From: Edward T. Sykes
Sent: March 22, 2006
Subject: File No. 265-23


I am writing this letter to urge changing of the Sarbanes-Oxley Act requirements for “microcap companies”. Currently, the requirements of the Act require strict compliance for public companies with a limit cap of $75 million or more. I ask you to please raise the limit cap bar to allow smallcap companies to be exempt from the external auditor attestation of the Act.

I serve as a Director of a small bank in Sullivan County, New York. Our audit fees alone exceeded 10% of our net earnings. In addition, thousands and thousands of middle management and executive hours were spent to assure compliance with the Act. It is my view that our shareholders and investors would be better served with an increase in earnings. Keep in mind that our industry is already highly regulated with onerous compliance requirements from the Comptroller of Currency, FDIC, and the SEC.

I am sure the expense issues for largecap companies are a much smaller percentage of earnings. I am not debating the spirit of the Sarbanes-Oxley Act, merely the broad application of its requirements.

Thank you for allowing me to comment.

Very truly yours,

Edward T. Sykes, Director
First National Bank of Jeffersonville