FDIC Federal Register Citations

FARMERS STATE BANK

From: Stephanie Neighbor [mailto:Stephanie_Neighbor@fsbmail.net]
Sent: Monday, September 13, 2004 4:50 PM
To: Comments
Subject: RIN3064-AC50 (CRA)

Robert E. Feldman, Executive Secretary
Attn: Comments/Executive Secretary Section
Federal Deposit Insurance Corporation
500 17th Street NW
Washington, DC 20429

RE: Community Reinvestment Act Proposal
RIN 3064-AC50

Dear Mr. Feldman:

I appreciate being able to comment on your proposed changes to the
Community Reinvestment Act (CRA). Please accept this letter as support
for your proposal to change the small bank asset threshold from $250
million to $1 billion.

As a community banker I understand the regulatory burden CRA places on
our industry. Continuing costs of software, software upgrades and
personnel needed to comply with the data recording requirements of CRA
alone use up resources that could be better spent on the development of
the community. There are a limited number of qualified investments in
our communities. Billion dollar institutions have the money and
manpower required to be successful in gaining these investments over
smaller institutions. Yet, when regulatory agencies examine us under
CRA, we are compared to those institutions as our "peers". There is
just no comparison.

I urge the FDIC to take this opportunity to ease the burden of this
regulation on our community banks. Therefore, I do not support the
addition of any new community development tests that would further
complicate this.

Thank you,

Stephanie R. Neighbor
Vice President
Retail Services Manager
1240 8th Avenue
Marion, IA 52302