11654. First National Bank (Burlington, NC)

View Charter #8649 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
8649
Charter Number
8649
Start Date
December 16, 1931
Location
Burlington, North Carolina (36.096, -79.438)

Metadata

Model
gpt-5-mini
Short Digest
99f18e76

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1931-12-24
Date receivership terminated
1933-03-01
Share of assets assessed as good
54.6%
Share of assets assessed as doubtful
44.7%
Share of assets assessed as worthless
0.7%

Description

First National Bank of Burlington was ordered closed by the national bank examiner in mid-December 1931. Articles explicitly state there was no run. A receiver was appointed in January 1932 and plans were made to reopen; a successor National Bank of Burlington received charter approval in mid-May 1932 and was to reopen. Cause of suspension reported as shrinkage in value of bonds held by the bank (asset deterioration).

Events (6)
1. April 18, 1907 Chartered
Source
historical_nic
2. December 16, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Shrinkage in the value of bonds held by the bank led to frozen assets and forced closing by the national bank examiner.
Newspaper Excerpt
First National Bank of Burlington, closed yesterday by order of M. L. Barnett, national bank examiner.
Source
newspapers
3. December 24, 1931 Receivership
Source
historical_nic
4. January 3, 1932 Receivership
Newspaper Excerpt
Bank Receiver Takes Over First National, Burlington. Jan. Blakely has arrived receiver for the National bank, under an Comptroller ... transferred ... assigned ... from Kinston ... under similar assign-
Source
newspapers
5. February 3, 1932 Other
Newspaper Excerpt
Men Arranging For Reopening of Burlington National to Confer With Comptroller. Members of committee handling the program the reopening the First National bank, closed in December, will go to Washington ... to go over the plans ... Blakey, here receiver and liquidating agent, went to Washington ... expected that any difficulties ... will be ironed out.
Source
newspapers
6. May 16, 1932 Reopening
Newspaper Excerpt
Charter for the National Bank of Burlington, as successor the former First National Bank, was approved by the comptroller ... removing the last barrier ... reopening the bank next Monday morning for business.
Source
newspapers

Newspaper Articles (12)
1. December 17, 1931 Hickory Daily Record Hickory, NC
Article from Hickory Daily Record, December 17, 1931

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Article Text

CLOSE IN BURLINGTON AND RALEIGH, N. C. RALEIGH, Dec. Commercial National bank, largest independent financial institution in Raleigh. failed to open its doors this morning, after rectors had voted close pending meeting of stockhold- The September statement of bank showed deposits of $4,286,942, capital stock of $600,000, surplus and reserve of $136,163 bills payable of $295,000. The officers are B. S. Jerman. president. Crow, and Bauman, vice presidents, and Little, cashier. President Jerman and Mr. Crow issued statement attributing the closing failure of farmers and others to be able to meet seaspayments because of low crop prices. Dec. 17. authorities today going over the affairs the First National bank of Burlington, closed yesterday by order Barnett, national bank examiner. The bank. in its last statement. listed assets of $2,150,000 No statement its present tondition given out. Malone, cashier who has been tive charge of the bank since the from actual control of Iasley, president. several years ago, said shrinkage the value of bonds held bank was responsible for the There run on the bank, was officials Burlington's four and banks announced that they other had prepared during the condition which might meet because of the clostoday ing. BOSTON BANK CLOSES BOSTON, Dec. National bank, offices on Devonshire main downtown Boston, and street, branches, remained closed at four today, the customary time. notice posted opening that the controller of currency had been asked to take it over to the assets, owing to conserve heavy demands by depositors. the time the consolidaAt Boston National bank tion the Continental National with the about ago the combank year bined deposits of the merged stitutions given approxi$9,500,000 and the mately bined were set at 000,000. The Continental originalthe Engineers' National was bank, but its name was changed after the Brotherhood Locomotive Engineers relinquished trol affairs. The the 13th New England bank to close its doors period of four days. CONN. BANK CLOSES Conn., Dec. Hamden Bank Trust company remained closed today. Assets the bank in the last statement published March, USE 90-DAY RULE BOSTON, Dec. Boston Traveler says that the savdepartment of the Exchange Trust company of Boston, the Millbury Savings bank, Millbury, Mass., and every savings bank Lawrence and Lowell today availed themselves of This provision permits them require 90 days notice from positors seeking to withdraw funds.

2. December 17, 1931 The Salisbury Post Salisbury, NC
Article from The Salisbury Post, December 17, 1931

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Article Text

Banks Burlington Prepared For Any Emergency Today Burlington, C., Dec. 17. Ray Chappell Overton. Federal authorities today were The Salisbury in its ing over the affairs the First swer the Overton complaint bank closed nies many the contentions set tional order of M. Bar- tending yesterday forth complaint. national bank blame the death bank, its statement, Overton city, but listed assets No state- of the allegations in some ment its was complaint. out. W. Malone cashier Fulton of the princigiven street one has been in active charge streets of the the bank the from that the railroad tracks and actual control of Iasley, this street at the place ident, several ago said shrink- the fatal in the value bonds held by admitted that the time bank was responsible for the the accident North Main street closing. the railroad crossing was There was no run on the bank, denied ing repairs and officials traffic to Fulton other banks that they but that North Main street traffic had prepared during the night to was being directed to North meet any condition might street, the railroad crossing today because of the closing. being only block from

3. December 17, 1931 The Charlotte News Charlotte, NC
Article from The Charlotte News, December 17, 1931

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Article Text

Federal Officials Open Probe Of Bank Failure authorities today were going over the affairs of the First National Bank of Burlington, closed yesterday by order of M. L. Barnett, national bank examiner. The bank, in its last statement, listed assets of $2,150,000. No statement of its present was given out. R. W. Malone, cashier who has been in active charge of the bank since the retirement from actual control of W. W. president, several years ago, said shrinkage in the value bonds held by the bank was responsible for the closing There was no run on the bank. and officials of Burlington's four other banks announced that they had prepared during the night to meet any condition which might arise today because of the closing.

4. December 17, 1931 The Durham Sun Durham, NC
Article from The Durham Sun, December 17, 1931

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Article Text

FROZEN ASSETS FORCE RALEIGH BANK TO CLOSE Commercial National Largest Independent in Capital; Burlington Bank Suspends The Commercial National bank. tution in Raleigh, failed to open its doors this merning. after directors had voted to close It pending . of stockholders. The September statement of the bank showed deposits of $4,286,942 capital stock of $600,000. surplus and reserve of $136,163 and bills payable of The officers are B. S. Jerman. president; E. B. Crow. and Bauman, vice presidents, and B. H. cashier. President Jerman and Mr. Crow issued a statement attributing the closing to failure of farmers and others to be able to meet seasonal payments because of low crop prices. Burlington Situation Sound Federal today were going over the affairs of the First National bank of Burlington, closed yesterday by order of M. L. Barnett, national bank examiner. The bank. in its last statement. listed assets of $2,150,000. No statement of its present condition was out. R. W. Malone, cashier given who has been in active charge of the bank since the retirement from actual control of W. W. lasley, president. several years ago., said shrinkin the value of bonds held by age the bank was responsible for the closing. There was no run on the bank. (Continued on Page Nine, Col. 3)

5. December 17, 1931 The Asheville Times Asheville, NC
Article from The Asheville Times, December 17, 1931

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Article Text

BURLINGTON BANK BEING INVESTIGATED BURLINGTON Dec. 17 Federal authorities today were going over the affairs of the First tional Bank of Burlington, closed yesterday by order of M. L. Barnett. National bank examiner The bank in its last statement. listed assets of $2,150,000 No statement of its present condition was given out cashier who has been in active charge of the bank since the retirement from actual control of Isley president. several years ago, said shrink age in the value of bonds held by the bank was responsible for the There was no run on the bank. and officials of Burlington's four other banks announced that they had prepared during the night to meet any condition which they might arise today because of the closing JOINS FRECK FIRM J D Stepp. formerly with the Stepp Radio Service at Biltmore now connected with the Freck Radio Service. Patton avenue NAMED REPRESENTATIVE L. B. Ford has been appointed field representative of the Asheville district of the Royal Arcanum. it was announced today.

6. January 3, 1932 News and Record Greensboro, NC
Article from News and Record, January 3, 1932

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Article Text

Bank Receiver Takes Over First National, Burlington Jan. Blakely has arrived receiver for the National bank, under an Comptroller Pole. of Washington, transferred from Kinston where he under similar assign-

7. January 18, 1932 The Daily Times-News Burlington, NC
Article from The Daily Times-News, January 18, 1932

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Article Text

Endorses Bank Movement Jan Burlington c Dear Sir: The Local Post of the American Legion destres to go cn and as heartily endorsing the proposed plan to open the First of We feel the loss of this bank and an Bank our city. will do all that in our to organization With the clossing of this bank, our activities were somewhat curtailed. as our funds tied up. however, we have FAITH in Burlington, and the First National If we will all put our the wheel and "PUSH" instead of "knocking." things will ders to work out. National of the landmarks of and The First one be allowed to "crumble and decay" when there still should not life HOPE

8. February 3, 1932 News and Record Greensboro, NC
Article from News and Record, February 3, 1932

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Article Text

BANK TO GO TO WASHINGTON Men Arranging For Reopening of Burlington National to Confer With Comptroller. (Special Daily News) Burlington, Febe. -Members of committee handling the program the reopening the First National bank, closed in December, will go to Washington Wednesday where they have been called for conferwith Comptroller Pole. In conversation with Blakey yesterday Mr. Pole suggested committee be sent to his office for the purpose of going over the plans detail, so every phase will clearly understood and those here Washington agreement on the actual work and campaign Blakey, here receiver and liquidating agent, went to Washington last and will meet the men in the comptroller's office Thursday when expected that any that now exist will be ironed out.

9. February 10, 1932 News and Record Greensboro, NC
Article from News and Record, February 10, 1932

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Article Text

BURLINGTON PEANS TO REOPEN Workers Will Have Meeting Tonight in Interest of First National. CITIZENS ENTHUSIASTIC Burlington, Feb. than 200 selected to First National bases in the ballroom of the The meeting for workers of the plan that know swer any question that may arise in An organization chart in the the chamber the 10 and corner of the nity in which reside total 7,000 citizens who either checking, certificates of deposit in the First Under agreement that contemplates the payment in full depositors over period time, from the assets that will be in trust, expected that the plan will 100 Booths be the the of the bank and in the business office the city the municipal building. Men familiar with the plan will be attendance at these "school an open meeting citizens be called, probably the latter part this week the first of next From the meeting will come the command The first signed, ahead the start of the campaign, bore of Somers, president of was on the "dotted line following an enthusiastic meeting of the general steering No. in the big effort.

10. April 8, 1932 News and Record Greensboro, NC
Article from News and Record, April 8, 1932

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Sale of $88,150 In Stock To Reopen Bank Is Reported (Special Daily April sale the capital open the closed First National 50 team workers the ballroom the Alamance hotel last night. Optimism prevails the workers get near the some were themselves have mark day maining $25,000 will be

11. May 14, 1932 News and Record Greensboro, NC
Article from News and Record, May 14, 1932

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Article Text

MEETS WITH APPROVAL Comptroller of Currency Passes On Plans For Reopening Bürlington Bank. PERSONNEL ANNOUNCED (Special News) Burlington, May -Charter for the National Bank of Burlington, as successor the former First National Bank, was approved by the comptroller currency in Washington early today, removing the last barrier In of the formal ceremony reopening the bank next Monday morning for business To complete the program which has been unfolding during the past five months since the old bank suspended the face depreciation in the logal bond special messenger was sent Washington yesterday andein cation Cashier Blakey was informed that the charter would be approved during the morning The complete roster the of new bank personnel, those active in the banking was released by Blakey today, with following names of persons well known the in city and with long banking experBlakey, cashier and vice president; C. Long, assistant cashier and vice president; Byron Stack, asand vice president: B. M. Currin. Somers, A. Simpson, Carlos Pennington, and Mrs. Sue Windham Mr Blakey that checks for the payment of per cent available to former under the waiver have been prepared and will be ready to handed out when called for. Along with the deposistors will be handed certificates of deposits covering the remainder of their accounts, payable at tervals under agreement.

12. April 17, 1934 The Daily Times-News Burlington, NC
Article from The Daily Times-News, April 17, 1934

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Article Text

An Itemized list showing the foregoing properties in detail to on file at The National Bank of Burlington. N. C., and will any be one permitted who may to in- be said properties interested spect said Hist in the at said purchase Bank during business hours of the Bank. This sale 18 being made for the benefit of creditors of the former First National Bank of Burlington holding 30% Participating Certificates subect to and R5 provided by the Creditors' Agreement in paragraphs as "The new bank will retain as Its own such the portion of the assets as shall (sefrom the Receiver of equal lected the by liabilities it) acquired of the suspended bank assumed and or paid pursuant to this agreement, and under like agreements executed by other creditors. and under its contract with said Receiver in the acquisition of said assets, said amount of assets 80 retained by said new bank to be subject to adjustment in amount 30 as to equal the sum tually found to be necessary the time of to the new bank for the total liabilities to be assumed and or paid taken by it. as its property by said new are retained over The assets face value with adjustment of interest to the date of transfer where the asset interest bearing, or where the asset not interest bearing. will be taken over wither bank value carried on the books of the suspended bank at or at such value as may be agreed upon the new bank and the Receiver of the bank and approved by the Comptroller of the Currency of the United States. "The remaining assets acquired by the new bank from the Receiver the assets retained absolutely by the bank is to its (that own say, shall be transferred by the bank to shall liquidating be shall without compensation and who trustees (who lect by the Board of Directors of the new bank) for purpose 30% funds to as far possible, the remaining therefrom of the claim against the suspended bank, after reimbursebank for the moneys paid by covering the expenses of the new of the First National Bank receivership while the same is in force, and subject also to the right of the new bank, for the period two years, substitute any of the assets retained as its property or renewals made) for any of the trusteed assets or the thereof when renewal is proceeds of liquidation of the same, exchange to be interest upon the basis with mutual adjustment of to the purchase price, date of exchange or substitution." In carrying out said Creditors' Agreement, the Directors of The National Bank of Burlington, N. C., appointed the undersigned Blakey, Fix. Scott, M. B. Smith and R. H. Whitehead LiquidatTrustees The assets as at may 16, 1932, and April 1934, were in nominal or face amounts as follows: