Banners not dropping when mined up in Multiplayer

Was testing the minecraft snapshot versions on a multiplayer server with a friend.
I noticed that when I mine up a banner with an axe, it does not drop itself at all. Can confirm this as I have attempted to move several banners I placed in the world which resulted in them deleting themselves after they are mined up.
Problem is not occurring on the singleplayer world, only in multiplayer.
Also seems to have occurred right before a server crash.
Can anyone confirm this issue?