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.”