Appalachian Bancshares Inc. (fka APAB)

[Renee]

APAB revoked:

http://www.sec.gov/litigation/admin/2012/34-67182.pdf

[Renee]

APAB SEC Suspension:

http://www.sec.gov/litigation/suspensions/2012/34-66909.pdf

ADMIN Proceeding:

http://www.sec.gov/litigation/admin/2012/34-66908.pdf

[Silverstar78]

If anyone wants to sell they're shares above the bid, I'll pick up some at around 2pm eastern time if they are available. I will set my buy order in at .015 so you can get a half penny more then the mm's are offering. I'll come back then, thanks.

[RonnieD]

what really gets me here is that Jett and other directors all
come from a banking background. But Hensley has absolutely
no banking experience and just arrived out of nowhere as
President which is a position that supercedes Jett's 16k/month
role. Jett was COO before CEO. I think Jett is just "winding down" (as stated in March filing) and Hensley is here to take
a newco in a new direction. Why else would he be President now ?
Like Edmondson he's an investor in the 2015 notes and a COMMON shareholder.
http://www.sec.gov/Archives/edgar/data/1019883/000119312510164824/d8k.htm
Appointment of Principal Officer

On March 30, 2010, the APAB Board of Directors (the “Board”) appointed Joseph C. Hensley, age 52, as APAB’s President. This appointment was effective as of March 30, 2010, and Mr. Hensley is not in any way compensated for his service as President. Mr. Hensley also currently serves as a director of APAB and its wholly owned subsidiary Appalachian Community Bank, F.S.B. (the “Thrift”) and as Chairman of the Board’s Audit Committee.

Mr. Hensley has years of experience in the real estate industry. He has been vice president of and a principal in A.S. Dover Construction, Inc., A.S. Dover Development, Inc., and A.S. Dover Properties, Inc., since 2002. He is also a Manager of MountainCraft Homes, LLC; vice president of Dover Development, LLC; vice president of Legacy Mountain Properties, LLC; vice president of Clear Creek Properties, LLC; vice president of A.S. Dover Investments, LLC; and vice president of High Point Realty, Inc.

As previously disclosed in the Schedule 13D filed by APAB on November 9, 2009, APAB and Mr. Hensley executed an agreement on October 28, 2009, to issue 857,142 shares of APAB common stock, $.01 par value per share, in exchange for $428,571 aggregate principal amount of Appalachian Community Bank Fixed Rate Subordinated Notes, due September 30, 2015.

[RonnieD]

here is the filing from March pertaining to the seizure.
what happenned here is one subsidiary was closed by the state of Georgia and put into receivership of the FDIC, along with its NOL's, yet the other subsidiary of the bank, Appalachian Community Bank, although closed, was never put in receivership.
APAB went into default on a loan covenant, (4.9 million dollars in total).
http://www.sec.gov/Archives/edgar/data/1019883/000119312510065886/d8k.htm
Strangely enough, only a month before, they raised about $2mil by issuing stock to Charles Edmondson for 50 cents on the dollar (this is on a stock that only had 5 million total shares).

here is a link to the chronological filings. Take some time to go through it carefully in order. Although this may be winding down, it hasn't gone bankrupt. There are a handful of players with large percentages of the float. At the very least it's an attractive shell, but the continuing ownership and Hensley's SUDDEN emergence is intriguing.
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001019883&owner=exclude&count=40

[Billiam_2]

What about future NOLS?

[RonnieD]

well, that does make sense, it would be a natural transition
and the same people/connections/legalese is already in place.

take a look at Pickens website..
http://www.cbopc.com/

why would APAB hire Jett with his extensive banking background if they do not intend to stay in banking ?
still, it was Hensley's new President role which attracted me back into looking at this again, and his real estate
companies, which I thought may be r/m material...
these players will put something together..

[Billiam_2]

I remember reading that bank holding companies were valuble R/M candidates because they were sought out by investors who want to start their own bank. Easier for them to buy assets from the FDIC that way. Thoughts?

[RonnieD]

by the way, TD Ameritrade won't let its clients
buy this online, they need to call the order in.
Had no problem buying online with Schwab.
Could not get a legitimate answer from TD as to why,
they were playing that game when it was almost a dollar
also.

[RonnieD]

hey Bill.. r/m is my line of thinking, although they have recently hired a new ceo, who has a very impressive resume
in banking.
8-K on Jett:
http://www.sec.gov/Archives/edgar/data/1019883/000119312510195948/d8k.htm
Hensley is still President, and outranks Jett, and I did look around the net and find links to some of his real estate businesses.
8-K on Hensley:
http://www.sec.gov/Archives/edgar/data/1019883/000119312510164824/d8k.htm
Something else interesting is Tracy Newton of Community Bank of Pickens County who converted to common stock:
http://www.sec.gov/Archives/edgar/data/1019883/000119312509230238/dsc13d.htm

something will happen here.
i cleared out .019,.02 and nibbled .025
with bid .005 ask .035
maybe you can bid-sit on GTC and hopefully
another small seller like today will re-emerge.

[Billiam_2]

Interesting, what is your current thinking here? Hensly has skin in the game. Could be setting up for R/M? Nice down spike today. Maybe good for entry.

[RonnieD]

More cleaning house and new personnel:

http://www.sec.gov/Archives/edgar/data/1019883/000119312510195948/d8k.htm

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.



(b) Departure of Director and Principal Executive Officer

Frank E. Jones submitted his resignation as a director of Appalachian Bancshares, Inc. (the “Company”), and its wholly owned subsidiary Appalachian Community Bank, F.S.B. (the “Thrift”), effective August 12, 2010. Mr. Jones has advised us that his resignation from these positions was not due to any disagreement with the Company or the Thrift.

Leland B. Rymer resigned from his positions as President and Chief Executive Officer of the Thrift effective August 19, 2010.



(c) Appointment of Principal Officer

The Thrift’s Board of Directors appointed Danny W. Jett, age 60, as the Thrift’s Acting Interim Chief Executive Officer effective August 19, 2010. Mr. Jett has been providing consulting services to the Thrift since March 2010 pursuant to the terms of a Consulting Agreement by and between the Thrift and Mr. Jett dated March 22, 2010 (the “Agreement”). Mr. Jett will continue to be compensated for his services to the Thrift in his new role as Acting Interim Chief Executive Officer pursuant to the terms of the Agreement. Under the terms of the Agreement, Mr. Jett is entitled to receive $16,000 per month in compensation for his services to the Thrift and is entitled to reimbursement for all reasonable business expenses, provided such expenses are approved in advance by the Board of Directors of the Thrift. The term of the Agreement shall continue until terminated by either of the parties. Either Mr. Jett or the Thrift may terminate the Agreement at any time with thirty (30) days’ prior written notice to the other party, unless otherwise mutually agreed to by the parties. Mr. Jett previously served as Acting Interim Chief Operating Officer of the Company’s bank subsidiary, Appalachian Community Bank (the “Bank”), from November 16, 2009 until March 19, 2010, when the Bank was placed into receivership.

Mr. Jett has more than 30 years of experience in senior executive positions in the banking industry. Prior to his appointment at the Bank, Mr. Jett served as an Executive in Charge of Operations, Technology and Administration of Georgian Bank, where he ran all aspects of operations, technology and administration at the $2.0 billion Atlanta-based financial institution from July 2005 until September 2009. Mr. Jett served as President and Chief Executive of EastPoint Technologies, LLC, a national banking software and service provider located in Manchester, New Hampshire from June 2000 until June 2004. Mr. Jett graduated from the University of West Georgia and John Marshall Law School.

Item 9.01 Financial Statements and Exhibits




Exhibit 10.1 Consulting Agreement between Appalachian Community Bank, F.S.B. and Danny Jett, dated March 22, 2010.

[RonnieD]

See today's 8-K.. I believe this may be setting up for a Reverse Merger under Hensley's direction. With the Chapter 7 and FDIC sale of assets in March, seeing this new appiontment for the capital stock here and without any overhang remaining, this is a clean shell. Very suggestive how Hensley already has skin in the game; see: (July 23,2010)

(c) Appointment of Principal Officer

On March 30, 2010, the APAB Board of Directors (the “Board”) appointed Joseph C. Hensley, age 52, as APAB’s President. This appointment was effective as of March 30, 2010, and Mr. Hensley is not in any way compensated for his service as President. Mr. Hensley also currently serves as a director of APAB and its wholly owned subsidiary Appalachian Community Bank, F.S.B. (the “Thrift”) and as Chairman of the Board’s Audit Committee.

Mr. Hensley has years of experience in the real estate industry. He has been vice president of and a principal in A.S. Dover Construction, Inc., A.S. Dover Development, Inc., and A.S. Dover Properties, Inc., since 2002. He is also a Manager of MountainCraft Homes, LLC; vice president of Dover Development, LLC; vice president of Legacy Mountain Properties, LLC; vice president of Clear Creek Properties, LLC; vice president of A.S. Dover Investments, LLC; and vice president of High Point Realty, Inc.

As previously disclosed in the Schedule 13D filed by APAB on November 9, 2009, APAB and Mr. Hensley executed an agreement on October 28, 2009, to issue 857,142 shares of APAB common stock, $.01 par value per share, in exchange for $428,571 aggregate principal amount of Appalachian Community Bank Fixed Rate Subordinated Notes, due September 30, 2015.

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7064239

[RonnieD]

ok, i'll look into CORS again.

check this out.. APAB is under attack.

http://www.apab.com/

E-mail Alert

Some of our customers have reported receiving emails and text messages addressed to Appalachian Community Bank / Gilmer County Bank customers, informing them that their account access has been locked or services have been suspended. The email or text message then prompts the recipients to provide personally identifying information, card numbers, pin numbers, or similar information. We will never ask you to provide information of this type in this manner. Any emails or text messages received asking for this type of information is not from Appalachian Community Bank / Gilmer County Bank and should be considered fraudulent. If you have received an email or text message of this type and have concerns that your information has been breached please contact.
706-276-8000.

Please note that our web address and email addresses have changed from acbanks.net to apab.com.



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[Billiam_2]

I am currently deep into CORS. No BK and they have assets about $150 MM.

[RonnieD]

possible very nice place to bet some money on this .40 or less.

[RonnieD]

i saw it creeping up last week.
i picked up LEARQ and VSTN instead, can't complain !
check them out too.
yes, Bill this was a good one. Still is good for 2-3+ imo.

[Billiam_2]

Hey Ronnie, did we miss one here? LOL.

[Billiam_2]

Boy, you got that one right! It would appear that the days of the little guy are coming to an end.

[RonnieD]

it's at less than 1/10 book value as stated in the recent 10Q.
The company even mentioned the bv in the pr.
The threat is once again the FDIC. If they keep losing money on bad loans they will fall into the same danger of being seized and auctioned. Although that hasn't happened with CORS yet, the deadline is next week and it's happenned recently with Colonial and Guaranty.
Here, the CEO has also opted to forego some of his compensation, trying to lessen strain.
I actually tried to buy it, TD Ameritrade wouldn't let me without calling in. Can you believe that ?
I may come Monday in another account.
It's in the fillings.. but in these situations it's hard to tell exactly because we don't know the situations of the problem loans and when/if they will start making payments again to the bank.
APAB is struggling, and priced for 1/10 current value because of the prevailing atmosphere for community banks receiving no government help, while the government aids the enormous, politically connected multinationals who scoop these up for virtually nothing, expanding their empires on the taxpayer's bill.

[Billiam_2]

Ronnie, what's up with this one? How does it compare to CORS

[RonnieD]

Book value per share stood at $7.16 at June 30, 2009, compared to $14.13 per share at June 30, 2008, a decrease of approximately 49.3%.