11617. First National Bank (Fremont, NE)

View Charter #1974 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
1974
Charter Number
1974
Start Date
November 1, 1921
Location
Fremont, Nebraska (41.433, -96.498)

Metadata

Model
gpt-5-mini
Short Digest
3df70e7ea75194d8

Response Measures

None

Receivership Details

Date receivership started
1921-11-01
OCC cause of failure
Losses

Description

First National Bank of Fremont closed and was taken into charge by the national bank examiner on Nov 1, 1921 due to asset shrinkage and inability to meet demands; a receiver was appointed and later the defunct bank's assets/business were to be merged with other local national banks and a new national bank organized to resume banking services (reopening via merger). No discrete bank run or misinformation event is described in the articles—closure was driven by poor farm assets/loan losses and withdrawals by correspondent/out‑state banks and resulted in government intervention and receivership.

Events (6)
1. April 26, 1872 Chartered
Source
historical_nic
2. November 1, 1921 Receivership
Source
historical_nic
3. November 1, 1921 Receivership
Newspaper Excerpt
Announcement was made that the bank's affairs are under the direction of Roy E. Smith, national bank examiner. ... Receiver for the defunct First National bank (Bernard Ulrioh) is mentioned in later articles regarding settlement of affairs and suits by the receiver.
Source
newspapers
4. November 1, 1921 Suspension
Cause
Government Action
Cause Details
Closed by national bank examiner after deposits shrank (~25%) and inability to collect loans to meet depositors' demands; out‑of‑state banks withdrew reserves.
Newspaper Excerpt
The First National bank of Fremont, Neb., failed to open for business Monday. Announcement was made that the bank's affairs are under the direction of Roy E. Smith, national bank examiner.
Source
newspapers
5. November 2, 1921 Other
Newspaper Excerpt
State Takes Charge. R. C. King, chief of the state banking bureau, was sent to Fremont to take charge of the trust company. ... the business must go into the hands of the receiver.
Source
newspapers
6. November 21, 1921 Other
Newspaper Excerpt
Plans are practically perfected for a new national bank in Fremont by a merger of the defunct First National bank, the Commercial National bank and Farmers and Merchants National bank. ... It is expected to open the new bank next Monday. Depositors of the First National bank will recover their money.
Source
newspapers

Newspaper Articles (5)
1. November 1, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, November 1, 1921

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Article Text

First Bank Of Fremont Is Closed National Examiner Takes Over Affairs of Institution Formerly Headed by E.R. Gurney. Depositors to Be Paid The First National bank of Fremont, Neb., failed to open for business Monday. Announcement was made that the bank's affairs are under the direction of Roy E. Smith, national bank examiner. Mr. Smith expressed a hope that the bank may reopen in a few this on of to days, its but officers depends arrange for the immedi- ability ate advances of cash, which is not thought likely. shrinkage of deposits, to over cent amounting Steady 25 per of the shown on hand Septemto on ber $855,000 6, and inability collect loans to meet depositors' demands caused the bank examiner's action. Officers of the bank expressed d belief that depositors will be paid in full. National is the largest bank The to First be involved in Nebraska since the series of bank disasters began several months ago. Managed by Gurney. The bank's embarrassment is an eventual result of the condition into which it fell during the presidency of E. R. Gurney, who managed its affairs from about 1901 until May, 1920. Gurney, during a part of this time and until April, 1921, was president of the Lion Bonding & Surety company of Omaha. He was inthe jury dicted for by alleged Douglas embezzlement county grand in connection with the affairs of the latter company and is now at liberty under bond, awaiting trial. The bank's statement September 6. showed deposits of $855,000 and loans of $691,000. It showed capital of $150,000. surplus, $20,000; bills payable, $58,000 and due federal reserve, $84,000. When it ended business Saturday deposits had fallen to $622,000. The United States National bank of Omaha is a creditor to the extent of nearly $100,000. The Chase National bank of New York claims $44,000 as its due and the Continental and Commercial National bank of Chicago, $43,000. Banks Withdraw Reserve. Since that time deposits have shrunk approximately 25 per cent. One of the heavy demands was that made by 25 out-state banks who maintained a part of their reserve in the Fremont bank. These banks had $223,000 on deposit there September 6 and had cut this amount to $140,000 by the end of last week. "The situation is simply the result of the general situation in an agricultural community," said S. S. Sidner, president of the bank. "The shrinkage of assets in the farming communities created a drain which this bank, already under heavy handicap, was unable to meet. "Let me cite one example: A farmer near Fremont sold a team of horses to a neighbor a year and a half ago for $300. Last week the same man (Turn to Page Three, Column Three.)

2. November 2, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, November 2, 1921

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Article Text

Trust Company Follows in Wake f Fremont Bank / "Assets Frozen Stiffer Than Polar Regions," Says Hart -Receiver Will Be Named. Lincoln, Nov. 1.-(Special.)Secretary Hart of the state department of trade and commerce, on his return from Fremont today, said the assets of the Fidelity Trust company of Fremont are "frozen stiffer than the Polar regions." This is a subsidiary of the First National bank of Fremont, which closed its doors yesterday. The reason for closing the trust company also, Hart said, was that it was financed solely by the bank. The trust company's assets consist of farm mortgages, real estate bonds and real estate. State Takes Charge. R. C. King, chief of the state banking bureau, was sent to Fremont to take charge of the trust ccmpany. Mr. Hart stated that deposits by other Nebraska banks in the First National bank of Fremont are small and that its failure will not cause serious embarrassment to these banks. The trust company was capitalized for $100,000. Frank B. Knapp is president; Frank Koss, vice president, and James A. Donohue, secretary and treasurer. Receiver Named. It has been understood generally that the Fidelity trust has been on thin ice for the last several months and the tumbling of the First National carried the trust company with it. The trust company occupied the same offices as the First National bank and when the latter was closed was a Fidelity notice would posted re-open stating as soon that the as offices could be located. The examiners, however, announced this morning that the business must go into the hands of the receiver.

3. November 8, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, November 8, 1921

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Article Text

Charges Fremont Banker With Fraud Receiver of Defunct Bank Alleges Property Was Conveyed to Wife by Knapp. Fremont, Neb., Nov. 7.-(Special Telegram.)-Frank - B. Knapp, president of the Fidelity Trust company, a banking house which went on the rocks last week, is charged with attempt to cheat and defraud creditors by conveying property to his wife, in a suit filed in the district court by Bernard Ulrioh. receiver for the defunct First National bank. The failed bank holds two notes issued by Knapp, one for $400 and the other for $5,000. The first note for 90 days is past due, while the other one. also 90 days, is not yet due. Ulrich, however, alleges that Knapp is attempting to hinder and delay the collection of debts to the First National by transferring his property. The plaintiff claims to have found the copy of a letter in the effects of the Fidelity Trust company, whose offices adjoined the banking house, addressed to David Yung. In the message, the plaintiff states that he is sending a deed to some property, located in Fremont, and stating that the transfer is being made for the purpose of conveying the property to his wife. The epistle, dated October 24, asks Yung to execute a quit claim deed and return the same. The court house records show the recording of a deed from defendant and wife for real estate. It is generally believed here that this is only the first of a series of legal battles soon to follow in the settlement of the affairs of the First National and the Fidelity Trust.

4. November 22, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, November 22, 1921

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Article Text

Three Frement Banking Houses Will Be Merged Depositors in Defunct Institution Will Get Money at Once-Sufficient Assistance Promised. Fremont, Neb., Nov. 21.-(Special are Telegram.)-Plans organization practically of perfected for the a new national bank in Fremont by a merger of the defunct First National bank. the Commercial National bank and Farmers and Merchants Nationl bank. The total capital will be $300,000 and the surplus $250,000. It is expected to open the new bank next Monday, when the officers and directors will be announced. The name of the new institution will be made public at the same time. The news of the merger and that depositors of the First National bank will recover their money filled Fremont and vicinity with a happiness that was directly opposite to the thick pall of gloom that settled over the city during the trying times of the past few weeks. In addition to the strength of the united institutions, the new bank has the hearty co-operation of the Omaaha clearing house. The federal reserve board had not only offered its co-operation, but has also promised to come to its support with additional funds. The war finance board has offered to advance $500.000 immediately so that the money in unlimited amounts is at hand at the merger. Will Release Money. The reorganized bank will make its home in quarters in the five-story First National bank building, one of the finest banking houses in Nebraska. Officials of the bank will be elected at the first meeting of the board of directors, to take place within the next day or two. Funds deposited in the closed First National bank will be released immediately through the regular channels and business conditions will be greatly benefited. Chief National Bank Examiner L. K. Roberts and Receiver Bernard U1(Turn to Page Three. Column Four.)

5. January 31, 1922 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, January 31, 1922

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Article Text

Fremont Banker Denied New Trial and Is Sentenced Frank B. Knapp, Former Head of Fidelity Trust, Given Three to FiveYear Sentence. Fremont, Neb., Jan. 30.-(Special Telegram.)-Frank B. Knapo, former president of the Fidelit Trust company, convicted of embezzlement last week, was today sentenced to the state penitentiary for from three to five years. Attorneys for the defense immediately gave notice of appeal, when their motion for new trial was overruled. Bonds placed at $6,000, pendA ing the fight in supreme court, were furnished by friends. Attorney Murdock, Omaha, asked for a new trial on the ground that there was no deliberate intent to embezzle when the alleged crime was committed. The court, however, stated that the jury was justified in bringing a verdict of guilty with the evidence that was submitted. The fact that funds left in Knapp's care amounting to $3,585, by Stephen Carpenter, 81, were converted to the use of the company, constituted embezzlement, the court declared. Knapp was supposed to purchase liberty bonds for Carpenter, but when the First National bank closed its doors and the Fidelity Trust company followed. no bonds for Carpenter were found by the receiver.