FDIC Federal Register Citations

September 16, 2004

Mr. Robert E. Feldman
Executive Secretary
Attention: Comments/Legal ESS
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429

Dear Mr. Feldman:

The purpose of this letter is to voice our strong support for the FDIC's proposal to increase the asset size limit of banks eligible for the streamlined small-bank CRA examination and the elimination of the separate holding company qualification.

The FDIC's proposed changes to CRA are needed to reduce the regulatory burden on institutions such as ours. Our company, like so many other small firms, are increasingly finding it difficult to meet all of the regulations placed on us each year. We value our independence and believe that banking companies like ours fill an important niche in our communities. We do not want to be forced to consolidate due to the costs associated with meeting the increasing burden of regulations. By easing the regulatory burden associated with meeting the CRA, it will make it easier for community banks like GrandSouth Bank to continue to provide committed service to local communities that few other financial service providers are willing to do.

Thank you for your attention on this matter.
Ronald K. Earnest
President
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