ELLIJAY, Ga., Feb. 22, 2007 (PRIME NEWSWIRE) -- Appalachian Bancshares, Inc. (Nasdaq:APAB) today announced that it has received conditional approval from the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC) to form a federally chartered thrift subsidiary, which will operate under the name Appalachian Community Bank, F.S.B, as a wholly owned subsidiary of the Company. The Company has also filed an application with the Federal Reserve Bank of Atlanta to acquire and operate the thrift.
"Approval of the thrift charter is a significant milestone for our company," said Tracy R. Newton, chief executive officer. "With a thrift, we will have the ability to branch into any state, which will be a great advantage as we look to expand our customer-focused banking franchise in a cost-efficient way."
The Appalachian Community Bank office in McCaysville, Ga., will house the wholly owned thrift subsidiary. In accordance with the OTS approval conditions, Appalachian Community Bank, F.S.B., will acquire Appalachian Community Bank's existing loan production offices in Ducktown, Tenn., and Murphy, N.C., which were opened in April 2006, and convert them into full-service banking centers. Satisfaction of the standard charter approval conditions and the conversion of the bank offices are expected by the end of March, 2007.
"Once the conversion is complete, we will be able to better serve the growing Tri-Cities markets in Southeastern Tennessee and Western North Carolina with a full array of banking products and services delivered by friendly, experienced bankers with deep community ties," said Joe Moss, president and chief operating officer.
About Appalachian Bancshares, Inc.
Appalachian Bancshares, Inc., based in Ellijay, Ga., is the holding company of Appalachian Community Bank, a state-chartered bank organized under the laws of the State of Georgia. Appalachian Community Bank also operates under the trade name of Gilmer County Bank. Appalachian Bancshares has assets of $758 million. Through its subsidiaries, the company provides a full range of community banking services to individuals, small and medium-sized businesses, real estate developers, contractors and farmers. Appalachian Community Bank has full-service banking offices throughout North Georgia in Ellijay, East Ellijay, Blue Ridge, Blairsville, Chatsworth, Dawsonville and McCaysville, and loan production offices in Ducktown, Tenn., and Murphy, N.C. Upon issuance of the new charter by the OTS, the branch in McCaysville and the loan production offices in Ducktown, Tenn., and Murphy, N.C. will be transferred to Appalachian Community Bank, F.S.B., and the loan production offices will be converted into full-service banking offices. The common stock of Appalachian Bancshares is traded on the Nasdaq Global Market, under the symbol APAB. For more information, please visit the Company's website at www.acbanks.net.
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes, and other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.