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Question and Answer Guide

Appalachian Community Bank, FSB, McCaysville, GA

The FDIC has put together some responses to frequent issues or questions bank customers may have following a bank failure. These should assist you in understanding what is happening at your bank.

On Friday, December 17, 2010, Appalachian Community Bank, FSB, McCaysville, GA was closed by the Office of Thrift Supervision. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, Peoples Bank of East Tennessee, Madisonville, TN, acquired substantially all of the assets of Appalachian Community Bank, FSB and assumed all of the deposits of the former bank associated with 1) transaction accounts (checking, money market and savings accounts), 2) IRA accounts and 3) Certificates of Deposits of depositors located in Georgia, Tennessee and North Carolina from the FDIC as Receiver.

YOUR MONEY IS SAFE! No one lost any money on deposit as a result of the closure of this institution.

"OUT-OF-STATE" CERTIFICATES OF DEPOSIT: If you have a CD that was not assumed by Peoples Bank of East Tennessee, such as an "out-of-state" non-IRA CD or QwickRate CD, your CD, if unencumbered, will automatically be closed, and the FDIC will mail your proceeds check, including interest earned through closing date, on Monday, December 20, 2010. You will not be assessed an early withdrawal penalty.

ACCESS TO YOUR MONEY: You may continue to use your outstanding checks and they will clear up to the balance in your account. Your ATM/Debit card will continue to work as usual. The total balance in your account(s), including checking, savings, money market, IRA accounts, and the Georgia, Tennessee and North Carolina Certificates of Deposit have been transferred to the new bank and will be available for transactions during regular business hours at the former bank branches.

DIRECT DEPOSITS: All direct deposits, for example, social security checks, payroll, veteran’s benefits, welfare and/or disability, unemployment or any payment you receive electronically will continue as usual.

AUTOPAYMENTS/BILLPAY: These services will continue as usual. Your routing number and account number will remain the same until you are notified in writing by the new bank.

INTEREST RATES: Interest on deposits accrued through close of business the day the bank was closed will be paid at your same rate. Current rates will be reviewed by the new bank and may be lowered; however, you may withdraw funds from any transferred account without early withdrawal penalty until you renew your Certificate of Deposit.

BROKERED DEPOSITS: As an All-Deposits Transfer transaction, essentially all the deposits, excluding the Cede & Co. deposits and "Out of State" Certificates of Deposit mentioned above, have been assumed by Peoples Bank of East Tennessee. If you are a customer who has an Appalachian Community Bank, FSB deposit through a broker, you must contact your broker with any questions.

SAFE DEPOSIT BOXES: You may continue to access your safe deposit box during normal business hours. Any changes will be communicated by the new bank.

OVERDRAFT LINES OF CREDIT: These lines have been transferred to the assuming bank. Please contact the new bank if you have additional questions regarding your accounts.

LOAN PAYMENTS: You should continue to make your payments according to the terms of your written contract. You may continue to make your payments at the branch office or send it to the same payment address with checks made payable to the old institution.

ESCROW PAYMENTS: All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, notify your loan officer immediately.

LOANS IN PROCESS: Please contact your current loan officer directly.

SHARES OF STOCK: All shares of stock were owned by the 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 the holding company directly for more information:

Appalachian Bancshares, Inc.
64 Sailors Drive, Suite 106
Ellijay, GA  30540

CLAIMS: Please send claims for unpaid bills to the following address:

FDIC as Receiver for
Appalachian Community Bank, FSB
1601 Bryan Street
Dallas, TX  75201-3430
Attention: Claims Agent

DEPOSIT INSURANCE INFORMATION: If you have accounts in both the failed and the assuming institution, they will be insured separately for at least six months following the merger of the institutions. This will allow you time to restructure your accounts if necessary.

ADDITIONAL QUESTIONS: You may contact the FDIC Call Center at the number provided below with any additional questions:

FDIC Call Center
Toll free number 1-800-350-2746
Hours of Operation – Eastern Time
Friday, December 17, 2010: Until 9:00 p.m.
Saturday, December 18, 2010: 9:00 a.m. – 6:00 p.m.
Sunday, December 19, 2010: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.

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 private 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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