text: A policy is deemed critical if (i) the accounting estimate required the Company to make assumptions about 
  matters that are highly uncertain at the time the accounting estimate was made; and (ii) different estimates that 
  reasonably could have been used in the current period, or changes in the accounting estimate that are reasonably 
  likely to occur from period to period, would have a material impact on the financial statements. 
  
  The allowance for loan losses is an amount that management believes will be adequate to absorb inherent 
  estimated losses on existing loans in which collectibility is unlikely based upon management’s review and 
  evaluation of the loan portfolio, including letters of credit, lines of credit and unused commitments to provide 
  financing. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of 
  recoveries). 
  
  Management’s periodic evaluation of the adequacy of the allowance is based on general economic conditions, 
  the financial condition of the borrower, the value and liquidity of collateral, delinquency, prior loan loss experience, 
  and the results of periodic reviews of the portfolio by our loan review department and regulatory examiners. A 
  consistent, well documented loan review methodology has been developed that includes allowances assigned to 
  specific loans and nonspecific allowances that are based on the factors noted in the prior sentence. Our independent 
  loan review department is responsible for performing this evaluation for all of our subsidiary banks to ensure 
  consistent methodology. 