You know the following information about the Webb State Bank:

Accumulate Depreciation: 40

Net Loans: 600

Fed Funds purchased and repurchase agreements: 200

Cash and due from banks: 50

Trading account securities: 40

Miscellaneous assets: 100

Deposits: 500

Undivided profits: 140

Gross premises: 90

Surplus: 40

Subordinated debt: 100

Investment securities: 160

Common stock par: 20

Gross loans: 700

Given this information, what is the value of this firm's allowance for loan losses?

Please show your steps without using Excel.