First National Bank (Riverbank, CA)

View Charter #10427 on SPMC View balance sheet

Episode Information

Episode UID
1042701512
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
104270 national
Charter Number
10427
Start Date
December 29, 1925
Location
Riverbank, California (37.736, -120.935)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
6fb0859ac20fead9

Response Measures

None

Receivership Details

Depositor recovery rate
73.0%
Date receivership started
1925-12-28
Date receivership terminated
1928-09-30
OCC cause of failure
Fraud
Share of assets assessed as good
7.0%
Share of assets assessed as doubtful
27.7%
Share of assets assessed as worthless
65.4%

Description

No article describes depositor runs; closure followed discovery of shortage/misapplication by an officer.

Events (4)
1. July 30, 1913 Chartered
Source
historical_nic
2. December 28, 1925 Receivership
Source
historical_nic
3. December 29, 1925 Receivership
Newspaper Excerpt
Charles LaBree as receiver of the First National Bank of Riverbank was named by the comptroller of currency; bank was closed after shortage discovered and Flack disappeared and is still at large.
Source
newspapers
4. December 29, 1925 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of $14,000 shortage and misapplication of funds by C. L. Flack leading examiner to close the bank.
Newspaper Excerpt
announcement of the appointment of Chas. A. LaBree as receiver of the First National Bank of Riverbank ... closed the institution recently when a shortage of $14,000 was discovered after C. L. Flack, cashier, disappeared.
Source
newspapers

Newspaper Articles (16)
1. December 29, 1925 Alameda Times Star Alameda, CA
Article from Alameda Times Star, December 29, 1925

Click image to open full size in new tab

Article Text

OF WORLD FROM FAR AND NEAR EVENTS United Convict Marrione, had escaped from Folsom months ago, penitentiary the Malibu mountains retaken near here early today. Will AnDempsey Dempsey, by Estelle Taylor, his panied is arranging exhibibouts to be staged soon tion tourist cities in leading Shrine Head Leaves Burger potentate of the imperial Mystic Shrine, left Nobles the for San Francisco after today annual visit here. Inventor Angeles. Harry O'Neill severely today when furnace burned with he using in secret formula for The Hurst of cement exploded. building Sash and Door company burned ground with damage of $25,000. Invalid Ends having thrown of railroad himself front Brighton last night, train Donald dead today. He had long was been ill. Fees to Be Eliminated Grazing of the livestock depression in the fees industry grazing number of nafor will be eliminated tional forests of Secregreater part Agriculture Jardine tary nounced today. Ford Planes the fuel tanks the four all-metal planes of route from the Ford airport establish Dearborn freight line in Florida, and of the today caused of the flight until morrow. Death Probe will be held investigate suicide Fred Ernstman. here last night Ernstman hanged himself the residence of his daughter, Mrs. Duyer. Boys Rescue and his brother. Richard. today saved their Mr. and Chester from burning to death when partially the family residence here. The boys carried their unconscious mother the house and then led from father out he was succumbing the smoke fumes Bank Receiver Announcement the of Charles Laraappointment receiver of the First Nabee tional Bank of Riverbank today by E. Harris, received examiner who closed the bank days Harris Flack, with misapplication of bank's funds, is still at the large. Air Mail Lines Start SoonSalt Lake City Los Angeles by the Express. of Los AnAir and the Elko to Pasco, geles, air mail lines probably will start April. new lines operated by private comwill allowed panies and freight in addipassengers tion. Red Poet Ends last scribbled his poem Essenin, eccentric of Isadora Duncan, yesterday committed dancer. in

2. December 29, 1925 Petaluma Argus-Courier Petaluma, CA
Article from Petaluma Argus-Courier, December 29, 1925

Click image to open full size in new tab

Article Text

BANK RECE!VER AT RIVERBANK NAMED (Ry United Press) SAN FRANCISCO, Dec. 29 Announcement of the appointment of Chas. A. LaBree as receiver of the First National bank of Riverbank was received here by T. E. Harris, national examiner, closed the institution recently when a shortage of $14,000 was discovered after C. L. Flack, cashier, disappeared. Flack is still at large.

3. December 29, 1925 Santa Rosa Republican Santa Rosa, CA
Article from Santa Rosa Republican, December 29, 1925

Click image to open full size in new tab

Article Text

Suit Filed Against Banker of Riverbank United Press) -Sult against L. Flack missing Riverbank bank the First National Bank of Rivers bank, claiming $3500 for back salary and $2500 promis sory note was on file here today The Riverbank financial institu tion was closed by the National Bank examiner when $14.000 found gone from the bank's fun Flack was accused of misapplica tion of the money and is DOV sought for arrest,

4. December 30, 1925 The Modesto Bee Modesto, CA
Article from The Modesto Bee, December 30, 1925

Click image to open full size in new tab

Article Text

RIVERBANK BANK RECEIVER NAMED SAN FRANCISCO. Dec 29 (LP)Announcement of the appointment of Charles A. Labree as receiver of the First National Bank of River bank was received here today by E. Harris national bank examiner who closed the institution a few days ago. Labree was named by the comp troller of currency A shortage of $14,000 in the bank's accounts was found by Harris after L. Flack, director disappeared Harris charged Flack with misap plication of the money, but Flack still is at large.

5. February 25, 1926 Oakdale Leader Oakdale, CA
Article from Oakdale Leader, February 25, 1926

Click image to open full size in new tab

Article Text

BANK RECEIVER SUES ON PROMISSORY NOTE Charles A. Labree, receiver of the First National Bank of Riverbank, Tuesday commenced a suit to foreclose on a note given by H. O. Kruschke on October 27, 1925, for $2500. The note was due in ninety days and the plaintiff claims it is now due for payment. LaBree also asks interest at 8 per cent and $250 attorney fees. Hawkins & Hawkins of Modesto are attorneys for the receiver.Stockton Record.

6. February 26, 1926 The Modesto Bee Modesto, CA
Article from The Modesto Bee, February 26, 1926

Click image to open full size in new tab

Article Text

RIVERBANK BANK RECEIVER BRINGS ACTION ON NOTE Suits Seek To Collect Promis. sory Notes For $4000 Given Flack Charles A. LaBree. receiver of the First National Bank of Riverbank which was wrecked by the frenzied (inancial operations of L. Flack last December. brought two suits in court today to collect $4,000 on promissory notes alleged delivered to Flack and later turned over by him to the Riverbank bank. The defendants are Eugene P. Bessac. publisher of the Riverbank News. and Enes Bechis of Oakdale. According to the actions, Bessac delivered promissory note for $1,500 to Flack on October 31. while Bechis executed note for $2,500 the same day in favor of the miss. chairman. Both notes were endorsed bad and frequent demands that they be paid have gone unbeeded. Attorney fees amounting to $500 asked through the law firm of Hawkins and Hawkins. Faced with a overdraft of $15,000 and the disappearance of Mack the Riverbank institution failed to open Its doors for in the latter part of December LaBree was ap

7. February 26, 1926 The Record Stockton, CA
Article from The Record, February 26, 1926

Click image to open full size in new tab

Article Text

BANK RECEIVER SUES ON NOTES MODESTO OFFICE STOCKTON $4000 alleged due on promissory notes executed in favor of C. Flack. missing director of the First National Bank of Riverbank, and indorsed by him to that institution, asked filed in the Superior esterday Charles La Bree, as receiver the Eugene Bessac is alleged in of the have execyted Flack's favor October 31, $1500, while the other complaint alleges that Enos executed note for $2500 in Flack's favor on the same date.

8. March 4, 1926 Oakdale Leader Oakdale, CA
Article from Oakdale Leader, March 4, 1926

Click image to open full size in new tab

Article Text

Two Suits Brought By Bank Receiver Charles A. LaBree, receiver of The First National Bank of Riverbank, which was wrecked by the frenzied financial operations of C. L. Flack last December, brought two suits in superior court today to collect $4,000 on promissory notes alleged delivered to Flack and later turned over by him to the Riverbank bank. The defendants are Eugene P. Bessac, publisher of the Riverbank News, and Enos Bechis of Oakdale. According to the actions, Bessac delivered a promissory note for $1,500 to Flack on October 31, while Bechis executed a note for $2,500 on the same day in favor of the missing chairman. Both notes were endorsed and turned over to the bank, it is said, and frequent demands that they be paid have gone unheeded. Attorney fees amounting to $500 are asked through the law firm of Hawkins and Hawkins. Faced with an overdraft of $15,000 and the disappearance of Flack, the Riverbank institution failed to open its doors for business in the latter part of December. LaBree was appointed receiver. Modesto NewsHerald.

9. March 8, 1926 The Record Stockton, CA
Article from The Record, March 8, 1926

Click image to open full size in new tab

Article Text

MODESTO OFFICE STOCKTON RECORD. March 8.-Charles La Bree, as receiver of the defunct First National Bank of Riverbank. Saturday filed complaints in the Superior Court here seeking to enforce payment of three promisory notes executed by H. Steele Johnson, Weber, Enos Bechis and Flack last year and in the total amount of approximately The first two notes were executin favor of Flack. missing chairman of the board of directors of the bank, and the last one was exe. cuted by Flack and the others. with the exception of Steele, in favor of the bank. DEMONSTRATES THE MACHINE TRACY STOCKTON RECORD. March S.-In accordance with arrangement made with the board of city J. D. Clarkson of MARRIAGE LICENSES IN STANISLAUS COUNTY MODESTO OFFICE STOCKTON censes were issued here Saturday William Henry Munson. 21, and Loleta Rubye Stevens, Tujunga Everett Lyle Murray, 24, and Mildred Ina Trew. 21, both of Ceres: Reuben Eherenfried Nelson, 23, and Elvera Wilhelmina Kulander, 21,

10. March 13, 1926 The Modesto Bee Modesto, CA
Article from The Modesto Bee, March 13, 1926

Click image to open full size in new tab

Article Text

REPORT GIVEN BY DEFUNCT BANK ON ESTATE ON FLACK Financial Condition Uncertain, Says Cuneo; Suggests Creditors Unite RIVERBANK. March 12.-A preliminary report has just been sent out by John C. Cuneo, receiver for L. Flack, to all creditors who have filed claims. Flack has been missing since December, at which time First National Bank of Riverbank was closed, due to his manipulation of bank funds. It is impossible as yet, according to Cuneo's report, to gain an ac. curate estimate of the status of the estate, but it is quite apparent that all of the properties were used the utmost limit to borrow money upon. The various properties and interests which have been located and investigated to date by the re. ceiver represent gross value of approximately $240,000 The claims filed to date approximate $270,000. but many of these claims are and include liabilities which might later develop Some claims, Receiver Cuneo also states, offset other claims Among these is the claim of the National Bank of Riverbank which totals $61,019.63. This includes assessment Flack's 131 shares of bank stock, with in terest. amounting $13,800: also Flack's contingent liability as endorser of various notes. which total $13,680. The bank receiver. Chas. LaBree, is now suing the signers of these notes for collection Cuneo suggests in his report to creditors that if an organization of be effect. ed. it would be very desirable, for the value of the properties involved largely in their operation. are some good possibilities if the interests are rightly operated. he asserts.

11. March 13, 1926 Modesto News-Herald Modesto, CA
Article from Modesto News-Herald, March 13, 1926

Click image to open full size in new tab

Article Text

REPORT GIVEN DEFUNCT BANK ON ESTATE ON FLACK Financial Condition Uncertain, Says Cuneo; Suggests Creditors Unite liminary report has just been sent out by John C. Cunce, receiver for C. Flack, to all ureditors who have filed claims. Flack has been missing since December. at which time the First National Bank of Riverbank WHS closed, due to his manipulation of bank funds. It Impossible as yet, according to Cupeo's report, to gain an no. curate estimate of the status of the estate, but 11 is quite apparent that all the properties were used the utmost limit to borrow money upon. The various properties and interests which have been located and investigated to date by the TE celver represent gross value of approximately $240,000. The claims filed to date approximate $270,000, but many of these claims are inplications and Include Liabilities which might possibly later Some claims, Receiver develop. other claims. Among these is the claim of the First National Bank of Riverbank which totals $61,019.03. This Includes assessment of Flack's 131 shares of bank stock, with inferent, amounting to $13,800; also Flack's contingent Hability ILS en dorser of various notes. which total $13,080. The bank receiver. Chas. LaBree. is now suing the signers of these notes for enllection Caneo suggests in his report to the creditors that an organizaUdn of the creditors could be effected, it would be very desirable. for the value of the properties In. There are some good pos. wibilities if the interests are rightly operated. he asserts.

12. March 13, 1926 The Fresno Morning Republican Fresno, CA
Article from The Fresno Morning Republican, March 13, 1926

Click image to open full size in new tab

Article Text

SAYS VALUE OF1 PROPERTIES IS IN OPERATION Receiver Files Report In C. L. Flack Interests RIVERBANK, Stanislaus Co., March 12.-Creditors of C. L. Flack, who disapeared earl y in December after his frenzied operations had wrecked the First National Bank of Riverbank, have received their first report from Flack's receiver, John C. Cuneo. Information concerning the real status of the Flack interests is still incomplete, but enough facts have been unearthed to make it apparent that all of his property was heavily mortgaged or used as security for loans of various kinds. To date his interests, which have been located and investigated by his receiver, include 131 shares ($100 par value) of stock of the First National Bank of Riberbank; 15,000 shares ($1 par value) of Riverbank Cannery stock (which is 80 per cent of the cannery's outstanding stock), the bank building at Riverbank, valued at $50,000; 240 acres of land near McFarland, Kings county: the Riverbank and Hughson water works. Also 300 shares ($100 par value) of stock in the Vogue Creamery company at Tracy; this, however, has not been verified by the receiver. All of these properties total an approximate value of $240,000. The claims, represented by the First National Bank of Los Angeles, the Canadian Bank of Commerce and the American Bank of San Francisco, the United Bank and Trust company of Stockton, the First National Bank of Riverbank, many other banks over the state for comparatively small amounts, private individuals and San Francisco firms, approximate $270,000. Many of these, however, the receiver points out, are possible duplications, filed by claimants who fear liabilities may later occur. Some claims, also, the receiver states, will offset other claims. The claim of the First National Bank of Riverbank totals $61,019.6 This, however, includes an assessment of Flack's bank stock, with interest at per cent, amounting to $13,800; also Flack's contingent liabilities as indorser of various notes, amounting to $13,680. The signers of these notes are now being sued by Charles LaBree, bank receiver, for collection. The $14,000 over draft is also included in the bank's claim. Whether or not the claimants whose claims were unsecured will realize upon them is still uncertain. Cuneo in his report suggests to the creditors that if an organization of creditors could be effected and the Flack properties operated under a creditors' agreement, it would be desirable. He states that the value of most of the properties lies in their operation, and as such there are some very good possibilities. BIRTHS Delta View, March and Mr. and Crusco,

13. June 29, 1926 The Modesto Bee Modesto, CA
Article from The Modesto Bee, June 29, 1926

Click image to open full size in new tab

Article Text

Bank Receiver Sues To Collect On Note Charles LaBree, as receiver the defunct First National Bank Riverbank, yesterday filed suit the superior court collect sums approximating $2500 from Lorenzo Zelillo, alleged have ben loaned by Flack. missing the October 1925.

14. August 12, 1926 Oakdale Leader Oakdale, CA
Article from Oakdale Leader, August 12, 1926

Click image to open full size in new tab

Article Text

DEPOSITORS GET DIVIDEND Depositors of the First National Bank of Riverbank, closed last December by the default of C. L. Flack, chairman, will be paid a dividend of 30 per cent, beginning next Monday, August 9th, Charles A. LeBree, reThe 30 per cent dividend will total $20,000, 50 per cent of which will go to local depositors, the remaining 50 per cent to out-of-town depositors This is an exceptionally satisfacSory record, as tew banks pay more than 10 per cent as a first dividend and this is seldom paid under a year from the date of the bank failure. Receiver LaBree states that he has prompt. While no definite information is available at the present time, it is understood that another bank will be established here the coming fall or winter. -Riverbank News. SMOKING IS TABOO By order of District Forester S. B. Show the Stanislaus National Forest is closed to the favorite pastime of smoking. This order became efffective applyin in the local reserve Thursday. It is permissible to smoke at habitations and designated public camp grounds, but elsewhere the use of the fragrant weed of peace and contentment is

15. December 2, 1926 The Record Stockton, CA
Article from The Record, December 2, 1926

Click image to open full size in new tab

Article Text

Bank Receiver Sues to Obtain Deed to Husband Resources MODESTO Dec. 2.-Charles A. La Bree, receiver of the defunct First National Bank of Riverbank. has petitioned the Superior Court for to secure the reconveyance of deed of trust on StanIslaus in order to protect bank. the the bank held the deed of trust security the property first mortgage of held by De De according to the petitioner. is about to the which the bank lose any chance recov ery of the amount of its

16. March 4, 1927 The Modesto Bee Modesto, CA
Article from The Modesto Bee, March 4, 1927

Click image to open full size in new tab

Article Text

RIVERBANK BANK RECEIVER LOSES ON NOTE ACTION Echoes of Flack's Manipulations Aired In Technical Case Tried Here Echoes of the manipulations of C. L. Flack, missing president the Riverbank First National bank, were heard in Superior Judge L. W. Fulkerth's court when a jury decided against Charles LaBree, receiver of the defunct institution, in his suit to collect $2,500 on a note. The note was executed by J. W Steele, Riverbank postmaster, and turned over to Flack as an "accommodation note," LaBree sought to collect on grounds that the note was given by Steele for the accommodation of Flack held big interests. On the strength of the note, LaBree claims, Flack credited $2,500 to the cannery's account and that therefore the consideration was a credit given the cannery for full amount of the note and as a result, Steele was liable. For "Paper Assets" Steele contended that he gave the note on the representation of Flack that it was to be used only for the purpose of strengthening the "paper assets" of the bank and as mere accommodation, and as a result, there was no consideration for the note. He denied knowledge that it was to be used by Flack to advance more money to the can nery. It was the understanding that the note would never be paid, Steele testified. LaBree sought to show that Flack used the note to misrepresent the actual assets of the bank. During the trial he sought to show that n-payment of the note by Steele would work to the detriment of the creditors. It was one of the most technical cases ever tried before Judge Fulkerth. he said. one in which nice points of law never heretofore brought up in a Stanislaus court were It is understood that LaBree's attorney will ask for new trial. and if this 1s denied, appeal is expected to be taken. Steele was represented by Attorney T. B. Scott