Stearns Bank National Association St. Cloud, Minnesota, Assumes All of the Deposits of Jasper Banking Company, Jasper, Georgia

http://fdic.gov/news/news/press/2012/pr1....

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Quote:

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.

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.

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/fail....

Interesting that a bank far away in Minnesota picks up the bank in GA for what appears to me at around 50 cents on the dollar for the deposits.

For years I was only aware of them as Stearns County Bank so assumed they were a small, local ag bank. My exposure to them was through farm equipment dealer financing including leases. Etiher I underestimated their size or they've grown considerably. Then again, anyone will go anywhere for a deal nowadays.