First National Bank - Bottineau, ND

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 6085
Charter Number: 6085
Start Date: March 26, 1923
Location: Bottineau, North Dakota (48.827, -100.446)

Metadata

Model: gpt-5-mini
Short Digest: 445e7c02

Response Measures

None

Receivership Details

Depositor recovery rate: 33.0%
Date receivership started: 1923-04-12
Date receivership terminated: 1928-02-04
OCC cause of failure: Losses
Share of assets assessed as good: 40.6%
Share of assets assessed as doubtful: 51.4%
Share of assets assessed as worthless: 8.0%

Description

Bank failed to open on March 26, 1923 because of impaired capital from shrunken farm-paper values (short crops, low prices, bankruptcies). Directors closed the bank to protect depositors. A 1925 article discusses lost deposits and suits, indicating the bank did not successfully resume normal operations (closure).

Events (3)

1. January 7, 1902 Chartered

Source: historical_nic

2. March 26, 1923 Suspension

Cause: Local Shock
Cause Details: Impairment of capital due to shrinkage in value of farm loan collateral caused by short crops, low prices, deflation and bankruptcies; insufficient security on farmers' paper.
Newspaper Excerpt: The First National Bank of Bottineau failed to open its doors for business this morning. The reason assigned for the closing of the bank was impairment of capital thru a shrinkage in the assets arising from insufficient security at present values on farmers paper coming about thru short crops, low prices, the farmers deflation and some bankruptcies.
Source: newspapers

3. April 12, 1923 Receivership

Source: historical_nic

Newspaper Articles (2)

1. April 6, 1923 The Producers News Plentywood, MT

Article from The Producers News, April 6, 1923

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Article Text

BANK CLOSED AT BOTTINEAU Bottineau, N. D., March 26.-The First National Bank of Bottineau fail ed to open its doors for business this morning. The reason assigned for the closing of the bank was impairment of capital thru a shrinkage in the assets arising from insufflcient security at present values on farmers paper coming about thru short crops, low prices, the farmers deflation and some bankruptcies. The directors decided that the interest of all the depositors can be best protected by closing the bank at this time. W. H. McIntosh, president, and F. W. Cathro, vice president of the institution, are undertaking to pledge the business of their private copartnership, known as McIntosh and Cathro, to protect the depositors in the closed institution against loss. It is probable that additional capital will be obtained for reorganization and the bank reojened wth the losses eliminated, it was announced today.

2. April 4, 1925 Morning Pioneer Mandan, ND

Article from Morning Pioneer, April 4, 1925

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Article Text

BOTTINEAU CO. LOSES $111,575SUIT TOO LATE Bismarck, N. D., April neau county lost its suit to collect the bond of H. C. Dana, former county treasurer, for deposits lost the closing of the First National bank of Bottineau, when Judge Buttz Devils Lake sustained demur interposed by the attorney gen office on behalf of the state bonding department. Bottineau county alleged that $111, was deposited in the First Na tional bank of Bottineau, of which W. Cathro was president and that this amount $11,575.86 in excess the bank's depository bond. The bank closed on March 26, 1923. The state's attorneys maintained that since the claim on the bonding fund had not been presented within days after the county officials learned of the alleged violation of the depository suit could this view was sustained by Judge The claim was, filed on Nov several months after the bank closed.