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

On August 11, 2008, Mr. J. Keith Hales resigned as the Executive Vice President and Chief Operating Officer of Appalachian Bancshares, Inc. (the "Company") and its subsidiaries, Appalachian Community Bank (the "Bank") and Appalachian Community Bank, F.S.B. (the "Thrift"), effective immediately, to pursue other endeavors. Mr. Hales has served as the Executive Vice President and Chief Operating Officer of the Company, the Bank and the Thrift since October 15, 2007. No disagreements with management or the board of directors prompted Mr. Hales' decision. Danny F. Dukes, who currently serves as the Company's Executive Vice President and Chief Financial Officer, was appointed interim Chief Operating Officer and will assume Mr. Hales' duties in addition to his duties as Executive Vice President and Chief Financial Officer. At this time, the Company has not determined when it will begin a search for a permanent Chief Operating Officer, but will announce such appointment when a selection is made.

A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 8.01. Other Events.

Appalachian Bancshares, Inc. (the "Company") today announced that Gary Middleton has been appointed the Chief Retail Officer (the "CRO") for the Company. Mr. Middleton, a 36-year banking veteran, currently serves as the CRO for Appalachian Community Bank (the "Bank").

This information is also disclosed on the press release attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

Exhibit No. Description
99.1 Press release of Appalachian Bancshares, Inc. dated August 15, 2008.

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