Farmers State Bank - Cut Bank, MT

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: December 12, 1935
Location: Cut Bank, Montana (48.633, -112.326)

Metadata

Model: gpt-5-mini
Short Digest: 40e37dfb

Response Measures

None

Description

Article (May 30, 1936) refers to the Farmers State Bank of Cut Bank as 'defunct' and mentions Coover as receiver; oil production on bank-owned lease is being used to pay depositors. No mention of a depositor run; the bank had failed and was in receivership. Date of failure not specified in the article.

Events (3)

1. December 12, 1935 Other

Newspaper Excerpt: The first [well], completed December 12, 1935, had an initial of 42 barrels... The accumulation of six months is enough to pay a 30 per cent dividend to depositors.
Source: newspapers

2. * Receivership

Newspaper Excerpt: Coover, receiver of the bank, leased to Nadeau Brothers. They have completed three wells.
Source: newspapers

3. * Suspension

Cause Details: Bank failure (insolvency) leading to closure; article does not state trigger such as run or government action.
Newspaper Excerpt: the Farmers State Bank of Cut Bank, defunct. When the bank failed, stockholders were called upon to pay double the amount of their stock.
Source: newspapers

Newspaper Articles (1)

1. May 30, 1936 Montana Oil and Mining Journal Great Falls, Billings, MT

Article from Montana Oil and Mining Journal, May 30, 1936

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Article Text

# OIL WILL PAY (Continued From Page One) burse the stockholders of the bank—plus a profit, in Cut Bank oil field. This became known with the completion of the No. 3 well on the Coover lease, which belongs to the Farmers State Bank of Cut Bank, defunct. When the bank failed, stockholders were called upon to pay double the amount of their stock. One stockholder deeded 160 acres of farm land, in NE¼ 17-33-5W, in lieu of cash. When oil development came, Coover, receiver of the bank, leased to Nadeau Brothers. They have completed three wells. The first, completed December 12, 1935, had an initial of 42 barrels, the second 100 barrels and the third will be 150 barrels or better. The accumulation of six months is enough to pay a 30 per cent dividend to depositors. It will not be long, with the added production of the No. 3, before the depositors will be paid out 100%. The bank has 12% landowner's royalty, having given the former owner of the farm one half of one percent in settlement of a controversy over title.