FDIC Federal Register Citations

October 7, 2004

Robert E. Feldman, Executive Secretary
Federal Deposit Insurance Corporation
550 17th Street, N.W.
Washington, D.C. 20429

RE: Community Reinvestment Act (CRA) Proposal
RIN number 3064-AC50

Peoples Bank is a $580 million bank with 20 offices located in predominately small, rural communities in Whatcom, Skagit, King, Chelan and Douglas County in Washington State.

I support the FDIC’s proposal to increase the asset size limit of banks eligible for the streamlined small bank CRA examination. I also support the elimination of the separate holding company qualification. This would be a positive change for small banks who are currently burdened with the CRA reporting requirements of a large bank.

In addition, I strongly support expanding the definition of community development. As a community bank, we would not be in business if our local communities were not adequately being served. Expanding the definition of community development to encompass a broader range of activities will provide greater community development opportunities for our bank. It would allow banks to pursue activities that not only meet community needs, but coincide with the bank’s strategic plan.

The success of Peoples Bank is a result of promoting and supporting economic development in the community. Raising the definition from $250 million to $1 billion will not change how we operate. Instead, it will lessen the regulatory burden and allow resources to be directed towards community development rather than reporting.

Thank you for considering my comments.

Sincerely,
Lennis Camfield
CRA Officer
Peoples Bank (certificate #6158)