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Jasper Banking Company closed by FDIC; operating now as Stearns

Jasper Banking Company, Jasper, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank National Association, St. Cloud, Minnesota, to assume all of the deposits of Jasper Banking Company.

State banking officials arrived in a fleet of cars right at closing time to lock the bank. It had been speculated for some time that Jasper Banking Company, one of the oldest businesses in the community was going to be closed. One of the officials entering the bank said it is important for people who have money in the local bank to know that their deposits are safe. She said that anyone with Jasper Bank checks can continue to use them.

The three branches of Jasper Banking Company will reopen on Saturday as branches of Stearns Bank National Association. Depositors of Jasper Banking Company will automatically become depositors of Stearns Bank National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Jasper Banking Company should continue to use their existing branch until they receive notice from Stearns Bank National Association that it has completed systems changes to allow other Stearns Bank National Association branches to process their accounts as well.

 

Updated: See statement from JBC Banchsares below

 

This evening and over the weekend, depositors of Jasper Banking Company can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2012, Jasper Banking Company had approximately $216.7 million in total assets and $213.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, Stearns Bank National Association agreed to purchase essentially all of the assets.

The FDIC and Stearns Bank National Association entered into a loss-share transaction on $106.0 million of Jasper Banking Company's assets. Stearns Bank National Association will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit:  http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today's transaction should call the FDIC toll-free at 1-800-822-9247. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/jasper.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58.1 million. Compared to other alternatives, Stearns Bank National Association’s acquisition was the least costly resolution for the FDIC's DIF. Jasper Banking Company is the 39th FDIC-insured institution to fail in the nation this year, and the ninth in Georgia. The last FDIC-insured institution closed in the state was First Cherokee State Bank, Woodstock, on July 20, 2012.

 

 

 From JBC Bancshares

JASPER, GA – 7/27/12 – JBC Bancshares, Inc. announced that the Georgia Department of Banking and Finance closed its subsidiary bank, Jasper Banking Company and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.  JBC Bancshares, Inc. is no longer the parent of Jasper Banking Company.

In a virtually simultaneous transaction, Stearns Bank National Association acquired the operations and all deposits and purchased essentially all assets of the bank in a loss-share transaction facilitated by the FDIC and will continue to operate the bank.  Customers who have questions about these matters, or who would like more information about the closure of the Bank, can visit the FDIC’s web site located at www.fdic.gov, or call the FDIC toll-free at 1-800-430-7974.

In a prepared statement, JBC Bancshares, Inc. said:  “While we ultimately were unable to save the bank in the face of unyielding market conditions, the board of directors put forth a dedicated effort on behalf of the company and its shareholders and attempted every reasonable solution.  Despite our best efforts, the continuing depressed market conditions prevented us from completing these transactions.  It was our sincere pleasure to have served our community over the past 67 years, and we continue to hope for the success of the community.”

Comments   

Frank Lathery Jr
+11 #11 Frank Lathery Jr 2012-07-31 23:15
Quoting pinto colvig:
this is truly unfortunate news. Thank you to the employees, managers and board members of JBC who have served Jasper and Pickens County selflessly and generously for decades. Even if you weren't a JBC customer, if you live in this community you have benefitted from these people's service and dedication.

Now I don't know which downtown eyesore is more offensive - the "Stearns Bank" sign covering up JBC's mainstay logo on the iconic digital clock tower, or the "Ten Commandments" placard leering over the courthouse from Ed Marger's office...


I can tell you my friend it is surely not the 10 commandments... . thats what is wrong with this country today..... folks don't abide by them !
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chjs
+4 #12 chjs 2012-08-01 01:48
Quoting Cherokeenative:
Quoting robbie:
WELCOME TO THE WONDERFUL WORLD OF OBAMA !!


Obama had nothing to do with this, you can blame the 106th congress for repealling part of the Glass–Steagall Act of 1933 and introducing the Gramm-Leach-Bliley Financial Services Modernization Act of 1999 and the Commodity Futures Modernization Act of 2000,

These 2 Acts are 90% responsible for the mess this country is in today. They deregulated the Banking industry and turned Wall Street into a Casino.



Oh so it was the Clinton administration?
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Bob Hayles
+8 #13 Bob Hayles 2012-08-01 04:55
Obama didn't cause this, Bush didn't cause this, the Community Reinvestment Act...or any others of the garbage regulations that have come about lately...caused this.

All of those things have caused a LOT of economic pain in the last several years, but not this. Jasper Banking Co's problems rest right here in Pickens Co, with a greedy board and a greedy management who, against all common sense, loaned money on land ventures that were doomed to fail almost from the start. I believe their bad loans are a matter of public record, so go see for yourself. There are 3-4 large, failed land deals that sunk them...all because the bank was poorly run by greedy people.

No...this problem is much closer to home than Washington. You see the problems daily, walking around in the community.
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Ell
+7 #14 Ell 2012-08-01 12:54
Quoting Chuck Hendrix Jr.:
Quoting Cherokeenative:
Quoting robbie:
WELCOME TO THE WONDERFUL WORLD OF OBAMA !!


Obama had nothing to do with this, you can blame the 106th congress for repealling part of the Glass–Steagall Act of 1933 and introducing the Gramm-Leach-Bliley Financial Services Modernization Act of 1999 and the Commodity Futures Modernization Act of 2000,

These 2 Acts are 90% responsible for the mess this country is in today. They deregulated the Banking industry and turned Wall Street into a Casino.


Bingo. Very strange that someone has actually researched something and has a clue. Given the normal rhetoric posted, I didn't think there was anyone that wanted to know "facts" unless they were manufactured from organizations bought and paid for by the Koch Clan like the Heritage Foundation.


Both the 1999 Act and 2000 Act are under Bill Clinton. So why did you blame Bush in your other post?
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pinto colvig
-5 #15 pinto colvig 2012-08-01 17:16
Frank I think you might be right.

Leave it to Bob Hayles to blame the poor. The CRA was designed to ensure all segments of the population including low income have some sort of ability to acquire credit. The current problem happened starting about 1999 when the feds deregulated the banking industry. Banks put on a facade of "helping meet the credit needs" by inventing subprime loans, which are a fraudulent and chicanerous tool to bankrupt unsuspecting customers. They targeted poor and minority borrowers with this practice because they could be easily hooked. When deregulation happened, the banks used the CRA to take advantage of those people.

By all accounts I've heard, JBC was not involved in the subprime ripoff scheme. JBC is a victim of the ripple effect that deregulation started.
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melissa gillette
+1 #16 melissa gillette 2012-08-02 13:01
Back in March I took a trip to Florida, while in FL someone stole my bank info when I stopped to get gas. The started charging 100.00's of dollars of Itunes to my JBC account. The first few went through. JBC started catching the others and stopped them. When I returned and looked at my online account and saw the Itunes that did go through I called JBC, they told me they tried to call me at home ( I wasn't there,was in fl) to get approval and when I didn't answer they rejected they other charges. When I explained I didn't authorize these charges, they asked me to call I tunes and see where these charges occurred and who authorized them. I tried to do this. ITunes REFUSED to tell me any information. I called JBC back and explained what Itunes said. Do you know what JBC did next? They reversed all of the charges. That's right,they actually helped the customer and did the right thing!! I am sad that JBC is closed and hope that this new bank will be just as customer dedicated.
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Bob Haykes
0 #17 Bob Haykes 2012-08-03 02:17
Quoting pinto colvig:
Frank I think you might be right.

Leave it to Bob Hayles to blame the poor. .

By all accounts I've heard, JBC was not involved in the subprime ripoff scheme. JBC is a victim of the ripple effect that deregulation started.



I never blamed the poor, Pinto "Illiterate" Colvig. Get someone to read it to you and explain what I said next time.

I said it was greedy bank management and a greedy bank board of directors that loaned money to out-of-town developers who came in and convinced them that a cow pasture could become another Polo Fields, and snookered them into loaning money on a project that was doomed from the start...and 3-4 more projects just like it.

It turns out that the financial whizzes at JBC were so smart they probably couldn't count the cash in their pocket twice and get the same answer both times.
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pinto colvig
0 #18 pinto colvig 2012-08-03 18:17
I'm sorry Bob Hayles or 'Haykes' as you misspelled your own name in your last post, I'm sorry that you don't know how to write clearly enough to state your own opinion. Forgive me if this quote of yours -
"the Community Reinvestment Act...or any others of the garbage regulations that have come about lately...caused this" - sounds to anyone with a third-grade or higher reading level like you are saying the CRA and 'garbage regulations' caused this. But hey, I guess that makes me 'illiterate.'

So by your renewed and slightly-more-c learly-stated rationale for the JBC collapse, the only non-greedy banks left today are Bank of America, Citi, Chase, and Wells Fargo? (i.e. the banks that are taking over all the other ones). Remember these small banks have been closing nationwide ever since 2008. Literally thousands of similar banks have closed since then.
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chris21
0 #19 chris21 2012-08-06 14:33
i moved paqrt of my account to other bank and i will offically close my account in 2 weeks when my direct depsoit starts at my new bank ... i had a bad experience last friday for the last time and ive bank with this bank for 7 years
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Firestorm
0 #20 Firestorm 2012-08-16 10:45
Quoting Cherokeenative:

Obama had nothing to do with this, you can blame the 106th congress for repealling part of the Glass–Steagall Act of 1933 and introducing the Gramm-Leach-Bliley Financial Services Modernization Act of 1999 and the Commodity Futures Modernization Act of 2000,

These 2 Acts are 90% responsible for the mess this country is in today. They deregulated the Banking industry and turned Wall Street into a Casino.

If you want any two acts that are 90% responsible for the mess this country is in today, try peak oil and fiat currency. No economy based on infinite growth can survive in a system of finite resources, and no currency based on faith in its producer has ever survived the temptation to abuse that faith.

JBC et. al. met their Waterloo about two decades ago when they decided they'd Pickens turned into a massive bedroom. Factor out the oil crash, and you still have a physically impossible proposition.
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