Two north Georgia Banks acquired by FDIC

Appalachian Community Bank (also operating as Gilmer County Bank) and Bank of Hiawassee (also operating as Bank of Blue Ridge and Bank of Blairsville) were acquired by the FDIC, Friday, March 19, 2010.

(Please note that the Bank of Ellijay was NOT part of the financial institutions involved with this action.)

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. were not subject to this transaction and will continue to operate as usual.

All deposit accounts for Appalachian Community Bank and Gilmer County Bank have been transferred to Community & Southern Bank of Carrollton, GA. For more information on Community & Southern Bank, you can visit their web site at http://www.thecsbank.com/. They will open for business as usual Monday morning.

Bank of Hiawassee (Bank of Blue Ridge and Bank of Blairsville) was sold by the FDIC to Citizens South Bank of Gastonia NC. It too will open Monday morning under its new ownership. More information of Citizens South Bank can be found at www.citizenssouth.com

If you have questions about your deposits, you can call an FDIC representative at 1-800-508-8289. Lots more information about the consequences of a bank failure can be found at http://www.fdic.gov/bank/individual/failed/borrowers/index.html