10361. First National Bank (Dunn, NC)

View Charter #7188 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
7188
Charter Number
7188
Start Date
November 18, 1928
Location
Dunn, North Carolina (35.306, -78.609)

Metadata

Model
gpt-5-mini
Short Digest
20bf108ff78edeef

Response Measures

Capital injected, Full suspension, Books examined

Other: Directors planned to assess stockholders and organize a new bank (Citizens National) to take over and liquidate the old bank's affairs; receivership/liquidation actions followed.

Receivership Details

Depositor recovery rate
63.1%
Date receivership started
1928-11-14
Date receivership terminated
1932-10-01
OCC cause of failure
Governance
Share of assets assessed as good
55.2%
Share of assets assessed as doubtful
23.0%
Share of assets assessed as worthless
21.8%

Description

Nov 1928: a small run (panic after news leaked about reorganizing/assessing stockholders) led the board to not open and place the bank under a national bank examiner. The bank entered receivership (by 1929) and was liquidated; depositors received partial dividends (25%). Sequence: run → suspension (examiner/receiver) → permanent closure/receivership.

Events (6)
1. March 29, 1904 Chartered
Source
historical_nic
2. November 14, 1928 Receivership
Source
historical_nic
3. November 18, 1928 Run
Cause
Rumor Or Misinformation
Cause Details
News leaked that directors planned to organize a new bank and assess stockholders (subscribe new capital); leaked information panicked depositors and triggered withdrawals.
Measures
Board moved to close the bank and placed it in the hands of a national bank examiner; planned reorganization (Citizens National) and assessment of stockholders.
Newspaper Excerpt
Information concerning the move leaked out yesterday morning, depositors became paneky, and the run developed yesterday afternoon.
Source
newspapers
4. November 19, 1928 Suspension
Cause
Government Action
Cause Details
Board of directors closed the bank and turned control to a national bank examiner after the run; comptroller/examiner ordered removal of bad paper and reorganization steps.
Newspaper Excerpt
Following action taken last night by its board of directors the First National Bank of Dunn failed to open its doors for business this morning and has been placed in the hands of a national bank examiner.
Source
newspapers
5. July 26, 1929 Receivership
Newspaper Excerpt
The office of the First National Bank of which closed has been moved to Benson ... combined the receivership of the First National ... Dunn and Benson bank affairs combined, with offices at latter town. (Charlotte Observer, 1929-07-26).
Source
newspapers
6. December 24, 1931 Other
Newspaper Excerpt
The receivership of the Dunn bank will be closed early in the new year. Depositors of the local bank have received 25 per cent. (News & Observer, 1931-12-25).
Source
newspapers

Newspaper Articles (5)
1. November 15, 1928 News and Record Greensboro, NC
Article from News and Record, November 15, 1928

Click image to open full size in new tab

Article Text

NATIONAL BANK STUDENT Rumor of Bad Condition Causes Small Run and Bank Examiner Takes Charge. Not More Than 25 or 30 Voted In Recent Election and They Were Qualified. HAD MUCH SLOW PAPER INQUIRY UP TO PARTY (Special to Daily News) Dunn Nov. action taken last night by its board of rectors the First Bank of Dunn failed to its open doors for this morning, has placed in the hands national examiner. The action taken after small run developed yesterday afternoon that gave promise of reaching larger proportions the opened this morning. First National bank, one of the several banks in this part of the state caught in the failure of the bank in operated by the Coopers several ago, having part its tied up in the failure the Wilmington bank, has struggling overcome its Since taken over by the present management its losses have been practically according information affairs have been wisely and safely administered. In the year its struggle has against odds, following run which developed early last spring. which was able to recent examination of the bank. however, revealed bad paper, which was brought over from the stressful period just to the The capital. comptroller the under the bank operated. advised that the bad be taken paper out, even became necessary assess the stockholders for the amount essary take the doubtful paper. Acting on the advice of the tional bank examiner the directors of the First National planning organize be known the Citizens National assess stockholders old take over liquidate its affairs. The (Continued On Page Two.) Forecast by States. ginia North Mostly cloudy Thursday and Friday: warmThursday South Fair and somewhat warmer Thursday: Friday cloudy Georgia: cloudy Thursday and Mostly cloudy Thursday and moderate northeast and Alabama and extreme northwest Florida Cloudy Thursday and Friday, probably showers Friday: mild temperature. Missipp Mostly cloudy and probably occasional temperature. Thursday Friday Thursday fair, Friday partly partly cloudy partly cloudy Thursday Friday fair: Friday. Junius H. Harden. of Burlington. who opposed Major Stedman for Congress from fifth district. convinced that there was no irregularity voting the of Unipart versity North had been that Republican leaders had that 300 to 400 had illegally the Democratic ticket. After investiga25 to 30 students voted. and all appears them were qualified. Harden. letter to the Daily News that after he received report of alleged ties he started investigation through his friend postmaster Chapel Hill. Mr. Hernwrote Mr Harden the following: the Republican pollholder here, that not than 25 30 students voted the Mr. Sparrow was sistant for years has with the Bank Chapel Hill the postal service. He has been daily contact the and townpeople and probably knows more nearly all of them than man here. Mr. personally checked the name every voter-as they voted-and he not believe that single student was legally Mr Sparrow's integrity and ability are beyond question and he 100 per Republican.' said Mr. apparent that my first information was and what publicity has been to this has reflected in any way upon any person. wish by the publication Mr. to make due for any hurt that has from the publicity given to the which seems. from Mr. Herndon's viewpoint, have been unwarranted and unjust." Mr. Harden further in ter, am passing the informacoming along the ficers in the organization my po litical and be hands of my party Reports irregularity which Stedman was returned margin more learned yesterday the tigation other Some the opinion will while others surprised precincts in the district.

2. November 19, 1928 Statesville Record and Landmark Statesville, NC
Article from Statesville Record and Landmark, November 19, 1928

Click image to open full size in new tab

Article Text

First National Bank At Dunn Closed Up Rumor of Bad Condition Causes Small Run and Bank Examiner Takes Charge-Had Much Slow Paper. Dunn, Nov. 19. Following action taken last night by its board of directors the First National Bank of Dunn failed to open its doors for business this morning and has been placed in the hands of a national bank examiner. The action was taken after a small run developed yesterday afternoon that gave promise of reaching larger proportions if the bank opened this morning. The First National bank. one of the severa kg in this part of the state in the failure of the bank operated by the Coopago, having part flex up in the failure of k. has been strugits losses since 19. vas taken over by the gement its losses have been really negligible, and according to all information its affairs have been wisely and safely administered. In the past year its struggle has been even more against odds, following a run which developed early last spring, but which it was able to weather safely A recent examination of he bank, however. revealed sufficient bad naper. practically all of which was brought over from the stressful period just following 1920. to impair the capital. The comptroller of the currency, under whose department the bank operated. advised that the bad paper be taken out. even if it became necessary to assess the stockholders for the amount necessary to take up the doubtful paper. Acting on the advice of the national bank examiner, the directors of the First National were planning to ganize new bank, to be known as the Citizens National bank, assess stockholders of the old bank, take over and iquidate its affairs. The plan had been instituted quietly. and up to last night more than $40.000 of the needed $50,000 capital for the new bank had been subscribed. Information conerning the move leaked out yesterday morning, depositors became paneky. and the run developed yesterday afternoon. necessitating the action taken by the board of directors. Harmony Loses to Barium Springs The strong aggregation from Harmony High school lost to Barium Springs, 13-7, in Thursday's game at Barium Springs. Barium was unable to make any gains through the Harmony line ,so they opened up everything they had in the way of an aerial attack and in this way they managed to push over two touchdowns before Harmony scored. Things looked rather gloomy for Harmony, for at the end of the third quarter they hadn't managed to score. But they were gaining ground at every play. Harmony made big gains on practically every play they tried through the line. At the beginning of the fourth quarter, Harmony opened un her superb aerial system and Bohannon carried the ball over for touchdown in the last minute of the game. Harmony registered the extra point on pass from Fouts to Byers. You can't get around the fact that Harmony played a real game of foothall. The Harmony boys suffered severely from penalties, being penalized seventy-five yards to Barium's ten yards. This game ended the football season for the Harmony boys. They were entertained at a hanquet Fridav night riven in their honor by the Teacher Training department of the Harmony High school. This has been a very good season for Harmony. Out of the nine games played, Harmony has won five, lost three and tied one. This is not 80 bad when you considr that they have played some of the best high school teams in the state. Two of the games lost were with high schools who are still in the state hampionship race, Statesville and Mt Airy. Through the season Harmony has struck some good sports and some bad ones. Probably the best sports were the crew from Statesville High school. And here's wishing you luck the State Champions hip Series. For several of the games, Harmony had Captain Jerry Moore, Walt Bohannon, Warren Thrift, Atwater and several others out on account of injuries. All first string players. at Plans are already underway Harmony for the best football team out next year. Practically the same team will all be back for one or two more years playing. Coach Fouts and Mr. Long for the interest they have aroused in football at Harmony. The schedule for the season and scores are as follows Harmony 31: Mt. Park 0. Harmony 18: Mocksville 0. Harmony 0: Statesville 26 Harmony 6: Winston Orphange 6. Harmony 7: Davidson-Cornelius 0. Harmony 0: Mt. Airy 41. Harmony 7: Troulman 0. Harmony 6: Mt. Park 0. Harmony 6: Barium Springs :3. If all the motor cars in the United States were placed end to end it would be Sunday afternoon. Arkansas

3. July 26, 1929 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, July 26, 1929

Click image to open full size in new tab

Article Text

BANK RECEIVER MOVES OFFICES Dunn and Benson Bank Affairs Combined, With Offices at Latter Town. The office of of the First National Bank of which closed has been moved to Ben bined the receivership of the First National Benson closed in H Dixon ling in the and followed of the in the the Dunn plac along National of of each bank had first dividend and in The depositors in the five the The the shape de dividend

4. October 24, 1929 The News and Observer Raleigh, NC
Article from The News and Observer, October 24, 1929

Click image to open full size in new tab

Article Text

Roanoke-Chowan Fair, the Wayne County Fair, and the Montgomery County Fair. BANK RECEIVER SUING TWO DUNN MERCHANTS Mr. and Mrs. Ellis Goldstein and Sol Isaacs Sued For Total of $12,250 C. H. Dixon, receiver for the First National Bank of Dunn, yesterday filed with the clerk of United States

5. December 25, 1931 The News and Observer Raleigh, NC
Article from The News and Observer, December 25, 1931

Click image to open full size in new tab

Article Text

TO CLOSE AFFAIRS OF FAYETTEVILLE BANK Receiver Burrowes Hopes To Wind Up Affairs of the Na. tional in 60 Days Fayetteville, Dec. 24.-A. D. Bur rowes, receiver of the National Bank of Fayetteville, hopes to be able to close the affairs of that institution within the next 60 days, he stated today. Mr. Burrowes has been ap pointed receiver of the Commercial National Bank of Raleigh and will probably transfer his headquarters to Raleigh. He also has charge of the liquidation of national banks in Dunn and Laurinburg and recently completed receivership of a bank in Benson, paying the depositors 50 per cent. The Laurinburg institution has already paid 55 per cent, though it will be some time before its affairs are wound up. The receivership of the Dunn bank will be closed early in the new year. Depositors of the local bank have received 25 per cent. At the third sale of asse J. S. Butler, of St. Pauls. made the high bid of $1,850 for notes and accounts receivable having face value of $203,000. The sale must be confirmed by the comptroller of the currency. Mr. Burrowes expects to be able to distribute the final dividend within two months' time.