A community bank in Georgia has been shut down while a credit union in Colorado was placed into conservatorship.
Jasper Banking Co., based in Jasper, Ga., became the 39th bank to close this year after it was shut down by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corp. (FDIC) as receiver. The FDIC entered into a purchase and assumption agreement with St. Cloud, Minn.-based Stearns Bank N.A. to assume all of the deposits of Jasper Banking Co.
As of March 31, Jasper Banking Co. had approximately $216.7 million in total assets and $213.1 million in total deposits. The FDIC and Stearns Bank entered into a loss-share transaction on $106 million of Jasper Banking Co.'s assets. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector, according to the FDIC.
Separately, the Colorado Division of Financial Services placed Trinidad, Colo.-based Trinity Credit Union into conservatorship and appointed the National Credit Union Administration (NCUA) as conservator. The state placed the credit union into conservatorship due to the financial institution's declining financial condition.
The National Credit Union Share Insurance Fund, which is administered by the NCUA, will insure individual accounts at Trinity Credit Union up to $250,000. The credit union reported approximately $4 million in assets in its last call report. Trinity Credit Union is the fourth federally insured credit union placed into conservatorship during this year.