Troubled Appalachian Community Bank in Ellijay has placed its CEO and two other top executives on administrative leave pending an internal review into possible violations of bank policy.
Officials at Appalachian, one of the state's largest community banks, said the review involves foreclosed property but declined to provide more details. They said Tuesday the review so far has turned up some “compliance issues,” but nothing that would harm the safety and soundness of the bank.
The executives – CEO Tracy Newton, chief credit officer Adam Teague and bank-owned property officer Rusty Beamon -- were suspended on Nov. 2.
The investigation is being overseen by the bank’s board of directors. On Tuesday, the banks said the board had hired veteran Georgia banker Danny Jett as interim Chief Operating Officer.
"We intend to proceed through this evaluation in a thorough and deliberate manner, while moving the bank forward with strong leadership," said J. Ronald Knight, the bank's board chairman.
Jett most recently worked at Georgian Bank in Atlanta, as an executive in charge of operations, technology and administration. Georgian Bank was shut down by regulators in September.
The turmoil is the latest blow for Appalachian, which lost $50 million in the third quarter and is under a “cease and desist” order from regulators to improve its capital and operations.
Last month, the bank voluntarily delisted its stock from the Nasdaq exchange. The bank’s stock, which traded over $20 per share in 2007, sank below $1 a share last summer.
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