the allowance is based on two basic principles of accounting : ( 1 ) “ accounting for contingencies , ” which requires that losses be accrued when it is probable that a loss has occurred at the balance sheet date and such loss can be reasonably estimated ; and ( 2 ) the “ receivables ” topic , which requires that losses be accrued on impaired loans based on the differences between the value of collateral , present value of future cash flows or values that are observable in the secondary market and the loan balance . the allowance for loan losses is determined based upon estimates that can and do change when the actual risk , loss events , or changes in other factors , occur . the analysis of the allowance uses a historical loss view as an indicator of future losses and as a result could differ from the actual losses incurred in the future . although management believes the allowance to be adequate , ultimate losses may vary from its estimates . at least quarterly , the board of directors reviews the adequacy of the allowance , including consideration of the relative risks in the portfolio , current economic conditions and other factors . if the board of directors and management determine that changes are warranted based on those reviews , the allowance is adjusted . for further information regarding our allowance for loan losses , see “ allowance for loan losses activity . ” overview the company recorded net income in 2020 of $ 7,055,000 , an increase of $ 1,555,000 ( 28.3 % ) from $ 5,500,000 in 2019. diluted earnings per share were $ 1.20 for 2020 and $ 0.94 for 2019. for 2020 , the company realized a return on average equity of 7.94 % and a return on average assets of 0.86 % , compared to 6.92 % and 0.78 % , respectively , in 2019. net income for 2019 increased $ 600,000 ( 12.2 % ) from $ 4,900,000 in 2018. diluted earnings per share for 2018 were $ 0.83. for 2018 , the company realized a return on average equity of 6.77 % and return on average assets of 0.72 % . table one below provides a summary of the components of net income for the years indicated ( dollars in thousands ) : 38 table one : components of net income replace_table_token_7_th * fully taxable equivalent basis ( fte ) during 2020 , total assets of the company increased $ 148,638,000 ( 20.6 % ) from $ 720,353,000 at december 31 , 2019 to $ 868,991,000 at december 31 , 2020. at december 31 , 2020 , loans totaled $ 480,278,000 , an increase of $ 80,617,000 ( 20.2 % ) from the ending balance of $ 399,661,000 at december 31 , 2019. deposits increased $ 139,340,000 or 23.0 % from $ 604,837,000 at december 31 , 2019 to $ 744,177,000 at december 31 , 2020. shareholders ' equity increased $ 10,186,000 or 12.3 % from $ 82,909,000 at december 31 , 2019 to $ 93,095,000 at december 31 , 2020. the company ended 2020 with a leverage capital ratio of 8.3 % and a total risk-based capital ratio of 16.2 % compared to a leverage capital ratio of 9.2 % and a total risk-based capital ratio of 15.9 % at the end of 2019. results of operations net interest income and net interest margin net interest income represents the excess of interest and fees earned on interest earning assets ( loans , securities , federal funds sold and interest-bearing deposits in other banks ) over the interest paid on deposits and borrowed funds . net interest margin is net interest income expressed as a percentage of average earning assets . the company 's fully taxable equivalent net interest margin was 3.52 % in 2020 , 3.60 % in 2019 , and 3.41 % in 2018. the fully taxable equivalent net interest income increased $ 3,121,000 ( 13.3 % ) , from $ 23,423,000 in 2019 to $ 26,544,000 in 2020. the fully taxable equivalent net interest income increased $ 2,570,000 ( 12.3 % ) , from $ 20,853,000 in 2018 to $ 23,423,000 in 2019. the fully taxable equivalent interest income component increased $ 2,242,000 ( 8.7 % ) from $ 25,884,000 in 2019 to $ 28,126,000 in 2020. the increase in the fully taxable equivalent interest income for 2020 compared to the same period in 2019 is comprised of two components - rate ( down $ 2,312,000 ) and volume ( up $ 4,554,000 ) . the primary driver in this rate decrease was a decrease in the yields on loans which decreased from 4.95 % in 2019 to 4.80 % in 2020 , on the investment portfolio which decreased from 2.81 % in 2019 to 2.46 % in 2020 , and a decrease in the yields on interest-bearing balances in banks which decreased from 2.04 % in 2019 to 0.22 % in 2020. the decreased yield in 2020 compared to 2019 was due to the overall lower interest rate environment . the decreased yield earned on loans , investments and interest-bearing balances in banks was the reason the yield on earning assets decreased from 3.98 % in 2019 to 3.73 % in 2020. the volume increase of $ 4,554,000 was primarily from an increase in loans ( $ 4,346,000 ) and interest-bearing deposits in banks ( $ 627,000 ) , partially offset by a decrease in investment and federal fund balances ( $ 419,000 ) . story_separator_special_tag partially offsetting these increases was a reduction in telephone expense which decreased $ 91,000 ( 26.6 % ) from $ 342,000 in 2018 to $ 251,000 in 2019 and relates to the company converted to a more cost-effective telephone system . the overhead efficiency ratio on a taxable equivalent basis for 2019 was 67.1 % compared to 69.4 % in 2018. provision for income taxes the effective tax rate on income was 26.6 % , 25.6 % , and 24.3 % in 2020 , 2019 and 2018 , respectively . the effective tax rate differs from the federal statutory tax rate due to state tax expense ( net of federal tax effect ) of $ 805,000 , $ 610,000 , and $ 523,000 in these years . tax-exempt income of $ 1,413,000 , $ 1,361,000 , and $ 1,315,000 from investment securities , loans , and bank-owned life insurance in these years helped to reduce the effective tax rate . the higher effective tax rate in 2020 compared 2019 is related to the tax treatment of equity based compensation under accounting standards update 2016-09 ( “ asu 2016-09 ” ) . under asu 2016-09 , if the market value of the company 's stock price on the date restricted stock vests is higher than the company 's stock price on the date the restricted stock was awarded the company receives a tax credit for the difference in values and if the market price on the vesting date is lower than the stock price on the award date the company recognizes additional tax expense . during 2019 , the company recognized a $ 34,000 tax credit under asu 2016-09 and in 2020 the company recognized a $ 39,000 tax expense under asu 2016-09. the company 's taxable income in 2020 was $ 9,611,000 , an increase of $ 2,220,000 ( up 30.0 % ) from $ 7,391,000 in 2019. the company 's taxable income in 2019 increased $ 917,000 ( up 14.2 % ) from $ 6,474,000 in 2018. balance sheet analysis the company 's total assets were $ 868,991,000 at december 31 , 2020 compared to $ 720,353,000 at december 31 , 2019 , representing an increase of $ 148,638,000 ( 20.6 % ) . the average balances of total assets during 2020 were $ 820,587,000 , up $ 117,382,000 or 16.7 % from the 2019 average balances of total assets of $ 703,205,000. story_separator_special_tag single-family residences . other real estate loans consist primarily of loans secured by first trust deeds on commercial , multi-family , and residential properties typically with maturities from three to ten years and original loan-to-value ratios generally from 65 % to 75 % . agriculture loans consist primarily of first trust deed loans on properties that produce grapes , fruit , and nut loans . in general , except in the case of loans under sba programs or farm services agency guarantees , the company does not make long-term residential mortgage loans . average loans in 2020 were $ 447,028,000 , which represents an increase of $ 87,699,000 ( 24.4 % ) compared to the average in 2019. of the $ 87,699,000 increase in 2020 , $ 45,846,000 was comprised of ppp loans . average loans in 2019 were $ 359,329,000 , which represents an increase of $ 50,964,000 ( 16.5 % ) compared to the average in 2018. risk elements the company assesses and manages credit risk on an ongoing basis through a total credit culture that emphasizes excellent credit quality , extensive internal monitoring and established formal lending policies . additionally , the company contracts with an outside loan review consultant to periodically review the existing loan portfolio . management believes its ability to identify and assess risk and return characteristics of the company 's loan portfolio is critical for profitability and growth . management strives to continue its emphasis on credit quality in the loan approval process , through active credit administration and regular monitoring . with this in mind , management has designed and implemented a comprehensive loan review and grading system that functions to continually assess the credit risk inherent in the loan portfolio . 47 ultimately , underlying trends in economic and business cycles influence credit quality . american river bank 's business is concentrated in the sacramento metropolitan statistical area , which is a diversified economy , but with a large state of california government presence and employment base ; in sonoma county , which is focused on businesses within the two communities in which the bank has offices ( santa rosa and healdsburg ) ; and in amador county , in which the bank is primarily focused on businesses within the three communities in which it has offices ( jackson , pioneer , and ione ) . the economy of sonoma county is diversified with professional services , manufacturing , agriculture and real estate investment and construction , while the economy of amador county is reliant upon government , services , retail trade , manufacturing industries and indian gaming . the company has significant extensions of credit and commitments to extend credit that are secured by real estate . the ultimate repayment of these loans is generally dependent on personal or business cash flows or the sale or refinancing of the real estate . the company monitors the effects of current and expected market conditions and other factors on the collectability of real estate loans . the more significant factors management considers involve the following : lease rates and terms , vacancy rates , absorption and sale rates and capitalization rates ; real estate values , supply and demand factors , and rates of return ; operating expenses ; inflation and deflation ; and sufficiency of repayment sources independent of the real estate including , in some instances , personal guarantees . in extending credit and commitments to borrowers , the company generally requires collateral and or guarantees as security . the repayment of such loans is

cash and cash equivalents the balance held in cash and cash equivalents at december 31 , 2020 was $ 42,509,000 , compared to $ 17,810,000 at december 31 , 2019 , an increase of $ 24,699,000 ( 138.7 % ) . the primary reason for the increase in cash and cash equivalents since december 31 , 2019 is directly related to the increase in deposit balances during the same period . investment securities the company classifies its investment securities as trading , held-to-maturity or available-for-sale . the company 's intent is to hold all securities classified as held-to-maturity until maturity and management believes that it has the ability to do so . securities classified as available-for-sale may be sold to implement asset/liability management strategies as part of our contingency funding plan and in response to changes in interest rates , prepayment rates and similar factors . table six below summarizes the values of the company 's investment securities held on december 31 of the years indicated . the company did not have any investment securities classified as trading in any of the years indicated below . 45 table six : investment securities composition ( dollars in thousands ) replace_table_token_13_th net unrealized gains on available-for-sale investment securities totaling $ 8,739,000 were recorded , net of $ 2,583,000 in tax liabilities , as accumulated other comprehensive income within shareholders ' equity at december 31 , 2020 and net unrealized gains on available-for-sale investment securities totaling $ 2,544,000 were recorded , net of $ 752,000 in tax liabilities , as accumulated other comprehensive income within shareholders ' equity at december 31 , 2019. management periodically evaluates each investment security in a loss position for other than temporary impairment relying primarily on industry analyst reports , observation of market conditions and interest rate fluctuations .


 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 the balance held in cash and cash equivalents at december 31 , 2020 was $ 42,509,000 , compared to $ 17,810,000 at december 31 , 2019 , an increase of $ 24,699,000 ( 138.7 % ) . the primary reason for the increase in cash and cash equivalents since december 31 , 2019 is directly related to the increase in deposit balances during the same period . investment securities the company classifies its investment securities as trading , held-to-maturity or available-for-sale . the company 's intent is to hold all securities classified as held-to-maturity until maturity and management believes that it has the ability to do so . securities classified as available-for-sale may be sold to implement asset/liability management strategies as part of our contingency funding plan and in response to changes in interest rates , prepayment rates and similar factors . table six below summarizes the values of the company 's investment securities held on december 31 of the years indicated . the company did not have any investment securities classified as trading in any of the years indicated below . 45 table six : investment securities composition ( dollars in thousands ) replace_table_token_13_th net unrealized gains on available-for-sale investment securities totaling $ 8,739,000 were recorded , net of $ 2,583,000 in tax liabilities , as accumulated other comprehensive income within shareholders ' equity at december 31 , 2020 and net unrealized gains on available-for-sale investment securities totaling $ 2,544,000 were recorded , net of $ 752,000 in tax liabilities , as accumulated other comprehensive income within shareholders ' equity at december 31 , 2019. management periodically evaluates each investment security in a loss position for other than temporary impairment relying primarily on industry analyst reports , observation of market conditions and interest rate fluctuations .
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 Suspicious Activity Report : the allowance is based on two basic principles of accounting : ( 1 ) “ accounting for contingencies , ” which requires that losses be accrued when it is probable that a loss has occurred at the balance sheet date and such loss can be reasonably estimated ; and ( 2 ) the “ receivables ” topic , which requires that losses be accrued on impaired loans based on the differences between the value of collateral , present value of future cash flows or values that are observable in the secondary market and the loan balance . the allowance for loan losses is determined based upon estimates that can and do change when the actual risk , loss events , or changes in other factors , occur . the analysis of the allowance uses a historical loss view as an indicator of future losses and as a result could differ from the actual losses incurred in the future . although management believes the allowance to be adequate , ultimate losses may vary from its estimates . at least quarterly , the board of directors reviews the adequacy of the allowance , including consideration of the relative risks in the portfolio , current economic conditions and other factors . if the board of directors and management determine that changes are warranted based on those reviews , the allowance is adjusted . for further information regarding our allowance for loan losses , see “ allowance for loan losses activity . ” overview the company recorded net income in 2020 of $ 7,055,000 , an increase of $ 1,555,000 ( 28.3 % ) from $ 5,500,000 in 2019. diluted earnings per share were $ 1.20 for 2020 and $ 0.94 for 2019. for 2020 , the company realized a return on average equity of 7.94 % and a return on average assets of 0.86 % , compared to 6.92 % and 0.78 % , respectively , in 2019. net income for 2019 increased $ 600,000 ( 12.2 % ) from $ 4,900,000 in 2018. diluted earnings per share for 2018 were $ 0.83. for 2018 , the company realized a return on average equity of 6.77 % and return on average assets of 0.72 % . table one below provides a summary of the components of net income for the years indicated ( dollars in thousands ) : 38 table one : components of net income replace_table_token_7_th * fully taxable equivalent basis ( fte ) during 2020 , total assets of the company increased $ 148,638,000 ( 20.6 % ) from $ 720,353,000 at december 31 , 2019 to $ 868,991,000 at december 31 , 2020. at december 31 , 2020 , loans totaled $ 480,278,000 , an increase of $ 80,617,000 ( 20.2 % ) from the ending balance of $ 399,661,000 at december 31 , 2019. deposits increased $ 139,340,000 or 23.0 % from $ 604,837,000 at december 31 , 2019 to $ 744,177,000 at december 31 , 2020. shareholders ' equity increased $ 10,186,000 or 12.3 % from $ 82,909,000 at december 31 , 2019 to $ 93,095,000 at december 31 , 2020. the company ended 2020 with a leverage capital ratio of 8.3 % and a total risk-based capital ratio of 16.2 % compared to a leverage capital ratio of 9.2 % and a total risk-based capital ratio of 15.9 % at the end of 2019. results of operations net interest income and net interest margin net interest income represents the excess of interest and fees earned on interest earning assets ( loans , securities , federal funds sold and interest-bearing deposits in other banks ) over the interest paid on deposits and borrowed funds . net interest margin is net interest income expressed as a percentage of average earning assets . the company 's fully taxable equivalent net interest margin was 3.52 % in 2020 , 3.60 % in 2019 , and 3.41 % in 2018. the fully taxable equivalent net interest income increased $ 3,121,000 ( 13.3 % ) , from $ 23,423,000 in 2019 to $ 26,544,000 in 2020. the fully taxable equivalent net interest income increased $ 2,570,000 ( 12.3 % ) , from $ 20,853,000 in 2018 to $ 23,423,000 in 2019. the fully taxable equivalent interest income component increased $ 2,242,000 ( 8.7 % ) from $ 25,884,000 in 2019 to $ 28,126,000 in 2020. the increase in the fully taxable equivalent interest income for 2020 compared to the same period in 2019 is comprised of two components - rate ( down $ 2,312,000 ) and volume ( up $ 4,554,000 ) . the primary driver in this rate decrease was a decrease in the yields on loans which decreased from 4.95 % in 2019 to 4.80 % in 2020 , on the investment portfolio which decreased from 2.81 % in 2019 to 2.46 % in 2020 , and a decrease in the yields on interest-bearing balances in banks which decreased from 2.04 % in 2019 to 0.22 % in 2020. the decreased yield in 2020 compared to 2019 was due to the overall lower interest rate environment . the decreased yield earned on loans , investments and interest-bearing balances in banks was the reason the yield on earning assets decreased from 3.98 % in 2019 to 3.73 % in 2020. the volume increase of $ 4,554,000 was primarily from an increase in loans ( $ 4,346,000 ) and interest-bearing deposits in banks ( $ 627,000 ) , partially offset by a decrease in investment and federal fund balances ( $ 419,000 ) . story_separator_special_tag partially offsetting these increases was a reduction in telephone expense which decreased $ 91,000 ( 26.6 % ) from $ 342,000 in 2018 to $ 251,000 in 2019 and relates to the company converted to a more cost-effective telephone system . the overhead efficiency ratio on a taxable equivalent basis for 2019 was 67.1 % compared to 69.4 % in 2018. provision for income taxes the effective tax rate on income was 26.6 % , 25.6 % , and 24.3 % in 2020 , 2019 and 2018 , respectively . the effective tax rate differs from the federal statutory tax rate due to state tax expense ( net of federal tax effect ) of $ 805,000 , $ 610,000 , and $ 523,000 in these years . tax-exempt income of $ 1,413,000 , $ 1,361,000 , and $ 1,315,000 from investment securities , loans , and bank-owned life insurance in these years helped to reduce the effective tax rate . the higher effective tax rate in 2020 compared 2019 is related to the tax treatment of equity based compensation under accounting standards update 2016-09 ( “ asu 2016-09 ” ) . under asu 2016-09 , if the market value of the company 's stock price on the date restricted stock vests is higher than the company 's stock price on the date the restricted stock was awarded the company receives a tax credit for the difference in values and if the market price on the vesting date is lower than the stock price on the award date the company recognizes additional tax expense . during 2019 , the company recognized a $ 34,000 tax credit under asu 2016-09 and in 2020 the company recognized a $ 39,000 tax expense under asu 2016-09. the company 's taxable income in 2020 was $ 9,611,000 , an increase of $ 2,220,000 ( up 30.0 % ) from $ 7,391,000 in 2019. the company 's taxable income in 2019 increased $ 917,000 ( up 14.2 % ) from $ 6,474,000 in 2018. balance sheet analysis the company 's total assets were $ 868,991,000 at december 31 , 2020 compared to $ 720,353,000 at december 31 , 2019 , representing an increase of $ 148,638,000 ( 20.6 % ) . the average balances of total assets during 2020 were $ 820,587,000 , up $ 117,382,000 or 16.7 % from the 2019 average balances of total assets of $ 703,205,000. story_separator_special_tag single-family residences . other real estate loans consist primarily of loans secured by first trust deeds on commercial , multi-family , and residential properties typically with maturities from three to ten years and original loan-to-value ratios generally from 65 % to 75 % . agriculture loans consist primarily of first trust deed loans on properties that produce grapes , fruit , and nut loans . in general , except in the case of loans under sba programs or farm services agency guarantees , the company does not make long-term residential mortgage loans . average loans in 2020 were $ 447,028,000 , which represents an increase of $ 87,699,000 ( 24.4 % ) compared to the average in 2019. of the $ 87,699,000 increase in 2020 , $ 45,846,000 was comprised of ppp loans . average loans in 2019 were $ 359,329,000 , which represents an increase of $ 50,964,000 ( 16.5 % ) compared to the average in 2018. risk elements the company assesses and manages credit risk on an ongoing basis through a total credit culture that emphasizes excellent credit quality , extensive internal monitoring and established formal lending policies . additionally , the company contracts with an outside loan review consultant to periodically review the existing loan portfolio . management believes its ability to identify and assess risk and return characteristics of the company 's loan portfolio is critical for profitability and growth . management strives to continue its emphasis on credit quality in the loan approval process , through active credit administration and regular monitoring . with this in mind , management has designed and implemented a comprehensive loan review and grading system that functions to continually assess the credit risk inherent in the loan portfolio . 47 ultimately , underlying trends in economic and business cycles influence credit quality . american river bank 's business is concentrated in the sacramento metropolitan statistical area , which is a diversified economy , but with a large state of california government presence and employment base ; in sonoma county , which is focused on businesses within the two communities in which the bank has offices ( santa rosa and healdsburg ) ; and in amador county , in which the bank is primarily focused on businesses within the three communities in which it has offices ( jackson , pioneer , and ione ) . the economy of sonoma county is diversified with professional services , manufacturing , agriculture and real estate investment and construction , while the economy of amador county is reliant upon government , services , retail trade , manufacturing industries and indian gaming . the company has significant extensions of credit and commitments to extend credit that are secured by real estate . the ultimate repayment of these loans is generally dependent on personal or business cash flows or the sale or refinancing of the real estate . the company monitors the effects of current and expected market conditions and other factors on the collectability of real estate loans . the more significant factors management considers involve the following : lease rates and terms , vacancy rates , absorption and sale rates and capitalization rates ; real estate values , supply and demand factors , and rates of return ; operating expenses ; inflation and deflation ; and sufficiency of repayment sources independent of the real estate including , in some instances , personal guarantees . in extending credit and commitments to borrowers , the company generally requires collateral and or guarantees as security . the repayment of such loans is

