10448. Farmers & Merchants Bank (Henderson, NC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 1, 1924*
Location
Henderson, North Carolina (36.325, -78.416)

Metadata

Model
gpt-5-mini
Short Digest
543313784657433e

Response Measures

None

Description

Articles indicate the Farmers & Merchants Bank of Henderson closed its doors in April 1924 and remained closed with a receiver appointed (receiver Burton making dividend payments in 1933). A 1926 trial of a former cashier for embezzlement is reported and likely explains the bank-specific adverse information that led to the suspension/closure. No article describes a depositor run prior to suspension.

Events (3)
1. April 1, 1924* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed April 1924 following problems including alleged embezzlement by a cashier and insolvency of the institution.
Newspaper Excerpt
bank closed its doors in April, 1924.
Source
newspapers
2. June 19, 1926 Other
Newspaper Excerpt
Former Cashier Says He Helped Bank's Receiver Straighten Out Affairs. ... R. Crowdformer the defunct Farmers Merchants bank of Henderson ... charged embezzling more than $50,000 the banks funds, ... testified ... he in the employe ... testified various ... replacing deposit form trust for loans ... found evidence tempt transactions ... showed credit ... (News and Record, 1926-06-19).
Source
newspapers
3. December 22, 1933 Receivership
Newspaper Excerpt
announcement was made today by Beckham K. L. Burton, the receiver, that a dividend payment of five percent will be made on Friday of this week, December 22, to depositors of the old Farmers and Merchants Bank. ... bank closed its doors in April, 1924. The distribution Friday will amount to something over $12,000. This distribution makes a total payment to depositors of 90 per cent ... the receiver hopes the final ten percent can be paid a year hence, as is now anticipated. (Henderson Daily Dispatch, 1933-12-20).
Source
newspapers

Newspaper Articles (2)
1. June 19, 1926 News and Record Greensboro, NC
Article from News and Record, June 19, 1926

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Article Text

WITNESS STAND IN OWN BEHALF Former Cashier Says He Helped Bank's Receiver Straighten Out Affairs. AUDITOR (Special Daily News) Henderson, June the stand in his own defense. after the state had rested shortly. after o'clock this afternoon, R. Crowdformer the defunct Farmers Merchants bank of Henderson, testified Vance county Superior court, where he trial charged embezzling more than $50,000 the banks funds, that he in the employe of the Bank Vance, the for months April during the the affairs of He further that there the slightest him question after the bank for alleged the state authority the bank's bank April the from the notes In the bank verified. The court sustained objection state testimony the witness relating December which sugges. that attorney which attended without reference made his bond. He testified various the replacing deposit form trust for loans for around resume the stand the night session of the court of W bank auditor, was morning session Alleged between and records the related which the defense the handthe the were made Hays, teller the They from the that had found evidence tempt transactions his criticism payment checks private purpose. He stated one 000 showed credit (Continued on Page Sis)

2. December 20, 1933 Henderson Daily Dispatch Henderson, NC
Article from Henderson Daily Dispatch, December 20, 1933

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Article Text

Henderson Daily Dispatch Farmers & Merchants Bank AGAIN WILL Depositors Get Payment ECANDIDATE Five Percent Dividend To Be Distributed by Receiver on Friday of This Week; Makes Total of 90 Percent Can Do More for Paid; Rest Is Expected Year Hence Today Than Before Announcement was made today by asked to notice that the delivery of these checks will be for one day only, BECKHAM K. L. Burton, the receiver, that a diand all depositors are asked to bring vidend payment of five percent will their pass books as a means of identiMan for His Pledge of fication. be made on Friday of this week, DeHe Will Support cember 22, to depositors of the old The distribution Friday will amount the Limit in to Farmers and Merchants Bank. of to something over $12,000. When the Congress Henderson which closed its doors in bank closed its rdeposits amounted to April, 1924. This distribution makes a around $250,000. The 85 percent paytotal payment to depositors of 90 perE. W. Pou will again ments already made were distributed to succeed himself in cent, and Mr. Burton said there would to depositors within two or three years primaries of the be one more dividend payment before after the bank closed, and Included a June next next. That the receivreship is discharged, and he 100 percent assessment against the stockholders. contained in a letter hopes that one can be ten percent, which would mean 100 percent payC. B. Beckham. long The handling of the receivership by ment to the depositors. It will provorker in this county. Mr. Burton is considered one of the had written Mr. Pou bably be made late in 1934, he said. finest jobs in bank liquidation the port following tne anThe dividend payment Friday will State has seen. Very few closed banks week of the candibe made by checks, which, as a mathave ever paid depositors in full in ter of convenience to the depositors, E. Bailey, of Raleigh. this State, and this one will be in will be distributed at the Citzens Beckham, in part. as that class, if the final ten percent Bank and Trust Company, at the can be paid a yar hence, as is now an 1 will say that my Wyche street entrance. Depositors are ticipated.