First National Bank - Lumberton, NC

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 7398
Charter Number: 7398
Start Date: July 23, 1925
Location: Lumberton, North Carolina (34.618, -79.009)

Metadata

Model: gpt-5-mini
Short Digest: 15648ae5

Response Measures

Full suspension, Books examined

Other: Receivership followed suspension; dividends paid over subsequent years.

Receivership Details

Depositor recovery rate: 69.3%
Date receivership started: 1925-08-04
Date receivership terminated: 1929-01-30
OCC cause of failure: Governance
Share of assets assessed as good: 63.4%
Share of assets assessed as doubtful: 16.7%
Share of assets assessed as worthless: 19.9%

Description

Article of 1925-07-23 reports the First National Bank of Lumberton closed and a national bank examiner took charge after steady withdrawals attributed to rumors. A receiver (Malcombe/ Malcomb McConihe) handled the estate and paid dividends through 1926–1927, indicating permanent closure and receivership.

Events (5)

1. September 13, 1904 Chartered

Source: historical_nic

2. July 23, 1925 Receivership

Newspaper Excerpt: offices of Receiver Malcombe McConihe...Holders of receiver's certificates will be paid...the receiver of the First National bank...Malcolm S. receiver Mr. of the First National Bank of Lumberton ...55 per cent has already been paid. with another dividend forthcoming. (articles 1926-1927 referencing receiver McConihe).
Source: newspapers

3. July 23, 1925 Run

Cause: Rumor Or Misinformation
Cause Details: Persistent withdrawals attributed to circulating rumors about the bank, leading to loss of about $100,000 in deposits.
Measures: None specified in article; national bank examiner took charge temporarily.
Newspaper Excerpt: Rumors Given as Cause...The First National Bank of Lumberton closed its doors this morning...recent ... had caused steady and persistent withdrawal deposits, the bank having lost $100,000 deposits within the past
Source: newspapers

4. July 23, 1925 Suspension

Cause: Rumor Or Misinformation
Cause Details: Bank closed and examiner took charge after heavy withdrawals driven by rumors left the bank unable to meet obligations; liabilities listed about $400,000 and large deposit losses noted.
Newspaper Excerpt: National Bank Examiner Takes Charge of Lumberton Run...The First National Bank of Lumberton closed its doors this morning and Bank Examiner Tucker temporarily [took] charge, pending advices...
Source: newspapers

5. August 4, 1925 Receivership

Source: historical_nic

Newspaper Articles (7)

1. July 23, 1925 The Robesonian Lumberton, NC

Article from The Robesonian, July 23, 1925

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Article Text

National Bank Examiner Takes Charge of Lumberton Run Amounting to During Past Few Funds Protected by Surety Circulated About Bank Rumors Given as Cause OTHER BANK The First National Bank of berton closed its doors this morning and Bank Examiner Tucker temporarily charge, pending advices from meeting the action following directors last night, when board resolution adopted reciting was that the bank unable to fact and requesting the obligations of the to take currency charge. Liabilities $400,000. Johnson, president of bank, stated morning that recent reflecting the upon of the institution had caused steady and persistent withdrawal deposits, the bank having lost $100,000 deposits within the past This fact, connected considerable real estate failure the cause the present year, are condition. County and public posits fully covered surety officials of the bank do bond, believe that depositors any serious The bank in associates, and Mr. McAllister was the chief executive officer many years, from the presidency little tiring than year when he ceeded president. Other officers Lewis and are, Pate, vice presidents, and McA. Nixon, The of this bank, The Robeclosing sonian informed, will have whatever the other banks opon the town these banks are fully able to meet and all demands them, and officials the other banks deeply deplore and regret the which make for the First necessary tional to close its The Robesonian further informed that other bank in the county will in affected. Governor McLean president National Bank of Lumberton, has been in close touch with the tion, but left today, been that the situation well hand. No criticisms have been expressed against the management of the tution, its president, or and employees.

2. December 7, 1925 The Robesonian Lumberton, NC

Article from The Robesonian, December 7, 1925

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BOND SETTLEMENT County Attorney Britt advises The Robesonian that the final penalty the bonds which were forfeitcounty ed with the failure of the First National bank. county depository here sometime has been Provided the bank's paid. ceiver able pay 50 percent dividend deposits, the will lose only about $300. This all losses every depart-

3. April 19, 1926 The Robesonian Lumberton, NC

Article from The Robesonian, April 19, 1926

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POSTOFFICE Postal Department Accepts Contract With Johnson For BuildFormerly Occupied by First National Parlor Move to McLELLAN'S WILL Postmaster has been officially notified that the postal partment has accepted the contract offered by Mr. Johnson for his building opposite the court house postoffice building in place of the one now in use. The change will be made soon as possible and not later than July first. Buddie's parlor, operated by Mr. Badger McLeod, will move to the Leod building the corner of Elm and West streets soon as the building can be remodeled. The bankfixtures of the defunct First National bank and offices of Receiver Malcombe McConihe also will be moved an early date. Extensive remodeling will be made to the postoffice building, which owned Governor McLean, soon the moved. As the remodeling lan's and store and the building wall between the buildings removed and the two buildings made into one large store for McLellan iness, according to Mr. W. Taymanager. The Johnson building is one of the handsomest in town and the postoffice will have there by far the best quarters it has ever occupied here.

4. April 19, 1926 The Robesonian Lumberton, NC

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ANNOUNCES ANOTHER DIVIDEND Holders of receiver's certificates will be paid percent the amount by the funct First National bank of Lumberton by presenting their claims Mr. Malcombe Conihe, the bank building. This the second dend to be paid the by receiver and makes percent.

5. May 10, 1926 The Robesonian Lumberton, NC

Article from The Robesonian, May 10, 1926

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Article Text

The office of Mr. Malcombe receiver for the First National bank, been moved from the bank's former home the offices of Johnson, Johnson second floor of the buildstated before The As of the bank may sonian, depositors receive second dividend by their certificates. This senting makes total 40 percent paid depositors. Mrs. Graham McKinnon of the guest her Miss Allie Byrd McKinnon at the home of Mrs. McLean, North Elm street.

6. May 23, 1927 The Robesonian Lumberton, NC

Article from The Robesonian, May 23, 1927

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Article Text

engaged in real-estate operation in Florida and Chicago. The other day the United States circuit court of apreals affirmed the judgment of the lower court and, states a press dispatch. "the next step in the case will for the officials of that court to proceed to take action toward having Norwood sent to Atlanta to serve years in penitentiary." When the court finally bows Nor50 into the pen, if it ever does. 110 just charge can lie of undue or unbaste in the matter. If he had guilty of the lesser crime of robbing the bank from the outside he .G0 have been given seant considcretier and would have begun his senweekl have forgotten about it by this T.. a person not financially interexted, there does not seem to be anything very strange in a man making will leaving his worldly goods to it in Superior court at Washington, when he did know what he was when he was plain othcrazy; have deposed and said that the jurist was not but crazy plain being overly fond of the familThe prize is a share in an estate estimated at half a million dollars. shamed and and No doubt many cotton farmers have been led believe to that the overflowed area in the Mississippi valley will make little cotton this year that the shortage materially will raise the price of short-staple cotton, or for the crop as a whole. Those who have entertained that opinion will do well to read the ticle elsewhere in this issue by Dr. Tait Butler, chairman of the executive committee of the SouthCotton conference. There are nearly 300 people hereabouts who seem mighty indifferent about money that is due them. That many people have neglected so far to call for dividend checks that the receiver of the First National Bank wants to delifer. That Gideon's band must not be in need of money.

7. May 23, 1927 The Robesonian Lumberton, NC

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AFFAIRS OF FIRST NATIONAL WILL BE CONCLUDED SOON Another Dividend Expected SoonExpenses of Receivership Unusually Small. Malcolm S. receiver Mr. of the First National Bank of Lumberton. spent the week-end with Judge T. 1., Johnson, companying the Intter to Raleigh, where on yesterday they attended :: part of the commencement exercises of Heredith college. Mr. Conihe when seen by 100resentative of The Robesonian this morning. stated his duties as reveiver the First National Bank would probably be concluded at an early date. and that as soon as certain lit!gation between the Bank of McDo adds and the First National Bank had terminated a final dividend worki be paid. I: has been nearly two years since Mr. McConihe entered upon his duties as receiver and practically all the valuable INSURE of the bank have been collected. or will be collected within the week ten days There are a large number of insolvent notes which have been reduced to judgment in an effort to lections thereon. Mr. McConibe explained that the CXDenses of the Lumberton trust have leen very small, due to the fact that he has been as receiver for the People's National Bank of Bennettsville and the Liberty National Bank of Columbia. Most of the expense of the teree trusts has been barne by the other banks, but now that the Liberty Bank has been finally liquidated, it would throw a burden on the Lumberton trust out of all proporGon to the small amount uncollected and Mr. McConihe is giving in today's Robesonian notice of a public sale of the remaining uncollected assets. Any one interested is urged to read the notice of sale. He is anxious Lo get the best possible bid to be submitted to the comptroller of the The sale is being made subject to the anproval of the comptroller. asuccessful sale is made. the depositors will get a final dividend in a very short time. Mr. McConibe expressed the opinion that the receivership of the First National Bank had been conducted with less expense than any other bank receivership of which he had knowledge, and he has been acting as bank receiver throughout the South and West for number of years. He paid high compliment to Judge T. L. Johnson, who has acted as his attorney, both here and at Bennettsville, and says that much credit is due Mr. Johnson for the speed. efficiency and low cost with which the trust has been handled. Mr. Johnson says, however, that the depositors are to be congratulated that Mr. McConihe was sent here for he has realized more out of the assets than even the most optimistic thought it possible to collect when the bank failed. 55 per cent has already been paid. with another dividend forthcoming.