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Question and Answer Guide

Appalachian Community Bank, Ellijay, GA

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FDIC Call Center
Toll free number 1-800-894-1696
Hours of Operation – Eastern Time
Friday, March 19, 2010: Until 9:00 p.m.
Saturday, March 20, 2010: 9:00 a.m. – 6:00 p.m.
Sunday, March 21, 2010: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.

On Friday, March 19, 2010, Appalachian Community Bank, Ellijay, GA was closed by the Georgia Department of Banking and Finance. This applies to all the branches, including the locations that operated under the trade name of Gilmer County Bank.

The Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. Subsequent to the closure, Community & Southern Bank, Carrollton, GA acquired substantially all the deposits and assets of Appalachian Community Bank from the FDIC as Receiver for Appalachian Community Bank. Any claims by equity holders were not acquired.

Affiliated Thrift Institution– Business as Usual – Appalachian Bancshares, Inc., Ellijay, GA wholly owns Appalachian Community Bank F.S.B., McCaysville, GA, which has branch offices located in Murphy, NC and Ducktown, TN. The thrift institution is not subject to this transaction and, therefore, will continue to operate as usual.

The total balance in your account(s) has been transferred to Community & Southern Bank and will be available for transactions during regular business hours at the former Appalachian Community Bank branches.

You may continue to use your same checks, ATM cards and debit cards until notified.

All Direct Deposits, including Social Security checks, will continue as usual.

Account(s): What about my account with Appalachian Community Bank?

If you had an account with Appalachian Community Bank, you now have an account with Community & Southern Bank, Carrollton, GA. All deposit accounts, which include checking, savings, money market, CDs and retirement accounts, have been transferred to Community & Southern Bank, regardless of the dollar amount. No one lost any money on deposit in Appalachian Community Bank.

Customers of both banks should continue to use their existing branches until Community & Southern Bank can fully integrate the deposit records of Appalachian Community Bank.

To forewarn you of any scams, please be advised that you will not receive any notification from the FDIC, the Receiver, or Community & Southern Bank to provide any private information. Please be watchful for and resist any such scams to obtain information from you by individuals or entities purporting to act on behalf of Appalachian Community Bank, Community & Southern Bank, or the FDIC.

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ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with Appalachian Community Bank?

Your ATM/debit card will continue to work, and bill paying will work as it has in the past.

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Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?

As an All-Deposit Transfer transaction, the total of all deposit accounts, including brokered deposits, have been assumed by Community & Southern Bank.

Be advised, however, that from and after the date of closing, Community & Southern Bank will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, Community & Southern Bank shall permit depositors, including brokered depositors, impacted by reduced rates to withdraw their deposits without penalty for early withdrawal.

If you are a customer who has an Appalachian Community Bank deposit through a broker, you must contact your broker with any questions.

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Direct Deposits - Government Deposits: What will happen to my direct deposits?

Direct Deposits, including Social Security checks, will continue as normal.

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Existing Deposits at Community & Southern Bank: I already have other deposit accounts with the new bank.  When combined with balances at this bank, my deposits exceed $250,000.  Are all funds insured?

The accounts transferred to Community & Southern Bank will be separately insured for at least six months after the merger.  This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.

CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.

If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

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Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

Interest on all deposits accrued through Friday, March 19, 2010, will be paid at your same rate. Community & Southern Bank will review rates and notify you if interest rates will change. Your interest rate may be reduced.

You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to or a withdrawal from your account.

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Loans/mortgages: What about my loan or mortgage with Appalachian Community Bank?

All mortgages and loans have been assumed by Community & Southern Bank.  Your payment amount and due date are the same.  If you are having your payment deducted from your account, it will continue as it has in the past.  You should continue to make your checks payable to Appalachian Community Bank and send your payments to the same address.

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Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?

You should contact your loan officer.  All prior contacts remain the same.

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Media: I represent a TV/Newspaper/Radio and would like some information.

Please contact the Office of Public Affairs:

Greg Hernandez

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Outstanding Checks: What about checks that I have written on my account with Appalachian Community Bank?

Your checks will clear up to the available balance in your account.  You can continue to use your existing checks.

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Safe Deposit Boxes: How can I claim the contents of my safe deposit box?

It is business as usual.  You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.

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Shareholders: What about my shares of stock?

All shares of Appalachian Community Bank were owned by its holding company, Appalachian Bancshares, Inc., Ellijay, GA. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of Appalachian Bancshares, Inc., please do not contact or file a claim with the Receiver. You may contact Appalachian Bancshares, Inc. directly for information as follows:

Appalachian Bancshares, Inc.
822 Industrial Boulevard
P. O. Box G
Ellijay, GA 30540

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Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result had been for the FDIC to transfer only the insured deposits in a Purchase and Assumption transaction; however, the temporary increase in the deposit insurance limit has assisted in the transfer of all deposits more often in the past year.

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Unpaid Bills: I did some work for the bank and have not been paid. What should I do?

All claims against Appalachian Community Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:

Federal Deposit Insurance Corporation
Receiver: Appalachian Community Bank
1601 Bryan Street
Dallas, TX  75201-3430
Attention: Claims Agent

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SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.

For more information:

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