Georgia Department of Banking and Finance Takes Possession of Appalachian Community Bank, Ellijay, Georgia

March 19, 2010


Atlanta, Georgia
 ~ The Georgia Department of Banking and Finance (“Department”) took possession of Appalachian Community Bank, Ellijay, Georgia on March 19, 2010.  The Superior Court of Gilmer County issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Bank effective upon the Department taking possession of Appalachian Community Bank.

The Department took possession of Appalachian Community Bank pursuant to the Official Code of Georgia, Section 7-1-150(a) which authorizes the Department in its discretion to take possession of the business and property of any state chartered financial institution whenever such financial institution is either insolvent or operating in an unsafe or unsound condition to transact its business, is operating in violation of any court order, statute, rule or regulation, or requests the Department to take possession of its business and property. 

Through an agreement with the FDIC, Appalachian Community Bank will be acquired by Community & Southern Bank, Carrollton, Georgia.

All deposit accounts of Appalachian Community Bank have been transferred to Community & Southern Bank and will be available immediately.  On Saturday, March 20, 2010, depositors will be able to access their accounts at the former main office and branch locations of 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.  Additionally, the former depositors of Appalachian Community Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions.  It should be noted that Appalachian Community Bank utilized the trade name Gilmer County Bank at its Ellijay and East Ellijay branch offices.

All deposits will be transferred to Community & Southern Bank and, therefore, it is not anticipated that there will be any loss exposure to former Appalachian Community Bank depositors that have deposits exceeding the FDIC Deposit Insurance amounts. 

The Department’s Commissioner, Robert M. Braswell, reminds depositors that deposits of all Georgia banks are insured by the FDIC up to $250,000. Special rules are in place for accounts held in trust status and joint accounts that may further expand deposit insurance coverage.  You can find additional information on FDIC Deposit Insurance at www.fdic.gov.

The FDIC has established a website and a toll-free phone number to answer questions from depositors, creditors and other interested parties regarding the receivership of Appalachian Community Bank.   Please refer to the FDIC’s website for further information regarding the details of the purchase and assumption transaction. The website is www.fdic.govand the toll-free phone number is 1-800-894-1696.   The phone number is operational this evening until 9 p.m. Eastern Standard Time, on Saturday from 9 a.m. until 6 p.m. on Sunday from noon to 6 p.m. and thereafter from 8 a.m. to 8 p.m.