35 maintain our funding mix that emphasizes growth in core deposits . core deposits ( demand deposits , now accounts , money market accounts and savings accounts ) comprised 80.4 % of our total deposits at december 31 , 2019. we value core deposits because they represent longer-term customer relationships and a lower cost of funding compared to certificates of deposit . we have succeeded in growing core deposits by promoting a sales culture in our branch offices that is supported by the use of technology and by offering a variety of products for our customers , such as sweep and insured money sweep services , remote electronic deposit , online banking with bill pay , mobile banking , and automated clearinghouse . competent and modern deposit operations are one of our key competencies , leading to increased customer service and fee revenue . supplement fee income through our insurance operations . fee income earned through our insurance agency , exchange underwriters , supplements our income from banking operations . we intend to pursue opportunities to grow this line of business , including hiring insurance producers with established books of business and through acquisitions . critical accounting policies critical accounting policies are those that involve significant judgments and assumptions by management and that have , or could have , a material impact on the company 's income or the carrying value of its assets . allowance for loan losses . the allowance for loan losses ( “ allowance ” ) is maintained at a level considered adequate to provide for losses that can be reasonably anticipated . management performs a quarterly evaluation of the adequacy of the allowance based on potential losses in the current loan portfolio , which includes an assessment of economic conditions , changes in the nature and volume of the loan portfolio , loan loss experience , volume and severity of past due , classified and nonaccrual loans as well as other loan modifications , quality of the company 's loan review system , the degree of oversight by the company 's board , existence and effect of any concentrations of credit and changes in the level of such concentrations , effect of external factors , such as competition and legal and regulatory requirements , and other relevant factors . while management uses the best information available to make such evaluations , future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making evaluations . additions are made to the allowance through periodic provisions charged to income and recovery of principal and interest on loans previously charged-off . losses of principal are charged directly to the allowance when a loss occurs or when a determination is made that the specific loss is probable . this evaluation is inherently subjective as it requires estimates that are susceptible to significant revisions as more information becomes available . the allowance consists of specific , general and unallocated components . the specific component relates to loans that are classified as impaired . a loan is considered impaired when , based upon current information and events , it is probable that the company will be unable to collect all amounts due for principal and interest according to the original contractual terms of the loan agreement . generally , management considers all substandard- , doubtful- , and loss-rated loans , nonaccrual loans , and tdrs for impairment . management determines the significance of payment delays and payment shortfalls on a case-by-case basis , taking into consideration all of the circumstances surrounding the loan and the borrower , including the length of the delay , the reasons for the delay , the borrower 's prior payment record , and the amount of the shortfall in relation to the principal and interest owed . the maximum period without payment that typically can occur before a loan is considered for impairment is 90 days . impairment is measured based on the present value of expected future cash flows discounted at a loan 's effective interest rate , or as a practical expedient , the observable market price , or , if the loan is collateral dependent , the fair value of the underlying collateral . when the measurement of an impaired loan is less than the recorded investment in the loan , the impairment is recorded in a specific valuation allowance . this specific valuation allowance is periodically adjusted for significant changes in the amount or timing of expected future cash flows , observable market price or fair value of the collateral . the specific valuation allowance , or allowance for impaired loans , is part of the total allowance for loan losses . cash payments received on impaired loans that are considered non-accrual are recorded as a direct reduction of the recorded investment in the loan . when the recorded investment has been fully collected , receipts are recorded as recoveries to the allowance for loan losses until the previously charged-off principal is fully recovered . subsequent amounts collected are recognized as interest income . if no charge-off exists , then once the recorded investment has been fully collected , any future amounts collected would be recognized as interest income . impaired loans are not returned to accrual status until all amounts due , both principal and interest , are current and a sustained payment history has been demonstrated . the general allowance component covers pools of homogeneous loans by loan class . management determines historical loss experience for each segment of loans using the two-year rolling average of the net charge-off data within each segment . story_separator_special_tag in the prior period , the company recognized a $ 137,000 net loss on the disposal of fixed assets due to the write-off of the leasehold improvements of the former washington business center that was vacated on december 31 , 2018 and accelerated depreciation of select furniture and equipment acquired during the fwvb merger that did not conform to the company 's fixed asset capitalization policy . net gain on sales of residential mortgage loans increased $ 95,000 to $ 266,000 for the year ended december 31 , 2019 primarily due to an increase in the number of loans originated and subsequently sold to the fhlb as part of the mpf® program and a stabilization in mortgage rates . other commissions income decreased $ 371,000 to $ 576,000 for the year ended december 31 , 2019 , primarily due to prior period receipt of $ 331,000 of insurance proceeds from a claim on a bank-owned life insurance policy . noninterest expense . noninterest expense increased $ 927,000 , or 2.7 % , to $ 35.8 million for the year ended december 31 , 2019 , compared to $ 34.9 million for the year ended december 31 , 2018. the fwvb merger was the primary reason for the changes to various noninterest expenses year over year . salaries and employee benefits increased $ 1.2 million to $ 19.3 million for the year ended december 31 , 2019 , primarily due to additional employees , salary increases , and employee group health insurance as a direct result of the fwvb merger . amortization of core deposit intangible increased $ 462,000 to $ 1.9 million for the year ended december 31 , 2019 due to the core deposit intangible recorded for the fwvb merger . contracted services increased $ 429,000 to $ 1.3 million for the year ended december 31 , 2019 , due to the additional branch locations acquired in the fwvb merger . bankcard processing expense increased $ 223,000 to $ 853,000 for the year ended december 31 , 2019 , due to an increase in volume of atm and debit card transactions as a result of the fwvb merger . pa shares tax expense increased $ 209,000 to $ 999,000 for the year ended december 31 , 2019 due to the increase in stockholders ' equity primarily based on the fwvb merger . advertising increased $ 120,000 to $ 875,000 for the year ended december 31 , 2019 due to the bank 's expanded marketing territory from the fwvb merger and related initiatives , primarily through internet-based advertising and various media outlets . merger-related expenses decreased $ 854,000 due to the prior year fwvb merger . occupancy decreased $ 262,000 to $ 2.7 million for the year ended december 31 , 2019 primarily due $ 287,000 of lease termination costs associated with the former fwvb corporate center and former washington business center as the bank moved into the bpmcc in the prior period . this was partially offset by an increase in general occupancy expenses from branches acquired in the fwvb merger . although deposits increased $ 31.7 million in the current period , fdic assessment expense decreased $ 173,000 to $ 411,000. the fdic notified banks that its dif reached the required minimum reserve ratio of 1.38 % that permitted the fdic to offset current bank assessments with prior credits from 2016 through 2018 earned by banks with less than $ 10 billion in assets . a total of $ 308,000 of credits were recognized in the third and fourth quarters of 2019. all dif credits available to the bank have been utilized . oreo expense decreased $ 118,000 and resulted in $ 103,000 of income for the year ended december 31 , 2019 , primarily due to recognized income for the leasing of mineral rights partially offset by expenses related to properties placed in oreo in the current period . other noninterest expense decreased $ 319,000 , primarily due to a decrease in office supplies and director-related restricted stock-based compensation expense from a change to a five-year vesting period starting with the december 2018 grant . the decrease in expense was also the result of losses from fraudulent phishing transactions on customer accounts in the prior period and decrease in dues and subscriptions expense . this was partially offset by an increase in amortization related to the exchange underwriters acquisition of the beynon insurance customer list and increased telephone and company-related insurance cost due to the fwvb merger . 40 income tax expense . income taxes increased $ 191,000 to $ 1.7 million for the year ended december 31 , 2019 , compared to $ 1.5 million for the year ended december 31 , 2018. despite an increase of $ 7.5 million in pre-tax income , the effective tax rate for the year ended december 31 , 2019 was 10.8 % compared to 17.9 % for the year ended december 31 , 2018. while the tax cuts and jobs act ( “ tax act ” ) enacted in 2017 was the first major overhaul of the internal revenue code ( “ irc ” ) in the last 30 years , it had many items that were left unaddressed once certain tax deadlines passed and for which no formal regulations had been issued as of december 31 , 2018. one of these unaddressed tax deadlines was the expiration of the alternative minimum tax ( “ amt ” ) credit carryforward after the 2021 tax year . pre–tax act regulations allowed for amt credits to carryforward infinitely . as of december 31 , 2018 , it was determined that an amt credit carryforward of approximately $ 1.3 million , acquired in the fwvb merger on april 30 , 2018 , would remain unutilized as of december 31 , 2021 as a result of irc section 382 and 383 annual limitations . as a result of the uncertainty of the utilization of the amt credit carryforwards post-2021 , a valuation allowance

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 adjusts its investments in liquid assets based upon its assessment of expected loan demand , expected deposit flows , yields available on interest-earning deposits and securities , and the objectives of its asset/liability management program . excess liquid assets are invested generally in interest-earning deposits with other banks and short- and intermediate-term securities . the bank believes that it had sufficient liquidity at december 31 , 2019 , to satisfy its short- and long-term liquidity needs at that date . the bank 's most liquid assets are cash and due , from banks , which totaled $ 80.2 million at december 31 , 2019. unpledged securities , which provide an additional source of liquidity , totaled $ 44.5 million . in addition , the bank maintains a credit arrangement with the fhlb with a maximum borrowing limit of approximately $ 374.8 million as of december 31 , 2019 , of which $ 41.7 million was utilized toward standby letters of credit and $ 14.0 million was utilized for advances . this arrangement is subject to annual renewal , incurs no service charge , and is secured by a blanket security agreement on outstanding residential and commercial mortgage loans and the bank 's investment in fhlb stock .


 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 adjusts its investments in liquid assets based upon its assessment of expected loan demand , expected deposit flows , yields available on interest-earning deposits and securities , and the objectives of its asset/liability management program . excess liquid assets are invested generally in interest-earning deposits with other banks and short- and intermediate-term securities . the bank believes that it had sufficient liquidity at december 31 , 2019 , to satisfy its short- and long-term liquidity needs at that date . the bank 's most liquid assets are cash and due , from banks , which totaled $ 80.2 million at december 31 , 2019. unpledged securities , which provide an additional source of liquidity , totaled $ 44.5 million . in addition , the bank maintains a credit arrangement with the fhlb with a maximum borrowing limit of approximately $ 374.8 million as of december 31 , 2019 , of which $ 41.7 million was utilized toward standby letters of credit and $ 14.0 million was utilized for advances . this arrangement is subject to annual renewal , incurs no service charge , and is secured by a blanket security agreement on outstanding residential and commercial mortgage loans and the bank 's investment in fhlb stock .
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 Suspicious Activity Report : 35 maintain our funding mix that emphasizes growth in core deposits . core deposits ( demand deposits , now accounts , money market accounts and savings accounts ) comprised 80.4 % of our total deposits at december 31 , 2019. we value core deposits because they represent longer-term customer relationships and a lower cost of funding compared to certificates of deposit . we have succeeded in growing core deposits by promoting a sales culture in our branch offices that is supported by the use of technology and by offering a variety of products for our customers , such as sweep and insured money sweep services , remote electronic deposit , online banking with bill pay , mobile banking , and automated clearinghouse . competent and modern deposit operations are one of our key competencies , leading to increased customer service and fee revenue . supplement fee income through our insurance operations . fee income earned through our insurance agency , exchange underwriters , supplements our income from banking operations . we intend to pursue opportunities to grow this line of business , including hiring insurance producers with established books of business and through acquisitions . critical accounting policies critical accounting policies are those that involve significant judgments and assumptions by management and that have , or could have , a material impact on the company 's income or the carrying value of its assets . allowance for loan losses . the allowance for loan losses ( “ allowance ” ) is maintained at a level considered adequate to provide for losses that can be reasonably anticipated . management performs a quarterly evaluation of the adequacy of the allowance based on potential losses in the current loan portfolio , which includes an assessment of economic conditions , changes in the nature and volume of the loan portfolio , loan loss experience , volume and severity of past due , classified and nonaccrual loans as well as other loan modifications , quality of the company 's loan review system , the degree of oversight by the company 's board , existence and effect of any concentrations of credit and changes in the level of such concentrations , effect of external factors , such as competition and legal and regulatory requirements , and other relevant factors . while management uses the best information available to make such evaluations , future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making evaluations . additions are made to the allowance through periodic provisions charged to income and recovery of principal and interest on loans previously charged-off . losses of principal are charged directly to the allowance when a loss occurs or when a determination is made that the specific loss is probable . this evaluation is inherently subjective as it requires estimates that are susceptible to significant revisions as more information becomes available . the allowance consists of specific , general and unallocated components . the specific component relates to loans that are classified as impaired . a loan is considered impaired when , based upon current information and events , it is probable that the company will be unable to collect all amounts due for principal and interest according to the original contractual terms of the loan agreement . generally , management considers all substandard- , doubtful- , and loss-rated loans , nonaccrual loans , and tdrs for impairment . management determines the significance of payment delays and payment shortfalls on a case-by-case basis , taking into consideration all of the circumstances surrounding the loan and the borrower , including the length of the delay , the reasons for the delay , the borrower 's prior payment record , and the amount of the shortfall in relation to the principal and interest owed . the maximum period without payment that typically can occur before a loan is considered for impairment is 90 days . impairment is measured based on the present value of expected future cash flows discounted at a loan 's effective interest rate , or as a practical expedient , the observable market price , or , if the loan is collateral dependent , the fair value of the underlying collateral . when the measurement of an impaired loan is less than the recorded investment in the loan , the impairment is recorded in a specific valuation allowance . this specific valuation allowance is periodically adjusted for significant changes in the amount or timing of expected future cash flows , observable market price or fair value of the collateral . the specific valuation allowance , or allowance for impaired loans , is part of the total allowance for loan losses . cash payments received on impaired loans that are considered non-accrual are recorded as a direct reduction of the recorded investment in the loan . when the recorded investment has been fully collected , receipts are recorded as recoveries to the allowance for loan losses until the previously charged-off principal is fully recovered . subsequent amounts collected are recognized as interest income . if no charge-off exists , then once the recorded investment has been fully collected , any future amounts collected would be recognized as interest income . impaired loans are not returned to accrual status until all amounts due , both principal and interest , are current and a sustained payment history has been demonstrated . the general allowance component covers pools of homogeneous loans by loan class . management determines historical loss experience for each segment of loans using the two-year rolling average of the net charge-off data within each segment . story_separator_special_tag in the prior period , the company recognized a $ 137,000 net loss on the disposal of fixed assets due to the write-off of the leasehold improvements of the former washington business center that was vacated on december 31 , 2018 and accelerated depreciation of select furniture and equipment acquired during the fwvb merger that did not conform to the company 's fixed asset capitalization policy . net gain on sales of residential mortgage loans increased $ 95,000 to $ 266,000 for the year ended december 31 , 2019 primarily due to an increase in the number of loans originated and subsequently sold to the fhlb as part of the mpf® program and a stabilization in mortgage rates . other commissions income decreased $ 371,000 to $ 576,000 for the year ended december 31 , 2019 , primarily due to prior period receipt of $ 331,000 of insurance proceeds from a claim on a bank-owned life insurance policy . noninterest expense . noninterest expense increased $ 927,000 , or 2.7 % , to $ 35.8 million for the year ended december 31 , 2019 , compared to $ 34.9 million for the year ended december 31 , 2018. the fwvb merger was the primary reason for the changes to various noninterest expenses year over year . salaries and employee benefits increased $ 1.2 million to $ 19.3 million for the year ended december 31 , 2019 , primarily due to additional employees , salary increases , and employee group health insurance as a direct result of the fwvb merger . amortization of core deposit intangible increased $ 462,000 to $ 1.9 million for the year ended december 31 , 2019 due to the core deposit intangible recorded for the fwvb merger . contracted services increased $ 429,000 to $ 1.3 million for the year ended december 31 , 2019 , due to the additional branch locations acquired in the fwvb merger . bankcard processing expense increased $ 223,000 to $ 853,000 for the year ended december 31 , 2019 , due to an increase in volume of atm and debit card transactions as a result of the fwvb merger . pa shares tax expense increased $ 209,000 to $ 999,000 for the year ended december 31 , 2019 due to the increase in stockholders ' equity primarily based on the fwvb merger . advertising increased $ 120,000 to $ 875,000 for the year ended december 31 , 2019 due to the bank 's expanded marketing territory from the fwvb merger and related initiatives , primarily through internet-based advertising and various media outlets . merger-related expenses decreased $ 854,000 due to the prior year fwvb merger . occupancy decreased $ 262,000 to $ 2.7 million for the year ended december 31 , 2019 primarily due $ 287,000 of lease termination costs associated with the former fwvb corporate center and former washington business center as the bank moved into the bpmcc in the prior period . this was partially offset by an increase in general occupancy expenses from branches acquired in the fwvb merger . although deposits increased $ 31.7 million in the current period , fdic assessment expense decreased $ 173,000 to $ 411,000. the fdic notified banks that its dif reached the required minimum reserve ratio of 1.38 % that permitted the fdic to offset current bank assessments with prior credits from 2016 through 2018 earned by banks with less than $ 10 billion in assets . a total of $ 308,000 of credits were recognized in the third and fourth quarters of 2019. all dif credits available to the bank have been utilized . oreo expense decreased $ 118,000 and resulted in $ 103,000 of income for the year ended december 31 , 2019 , primarily due to recognized income for the leasing of mineral rights partially offset by expenses related to properties placed in oreo in the current period . other noninterest expense decreased $ 319,000 , primarily due to a decrease in office supplies and director-related restricted stock-based compensation expense from a change to a five-year vesting period starting with the december 2018 grant . the decrease in expense was also the result of losses from fraudulent phishing transactions on customer accounts in the prior period and decrease in dues and subscriptions expense . this was partially offset by an increase in amortization related to the exchange underwriters acquisition of the beynon insurance customer list and increased telephone and company-related insurance cost due to the fwvb merger . 40 income tax expense . income taxes increased $ 191,000 to $ 1.7 million for the year ended december 31 , 2019 , compared to $ 1.5 million for the year ended december 31 , 2018. despite an increase of $ 7.5 million in pre-tax income , the effective tax rate for the year ended december 31 , 2019 was 10.8 % compared to 17.9 % for the year ended december 31 , 2018. while the tax cuts and jobs act ( “ tax act ” ) enacted in 2017 was the first major overhaul of the internal revenue code ( “ irc ” ) in the last 30 years , it had many items that were left unaddressed once certain tax deadlines passed and for which no formal regulations had been issued as of december 31 , 2018. one of these unaddressed tax deadlines was the expiration of the alternative minimum tax ( “ amt ” ) credit carryforward after the 2021 tax year . pre–tax act regulations allowed for amt credits to carryforward infinitely . as of december 31 , 2018 , it was determined that an amt credit carryforward of approximately $ 1.3 million , acquired in the fwvb merger on april 30 , 2018 , would remain unutilized as of december 31 , 2021 as a result of irc section 382 and 383 annual limitations . as a result of the uncertainty of the utilization of the amt credit carryforwards post-2021 , a valuation allowance

