it contained substantial tax and spending provisions intended to address the impact of the covid-19 pandemic . the cares act included the ppp , a nearly $ 350 billion program designed to aid small and medium-sized businesses through federally guaranteed loans distributed through banks . these loans were intended to guarantee eight weeks of payroll and other costs to help those businesses remain viable and allow their workers to pay their bills . the initial $ 350 billion program was supplemented in late april 2020 with $ 310 billion in additional funding . on june 5 , 2020 , the paycheck protection program flexibility act ( the “ new act ” ) was signed into law and made significant changes to the ppp to provide additional relief for small businesses . the new act increased flexibility for small businesses that have been unable to rehire employees due to lack of employee availability or have been unable to operate as normal due to covid-19 related restrictions . it extended the period that businesses have to use ppp funds to qualify for loan forgiveness to 24 weeks , up from 8 weeks under the original rules . the new act also relaxed the requirements that loan recipients must adhere to in order to qualify for loan forgiveness . in addition , the new act extended the payment deferral period for ppp loans until the date when the amount of loan forgiveness is determined and remitted to the lender . for ppp recipients who do not apply for forgiveness , the loan deferral period is 10 months after the applicable forgiveness period ends . the ppp program expired august 8 , 2020 . ● on december 21 , 2020 , the bipartisan-bicameral omnibus covid relief deal , included as a component of appropriations legislation , was passed by congress to provide economic stimulus to individuals and businesses in further response to the economic distress caused by the covid-19 pandemic . among other things , the legislation includes ( i ) payments of $ 600 for individuals making up to $ 75,000 per year , ( ii ) extension of the federal pandemic unemployment compensation program to include a $ 300 weekly enhancement in unemployment benefits beginning after december 26 , 2020 up to march 14 , 2021 , ( iii ) a temporary and targeted rental assistance program , and extends the eviction moratorium through january 31 , 2021 , ( iv ) targeted funding related to transportation , education , agriculture , nutrition and other public health measures and ( v ) approximately $ 325 billion for small business relief , including approximately $ 284 billion for a second round of ppp loans and a new simplified forgiveness procedure for ppp loans of $ 150,000 or less . we are continuing to monitor the potential development of additional legislation and further actions taken by the u.s. government . ​ analysis of results of operations 2020 compared to 2019 net income was $ 24.3 million , or $ 1.62 per diluted common share in 2020 , compared to $ 26.5 million , or $ 1.89 per diluted common share in 2019. the tax equivalent net interest margin for 2020 was 3.61 % compared to 3.95 % for 2019. noninterest income to average assets was 0.50 % for 2020 , decreasing from 0.65 % for 2019. noninterest expense to average assets decreased to 2.50 % in 2020 , from 2.70 % in 2019. the results above include operating effects of the pfg acquisition , which was completed on march 1 , 2020. income tax expense was $ 6.6 million in 2020 with an effective tax rate of 21.2 % , compared to $ 6.9 million in 2019 with an effective tax rate of 20.6 % . 2019 compared to 2018 net income was $ 26.5 million in 2019 , compared to $ 18.1 million in 2018. net income available to common shareholders was $ 26.5 million , or $ 1.89 per diluted common share , in 2019 , compared to $ 18.1 million , or $ 1.45 per diluted common share , in 2018. the net interest margin , taxable equivalent , for 2019 was 3.95 % compared to 4.43 % for 2018. noninterest income to average assets increased from 0.34 % in 2018 , to 0.65 % in 2019 , primarily due to the $ 6.4 million termination 35 fee from the termination of the entegra merger . noninterest expense to average assets decreased from 3.00 % in 2018 to 2.70 % in 2019 as the company continued to capture economies of scale following the mergers with foothills bancorp , inc. ( “ foothills ” ) and tennessee bancshares , inc. ( “ tennessee bancshares ” ) . income tax expense was $ 6.9 million in 2019 with an effective tax rate of 20.6 % , compared to $ 3.2 million in 2018 with an effective tax rate of 15.2 % . net interest income and yield analysis the management of interest income and expense is fundamental to our financial performance . net interest income , the difference between interest income and interest expense , is the largest component of the company 's total revenue . management closely monitors both total net interest income and the net interest margin ( net interest income divided by average earning assets ) . we seek to maximize net interest income without exposing the company to an excessive level of interest rate risk through our asset and liability policies . interest rate risk is managed by monitoring the pricing , maturity and repricing options of all classes of interest-earning assets and interest-bearing liabilities . our net interest margin is also adversely impacted by the reversal of interest on nonaccrual loans and the reinvestment of loan payoffs into lower yielding investment securities and other short-term investments . 2020 compared to 2019 net interest income , taxable equivalent , increased to $ 101.4 million in 2020 from $ 84.3 story_separator_special_tag subsequent modification of a pci loan accounted for in a pool that would otherwise meet the definition of a tdr is not reported , or accounted for , as a tdr since pooled pci loans are excluded from the scope of tdr accounting . a pci loan not accounted for in a pool would be reported , and accounted for , as a tdr if modified in a manner that meets the definition of a tdr after the acquisition date . nonperforming loans as a percentage of gross loans , net of deferred fees , was 0.24 % as of december 31 , 2020 , and 0.18 % as of december 31 , 2019 , respectively . total nonperforming assets as a percentage of total assets as of december 31 , 2020 totaled 0.31 % compared to 0.21 % as of december 31 , 2019. pci loans that are included in loan pools are reclassified at acquisition to accrual status and thus are not included as nonperforming assets . in 2020 , there was $ 30 thousand in interest income recognized on nonaccrual and restructured loans compared to the $ 358 thousand in gross interest income that would have been recognized if the loans had been current in accordance with their original terms . 43 the following table summarizes the company 's nonperforming assets as of december 31 for the periods presented ( dollars in thousands ) : replace_table_token_11_th ​ potential problem loans at december 31 , 2020 problem loans amounted to approximately $ 6.6 million or 0.27 % of total loans outstanding . potential problem loans , which are not included in nonperforming loans , represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower 's ability to comply with present repayment terms . this definition is believed to be substantially consistent with the standards established by the bank 's primary regulators , for loans classified as substandard or worse , but not considered nonperforming loans . allocation of the allowance for loan losses the allowance for loan losses is an estimate of probable incurred losses in the loan portfolio . loans are charged-off against the allowance when management believes a loan balance is uncollectible . subsequent recoveries , if any , are credited to the allowance for loan losses . management 's methodology for estimating the allowance balance consists of several key elements , which include specific allowances on individual impaired loans and the formula driven allowances on pools of loans with similar risk characteristics . allocations of the allowance may be made for specific loans , but the entire allowance is available for any loan that , in management 's judgment , should be charged-off . we assess the adequacy of the allowance at the end of each calendar quarter . this assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance . the level of the allowance is based upon our evaluation of the loan portfolios , past loan loss experience , known and inherent risks in the portfolio , the views of the bank 's regulators , adverse situations that may affect the borrower 's ability to repay ( including the timing of future payments ) , the estimated value of any underlying collateral , composition of the loan portfolio , economic conditions , industry and peer bank loan quality indications and other pertinent factors . this evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change . we maintain the allowance at a level that we deem appropriate to adequately cover the probable losses inherent in the loan portfolio . as of december 31 , 2020 , and december 31 , 2019 , our allowance for loan losses was $ 18.3 million and $ 10.2 million , respectively , which we deemed to be adequate at each of the respective dates . the increase in the allowance for loan losses in 2020 as compared to 2019 is primarily attributable to the ongoing economic uncertainties related to the covid-19 pandemic . also , during 2020 , the company updated the allowance for loan loss policy to increase the additional basis points allowed for the unallocated risk portion from 100 basis points to 125 basis points . in addition , the company added two new qualitative factors ; 1 . ) based on the percentage of covid modified loans to total loans and 2 . ) the average number of covid cases within our footprint . the qualitative factors were also expanded to provide additional granularity related to the hospitality and restaurant industries which are most impacted by the pandemic within our footprint . the changes in our economic factors and the addition of the covid modified factors equated to an additional $ 8.3 million in reserve . our allowance for loan loss as a percentage of total loans has increased from 0.54 % at december 31 , 2019 , to 0.77 % at december 31 , 2020. this increase is primarily due to the economic uncertainties related to the covid-19 pandemic and the modified and additional qualitive factors , as discussed above for 2020 . 44 our purchased loans were recorded at fair value upon acquisition . the fair value adjustments on the performing purchased loans will be accreted into income over the life of the loans . at december 31 , 2020 , the remaining accretable yield was approximately $ 16.9 million . these loans are subject to the same allowance methodology as our legacy portfolio . the calculated allowance is compared to the remaining fair value discount to determine if additional provisioning should be recognized . also , at the end of 2020 , the outstanding principal balance on pci loans was $ 45.0 million and the carrying value

borrowings and subordinated debt other than deposits , the company uses short-term borrowings and long-term debt to provide both funding and , to a lesser extent , regulatory capital using debt at the company level which can be downstreamed as tier 1 capital to the bank . total borrowings at december 31 , 2020 totaled $ 81.2 million , which is an increase of $ 49.6 million from december 31 , 2019 , the increase primarily consisted of a $ 50.0 million advance from the fhlb during 2020. short-term borrowings , included in borrowings , totaled $ 5.8 million at december 31 , 2020 and $ 6.2 million at december 31,2019 and consisted entirely of securities sold under repurchase agreements . long-term debt totaled $ 39.3 million at december 31 , 2020 and december 31 , 2019 , respectively and consisted entirely of subordinated debt . for more information regarding our borrowings and subordinated debt , see `` part i - item 1. consolidated financial statements - note 9 – borrowings and line of credit and note 10 – subordinated debt . '' liquidity liquidity refers to the measure of our ability to meet the cash flow requirements of depositors and borrowers , while at the same time meeting our operating , capital and strategic cash flow needs , all at a reasonable cost . we continuously monitor our liquidity position to ensure that assets and liabilities are managed in a manner that will meet all short-term and long-term cash requirements . we manage our liquidity position to meet the daily cash flow needs of customers , while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives of our shareholders . 47 our liquidity position is supported by management of liquid assets and access to alternative sources of funds . our liquid assets include cash , interest-bearing deposits in correspondent banks , federal funds sold , and fair value of unpledged investment securities . other available sources of liquidity include wholesale deposits , and additional borrowings from correspondent banks , fhlb advances , and the federal reserve discount window .


 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.
     ```borrowings and subordinated debt other than deposits , the company uses short-term borrowings and long-term debt to provide both funding and , to a lesser extent , regulatory capital using debt at the company level which can be downstreamed as tier 1 capital to the bank . total borrowings at december 31 , 2020 totaled $ 81.2 million , which is an increase of $ 49.6 million from december 31 , 2019 , the increase primarily consisted of a $ 50.0 million advance from the fhlb during 2020. short-term borrowings , included in borrowings , totaled $ 5.8 million at december 31 , 2020 and $ 6.2 million at december 31,2019 and consisted entirely of securities sold under repurchase agreements . long-term debt totaled $ 39.3 million at december 31 , 2020 and december 31 , 2019 , respectively and consisted entirely of subordinated debt . for more information regarding our borrowings and subordinated debt , see `` part i - item 1. consolidated financial statements - note 9 – borrowings and line of credit and note 10 – subordinated debt . '' liquidity liquidity refers to the measure of our ability to meet the cash flow requirements of depositors and borrowers , while at the same time meeting our operating , capital and strategic cash flow needs , all at a reasonable cost . we continuously monitor our liquidity position to ensure that assets and liabilities are managed in a manner that will meet all short-term and long-term cash requirements . we manage our liquidity position to meet the daily cash flow needs of customers , while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives of our shareholders . 47 our liquidity position is supported by management of liquid assets and access to alternative sources of funds . our liquid assets include cash , interest-bearing deposits in correspondent banks , federal funds sold , and fair value of unpledged investment securities . other available sources of liquidity include wholesale deposits , and additional borrowings from correspondent banks , fhlb advances , and the federal reserve discount window .
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 Suspicious Activity Report : it contained substantial tax and spending provisions intended to address the impact of the covid-19 pandemic . the cares act included the ppp , a nearly $ 350 billion program designed to aid small and medium-sized businesses through federally guaranteed loans distributed through banks . these loans were intended to guarantee eight weeks of payroll and other costs to help those businesses remain viable and allow their workers to pay their bills . the initial $ 350 billion program was supplemented in late april 2020 with $ 310 billion in additional funding . on june 5 , 2020 , the paycheck protection program flexibility act ( the “ new act ” ) was signed into law and made significant changes to the ppp to provide additional relief for small businesses . the new act increased flexibility for small businesses that have been unable to rehire employees due to lack of employee availability or have been unable to operate as normal due to covid-19 related restrictions . it extended the period that businesses have to use ppp funds to qualify for loan forgiveness to 24 weeks , up from 8 weeks under the original rules . the new act also relaxed the requirements that loan recipients must adhere to in order to qualify for loan forgiveness . in addition , the new act extended the payment deferral period for ppp loans until the date when the amount of loan forgiveness is determined and remitted to the lender . for ppp recipients who do not apply for forgiveness , the loan deferral period is 10 months after the applicable forgiveness period ends . the ppp program expired august 8 , 2020 . ● on december 21 , 2020 , the bipartisan-bicameral omnibus covid relief deal , included as a component of appropriations legislation , was passed by congress to provide economic stimulus to individuals and businesses in further response to the economic distress caused by the covid-19 pandemic . among other things , the legislation includes ( i ) payments of $ 600 for individuals making up to $ 75,000 per year , ( ii ) extension of the federal pandemic unemployment compensation program to include a $ 300 weekly enhancement in unemployment benefits beginning after december 26 , 2020 up to march 14 , 2021 , ( iii ) a temporary and targeted rental assistance program , and extends the eviction moratorium through january 31 , 2021 , ( iv ) targeted funding related to transportation , education , agriculture , nutrition and other public health measures and ( v ) approximately $ 325 billion for small business relief , including approximately $ 284 billion for a second round of ppp loans and a new simplified forgiveness procedure for ppp loans of $ 150,000 or less . we are continuing to monitor the potential development of additional legislation and further actions taken by the u.s. government . ​ analysis of results of operations 2020 compared to 2019 net income was $ 24.3 million , or $ 1.62 per diluted common share in 2020 , compared to $ 26.5 million , or $ 1.89 per diluted common share in 2019. the tax equivalent net interest margin for 2020 was 3.61 % compared to 3.95 % for 2019. noninterest income to average assets was 0.50 % for 2020 , decreasing from 0.65 % for 2019. noninterest expense to average assets decreased to 2.50 % in 2020 , from 2.70 % in 2019. the results above include operating effects of the pfg acquisition , which was completed on march 1 , 2020. income tax expense was $ 6.6 million in 2020 with an effective tax rate of 21.2 % , compared to $ 6.9 million in 2019 with an effective tax rate of 20.6 % . 2019 compared to 2018 net income was $ 26.5 million in 2019 , compared to $ 18.1 million in 2018. net income available to common shareholders was $ 26.5 million , or $ 1.89 per diluted common share , in 2019 , compared to $ 18.1 million , or $ 1.45 per diluted common share , in 2018. the net interest margin , taxable equivalent , for 2019 was 3.95 % compared to 4.43 % for 2018. noninterest income to average assets increased from 0.34 % in 2018 , to 0.65 % in 2019 , primarily due to the $ 6.4 million termination 35 fee from the termination of the entegra merger . noninterest expense to average assets decreased from 3.00 % in 2018 to 2.70 % in 2019 as the company continued to capture economies of scale following the mergers with foothills bancorp , inc. ( “ foothills ” ) and tennessee bancshares , inc. ( “ tennessee bancshares ” ) . income tax expense was $ 6.9 million in 2019 with an effective tax rate of 20.6 % , compared to $ 3.2 million in 2018 with an effective tax rate of 15.2 % . net interest income and yield analysis the management of interest income and expense is fundamental to our financial performance . net interest income , the difference between interest income and interest expense , is the largest component of the company 's total revenue . management closely monitors both total net interest income and the net interest margin ( net interest income divided by average earning assets ) . we seek to maximize net interest income without exposing the company to an excessive level of interest rate risk through our asset and liability policies . interest rate risk is managed by monitoring the pricing , maturity and repricing options of all classes of interest-earning assets and interest-bearing liabilities . our net interest margin is also adversely impacted by the reversal of interest on nonaccrual loans and the reinvestment of loan payoffs into lower yielding investment securities and other short-term investments . 2020 compared to 2019 net interest income , taxable equivalent , increased to $ 101.4 million in 2020 from $ 84.3 story_separator_special_tag subsequent modification of a pci loan accounted for in a pool that would otherwise meet the definition of a tdr is not reported , or accounted for , as a tdr since pooled pci loans are excluded from the scope of tdr accounting . a pci loan not accounted for in a pool would be reported , and accounted for , as a tdr if modified in a manner that meets the definition of a tdr after the acquisition date . nonperforming loans as a percentage of gross loans , net of deferred fees , was 0.24 % as of december 31 , 2020 , and 0.18 % as of december 31 , 2019 , respectively . total nonperforming assets as a percentage of total assets as of december 31 , 2020 totaled 0.31 % compared to 0.21 % as of december 31 , 2019. pci loans that are included in loan pools are reclassified at acquisition to accrual status and thus are not included as nonperforming assets . in 2020 , there was $ 30 thousand in interest income recognized on nonaccrual and restructured loans compared to the $ 358 thousand in gross interest income that would have been recognized if the loans had been current in accordance with their original terms . 43 the following table summarizes the company 's nonperforming assets as of december 31 for the periods presented ( dollars in thousands ) : replace_table_token_11_th ​ potential problem loans at december 31 , 2020 problem loans amounted to approximately $ 6.6 million or 0.27 % of total loans outstanding . potential problem loans , which are not included in nonperforming loans , represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower 's ability to comply with present repayment terms . this definition is believed to be substantially consistent with the standards established by the bank 's primary regulators , for loans classified as substandard or worse , but not considered nonperforming loans . allocation of the allowance for loan losses the allowance for loan losses is an estimate of probable incurred losses in the loan portfolio . loans are charged-off against the allowance when management believes a loan balance is uncollectible . subsequent recoveries , if any , are credited to the allowance for loan losses . management 's methodology for estimating the allowance balance consists of several key elements , which include specific allowances on individual impaired loans and the formula driven allowances on pools of loans with similar risk characteristics . allocations of the allowance may be made for specific loans , but the entire allowance is available for any loan that , in management 's judgment , should be charged-off . we assess the adequacy of the allowance at the end of each calendar quarter . this assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance . the level of the allowance is based upon our evaluation of the loan portfolios , past loan loss experience , known and inherent risks in the portfolio , the views of the bank 's regulators , adverse situations that may affect the borrower 's ability to repay ( including the timing of future payments ) , the estimated value of any underlying collateral , composition of the loan portfolio , economic conditions , industry and peer bank loan quality indications and other pertinent factors . this evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change . we maintain the allowance at a level that we deem appropriate to adequately cover the probable losses inherent in the loan portfolio . as of december 31 , 2020 , and december 31 , 2019 , our allowance for loan losses was $ 18.3 million and $ 10.2 million , respectively , which we deemed to be adequate at each of the respective dates . the increase in the allowance for loan losses in 2020 as compared to 2019 is primarily attributable to the ongoing economic uncertainties related to the covid-19 pandemic . also , during 2020 , the company updated the allowance for loan loss policy to increase the additional basis points allowed for the unallocated risk portion from 100 basis points to 125 basis points . in addition , the company added two new qualitative factors ; 1 . ) based on the percentage of covid modified loans to total loans and 2 . ) the average number of covid cases within our footprint . the qualitative factors were also expanded to provide additional granularity related to the hospitality and restaurant industries which are most impacted by the pandemic within our footprint . the changes in our economic factors and the addition of the covid modified factors equated to an additional $ 8.3 million in reserve . our allowance for loan loss as a percentage of total loans has increased from 0.54 % at december 31 , 2019 , to 0.77 % at december 31 , 2020. this increase is primarily due to the economic uncertainties related to the covid-19 pandemic and the modified and additional qualitive factors , as discussed above for 2020 . 44 our purchased loans were recorded at fair value upon acquisition . the fair value adjustments on the performing purchased loans will be accreted into income over the life of the loans . at december 31 , 2020 , the remaining accretable yield was approximately $ 16.9 million . these loans are subject to the same allowance methodology as our legacy portfolio . the calculated allowance is compared to the remaining fair value discount to determine if additional provisioning should be recognized . also , at the end of 2020 , the outstanding principal balance on pci loans was $ 45.0 million and the carrying value

