SKOWHEGAN SAVINGS BANK

From: Rhonda Ferrara [mailto:rferrara@skowsavings.com]
Sent: Thursday, September 16, 2004 8:55 AM
To: Comments
Cc: 'psmith@aba.com.'
Subject: CRA Proposal

To Whom This May Concern,
Skowhegan Savings Bank strongly support's the FDIC's proposal to raise the threshold for the streamlined small bank CRA examination to $1 billion without regard to the size of the bank's holding company. This would greatly relieve the regulatory burden imposed on small banks under the current regulation, which are required to meet the standards imposed on the nation's largest $1 trillion banks. Skowhegan Savings Bank would still be required to help meet the credit needs of their entire communities and would continue to be so evaluated by their regulator.

Additionally, Skowhegan Savings Bank strongly supports the FDIC's proposal to change the definition of "community development" from only focusing on low- and moderate-income area residents to including rural residents. This change will go a long way toward eliminating the current distortions in the regulations that result in a small rural bank being told to invest in regional affordable housing bonds for an urban area not in the bank's community.

Sincerely Submitted by,
Rhonda Ferrara
CRA Officer
Skowhegan Savings Bank
207-474-9511
ext 340