Appalachian Bank agrees to reduce real esate loans

Customers at Appalachian Community Bank should not be affected by a consent order the bank's parent company recently agreed to with federal regulators, say company officials.

[Say What]

I don't know who they think they are fooling, but I think a Cease and Desist order means just that. To not make any more loans and to cease the business practices that got them in this mess. It has always been a Good Ol'Boys network with them. If your brother is President or head loan officer, you can get loans for 15 or 20 houses at once. If you are a single family trying to build a house, you must jump through hoops to get any help at all. I know what's going on there and I would sell my stock, but it isn't worth throwing away.

[get a clue]

Hey "say what" get a life and get over it, we cant help your credit is bad and you have nothing.

[oh ok]

get a clue wrote:

Hey "say what" get a life and get over it, we cant help your credit is bad and you have nothing.

are all your fellow acb employees as unfriendly as you are?

[THE WHOLE TRUTH]

dont be hating ucb just because no one is forclosing on acb loans>>>>

[Farmers Wife]

Why is it that the employees were told if they talk to anyone about the banks problems and tell anyone the trouble they are in that they could be fired? This was told to employees last week.

[truth]

Looks like ACB is the governments BITCH!

[false]

They didn't need the bailout money like the greasy cats over at UCB.

truth wrote:

Looks like ACB is the governments BITCH!

[Finan]

If a bank in under a C&D order for too high a concentration of real estate loans, typically that means the bank is short on capital and potentially liquidity. The concentration is to capital indicating that there is not enough capital to support that portfolio. Therefore, the financial institution is short on capital.

[Appalachian Bank]

As everyone knows, 2008 began a steep and persistent decline in the overall economy that has negatively affected large and small businesses alike. We have not been immune to these troubled times, as our primary economic driver, real estate, has felt the brunt of this crisis. Our bank, along with a vast number of banks in the state and nation, is now dealing with many troubled borrowers and working diligently through the issues with our sights on positive outcomes. Since over 70% of our local economic performance is directly or indirectly impacted by the real estate market, it is natural that the composition of our loan portfolio is secured by real estate. Therefore, we are experiencing elevated levels of problem loans.

Given our concentration in real estate loans and the significant slow down in real estate sales in our markets, we have been working very closely with our regulatory authorities and have agreed to consent to a formal agreement of improvement with the Department of Banking and Finance and the Federal Deposit Insurance Corporation. A Cease and Desist Order was issued to Appalachian Community Bank pursuant to a joint decision which outlines a specific plan to bring Appalachian back to an acceptable level of performance. The consent order became effective on April 24, 2009. This formal agreement between the regulators and the Bank is designed to make sure the bank is correcting identified problems in a good faith effort on the part of both the Board of Directors and the bank's management team.

Although the bank had begun the hard work needed months before the agreement was signed, the regulatory action includes:

1. Increasing Board participation in the affairs of the Bank;
2. Having and retaining qualified management and prior notification
to supervisory authorities of any additions to the Board or
senior executives;
3. Maintaining Tier 1 Capital of 8%, Total Risk-Based Capital of 10%,
maintaining a fully funded Allowance for Loan and Lease Losses,
and paying no cash dividends or executive bonuses without prior
written approval of regulators;
4. Formulation of a written plan to reduce classified loans in
accordance with a defined reduction schedule;
5. No extensions of additional credit to troubled borrowers, with
few exceptions where the extension is in the best interest of the
Bank;
6. Charge off or collection of assets classified "Loss" and 50% of
assets classified "Doubtful";
7. Review and refinement of an approved policy to determine and
maintain the adequacy of Allowance for Loan Losses;
8. Analysis and reduction concentrations of credit;
9. Adoption of an effective loan review program;
10. Formulation and implementation of an approved written profit plan
and comprehensive budget;
11. Implementation of a weekly liquidity monitoring process and
adoption of a written liquidity contingency funding plan;
12. No acceptance, renewal or rollover of any "brokered deposits"
without applying for and receiving a brokered deposit waiver from
the FDIC;
13. Reporting progress to regulators on a quarterly basis.

[amazing]

Well that's what i am talking about! You go appalacian bank. Tell em!!!! LOL I will come open up an account now!

[ACCOUNTING]

Isn't this just a copy and paste of the letter on the APAB website under Investor Relations? How come ya'll weren't monitoring more closely to begin with. United Community workers say they haven't gotten a raise in over 3 years, yet somehow they always paid dividends on their stock. Why has NO ONE I know ever been paid a dividend for their Gilmer County Bank stock- it always splits? Also, is it true a certain board member (initials R.F.) sold his stock while it was high and repurchased it when it bottomed out? Answer these questions and even I might open an account with your bank.

[HEYOU]

ACCOUNTING wrote:

Isn't this just a copy and paste of the letter on the APAB website under Investor Relations? How come ya'll weren't monitoring more closely to begin with. United Community workers say they haven't gotten a raise in over 3 years, yet somehow they always paid dividends on their stock. Why has NO ONE I know ever been paid a dividend for their Gilmer County Bank stock- it always splits? Also, is it true a certain board member (initials R.F.) sold his stock while it was high and repurchased it when it bottomed out? Answer these questions and even I might open an account with your bank.

don't care

[GWB]

oh ok wrote:

<quoted text>
are all your fellow acb employees as unfriendly as you are?

Yes.

[GWB]

Appalachian Bank wrote:

As everyone knows, 2008 began a steep and persistent decline in the overall economy that has negatively affected large and small businesses alike. We have not been immune to these troubled times, as our primary economic driver, real estate, has felt the brunt of this crisis. Our bank, along with a vast number of banks in the state and nation, is now dealing with many troubled borrowers and working diligently through the issues with our sights on positive outcomes. Since over 70% of our local economic performance is directly or indirectly impacted by the real estate market, it is natural that the composition of our loan portfolio is secured by real estate. Therefore, we are experiencing elevated levels of problem loans.
Given our concentration in real estate loans and the significant slow down in real estate sales in our markets, we have been working very closely with our regulatory authorities and have agreed to consent to a formal agreement of improvement with the Department of Banking and Finance and the Federal Deposit Insurance Corporation. A Cease and Desist Order was issued to Appalachian Community Bank pursuant to a joint decision which outlines a specific plan to bring Appalachian back to an acceptable level of performance. The consent order became effective on April 24, 2009. This formal agreement between the regulators and the Bank is designed to make sure the bank is correcting identified problems in a good faith effort on the part of both the Board of Directors and the bank's management team.
Although the bank had begun the hard work needed months before the agreement was signed, the regulatory action includes:
1. Increasing Board participation in the affairs of the Bank;
2. Having and retaining qualified management and prior notification
to supervisory authorities of any additions to the Board or
senior executives;
3. Maintaining Tier 1 Capital of 8%, Total Risk-Based Capital of 10%,
maintaining a fully funded Allowance for Loan and Lease Losses,
and paying no cash dividends or executive bonuses without prior
written approval of regulators;
4. Formulation of a written plan to reduce classified loans in
accordance with a defined reduction schedule;
5. No extensions of additional credit to troubled borrowers, with
few exceptions where the extension is in the best interest of the
Bank;
6. Charge off or collection of assets classified "Loss" and 50% of
assets classified "Doubtful";
7. Review and refinement of an approved policy to determine and
maintain the adequacy of Allowance for Loan Losses;
8. Analysis and reduction concentrations of credit;
9. Adoption of an effective loan review program;
10. Formulation and implementation of an approved written profit plan
and comprehensive budget;
11. Implementation of a weekly liquidity monitoring process and
adoption of a written liquidity contingency funding plan;
12. No acceptance, renewal or rollover of any "brokered deposits"
without applying for and receiving a brokered deposit waiver from
the FDIC;
13. Reporting progress to regulators on a quarterly basis.

Gosh that all sounds nice and formal. Really touches my heart strings.
The problems with YOUR bank started long before the "economic "down turn my friend.(and I use the word "friend" loosely)
Can't remember exactly when all the friendly, caring employees started coming up M.I.A, but THAT was the start of your problems.
I had several accounts at your bank prior to all the changes there, but ws treated so rudely by those IN CHARGE, I took my accounts elsewhere. I think it has been at least 3 years (or a little longer) since I've had anything to do with ACB, and until such time that those who made all the changes for the worst are GONE, ACB will never see any support from me or my family.
Again, Karma is a real bitch, huh.

[GWB]

HEYOU wrote:

<quoted text>
don't care

I agree. I don't care what happens to ACB. When all the abrupt changes were made a few years ago, I pulled my accounts and placed them in a bank that was more interested in their customers banking needs than their own interests.
When that group of greedy pigs leave ACB, maybe things will get better for them.

[oh ok]

yep, they had some pretty rude employees when i dealt with them too. and it was also around 3 or 4 years ago.. i took my accts to united. they treat me much better than anyone at appalachain ever did. i was almost made to feel inferior when i would have to withdraw money from my savings acct. not a good feeling. one of my immediate relatives work at united so i just do my banking there.. maybe thats why i get better service there? i dont know, but i really dont care why as long as im getting good service.

[just say it]

My family is a customer of Gilmer County Bank.

My wife and I have one business account and two personal accounts. Our youngest daughter has a college fund and our older daughter has a "wedding account" (might be some time) at Gilmer County Bank.

All of the Bank Employees have been very helpful and are very knowledgeable.

I plan to keep my account at Gilmer County Bank.

Good Luck to my friends at Gilmer County Bank.

[oh ok]

just say it wrote:

My family is a customer of Gilmer County Bank.
My wife and I have one business account and two personal accounts. Our youngest daughter has a college fund and our older daughter has a "wedding account" (might be some time) at Gilmer County Bank.
All of the Bank Employees have been very helpful and are very knowledgeable.
I plan to keep my account at Gilmer County Bank.
Good Luck to my friends at Gilmer County Bank.

i dont think anyone is talking about employees at gilmer co bank. yes, i know that appalachain is owned by cilmer bank, but they are talking about the branch here.

[Shirley]

I, unfortunately, have been disappointed in Gilmer County Bank's lack of payment on stock dividends. I understand that splitting the stock is USUALLY in the shareholders best interest, but shouldn't we be entitled to voting on this or have a choice if we get a dividend or split on our stock? I would like to know why other local banks DO pay dividends and Gilmer County Bank does not.

[crooks]

Bankers are liars and crooks, if they tell you otherwise....they are still lying.

I think its funny how the local banks market and advertise like they are there to help people....what a joke.