision . improvements in loan risk ratings , increases in property values , or receipt of recoveries of amounts previously charged off may partially or fully offset any required increase to alll due to loan growth or an increase in probable loan losses . for the year ended december 31 , 2020 , we had a provision of $ 1.9 million as compared to a recapture of provision of $ 300,000 for the year ended december 31 , 2019. the provision was primarily the result of the downgrade in the loan risk ratings of $ 61.0 million of loans , primarily loans receiving an additional covid-19 related 59 payment deferral under the cares act combined with increases in probable loan losses for all loan categories in response to the economic disruption caused by the covid-19 pandemic , with higher potential impact allocated to commercial real estate and construction/land portfolios . the recapture of provision for loan losses in 2019 was primarily the result of a construction/land loan with a balance of $ 12.5 million at december 31 , 2019 , that was technically in default and classified as impaired , however , the bank 's impairment analysis concluded there were no anticipated losses from the loan at that time , and therefore , funds previously allocated in the alll to this loan were recaptured . the construction portion of this loan was fully funded and completed in 2020 , and was rolled into a permanent commercial real estate loan . at december 31 , 2020 , this loan was current on its payments and was performing according to the terms of the loan . we will continue to monitor our loan portfolio and make adjustments to our alll as we deem necessary . noninterest income is generated from various loan or deposit fees , increases in the cash surrender value of bank owned life insurance ( “ boli ” ) , and revenue earned on our wealth management brokerage services . this income is increased or partially offset by any net gain or loss on sales of investment securities . story_separator_special_tag see note 6 of the notes to consolidated financial statements contained in item 8 for additional information about the level of pricing transparency associated with financial instruments carried at fair value . derivatives and hedge accounting . the bank recognizes its interest rate swaps as cash flow hedge derivative instruments , and as such , reports the net fair value as an asset or liability . fair value is based on dealer quotes , pricing models , discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation . the derivatives are marked to their fair value through other comprehensive income . the net gain or loss on derivatives is reclassified into earnings in the same income statement line item that is used to present the earnings effect of hedged items . intangible assets . the company incurred goodwill and a core deposit intangible asset through the branch acquisition during 2017. these assets were booked at fair value at the time of the acquisition . goodwill is evaluated annually for 64 impairment , with any impairment recognized as noninterest expense . the core deposit intangible is amortized into noninterest expense . comparison of financial condition at december 31 , 2020 and december 31 , 2019 assets . the following table details the changes in the composition of our assets at december 31 , 2020 from december 31 , 2019. replace_table_token_30_th the $ 45.8 million increase in total assets during 2020 was primarily a result $ 60.1 million of deposit growth providing excess liquidity invested in interest-earning deposits . additional factors in our asset growth are described below . interest-earning deposits with banks . our interest-earning deposits with banks , consisting primarily of funds held at the federal reserve bank of san francisco , increased by $ 59.6 million to $ 72.5 million at december 31 , 2020 from december 31 , 2019. loan repayments and deposit growth late in 2020 resulted in surplus funds held at the federal reserve at year end . we monitor the balance of these funds daily in relation to our expected funding needs and will reinvest the excess in higher interest-earning assets in 2021. investments available-for-sale . our investments available-for-sale decreased by $ 9.1 million , or 6.6 % , during 2020. during the year ended december 31 , 2020 , we had sales and maturities on $ 12.1 million of our securities , with an average yield of 2.88 % . the sales of investments available-for-sale generated a net gain of $ 86,000 for the year ended december 31 , 2020. the proceeds were partially reinvested in $ 13.4 million of investments with an expected yield of 3.34 % . the decrease in the targeted federal funds rate in the second half of 2019 and first quarter of 2020 contributed to a decrease in the average yield on investment securities to 2.42 % for 2020 from 3.11 % in 2019. securities purchased in 2020 included $ 7.9 million in fixed rate and $ 5.5 million in variable rate securities . in addition to the purchase and redemption activity , we received principal repayments of $ 12.8 million on our investments available-for-sale during 2020. the effective duration of our securities portfolio increased t o 2.55 % a t december 31 , 2020 as compared to 2.54 % at december 31 , 2019. effective duration is a measure that attempts to quantify the anticipated percentage change in the value of an investment ( or portfolio ) in the event of a 100 basis point change in market yields . since the bank 's portfolio includes securities with embedded options ( including call options on bonds and prepayment options on mortgage-backed securities ) , management believes that effective duration is an appropriate metric to use as a tool when analyzing the bank 's investment securities portfolio , as effective duration incorporates assumptions relating to such embedded options , including changes in cash flow assumptions as interest rates change . 65 loans receivable . net loans receivable decreased by $ 7.9 million during 2020 to $ 1.10 billion . during the year ended december 31 , 2020 , multifamily loans decreased $ 36.2 million , construction/land loans decreased $ 21.5 million and commercial real estate loans decreased $ 9.9 million . partially offsetting these declines , business loans increased by $ 42.9 million , or 113.5 % increase , as a result of ppp loans originated during the year . the bank originated ppp loans to both new and existing customers , and held $ 41.3 million of these loans at december 31 , 2020. in addition , consumer loans increased $ 10.4 million , or 34.5 % , as the bank increased its portfolio of classic or collectible car loans . during 2020 , we supplemented our loan originations and participations by purchasing $ 22.1 million in loans , which included $ 19.4 million of performing classic or collectible car loans . the loans were purchased at an average premium of 3.6 % and included $ 1.2 million of loans secured by commercial real estate property located in connecticut , reflecting our efforts to geographically diversify our loan portfolio with loans meeting our investment and credit quality objectives . during 2020 , our nonperforming loans increased to $ 2.1 million at december 31 , 2020 from $ 95,000 at december 31 , 2019. as a result of one $ 2.1 million multifamily loan that was placed on nonaccrual status during 2020. foreclosure proceedings were started during 2020 , but were subsequently placed on hold as the borrower has a purchase and sale agreement on the underlying collateralized property that is expected to close in march 2021. the bank does not expect to incur a loss on this loan . nonperforming loans as a percent of our total loans increased to 0.19 % at december 31 , 2020 , from 0.01 % at december 31 , 2019. adversely

cash flow hedge . to assist in managing interest rate risk , the bank entered into six interest rate swap agreements with qualified institutions designated as cash flow hedge instruments . the agreements have an aggregate notional amount of $ 120.0 million , are for terms ranging from one to eight years with individual notional amounts ranging from $ 10.0 million to $ 50.0 million , and a weighted-average fixed rate of 1.22 % . the remaining maturity of these agreements is from 10 months to seven years . in addition , the bank entered into two forward-starting interest rate swap agreements with an effective date of october 25 , 2021 , notional amounts of $ 15.0 million and $ 10.0 million , for seven and eight years , respectively , and a weighted-average fixed rate of 0.80 % . under the terms of the interest rate swap agreements , the bank pays a fixed interest rate and in return receives an interest payment based on the corresponding libor index , which resets quarterly or monthly , depending on the hedge term . concurrently , the bank borrowed a fixed rate fhlb advance that will be renewed quarterly or monthly , as designated by the hedge agreement , at the fixed interest rate at that time . effectiveness of the interest rate swap is evaluated quarterly with any ineffectiveness recognized as a gain or a loss on the income statement in noninterest income . a change in the fair value of the cash flow hedge created by the interest rate swap agreements is recognized as an other asset or other liability on the balance sheet with the tax-effected portion of the change included in other comprehensive income . at december 31 , 2020 , we recognized a $ 2.8 million fair value liability as a result of the increase in market value of the interest rate swap agreements .


 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 flow hedge . to assist in managing interest rate risk , the bank entered into six interest rate swap agreements with qualified institutions designated as cash flow hedge instruments . the agreements have an aggregate notional amount of $ 120.0 million , are for terms ranging from one to eight years with individual notional amounts ranging from $ 10.0 million to $ 50.0 million , and a weighted-average fixed rate of 1.22 % . the remaining maturity of these agreements is from 10 months to seven years . in addition , the bank entered into two forward-starting interest rate swap agreements with an effective date of october 25 , 2021 , notional amounts of $ 15.0 million and $ 10.0 million , for seven and eight years , respectively , and a weighted-average fixed rate of 0.80 % . under the terms of the interest rate swap agreements , the bank pays a fixed interest rate and in return receives an interest payment based on the corresponding libor index , which resets quarterly or monthly , depending on the hedge term . concurrently , the bank borrowed a fixed rate fhlb advance that will be renewed quarterly or monthly , as designated by the hedge agreement , at the fixed interest rate at that time . effectiveness of the interest rate swap is evaluated quarterly with any ineffectiveness recognized as a gain or a loss on the income statement in noninterest income . a change in the fair value of the cash flow hedge created by the interest rate swap agreements is recognized as an other asset or other liability on the balance sheet with the tax-effected portion of the change included in other comprehensive income . at december 31 , 2020 , we recognized a $ 2.8 million fair value liability as a result of the increase in market value of the interest rate swap agreements .
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 Suspicious Activity Report : we have also geographically expanded our loan portfolio through loan purchases or loan participations of commercial and multifamily real estate loans , as well as consumer classic car loans , that are outside of our primary market area . through our efforts to geographically diversify our loan portfolio with direct loan originations , loan participations , or loan purchases , our portfolio includes $ 140.7 million of loans to borrowers or secured by properties located in 43 other states , including concentrations in california , utah , oregon , georgia and florida of $ 34.8 million , $ 16.0 million , $ 11.4 million , $ 8.4 million and $ 8.0 million , respectively at december 31 , 2020. net income for the year ended december 31 , 2020 , was $ 8.6 million , or $ 0.88 per diluted share , compared to $ 10.4 million , or $ 1.03 per diluted share , for the year ended december 31 , 2019. the most significant contributor to this decrease was a $ 2.2 million increase in the provision for loan losses in 2020. primarily as a result of changes in qualitative economic factors utilized to calculate our general reserves for the alll and declines in the risk grades on certain loans , reflecting the probable loan losses due to the covid-19 pandemic based upon the financial conditions and economic outlook that existed as of december 31 , 2020. net interest income increased by $ 1.6 million , primarily as a result of reductions in the cost of our deposit liabilities . noninterest expenses increased by $ 2.1 million , reflecting continued growth in our operations . our primary source of revenue is interest income , which is the income that we earn on our loans and investments . interest expense is the interest that we pay on our deposits and borrowings . net interest income is the difference between interest income and interest expense . changes in levels of interest rates affect interest income and interest expense differently and , thus , impacts our net interest income . first financial northwest bank is generally liability-sensitive , meaning our interest-bearing liabilities reprice at a faster rate than our interest-earning assets . the significant 150 basis point reduction in the targeted federal funds rate during the quarter ended march 31 , 2020 resulted in a larger impact to our interest-earning assets than to our interest-bearing liabilities , thereby decreasing our net interest margin to 3.15 % for the year ended december 31 , 2020 , as compared to 3.19 % for the year ended december 31 , 2019. in addition , our net interest margin was adversely impacted by the low loan yields from the ppp loan portfolio . the ongoing low interest rate environment is expected to continue to put downward pressure on loan yields and the yields on other floating rate interest earning assets as well . further , because the length of the covid-19 pandemic and the efficacy of the extraordinary measures put in place to address its economic consequences are unknown , until the pandemic subsides , the company expects its net interest income and net interest margin may be adversely affected in the near term , if not longer . an offset to net interest income is the provision for loan losses , or the recapture of the provision for loan losses , that is required to establish the alll at a level that adequately provides for probable losses inherent in our loan portfolio . as our loan portfolio increases , or due to an increase for probable losses inherent in our loan portfolio , our alll may increase , resulting in a decrease to net interest income after the provision . improvements in loan risk ratings , increases in property values , or receipt of recoveries of amounts previously charged off may partially or fully offset any required increase to alll due to loan growth or an increase in probable loan losses . for the year ended december 31 , 2020 , we had a provision of $ 1.9 million as compared to a recapture of provision of $ 300,000 for the year ended december 31 , 2019. the provision was primarily the result of the downgrade in the loan risk ratings of $ 61.0 million of loans , primarily loans receiving an additional covid-19 related 59 payment deferral under the cares act combined with increases in probable loan losses for all loan categories in response to the economic disruption caused by the covid-19 pandemic , with higher potential impact allocated to commercial real estate and construction/land portfolios . the recapture of provision for loan losses in 2019 was primarily the result of a construction/land loan with a balance of $ 12.5 million at december 31 , 2019 , that was technically in default and classified as impaired , however , the bank 's impairment analysis concluded there were no anticipated losses from the loan at that time , and therefore , funds previously allocated in the alll to this loan were recaptured . the construction portion of this loan was fully funded and completed in 2020 , and was rolled into a permanent commercial real estate loan . at december 31 , 2020 , this loan was current on its payments and was performing according to the terms of the loan . we will continue to monitor our loan portfolio and make adjustments to our alll as we deem necessary . noninterest income is generated from various loan or deposit fees , increases in the cash surrender value of bank owned life insurance ( “ boli ” ) , and revenue earned on our wealth management brokerage services . this income is increased or partially offset by any net gain or loss on sales of investment securities . story_separator_special_tag see note 6 of the notes to consolidated financial statements contained in item 8 for additional information about the level of pricing transparency associated with financial instruments carried at fair value . derivatives and hedge accounting . the bank recognizes its interest rate swaps as cash flow hedge derivative instruments , and as such , reports the net fair value as an asset or liability . fair value is based on dealer quotes , pricing models , discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation . the derivatives are marked to their fair value through other comprehensive income . the net gain or loss on derivatives is reclassified into earnings in the same income statement line item that is used to present the earnings effect of hedged items . intangible assets . the company incurred goodwill and a core deposit intangible asset through the branch acquisition during 2017. these assets were booked at fair value at the time of the acquisition . goodwill is evaluated annually for 64 impairment , with any impairment recognized as noninterest expense . the core deposit intangible is amortized into noninterest expense . comparison of financial condition at december 31 , 2020 and december 31 , 2019 assets . the following table details the changes in the composition of our assets at december 31 , 2020 from december 31 , 2019. replace_table_token_30_th the $ 45.8 million increase in total assets during 2020 was primarily a result $ 60.1 million of deposit growth providing excess liquidity invested in interest-earning deposits . additional factors in our asset growth are described below . interest-earning deposits with banks . our interest-earning deposits with banks , consisting primarily of funds held at the federal reserve bank of san francisco , increased by $ 59.6 million to $ 72.5 million at december 31 , 2020 from december 31 , 2019. loan repayments and deposit growth late in 2020 resulted in surplus funds held at the federal reserve at year end . we monitor the balance of these funds daily in relation to our expected funding needs and will reinvest the excess in higher interest-earning assets in 2021. investments available-for-sale . our investments available-for-sale decreased by $ 9.1 million , or 6.6 % , during 2020. during the year ended december 31 , 2020 , we had sales and maturities on $ 12.1 million of our securities , with an average yield of 2.88 % . the sales of investments available-for-sale generated a net gain of $ 86,000 for the year ended december 31 , 2020. the proceeds were partially reinvested in $ 13.4 million of investments with an expected yield of 3.34 % . the decrease in the targeted federal funds rate in the second half of 2019 and first quarter of 2020 contributed to a decrease in the average yield on investment securities to 2.42 % for 2020 from 3.11 % in 2019. securities purchased in 2020 included $ 7.9 million in fixed rate and $ 5.5 million in variable rate securities . in addition to the purchase and redemption activity , we received principal repayments of $ 12.8 million on our investments available-for-sale during 2020. the effective duration of our securities portfolio increased t o 2.55 % a t december 31 , 2020 as compared to 2.54 % at december 31 , 2019. effective duration is a measure that attempts to quantify the anticipated percentage change in the value of an investment ( or portfolio ) in the event of a 100 basis point change in market yields . since the bank 's portfolio includes securities with embedded options ( including call options on bonds and prepayment options on mortgage-backed securities ) , management believes that effective duration is an appropriate metric to use as a tool when analyzing the bank 's investment securities portfolio , as effective duration incorporates assumptions relating to such embedded options , including changes in cash flow assumptions as interest rates change . 65 loans receivable . net loans receivable decreased by $ 7.9 million during 2020 to $ 1.10 billion . during the year ended december 31 , 2020 , multifamily loans decreased $ 36.2 million , construction/land loans decreased $ 21.5 million and commercial real estate loans decreased $ 9.9 million . partially offsetting these declines , business loans increased by $ 42.9 million , or 113.5 % increase , as a result of ppp loans originated during the year . the bank originated ppp loans to both new and existing customers , and held $ 41.3 million of these loans at december 31 , 2020. in addition , consumer loans increased $ 10.4 million , or 34.5 % , as the bank increased its portfolio of classic or collectible car loans . during 2020 , we supplemented our loan originations and participations by purchasing $ 22.1 million in loans , which included $ 19.4 million of performing classic or collectible car loans . the loans were purchased at an average premium of 3.6 % and included $ 1.2 million of loans secured by commercial real estate property located in connecticut , reflecting our efforts to geographically diversify our loan portfolio with loans meeting our investment and credit quality objectives . during 2020 , our nonperforming loans increased to $ 2.1 million at december 31 , 2020 from $ 95,000 at december 31 , 2019. as a result of one $ 2.1 million multifamily loan that was placed on nonaccrual status during 2020. foreclosure proceedings were started during 2020 , but were subsequently placed on hold as the borrower has a purchase and sale agreement on the underlying collateralized property that is expected to close in march 2021. the bank does not expect to incur a loss on this loan . nonperforming loans as a percent of our total loans increased to 0.19 % at december 31 , 2020 , from 0.01 % at december 31 , 2019. adversely

