text: Use of Estimates in Preparation of Financial Statements 
  
  The preparation of financial statements in conformity with accounting principles generally accepted in the United 
  States of America requires management to make estimates and assumptions that affect the reported amounts of 
  assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and 
  reported amounts of revenues and expenses during the reporting period. Actual results could differ from those 
  estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the 
  determination of the allowance for loan losses, the valuations of foreclosed real estate, deferred income tax assets, 
  and the fair value of financial instruments. 
  
  Consolidation 
  
  The accompanying consolidated financial statements include the accounts of Bankshares and its subsidiaries, all of 
  which are wholly-owned. All significant intercompany accounts and transactions have been eliminated. 
  
  Investment Securities 
  
  Management classifies debt and equity securities as held-to-maturity, available-for-sale, or trading based on its 
  intent. Debt securities that management has the positive intent and ability to hold to maturity are classified as held- 
  to-maturity and recorded at cost, adjusted for amortization of premiums and accretion of discounts, which are 
  recognized as adjustments to interest income using the interest method. Securities not classified as held-to-maturity 
  or trading are classified as available-for-sale and recorded at estimated fair value, with unrealized gains and losses, 
  net of deferred income taxes, excluded from earnings and reported in a separate component of shareholders’ equity. 
  Securities classified as trading are recorded at estimated fair value, with unrealized gains and losses included in 
  earnings. The Company had no trading securities at December 31, 2002, 2001, or 2000. 