First National Bank (Bradley Beach, NJ)

View Charter #10224 on SPMC View balance sheet

Episode Information

Episode UID
1022401477
Episode Type
Run Only
Bank Type
national
Bank ID
102240 national
Charter Number
10224
Start Date
January 15, 1923
Location
Bradley Beach, New Jersey (40.202, -74.012)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
aaf13846e9d99290

Response Measures

Accommodated withdrawals, Public signal of financial health, Capital injected, Books examined

Receivership Details

Date receivership started
1932-01-27
Date receivership terminated
1932-10-15

Description

Large cashier embezzlement discovered but funds were made up quickly; bank remained open.

Events (4)
1. July 8, 1912 Chartered
Source
historical_nic
2. January 15, 1923 Run
Cause
Bank Specific Adverse Info
Cause Details
Discovery of $50,000 peculation by cashier Edward V. Patterson Jr.; brother and directors repaid $38,000 and $12,000 respectively.
Measures
Waived 60-day withdrawal notice on savings; prepared to meet withdrawals; accepted offers of assistance from other banks but did not need them.
Newspaper Excerpt
a stream of nearly 50 persons who kept their funds in Bradley Beach's only financial institution were on hand at the opening of the doors this morning, deposits in the initial rush nearly kept pace with the withdrawals.
Source
newspapers
3. January 27, 1932 Receivership
Source
historical_nic
4. October 15, 1932 Restored To Solvency
Source
historical_nic

Newspaper Articles (2)
1. January 15, 1923 Asbury Park Press Asbury Park, NJ
Article from Asbury Park Press, January 15, 1923

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Article Text

Citizens, On Contrary, Express Confidence In Bradley Beach Institution Following Discovery of $50,000 Peculations of Cashier Patterson---Proffered Aid of Other Banks No Needed. BROTHER PAYS $38,000 AND DIRECTORS $12,000 Any apprehension officials of the First National bank of Bradley Beach might have entertained in connection with a possible run thru disclosures yesterday of $50,000 defalcations, was dissipated this morning, when expressions of confidence poured in from all quarters. Altho a stream of nearly 50 persons who kept their funds in Bradley Beach's only financial institution were on hand at the opening of the doors this morning, deposits in the initial rush nearly kept pace with the withdrawals. Officials were elated with the confidence depositors are exhibiting in the institution, and the announcement yesterday by directors that the defalcations had been completely made up were accepted by the majority at their face value. Shortly following the announcement in yesterday's Press of the defalcations, officials representing banking houses, in many sections of the shore district got in communication with officials of the Bradley Beach bank and offered almost unlimited support to meet any possible embarrassment which might arise. The Asbury Park and Ocean Grove bank, one of the strongest banking institutions in the county, thru Harry A. Watson, its president, offered $50,000 in cash "in 10 minutes' notice" should it be needed. Altho James D. Carton, president of the Bradley Beach bank, assured Mr. Watson his bank had sufficient funds to meet a possible run, the local institution backed up its offer early this morning with $20,000 in cash. Officials of other institutions offered almost unlimited support. "All the Money" "If you need money, let us know and we will meet you with it as quickly as it takes an automobile to reach you," was the tenor of other offers. But at a late hour

2. January 15, 1923 Asbury Park Press Asbury Park, NJ
Article from Asbury Park Press, January 15, 1923

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Article Text

Pres. Carton Optimistic "I want you to say that the First National bank is as sound and stable as it ever was," he asserted. "But also make it clear that we are ready and willing to give to any of our patrons who doubt this statement their money in full. We even have waived the 60-day withdrawal notice on savings accounts as an illustration of our stability and sincerity." Preparations to meet a possible run were taken, he said, but the run has not materialized. "Offers of financial assistance came in a rush from big banking houses in the shore district yesterday, shortly after your story appeared. Those who so kindly offered almost unlimited support as expressions of confidence in our stability were thanked, but there seems to be no need for an acceptance of their assistance. We are coming along beautifully. After the first shock, it is natural that depositors in a bank should think first of their money, but we are glad to see that so many of them stood firm in their expressions of confidence." Another bank official stated that prosecution for the embezzlement of $50,000 of the bank's funds, the whole of which was made up within two days after the defalcation was disclosed by bank examiners, lay in the hands of the government. It was impossible to learn today just what steps federal authorities contemplate, in view of the restitution. On one side it was asserted that prosecution would be entered into, while others doubted that this step will be taken. Disclosure of a $50,000 shortage in the bank's funds was made Tuesday, when federal bank examiners, summoned from Washington on the suspicion of bank officials that there had been a manipulation of funds, made the announcement. Edward V. Patterson, jr., of 610 Third avenue, Bradley Beach, who for several months had been under suspicion of the bank officials, confronted with the figures, made a complete and signed confession, it was announced Saturday. The money had been taken in two lots. The first, dating several weeks back, had amounted to $32,000, and the second, taken a day before the bank was to prepare a statement of its condition for the federal officials, was for $18,000. Bank officials say the second peculation had been made to cover the previous defalcation, in the hope that thru the covering of margins on a certain stock the whole could be recovered and the defalcation go unrevealed. Mr. Patterson, it is declared, admitted that he had been playing the stock market and that he had lost heavily. His speculations in stock began a year and a half ago, bank officials assert. After bank officials were informed of his first losses, they reprimanded him, and he promised to leave the market alone. Following Mr. Patterson's admission of the peculation, his brother, Benjamin Y. Patterson, a realtor and insurance man of Spring Lake, made good $38,000 of the deficit in the bank's funds. Bank directors made good the balance, $12,000. The bonding company was not asked to make good a cent. Mr. Patterson came to the First National Bank of Bradley Beach from a Spring Lake bank five years ago. He was made cashier and subsequently put on the board of directors. The institution always has been a money maker, its officials assert, and last year showed profits amounting to 50 percent of the capital stock. At a meeting of the board of directors in February, the capital stock of the bank will be increased from $25,000 to $50,000. Application for the increase is now in the hands of the federal reserve officials, and it is expected the increase will be authorized.