Gilmer County Bank taken over by FDIC?

[Concerned Customer]

On the home page of Gilmer County Banks Website, there is a link to Investor Relations. It seems to elude in a letter from Tracy Newton that the bank was issued a Cease and Desist order from the FDIC. Anyone know what that means? I have two loans thru that bank and am now very concerned.

[Concerned Customer]

The letter I spoke of is dated as of April 30th that this Cease and Desist apparantly was ordered.

Someone else also said one of the higher up Directors sold his personal stock in the business while the prices were high and just recently bought all his stock back when the price bottomed out. If that is true, I no longer wish to be a customer of theirs. That's almost like insider trading, isn't it?

[Gilmer Thunder]

Gilmer county bank is in trouble over thier lending practices! The cease order means they can no longer loan any money, period! And yes, you can now buy Gilmer County bank stock for the price of candy bar! Not looking good for them.

[GCB Customer]

That is not actually true. They are not being taken over by the Fed and they still can loan money.

Rumors are what rumors are just that. There is nothing to say that they are being taken over! Just that they are cooperating with the FDIC to fix some issues.

[GCB Customer]

Here is a link to an artilce in the Dalton Paper about it that explains it.

http://www.daltondailycitizen.com/local/local...

[Moneymaker]

Just found out that one of the higher ups from their Executive board was let go.Apparantly, they are cutting back in a lot of ways.

[GCB Customer]

I think you are sadly mistaken.

[Moneymaker]

I hope so. I do not want to see another Bank go under, especially during these times. If they are cutting back and running leaner, it is probably a good idea. You have heard of Spreading yourself too thin. Maybe they grew too big too fast. Either way, it is a sad situation for them and their customer.

[Trina H]

I just saw this and had to ask. What is going on with Gilmer County Bank. I haven't heard anything about them being in trouble. Are they going to issue something to the customers to explain it all? I hope so. I want to know the truth.

[Candace]

I hope they stay in business. I like them.

[LUCY]

has anyone heard anything about layoffs at new horizons bank are they going under too?

[Baldy]

Appalahcian Bancshares, the holding company that owns Appalachian Community Bank, signed an agreement with the Federal Deposit Insurance Corp. to reduce its concentration real estate loans. The agreement took effect April 24.

“The only effect it has is that right now we are not doing any more loans for spec houses, or any speculative lending on houses,” Middleton said.“Basically, the order said we are going to quit doing that until the economy gets better and all that levels out.”

The bank must also has to decrease its concentration in real estate by working though some of its outstanding loans.

“That will be basically working with out developers. A lot of them are already reducing their prices to move (their houses),” he said.

Appalachian Community Bank has branches in Dalton and Chatsworth but its headquarters are in Ellijay.

“Our footprint is over in Ellijay, Blue Ridge, Blairsville, that area. Where carpet is the main thing in Dalton, real estate is the main thing over there,” Middleton said.

A press release from the bank says that 70 percent of the local economy is tied directly or indirectly to real estate

The press release says the bank also agreed to pay no dividends or executive bonuses without prior approval of regulators and to implement a weekly liquidity monitoring program.

[just say it]

I am a Customer of Gilmer County Bank. My wife and I have 1 business account and two personal accounts. My daughters have a College fund and a "wedding" fund at the bank.

The Bank Staff is very helpful and knowledgeable.

I plan to keep all of my funds in Gilmer County Bank and possible add to the amount.

[Andy F]

Is it true that Gilmer County Bank was given 90 days by the FDIC to come up with a large sum of money and they cannot borrow it from any other banks? I guess this is what they meant in their letter about concentrating on outstanding real estate loans. Anyone else notice how many foreclosures they have? And what about all of the reposessed equipment sitting in downtown Ellijay. Why, all of a sudden, are they tightening the screws on everyone? They should have been more careful who they were lending to. Just my opinion, not trying to start WW3.

[honest]

you can look up the order on line and tells you what problems the bank had and what they have to do to fix it. wonder how many bad loans they have and how often they updated credit after the first loan. if forclosed would there be enough value to qualify for the loan in the first place I doubt it. Stock holders wise up. I am one and I am not happy at this point, You can bet your life the big stock holding employees did not lose their but in this deal

[Uncle Sam]

Nov 5,2009

Ellijay, Ga.-based Appalachian Bancshares Inc., parent of Appalachian Community Bank, is under the regulatory oversight of the Federal Reserve Bank of Atlanta and banking commissioner of Georgia.

Under the terms of a “written agreement,” made public Nov. 5, the company is restricted from paying dividends, buying/redeeming shares of its stock or accruing additional debt without prior consent of the Federal Reserve Bank of Atlanta and banking commissioner of Georgia.

Appalachian Bancshares (Pink Sheets: APAB) also must submit a plan to maintain sufficient capital within 60 days of the agreement. And it has to provide written progress reports within 30 days after the end of each quarter.

Appalachian Bancshares Chairman J. Ronald Knight signed the agreement on Oct. 29.

[Concerned]

honest wrote:

you can look up the order on line and tells you what problems the bank had and what they have to do to fix it. wonder how many bad loans they have and how often they updated credit after the first loan. if forclosed would there be enough value to qualify for the loan in the first place I doubt it. Stock holders wise up. I am one and I am not happy at this point, You can bet your life the big stock holding employees did not lose their but in this deal

Wrong. The employees who were not allowed to sell their stock lost everything!

[meshell]

its all about greed! every darn one of them...banks, contracters and realitors. make as much, give loans that people can not afford, but, hell, who cares...just get the money. and then see them in church...what did they do with the "hugh" amount of money they al made? did they help anyone in gilmer county..families that doen't eat??? charaties??? do i feel sorry for thier greed....no. thank god there is insurance for anyone dealing with these banks...

[meshell]

its all about greed! every darn one of them...banks, contracters and realitors. make as much, give loans that people can not afford, but, hell, who cares...just get the money. and then see them in church...what did they do with the "hugh" amount of money they all made? did they help anyone in gilmer county..families that don't eat??? charaties??? do i feel sorry for thier greed....no. thank god there is insurance for anyone dealing with these banks...

[realtor]

meshell wrote:

its all about greed! every darn one of them...banks, contracters and realitors. make as much, give loans that people can not afford, but, hell, who cares...just get the money. and then see them in church...what did they do with the "hugh" amount of money they al made? did they help anyone in gilmer county..families that doen't eat??? charaties??? do i feel sorry for thier greed....no. thank god there is insurance for anyone dealing with these banks...

I don't appreciate your generalizing statement assuming you KNOW what people do with their income. Perhaps YOU don't contribute to society in a positive way. That does Not mean that others do as YOU do. You have no idea what I do with my money and frankly, it's none of your business. It's strickly between me and God. YES, I do contribute to the community in many ways, but once again, that is none of your business.