text: Loans and Allowance for Loan Losses 
  
  Loans are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. 
  Unearned income on installment loans is recognized in income over the terms of the loans in decreasing amounts 
  using a method which approximates the interest method. Interest on other loans is calculated by using the simple 
  interest method on daily balances of the principal amounts outstanding. The Company expenses its net loan 
  origination costs, a method which does not materially differ from deferring and amortizing such amounts as an 
  adjustment to yield. The allowance for loan losses is established through a provision for loan losses charged to 