It's hard to find a banker who believes his bank is over-reserved or under-reserved. Blame the subjectivity involved.

"Loan-loss reserves in an art form, not a science, because it is subjective," said John Lyons, senior principal at Lyons, Zomback and Ostrowski. "When a loan is worthless, everybody can agree on that, but when there is a change in its worth, its hard to quantify that change."

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