the corporation 's net interest margin increased in 2019 to 3.53 % , from 3.46 % in 2018. loan yields increased as a result of four federal reserve rate increases in 2018 , lifting the yields on the corporation 's variable rate loans . even though the federal reserve cut rates three times in the last half of 2019 , the pickup in yield throughout the first part of the year served to increase loan yield for the year . this coupled with volume growth in the loan portfolio , increased loan interest income by $ 5.4 million , or 19.1 % . the corporation 's non-interest income increased by $ 269,000 , or 2.4 % , from 2018 to 2019. earnings on bank owned life insurance declined by $ 907,000 , or 55.4 % in 2019 compared to the prior year due to a death benefit of $ 913,000 recorded in 2018. gains on securities transactions were $ 499,000 in 2019 , compared to losses of $ 291,000 in 2018 , an increase in income of $ 790,000. gains on the sale of mortgages increased by $ 334,000 , or 20.8 % in 2019 compared to 2018 due to a high volume of mortgage originations stemming from the low interest rate environment . the financial services industry uses two primary performance measurements to gauge performance : return on average assets ( roa ) and return on average equity ( roe ) . roa measures how efficiently a bank generates income 32 enb financial corp management 's discussion and analysis based on the amount of assets or size of a company . roe measures the efficiency of a company in generating income based on the amount of equity or capital utilized . the latter measurement typically receives more attention from shareholders . the corporation 's 2019 roa was 1.01 % , compared to 0.93 % in 2018. roe increased from 9.94 % in 2018 to 10.36 % in 2019. the increase in roa and roe was primarily due to higher income in 2019 compared to 2018. the below table highlights the corporation 's key performance ratios for the years ended december 31 , 2019 , 2018 , and 2017. key performance ratios replace_table_token_7_th the results of the corporation 's operations are best explained by addressing in further detail the five major sections of the income statement , which are as follows : · net interest income · provision for loan losses · other income · operating expenses · income taxes the following discussion analyzes each of these five components . net interest income net interest income ( nii ) represents the largest portion of the corporation 's operating income . in 2019 , nii generated 76.4 % of the corporation 's gross revenue stream , compared to 75.0 % in 2018 , and 74.5 % in 2017. since nii comprises a significant portion of the operating income , the direction and rate of increase or decrease will often indicate the overall performance of the corporation . the following table shows a summary analysis of nii on a fully taxable equivalent ( fte ) basis . for analytical purposes and throughout this discussion , yields , rates , and measurements such as nii , net interest spread , and net yield on interest earning assets , are presented on an fte basis . this differs from the nii reflected on the corporation 's consolidated statements of income , where the nii is simply the interest earned on loans and securities less the interest paid on deposits and borrowings . by calculating the nii on an fte basis , the added benefit of having tax-free loans and securities is factored in to more accurately represent what the corporation earns through the nii . the fte adjustment shows the benefit these tax free loans and securities bring in a dollar amount because the corporation does not pay tax on the income they generate . as a result , the fte nii shown in both tables below will exceed the nii reported on the consolidated statements of income . the amount of fte adjustment totaled $ 749,000 for 2019 , $ 879,000 for 2018 , and $ 2,341,000 for 2017. the significant decline in fte adjustment in 2018 and 2019 was primarily due to the corporate tax rate change implemented at the end of 2017 as well as lower levels of tax-free income . 33 enb financial corp management 's discussion and analysis net interest income ( dollars in thousands ) replace_table_token_8_th nii is the difference between interest income earned on assets and interest expense incurred on liabilities . accordingly , two factors affect nii : · the rates charged on interest earning assets and paid on interest bearing liabilities · the average balance of interest earning assets and interest bearing liabilities the federal funds rate , the prime rate , the shape of the u.s. treasury curve , and other wholesale funding curves , all affect nii . the federal reserve controls the federal funds rate , which is one of a number of tools available to the federal reserve to conduct monetary policy . the federal funds rate , and guidance on when the rate might be changed , is often the focal point of discussion regarding the direction of interest rates . during 2019 , the federal funds rate was decreased three times between july and october taking the rate to 1.75 % by december 31 , 2019. with the recent declines in the federal funds rate , the u.s. treasury yield curve became flatter . a flat yield curve generally signals the end of a period of economic expansion and the beginning of a recession . story_separator_special_tag typically , the corporation sees increases in time deposits during periods when consumers are not confident in the stock market and economic conditions deteriorate . during these periods , there is a “ flight to safety ” to federally insured deposits . this trend occurred in past years , but time deposit balances declined throughout 2017 , 2018 , and 2019. as the rate between time deposits and core deposits narrowed , many customers chose to transfer funds from maturing time deposits into checking and savings accounts . since the financial crisis , depositors have been more concerned about the financial health of their financial institution . this concern affects their desire to obtain the best possible market interest rates . this trend benefits the corporation due to its high capital levels and track record of strong and stable earnings . the corporation 's bauer financial rating of 5 , the highest level of their rating scale , has assisted the bank in gaining core deposits over the past several years . the corporation 's average rate on borrowed funds increased by 24 basis points from 2018 to 2019 , as refinancing of several long-term borrowings maturing in 2019 was completed at higher market interest rates . throughout 2019 , the new fixed borrowing rates were higher than the average rate paid on the corporation 's existing borrowings . 39 enb financial corp management 's discussion and analysis provision for loan losses the allowance for loan losses provides for losses inherent in the loan portfolio as determined by a quarterly analysis and calculation of various factors related to the loan portfolio . the amount of the provision reflects the adjustment that management determines is necessary to ensure that the allowance for loan losses is adequate to cover any losses inherent in the loan portfolio . the corporation gives special attention to the level of underperforming loans when calculating the necessary provision for loan losses . the analysis of the loan loss allowance takes into consideration , among other things , the following factors : · levels and trends in delinquencies , non-accruals , and charge-offs , · levels of classified loans , · trends within the loan portfolio , · changes in lending policies and procedures , · experience of lending personnel and management oversight , · national and local economic trends , · concentrations of credit , · external factors such as legal and regulatory requirements , · changes in the quality of loan review and board oversight , and · changes in the value of underlying collateral . a provision expense of $ 770,000 was recorded in 2019 , compared to $ 660,000 in 2018 , and $ 940,000 in 2017. the provision expense in 2019 was primarily due to higher levels of delinquencies , classified loans , and charge-offs during the year as well as organic loan portfolio growth . as of december 31 , 2019 , total delinquencies represented 0.91 % of total loans , compared to 0.46 % as of december 31 , 2018. these ratios are extremely low compared to local and national peer groups but delinquencies did increase throughout 2019. the vast majority of the corporation 's loan customers have remained very steadfast in making their loan payments and avoiding delinquency , even during challenging economic conditions . the delinquency ratios speak to the long-term health , conservative nature , and , importantly , the character of the corporation 's customers and lending practices . classified loans are primarily determined by loan-to-value and debt-to-income ratios . the level of classified loans has increased from december 31 , 2018 to december 31 , 2019 , from 13.7 % of regulatory capital to 18.9 % of regulatory capital . the delinquency and classified loan information is utilized in the quarterly alll calculation , which directly affects the provision expense . a sharp increase or decrease in delinquencies and or classified loans during the year would be cause for management to increase or decrease the provision expense . the allowance as a percentage of loans remained stable at 1.25 % at both december 31 , 2019 and december 31 , 2018. it is anticipated that the corporation will record a provision expense again in 2020 based on projected loan growth and projected delinquencies and levels of classified loans . management also continues to provide for estimated losses on pools of similar loans based on historical loss experience . management employs qualitative factors every quarter in addition to historical loss experience to take into consideration the current trends in loan volume , concentrations of credit , delinquencies , changes in lending practices , and the quality of the corporation 's underwriting , credit analysis , lending staff , and board oversight . national and local economic trends and conditions are also considered when calculating an appropriate loan loss allowance for each loan pool . qualitative factors only increased for the business loans and residential real estate pools in 2019 as a result of higher levels of historical delinquencies and charge-offs . factors for six of the remaining loan pools were decreased during 2019 and one factor remained the same . management continues to evaluate the allowance for loan losses in relation to the growth or decline of the loan portfolio and its associated credit risk , and believes the provision and the allowance for loan losses are adequate to provide for future loan losses . for further discussion of the calculation , see the “ allowance for loan losses ” section . other income other income for 2019 was $ 11,306,000 , an increase of $ 269,000 , or 2.4 % , compared to the $ 11,037,000 earned in 2018. the following table details the categories that comprise other income . 40 enb financial corp management 's discussion and analysis other income ( dollars in thousands ) replace_table_token_11_th trust and investment services income increased by $ 83,000 , or 4.2 % , from 2018 to 2019 ,

cash and cash equivalents cash and cash equivalents consist of the cash on hand in the corporation 's vaults , operational transaction accounts with the federal reserve bank ( frb ) , and deposits in other banks . the frb requires a specified amount of cash available either in vault cash or in an frb account . known as cash reserves , these funds provide for the daily clearing house activity of the corporation and fluctuate based on the volume of each day 's transactions . beyond these requirements , the corporation maintains additional cash levels as part of management 's active asset liability and liquidity strategy . management has been carrying larger cash balances to provide an immediate hedge against interest rate risk and liquidity risk . as of december 31 , 2019 , the corporation had $ 41.1 million in cash and cash equivalents , compared to $ 41.4 million as of december 31 , 2018. as a result of the actions of the board of governors on december 16 , 2008 , financial institutions have been able to receive interest on balances held at the frb . because of this , management began to keep larger balances at the frb and less federal funds . this overnight rate fluctuates as the overnight federal funds rate fluctuates and as of december 31 , 2019 , it stood at 1.55 % . the corporation expects to maintain an element of total cash at the federal reserve as part of a diversified cash management plan as long as liquidity levels allow for this to happen . management also invests excess cash in two money market accounts at other financial institutions .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash and cash equivalents cash and cash equivalents consist of the cash on hand in the corporation 's vaults , operational transaction accounts with the federal reserve bank ( frb ) , and deposits in other banks . the frb requires a specified amount of cash available either in vault cash or in an frb account . known as cash reserves , these funds provide for the daily clearing house activity of the corporation and fluctuate based on the volume of each day 's transactions . beyond these requirements , the corporation maintains additional cash levels as part of management 's active asset liability and liquidity strategy . management has been carrying larger cash balances to provide an immediate hedge against interest rate risk and liquidity risk . as of december 31 , 2019 , the corporation had $ 41.1 million in cash and cash equivalents , compared to $ 41.4 million as of december 31 , 2018. as a result of the actions of the board of governors on december 16 , 2008 , financial institutions have been able to receive interest on balances held at the frb . because of this , management began to keep larger balances at the frb and less federal funds . this overnight rate fluctuates as the overnight federal funds rate fluctuates and as of december 31 , 2019 , it stood at 1.55 % . the corporation expects to maintain an element of total cash at the federal reserve as part of a diversified cash management plan as long as liquidity levels allow for this to happen . management also invests excess cash in two money market accounts at other financial institutions .
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 Suspicious Activity Report : the corporation 's net interest margin increased in 2019 to 3.53 % , from 3.46 % in 2018. loan yields increased as a result of four federal reserve rate increases in 2018 , lifting the yields on the corporation 's variable rate loans . even though the federal reserve cut rates three times in the last half of 2019 , the pickup in yield throughout the first part of the year served to increase loan yield for the year . this coupled with volume growth in the loan portfolio , increased loan interest income by $ 5.4 million , or 19.1 % . the corporation 's non-interest income increased by $ 269,000 , or 2.4 % , from 2018 to 2019. earnings on bank owned life insurance declined by $ 907,000 , or 55.4 % in 2019 compared to the prior year due to a death benefit of $ 913,000 recorded in 2018. gains on securities transactions were $ 499,000 in 2019 , compared to losses of $ 291,000 in 2018 , an increase in income of $ 790,000. gains on the sale of mortgages increased by $ 334,000 , or 20.8 % in 2019 compared to 2018 due to a high volume of mortgage originations stemming from the low interest rate environment . the financial services industry uses two primary performance measurements to gauge performance : return on average assets ( roa ) and return on average equity ( roe ) . roa measures how efficiently a bank generates income 32 enb financial corp management 's discussion and analysis based on the amount of assets or size of a company . roe measures the efficiency of a company in generating income based on the amount of equity or capital utilized . the latter measurement typically receives more attention from shareholders . the corporation 's 2019 roa was 1.01 % , compared to 0.93 % in 2018. roe increased from 9.94 % in 2018 to 10.36 % in 2019. the increase in roa and roe was primarily due to higher income in 2019 compared to 2018. the below table highlights the corporation 's key performance ratios for the years ended december 31 , 2019 , 2018 , and 2017. key performance ratios replace_table_token_7_th the results of the corporation 's operations are best explained by addressing in further detail the five major sections of the income statement , which are as follows : · net interest income · provision for loan losses · other income · operating expenses · income taxes the following discussion analyzes each of these five components . net interest income net interest income ( nii ) represents the largest portion of the corporation 's operating income . in 2019 , nii generated 76.4 % of the corporation 's gross revenue stream , compared to 75.0 % in 2018 , and 74.5 % in 2017. since nii comprises a significant portion of the operating income , the direction and rate of increase or decrease will often indicate the overall performance of the corporation . the following table shows a summary analysis of nii on a fully taxable equivalent ( fte ) basis . for analytical purposes and throughout this discussion , yields , rates , and measurements such as nii , net interest spread , and net yield on interest earning assets , are presented on an fte basis . this differs from the nii reflected on the corporation 's consolidated statements of income , where the nii is simply the interest earned on loans and securities less the interest paid on deposits and borrowings . by calculating the nii on an fte basis , the added benefit of having tax-free loans and securities is factored in to more accurately represent what the corporation earns through the nii . the fte adjustment shows the benefit these tax free loans and securities bring in a dollar amount because the corporation does not pay tax on the income they generate . as a result , the fte nii shown in both tables below will exceed the nii reported on the consolidated statements of income . the amount of fte adjustment totaled $ 749,000 for 2019 , $ 879,000 for 2018 , and $ 2,341,000 for 2017. the significant decline in fte adjustment in 2018 and 2019 was primarily due to the corporate tax rate change implemented at the end of 2017 as well as lower levels of tax-free income . 33 enb financial corp management 's discussion and analysis net interest income ( dollars in thousands ) replace_table_token_8_th nii is the difference between interest income earned on assets and interest expense incurred on liabilities . accordingly , two factors affect nii : · the rates charged on interest earning assets and paid on interest bearing liabilities · the average balance of interest earning assets and interest bearing liabilities the federal funds rate , the prime rate , the shape of the u.s. treasury curve , and other wholesale funding curves , all affect nii . the federal reserve controls the federal funds rate , which is one of a number of tools available to the federal reserve to conduct monetary policy . the federal funds rate , and guidance on when the rate might be changed , is often the focal point of discussion regarding the direction of interest rates . during 2019 , the federal funds rate was decreased three times between july and october taking the rate to 1.75 % by december 31 , 2019. with the recent declines in the federal funds rate , the u.s. treasury yield curve became flatter . a flat yield curve generally signals the end of a period of economic expansion and the beginning of a recession . story_separator_special_tag typically , the corporation sees increases in time deposits during periods when consumers are not confident in the stock market and economic conditions deteriorate . during these periods , there is a “ flight to safety ” to federally insured deposits . this trend occurred in past years , but time deposit balances declined throughout 2017 , 2018 , and 2019. as the rate between time deposits and core deposits narrowed , many customers chose to transfer funds from maturing time deposits into checking and savings accounts . since the financial crisis , depositors have been more concerned about the financial health of their financial institution . this concern affects their desire to obtain the best possible market interest rates . this trend benefits the corporation due to its high capital levels and track record of strong and stable earnings . the corporation 's bauer financial rating of 5 , the highest level of their rating scale , has assisted the bank in gaining core deposits over the past several years . the corporation 's average rate on borrowed funds increased by 24 basis points from 2018 to 2019 , as refinancing of several long-term borrowings maturing in 2019 was completed at higher market interest rates . throughout 2019 , the new fixed borrowing rates were higher than the average rate paid on the corporation 's existing borrowings . 39 enb financial corp management 's discussion and analysis provision for loan losses the allowance for loan losses provides for losses inherent in the loan portfolio as determined by a quarterly analysis and calculation of various factors related to the loan portfolio . the amount of the provision reflects the adjustment that management determines is necessary to ensure that the allowance for loan losses is adequate to cover any losses inherent in the loan portfolio . the corporation gives special attention to the level of underperforming loans when calculating the necessary provision for loan losses . the analysis of the loan loss allowance takes into consideration , among other things , the following factors : · levels and trends in delinquencies , non-accruals , and charge-offs , · levels of classified loans , · trends within the loan portfolio , · changes in lending policies and procedures , · experience of lending personnel and management oversight , · national and local economic trends , · concentrations of credit , · external factors such as legal and regulatory requirements , · changes in the quality of loan review and board oversight , and · changes in the value of underlying collateral . a provision expense of $ 770,000 was recorded in 2019 , compared to $ 660,000 in 2018 , and $ 940,000 in 2017. the provision expense in 2019 was primarily due to higher levels of delinquencies , classified loans , and charge-offs during the year as well as organic loan portfolio growth . as of december 31 , 2019 , total delinquencies represented 0.91 % of total loans , compared to 0.46 % as of december 31 , 2018. these ratios are extremely low compared to local and national peer groups but delinquencies did increase throughout 2019. the vast majority of the corporation 's loan customers have remained very steadfast in making their loan payments and avoiding delinquency , even during challenging economic conditions . the delinquency ratios speak to the long-term health , conservative nature , and , importantly , the character of the corporation 's customers and lending practices . classified loans are primarily determined by loan-to-value and debt-to-income ratios . the level of classified loans has increased from december 31 , 2018 to december 31 , 2019 , from 13.7 % of regulatory capital to 18.9 % of regulatory capital . the delinquency and classified loan information is utilized in the quarterly alll calculation , which directly affects the provision expense . a sharp increase or decrease in delinquencies and or classified loans during the year would be cause for management to increase or decrease the provision expense . the allowance as a percentage of loans remained stable at 1.25 % at both december 31 , 2019 and december 31 , 2018. it is anticipated that the corporation will record a provision expense again in 2020 based on projected loan growth and projected delinquencies and levels of classified loans . management also continues to provide for estimated losses on pools of similar loans based on historical loss experience . management employs qualitative factors every quarter in addition to historical loss experience to take into consideration the current trends in loan volume , concentrations of credit , delinquencies , changes in lending practices , and the quality of the corporation 's underwriting , credit analysis , lending staff , and board oversight . national and local economic trends and conditions are also considered when calculating an appropriate loan loss allowance for each loan pool . qualitative factors only increased for the business loans and residential real estate pools in 2019 as a result of higher levels of historical delinquencies and charge-offs . factors for six of the remaining loan pools were decreased during 2019 and one factor remained the same . management continues to evaluate the allowance for loan losses in relation to the growth or decline of the loan portfolio and its associated credit risk , and believes the provision and the allowance for loan losses are adequate to provide for future loan losses . for further discussion of the calculation , see the “ allowance for loan losses ” section . other income other income for 2019 was $ 11,306,000 , an increase of $ 269,000 , or 2.4 % , compared to the $ 11,037,000 earned in 2018. the following table details the categories that comprise other income . 40 enb financial corp management 's discussion and analysis other income ( dollars in thousands ) replace_table_token_11_th trust and investment services income increased by $ 83,000 , or 4.2 % , from 2018 to 2019 ,

