No it does not. Simply replacing what was charged off implies that the bank's past charge-off history is a good guide to the future loan losses. In this case, Insights has experienced some changes in its recent loan history; so, its charge-off history is not necessarily reflective of its future needs. Specifically, there has been lending staff turnover. Mike McCard is new to his job as the senior lender. Additionally, the bank has instituted a new program to aggressively build loan volume. These changes alone may cause charge-offs to deviate significantly from those of the recent past.