PACB Letter to Congressman Mike Fitzpatrick

August 24, 2005

The Honorable Mike Fitzpatrick
U.S. House of Representatives
Room 1516 Longworth
Washington, DC 20515

VIA FACSIMILE

Re: Follow Up on Request for Co-Sponsorship of H.R. 2061

Dear Mike:

I am writing in follow up to the numerous letters and contacts you have received from PACB and your constituents in support of the Communities First Act (H.R. 2061).

This is a top priority for PACB and the community banking industry. We believe this proactive, positive legislation would truly help in addressing the unfair, competitive advantage the untaxed, mega credit unions have over community banks.

As you know, this legislation would provide for deep regulatory relief and tax credits for qualified community banks (under $5 billion in assets). Over 40 state trade associations have endorsed the legislation and we have 64 bipartisan sponsors including from our delegation, Melissa Hart, Phil English and Tim Holden. It is also important to note for the record that the credit union industry is not opposing this legislation.

We are working to have as many members of our delegation sponsor this legislation as possible. We think H.R. 2061 recognizes that Congress believes there is value in having community banking in Pennsylvania and America and public policy must be reoriented to ensure community banking survives and thrives in the 21st Century.

We are realists in that H.R. 2061 is likely not to be enacted in its entirety by the Congress. We do believe, however, that demonstrating the strongest possible support through co-sponsors helps us in having provisions of this legislation included in other packages. Most recently, 5 provisions of H.R. 2061 were included in the Hensarling/Moore regulatory relief legislation, which we believe indicates strong progress for our strategy.

I would again appeal to you on behalf of PACB and your constituents who have contacted you to co-sponsor H.R. 2061. We do not believe there is a downside politically or otherwise and believe co-sponsorship reaffirms your support and that of your colleagues for the value of community banking to the communities we serve across the Commonwealth and the United States.

Thanks so much for your consideration.

Sincerely,

Frank A. Pinto
President/CEO

Cc: George Nise, Beneficial Mutual Savings Bank
      Joseph Tryon, Hatboro Federal Savings
      Deb Takes, Harleysville National Bank
      John Harding, Bucks County Bank
      John Hollenbach, First Savings Bank of Perkasie
      Steve Verdier, ICBA