however , the amount of the change that is reasonably possible can not be estimated . the evaluation of the adequacy of loan collateral is often based upon estimates and appraisals . due to changing economic conditions , the valuations determined from such estimates and appraisals may also change . accordingly , the company may ultimately incur losses that vary from management 's current estimates . adjustments to the allowance for loan losses will be reported in the period such adjustments become known or can be reasonably estimated . all loan losses are charged to the allowance for loan losses when the loss actually occurs or when the collectability of the principal is unlikely . recoveries are credited to the allowance at the time of recovery . emerging growth company pursuant to the jobs act , an egc is provided the option to adopt new or revised accounting standards that may be issued by the fasb or the sec either ( i ) within the same periods as those otherwise applicable to non-egcs or ( ii ) within the same time periods as private companies . the company elected the option to utilize the delayed effective dates of recently issued accounting standards . as permitted by the jobs act , so long as it qualifies as an egc , the company will take advantage of some of the reduced regulatory and reporting requirements that are available to it , including , but not limited to , not being required to comply with the auditor attestation requirements of section 404 ( b ) of the sarbanes-oxley act , reduced disclosure obligations regarding executive compensation , and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments . recently issued accounting standards for a discussion of the impact of recently issued accounting standards , please see note 3 to the company 's consolidated financial statements 40 selected financial information the following table includes selected financial information for the company for the periods indicated : replace_table_token_0_th nm – not meaningful discussion of financial condition summary the company had total assets of $ 3.36 billion at december 31 , 2019 , compared with $ 2.18 billion at december 31 , 2018. loans , net of deferred fees and unamortized costs , increased by $ 807.7 million , or 43.3 % , to $ 2.67 billion at december 31 , 2019 as compared to $ 1.87 billion at december 31 , 2018. for 2019 , the bank 's loan production was $ 1.1 billion , as compared to $ 830.4 million for the year ended december 31 , 2018. the increase in loans during 2019 consisted , primarily , of loan originations and purchases of $ 584.7 million in real estate loans and $ 506.0 million in commercial and industrial loans . the increase in loan production in 2019 was the result of expanding existing lending relationships , particularly in skilled nursing facilities , as well as developing new relationships . new loans generated from existing 41 relationships amounted to $ 497.1 million , or 46 % , of the total loan production for 2019. new loans related to skilled nursing facilities amounted to $ 330.0 million , or 30 % , of the total loan production for 2019. the bank was able to fund the increased level of loan production with deposits , which increased $ 1.13 billion , or 68.1 % , during the year ended december 31 , 2019. total cash and cash equivalents increased $ 158.3 million , or 67.9 % , to $ 391.2 million at december 31 , 2019 , as compared to $ 233.0 million at december 31 , 2018. total securities , primarily those classified as available-for-sale ( “ afs ” ) , increased $ 203.8 million , or 548.9 % to $ 240.9 million at december 31 , 2019 , as compared to $ 37.1 million at december 31 , 2018. the increases in cash and cash equivalents and securities reflect the strong growth in deposits of $ 1.13 billion that exceeded growth in loans of $ 807.7 million . at december 31 , 2019 , $ 126.2 million of afs securities were pledged as collateral for certain deposits and were , therefore , considered encumbered as of december 31 , 2019. there were no securities pledged at december 31 , 2018. total deposits increased $ 1.13 billion , or 68.1 % , to $ 2.79 billion at december 31 , 2019 , as compared to $ 1.66 billion at december 31 , 2018. this was due to an increase of $ 838.3 million in interest-bearing deposits to $ 1.70 billion at december 31 , 2019 , as compared to $ 862.0 million at december 31 , 2018 , and an increase of $ 291.9 million in non-interest-bearing deposits to $ 1.09 billion at december 31 , 2019 , as compared to $ 798.6 million at december 31 , 2018. the increase in deposits was primarily due to growth in the bank 's bankruptcy account deposit vertical and property management accounts , as well as deposit growth in the bank 's retail network . federal home loan bank of new york ( “ fhlb ” ) advances decreased by $ 41.0 million , or 22.2 % , to $ 144.0 million at december 31 , 2019 , as compared to $ 185.0 million at december 31 , 2018 , as the deposit growth during the year was sufficient to support the bank 's loan growth and to reduce the level of borrowings . story_separator_special_tag the subordinated notes may be redeemed in whole or in part , at a redemption price equal to 100 % of the principal amount of the subordinated notes plus any accrued and unpaid interest . secured borrowings the bank has loan participation agreements with counterparties . the bank is generally the servicer for these loans . if the transfer of the participation interest does not qualify for sale treatment under current accounting guidance , the amount of the loan transferred is recorded as a secured borrowing . there were $ 43.0 million in secured borrowings as of december 31 , 2019 and none as of december 31 , 2018. discussion of the results of operations for the year ended december 31 , 2019 net income net income increased $ 4.5 million to $ 30.1 million for 2019 , as compared to $ 25.6 million for 2018. this increase was primarily due to a $ 26.4 million increase in net interest income , partially offset by a $ 1.5 million decrease in non-interest income , a $ 16.5 million increase in non-interest expense and a $ 2.7 million increase in income tax expense . 54 net interest income analysis net interest income is the difference between interest earned on assets and interest incurred on liabilities . the following table presents an analysis of net interest income by each major category of interest-earning assets and interest-bearing liabilities for the years ended december 31 , 2019 , 2018 and 2017 ( dollars in thousands ) . non-accrual loans were included in the computation of average balances and therefore have a zero yield . replace_table_token_17_th ( 1 ) amount includes deferred loan fees and non-performing loans . ( 2 ) determined by subtracting the weighted average cost of total interest-bearing liabilities from the weighted average yield on total interest-earning assets . ( 3 ) determined by dividing net interest income by total average interest-earning assets . 55 rate/volume analysis the following table presents the effects of changing rates and volumes on net interest income for the periods indicated . the rate column shows the effects attributable to changes in rate ( changes in rate multiplied by prior volume ) . the volume column shows the effects attributable to changes in volume ( changes in volume multiplied by prior rate ) . the net column represents the sum of the prior columns . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately , based on the changes due to rate and the changes due to volume ( dollars in thousands ) . replace_table_token_18_th net interest margin decreased 24 basis points to 3.46 % for 2019 from 3.70 % for 2018. total average interest-earning assets increased $ 898.0 million to $ 2.82 billion for 2019 , as compared to $ 1.93 billion for 2018. the total yield on average interest-earning assets increased 24 basis points to 4.60 % for 2019 as compared to 4.36 % for 2018. the cost of interest-bearing liabilities increased 43 basis points to 2.05 % for 2019 , as compared to 1.62 % for 2018. non-interest-bearing deposits accounted for 38 % of total funding in 2019 , as compared to 53 % in 2018. as a result , the ratio of average interest-earning assets to average interest-bearing liabilities decreased to 1.80x for 2019 , as compared to 2.45x for 2018. interest income interest income increased $ 45.8 million to $ 129.8 million for 2019 , as compared to $ 83.9 million for 2018. this increase was primarily due to increases of $ 39.8 million in interest income on loans , $ 3.0 million in interest on afs securities , and $ 2.7 million in interest on overnight deposits . the increase in interest income on loans was due to a $ 699.5 million increase in the average balance of loans to $ 2.30 billion and a 26 basis point increase in the average yield to 5.08 % for 2019 , as compared to an average balance of $ 1.60 billion and an average yield of 4.82 % on loans for 2018. the increase in the average balance of loans reflects the bank 's focus on expanding existing relationships and developing new ones . the growth in the loan portfolio was led by growth in the bank 's healthcare portfolio . new loans related to skilled nursing facilities amounted to $ 330.0 million , or 30 % of total loan production in 2019. the increase in interest on afs securities was due to an $ 113.7 million increase in average balance of afs securities to $ 142.1 million for 2019 , as compared to $ 28.5 million for 2018. additionally , the average yield on afs securities increased 39 basis points to 2.52 % , as compared to 2.13 % for those same periods . the increase in interest on overnight deposits was due to an increase of $ 80.1 million in the average balance of overnight funds to $ 348.7 million for 2019 , as compared to $ 268.6 million for 2018. the average yield on overnight deposits increased 34 basis points to 2.22 % , as compared to 1.88 % for those same periods . 56 interest expense interest expense increased $ 19.5 million to $ 32.2 million for 2019 , as compared to $ 12.7 million for 2018. this increase was due primarily to a $ 16.4 million increase in interest on deposits and a $ 3.0 million increase in interest on borrowings . the increase in interest expense on deposits was primarily due to a $ 669.7 million increase in the average balance of interest-bearing deposits to $ 1.36 billion for 2019 and a 56 basis point increase in the average cost of deposits to 1.88 % , as compared to an average balance of $ 688.3 million and an average cost of 1.32 % for 2018. the growth in the average balance of

liquidity and capital resources liquidity is the ability to meet current and future financial obligations of a short-term nature . the bank 's primary sources of funds consist of deposit inflows , loan repayments and maturities and sales of securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the bank regularly reviews the need to adjust investments in liquid assets based upon an assessment of : ( 1 ) expected loan demand , ( 2 ) expected deposit flows , ( 3 ) yields available on interest earning deposits and securities , and ( 4 ) the objectives of the alco program . excess liquid assets are invested generally in interest earning deposits and short- and intermediate-term securities . the bank 's most liquid assets are cash and cash equivalents . the levels of these assets are dependent on operating , financing , lending and investing activities during any given period . at december 31 , 2019 and 2018 , cash and cash equivalents totaled $ 391.2 million and $ 233.0 million , respectively . securities classified as afs , which provide additional sources of liquidity , totaled $ 234.9 million at december 31 , 2019 and $ 30.4 million at december 31 , 2018. there were $ 126.2 million of afs securities pledged as collateral for certain deposits at december 31 , 2019. there were no securities pledged at december 31 , 2018 . 58 at december 31 , 2019 , the bank had the ability to borrow $ 437.8 million from the federal home loan bank of new york ( “ fhlbny ” ) , of which it had borrowed $ 144.0 million . it also had an available line of credit with the frbny discount window of $ 99.2 million . the fhlb advances were used to supplement deposit funding to support loan growth .


 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 and capital resources liquidity is the ability to meet current and future financial obligations of a short-term nature . the bank 's primary sources of funds consist of deposit inflows , loan repayments and maturities and sales of securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the bank regularly reviews the need to adjust investments in liquid assets based upon an assessment of : ( 1 ) expected loan demand , ( 2 ) expected deposit flows , ( 3 ) yields available on interest earning deposits and securities , and ( 4 ) the objectives of the alco program . excess liquid assets are invested generally in interest earning deposits and short- and intermediate-term securities . the bank 's most liquid assets are cash and cash equivalents . the levels of these assets are dependent on operating , financing , lending and investing activities during any given period . at december 31 , 2019 and 2018 , cash and cash equivalents totaled $ 391.2 million and $ 233.0 million , respectively . securities classified as afs , which provide additional sources of liquidity , totaled $ 234.9 million at december 31 , 2019 and $ 30.4 million at december 31 , 2018. there were $ 126.2 million of afs securities pledged as collateral for certain deposits at december 31 , 2019. there were no securities pledged at december 31 , 2018 . 58 at december 31 , 2019 , the bank had the ability to borrow $ 437.8 million from the federal home loan bank of new york ( “ fhlbny ” ) , of which it had borrowed $ 144.0 million . it also had an available line of credit with the frbny discount window of $ 99.2 million . the fhlb advances were used to supplement deposit funding to support loan growth .
```    
 Suspicious Activity Report : however , the amount of the change that is reasonably possible can not be estimated . the evaluation of the adequacy of loan collateral is often based upon estimates and appraisals . due to changing economic conditions , the valuations determined from such estimates and appraisals may also change . accordingly , the company may ultimately incur losses that vary from management 's current estimates . adjustments to the allowance for loan losses will be reported in the period such adjustments become known or can be reasonably estimated . all loan losses are charged to the allowance for loan losses when the loss actually occurs or when the collectability of the principal is unlikely . recoveries are credited to the allowance at the time of recovery . emerging growth company pursuant to the jobs act , an egc is provided the option to adopt new or revised accounting standards that may be issued by the fasb or the sec either ( i ) within the same periods as those otherwise applicable to non-egcs or ( ii ) within the same time periods as private companies . the company elected the option to utilize the delayed effective dates of recently issued accounting standards . as permitted by the jobs act , so long as it qualifies as an egc , the company will take advantage of some of the reduced regulatory and reporting requirements that are available to it , including , but not limited to , not being required to comply with the auditor attestation requirements of section 404 ( b ) of the sarbanes-oxley act , reduced disclosure obligations regarding executive compensation , and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments . recently issued accounting standards for a discussion of the impact of recently issued accounting standards , please see note 3 to the company 's consolidated financial statements 40 selected financial information the following table includes selected financial information for the company for the periods indicated : replace_table_token_0_th nm – not meaningful discussion of financial condition summary the company had total assets of $ 3.36 billion at december 31 , 2019 , compared with $ 2.18 billion at december 31 , 2018. loans , net of deferred fees and unamortized costs , increased by $ 807.7 million , or 43.3 % , to $ 2.67 billion at december 31 , 2019 as compared to $ 1.87 billion at december 31 , 2018. for 2019 , the bank 's loan production was $ 1.1 billion , as compared to $ 830.4 million for the year ended december 31 , 2018. the increase in loans during 2019 consisted , primarily , of loan originations and purchases of $ 584.7 million in real estate loans and $ 506.0 million in commercial and industrial loans . the increase in loan production in 2019 was the result of expanding existing lending relationships , particularly in skilled nursing facilities , as well as developing new relationships . new loans generated from existing 41 relationships amounted to $ 497.1 million , or 46 % , of the total loan production for 2019. new loans related to skilled nursing facilities amounted to $ 330.0 million , or 30 % , of the total loan production for 2019. the bank was able to fund the increased level of loan production with deposits , which increased $ 1.13 billion , or 68.1 % , during the year ended december 31 , 2019. total cash and cash equivalents increased $ 158.3 million , or 67.9 % , to $ 391.2 million at december 31 , 2019 , as compared to $ 233.0 million at december 31 , 2018. total securities , primarily those classified as available-for-sale ( “ afs ” ) , increased $ 203.8 million , or 548.9 % to $ 240.9 million at december 31 , 2019 , as compared to $ 37.1 million at december 31 , 2018. the increases in cash and cash equivalents and securities reflect the strong growth in deposits of $ 1.13 billion that exceeded growth in loans of $ 807.7 million . at december 31 , 2019 , $ 126.2 million of afs securities were pledged as collateral for certain deposits and were , therefore , considered encumbered as of december 31 , 2019. there were no securities pledged at december 31 , 2018. total deposits increased $ 1.13 billion , or 68.1 % , to $ 2.79 billion at december 31 , 2019 , as compared to $ 1.66 billion at december 31 , 2018. this was due to an increase of $ 838.3 million in interest-bearing deposits to $ 1.70 billion at december 31 , 2019 , as compared to $ 862.0 million at december 31 , 2018 , and an increase of $ 291.9 million in non-interest-bearing deposits to $ 1.09 billion at december 31 , 2019 , as compared to $ 798.6 million at december 31 , 2018. the increase in deposits was primarily due to growth in the bank 's bankruptcy account deposit vertical and property management accounts , as well as deposit growth in the bank 's retail network . federal home loan bank of new york ( “ fhlb ” ) advances decreased by $ 41.0 million , or 22.2 % , to $ 144.0 million at december 31 , 2019 , as compared to $ 185.0 million at december 31 , 2018 , as the deposit growth during the year was sufficient to support the bank 's loan growth and to reduce the level of borrowings . story_separator_special_tag the subordinated notes may be redeemed in whole or in part , at a redemption price equal to 100 % of the principal amount of the subordinated notes plus any accrued and unpaid interest . secured borrowings the bank has loan participation agreements with counterparties . the bank is generally the servicer for these loans . if the transfer of the participation interest does not qualify for sale treatment under current accounting guidance , the amount of the loan transferred is recorded as a secured borrowing . there were $ 43.0 million in secured borrowings as of december 31 , 2019 and none as of december 31 , 2018. discussion of the results of operations for the year ended december 31 , 2019 net income net income increased $ 4.5 million to $ 30.1 million for 2019 , as compared to $ 25.6 million for 2018. this increase was primarily due to a $ 26.4 million increase in net interest income , partially offset by a $ 1.5 million decrease in non-interest income , a $ 16.5 million increase in non-interest expense and a $ 2.7 million increase in income tax expense . 54 net interest income analysis net interest income is the difference between interest earned on assets and interest incurred on liabilities . the following table presents an analysis of net interest income by each major category of interest-earning assets and interest-bearing liabilities for the years ended december 31 , 2019 , 2018 and 2017 ( dollars in thousands ) . non-accrual loans were included in the computation of average balances and therefore have a zero yield . replace_table_token_17_th ( 1 ) amount includes deferred loan fees and non-performing loans . ( 2 ) determined by subtracting the weighted average cost of total interest-bearing liabilities from the weighted average yield on total interest-earning assets . ( 3 ) determined by dividing net interest income by total average interest-earning assets . 55 rate/volume analysis the following table presents the effects of changing rates and volumes on net interest income for the periods indicated . the rate column shows the effects attributable to changes in rate ( changes in rate multiplied by prior volume ) . the volume column shows the effects attributable to changes in volume ( changes in volume multiplied by prior rate ) . the net column represents the sum of the prior columns . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately , based on the changes due to rate and the changes due to volume ( dollars in thousands ) . replace_table_token_18_th net interest margin decreased 24 basis points to 3.46 % for 2019 from 3.70 % for 2018. total average interest-earning assets increased $ 898.0 million to $ 2.82 billion for 2019 , as compared to $ 1.93 billion for 2018. the total yield on average interest-earning assets increased 24 basis points to 4.60 % for 2019 as compared to 4.36 % for 2018. the cost of interest-bearing liabilities increased 43 basis points to 2.05 % for 2019 , as compared to 1.62 % for 2018. non-interest-bearing deposits accounted for 38 % of total funding in 2019 , as compared to 53 % in 2018. as a result , the ratio of average interest-earning assets to average interest-bearing liabilities decreased to 1.80x for 2019 , as compared to 2.45x for 2018. interest income interest income increased $ 45.8 million to $ 129.8 million for 2019 , as compared to $ 83.9 million for 2018. this increase was primarily due to increases of $ 39.8 million in interest income on loans , $ 3.0 million in interest on afs securities , and $ 2.7 million in interest on overnight deposits . the increase in interest income on loans was due to a $ 699.5 million increase in the average balance of loans to $ 2.30 billion and a 26 basis point increase in the average yield to 5.08 % for 2019 , as compared to an average balance of $ 1.60 billion and an average yield of 4.82 % on loans for 2018. the increase in the average balance of loans reflects the bank 's focus on expanding existing relationships and developing new ones . the growth in the loan portfolio was led by growth in the bank 's healthcare portfolio . new loans related to skilled nursing facilities amounted to $ 330.0 million , or 30 % of total loan production in 2019. the increase in interest on afs securities was due to an $ 113.7 million increase in average balance of afs securities to $ 142.1 million for 2019 , as compared to $ 28.5 million for 2018. additionally , the average yield on afs securities increased 39 basis points to 2.52 % , as compared to 2.13 % for those same periods . the increase in interest on overnight deposits was due to an increase of $ 80.1 million in the average balance of overnight funds to $ 348.7 million for 2019 , as compared to $ 268.6 million for 2018. the average yield on overnight deposits increased 34 basis points to 2.22 % , as compared to 1.88 % for those same periods . 56 interest expense interest expense increased $ 19.5 million to $ 32.2 million for 2019 , as compared to $ 12.7 million for 2018. this increase was due primarily to a $ 16.4 million increase in interest on deposits and a $ 3.0 million increase in interest on borrowings . the increase in interest expense on deposits was primarily due to a $ 669.7 million increase in the average balance of interest-bearing deposits to $ 1.36 billion for 2019 and a 56 basis point increase in the average cost of deposits to 1.88 % , as compared to an average balance of $ 688.3 million and an average cost of 1.32 % for 2018. the growth in the average balance of

