1286. Drovers National Bank (Denver, CO)

View Charter #11564 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
11564
Charter Number
11564
Start Date
December 17, 1925
Location
Denver, Colorado (39.739, -104.985)

Metadata

Model
gpt-5-mini
Short Digest
068eef8a

Response Measures

None

Receivership Details

Depositor recovery rate
40.3%
Date receivership started
1925-12-24
Date receivership terminated
1931-05-31
OCC cause of failure
Governance
Share of assets assessed as good
28.3%
Share of assets assessed as doubtful
26.7%
Share of assets assessed as worthless
45.1%

Description

Multiple contemporaneous newspaper reports (Dec 17-19, 1925) state the Drovers National Bank was closed at noon and placed in the hands of federal examiners because of frozen assets/frozen livestock loans and impairment of capital. Articles report heavy runs on other local banks but do not describe a depositor run specifically causing Drovers to suspend; examiners closed the bank. Classified as suspension leading to closure.

Events (3)
1. December 31, 1919 Chartered
Source
historical_nic
2. December 17, 1925 Suspension
Cause
Local Shock
Cause Details
Frozen assets and frozen livestock loan paper; impairment of capital tied to depression in the live-stock industry led examiners to close the bank.
Newspaper Excerpt
the Drovers National Bank and the Broadway National Bank closed their doors at noon today and are in the hands of federal examiners.
Source
newspapers
3. December 24, 1925 Receivership
Source
historical_nic

Newspaper Articles (11)
1. December 17, 1925 The Hanford Sentinel Hanford, CA
Article from The Hanford Sentinel, December 17, 1925

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Article Text

EXAMINERS CLOSE TWO BANKS Denver, Dec. 17. (United Press.) Two Denver banks. the Drovers National Bank and the Broadway National Bank, closed their doors at noon today and are in the hands of federal The examiners who ordered the banks closed have made no statement or crowd of several hundred stood in the street in front of the Broadway bank at o'clock waiting for some information concerning the the institution The Broadway National had deposits of over $3,000,000 according to the published statement. The Drovers had deposits approximately Excitement was high the stock yards, where the Drovers located. Many passed by the bank but paused only to read the sign on the door which said the bank had been closed by the board of directors and was in the hands of federal examiners. heavy run started this afternoon on the North Denver Bank, another of the Hollis banks. Between three and four hundred persons were crowding about the teller's cage and in the street shortly before closing time. Payments had not been stopped

2. December 17, 1925 Progress-Bulletin Pomona, CA
Article from Progress-Bulletin, December 17, 1925

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TWO DENVER BANKS CLOSE Federal Examiners Take Charge of Drovers and Broadway National NO REASON GIVEN Deposits Total 4 Million; Action Starts Big Run On Allied Institution By United Press Leased Wire. DENVER, Colo., Dec. Denver banks, the Drovers Nationbank and the Broadway National bank, closed their doors at noon today and are in the hands of federal examiners. The examiners who ordered the banks closed have made no statement or explanation. of several hundred stood in the street in front of the Broadway bank at o'clock waiting for some information concerning the condition of the institution. The Broadway National had deposits of over $3,000,000. according to the last published statement. The Drovers National bank had deposits of approximately $1,000,000. Excitement was high at the stock yards, where the Drovers is located. Many passed by the bank but paused only to read the sign on the door which said the bank had been closed by the of was in the hands of federal examiners. heavy run started this afternoon on the North Denver bank another the Hollis banks. Between three and four hundred persons were crowding about the telIer's cage and in the street shortly before closing time. Payments had not been stopped at m.

3. December 18, 1925 Alameda Times Star Alameda, CA
Article from Alameda Times Star, December 18, 1925

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Article Text

FACE CRITICAL Five Institutions Closed and Depositors Besiege Other Financial Concerns United Press DENVER Dec. banks closed their doors in Denver days. Metropolitan State Bank today failed open its doors. Yesterday the Drovers' National, Broadway National and the North Denver State Bank all were placed the hands of federal and state examiners. James E. Adams. president of the Bank, said day that the bank had been turnto state examiners at his request. Metropolitan several weeks ago, to Adams, had posits of and since that they have been reduced to about view of the bad banking situation here and to protect interests our depositors, he said, deemed advisable turn the bank over to state offiheavy run developed this morning when the Central SavBank and Trust Company opened doors. was estimated that 500 persons waiting in the street in front of the bank Police were in charge of the crowd and only few were let into the bank at time. Rumors were afloat all over town and serious situation was developing with withdrawals creasing many banks. The Capitoi Hill State Bank put in the hands of state examiners shortly after opening this morning when crowd found waiting withdraw their accounts. This banks with closed doors. The Capitol Hill State Bank small suburWhen the 500 persons milling about front the Central Savings Bank and Trust Company this morning. Bishop Frank Rice of the Liberal Church made his way the teller's window and deposited $100 church. Proceeding to the street. Bishop Rice made speech telling the crowd to be calm and that there need of fear. Fifty people with the bishop. People's Bank here failto open its doors today The closing of the Bank of Iowa, few days ago, believed to have heavy withdrawals from local bank. Deposits totalled

4. December 18, 1925 Evening Star Washington, DC
Article from Evening Star, December 18, 1925

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Article Text

TWO MORE BANKS CLOSED IN DENVER Five Forced to Suspend in Two Days Due to "Frozen Assets." By the Associated Press. DENVER, Colo., December 18.Two additional Denver banks-the Capitol Hill State Bank and the Metropolitan State Bank-failed to open today. Grant McFerson, State bank commissioner, announced that examiners had taken charge of the Metropolitan and Capitol Hill Banks. Both are small institutions. Steady withdrawals from the Metropolitan during the week and a run on the Capitol Hill yesterday was instrumental in the closing, officials said. Three others-the Drovers' National Bank, the Broadway National Bank and the North Denver Bank, the latter a State institution-closed their doors yesterday. The deposits of the three banks aggregated approximately $4,400,000-the Broadway with $3,088,683, the Drovers' National, $1,100,100 and the North Denver Bank, $258,000 Blame Frozen Assets. Frozen assets in live stock loans and an impairment of capital were the reasons indicated by national bank examiners for the closing of the two national banks, while State bank examiners, who took charge of the North Denver Bank, would not make public any reason for its closing. Gordon F. Hollis is president of the two closed national banks while Mrs. Marguerite Hollis, his wife, was named president of the North Denver Bank last year, succeeding her husband, who previously had been the institution's head. Declines Any Statement. L. K. Roberts, chief national bank examiner for the tenth Federal reserve district, took the two national banks under charge and Grant R. McFerson, State bank commissioner, was in charge of the North Denver institution last night. Hopes of an early reopening of the two national banks were asserted by Mr. Hollis in a statement last night. He said that the depression in the live stock industry caused the main depreciation of the national banks' assets. Mr. Roberts declared that he was "not in a position to say what things had happened at the banks."

5. December 18, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 18, 1925

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Article Text

McFerson announced that his department's examiners had taken charge of the Metropolitan and Capitol Hill banks. Both are small institutions. Steady withdrawals from the Metropolitan during the week, and a run on the Capitol Hill yesterday. were factors in the>closing, officials said. The banks closed yesterday were the Broadway National, the Drover's National, and the North Denver bank, the latter a state institution. These three banks had deposits of approximately $3,500,000. The Broadway National was the largest, with deposits totaling about $2,500,000. - Impairment of capital and frozen paper in livestock loans were ascribed as the reasons for the closing of the two national banks.

6. December 18, 1925 News-Pilot San Pedro, CA
Article from News-Pilot, December 18, 1925

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Article Text

Frozen Loans Force Closing of Three Banks in Denver (By United Press) DENVER. Colo., Dec. Christmas shopping at its height, three Denver banks were today hands of bank examiners. The Drovers National Bank and the Broadway National Bank closed noon yesterday when found they could not meet their liabilities. The North DenState Bank closed last night the request of the offiof the institution after heavy during the afternoon. Although statement has been issued by Gordon Hollis, president of the closed banks, replied questions that frozen paper cattle loans cause his two banks closing.

7. December 18, 1925 Sapulpa Herald Sapulpa, OK
Article from Sapulpa Herald, December 18, 1925

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Article Text

BANKS ARE CLOSED BY EXAMINERS Five Denver Banking House Are Ordered Closed As Christmas Rush Presses. Colo., Dec. Christmas shopping its height. three banks were today in the hands of bank examienrs. The Drovers National bank and the Broadway National aBnk closed noon yesterday when was found they could meet their liabilities. The North Denver State Bank was closed last night the request the officers of the institution after heavy during the run Although no statement has been issued by Gordon he Hollis, president of tow of the closed banks, he plied affirmatively to questions that frozen paper on cattle loans on the closing announced today that all during the forenonnyesterday was kept separate and that deposits made will be returned full. Colo., Dec banks have closed in Denver within two days. The Metropolitan State bank day failed open its doors Yesterday the Broadway National and the North State Banks were all placed the in hands federal and state examiners. James Adams, president of the Motropolitan said today that the bank had been turned over to examiners at his request. The Metrooplitan several weeks ago, according Adams, had posits and since that time they have been reduced to about 'In view the bad banking sit uation here and protect the interests of our depositors,' he said, deemed to turn the bank to the state officials."

8. December 18, 1925 The Chickasha Daily Express Chickasha, OK
Article from The Chickasha Daily Express, December 18, 1925

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Article Text

FROZEN LIVESTOCK OFFICERS STATE CLOSE ONLY FOR SHORT TIME Examiners Chance Examine Books: of Crowd Run Denver, five local banks closed hands bank Hill State Bank hands this after Metropolitan State Bank open the the and the were placed in the hanns of federal Frozen credits and the depression the Industry were jointly blamed the closing instiutions whose deposits total several millions dollars. While he benef was expressed by that the would coon their affairs straightened about the doors the banks no tices and speculated financial Police were charge crowd estima than hundred the Savings Bank Only depositors were admitted their funds. With Christmas shopp ng its found unable much buying and failures in were Officers banks however doors closed examinbooks banks some wealthiest izens the mass of day laborers the north Each on apparentll held the same hope- that closing only temperary merely for the of readjusting the finances of the institutions. Denver Dec Christshopping height three Denver banks Drovers National Bank and Broadway could bilities. The North Deaver State Bank was closed nigh request officers heavy run no Gordon president two closed bunks plied that frozen on the cause of was announced all business done during the forenoon yesterday was kept separate and that deros ts made will be returned in full.

9. December 18, 1925 Daily American Republic Poplar Bluff, MO
Article from Daily American Republic, December 18, 1925

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FIVE DENVER BANKS CLOSED Ey United Press DENVER. Colo., Dec. five local banks closed and in the hands of bank examiners. all Denver nervously awaited the next move in firencial circles today. The Capitol Hill State Bank was put into the kinds of receivers this afternoon after the Metropolitan State Bank failed to open its doors. Yesterday. the Drovers' National. The Broadway National and the North Denver State Banks were placed in the hands of federal and state examiners. Frozen credits and the depression in the live stock industry were jointly blamed for the closing of the Institutions whose deposits total seven millions of dollars. While the belief was expressed by officials that the banks would open for business as soon as their affairs were straightened out, the depositors about notices of closing and speculated on their chances. Police were in charge of a crowd estimated at more than 500 persons who started on the Central Savings Bank today. Only few depesitors were admitted at'a time. With Christmas shopping at its peak, depositors found themselves unable to do much buying and recalling two previous bank failures in the past two years. By United Press DENVER. Colo., Dec. 18.-With Christmas shopping at its height, *hree Denver banks today were in the hands of bank examiners. The National Bank and the Broadway National Bank were closed at noon yesterday when it was found they could not meet their liabilities. The North Denver State Bank was closed last night at the request of the officers of the institution after a heavy run during the afternoon. Although no statement has been issued by Gordon Hollis, president of the two closed National banks, he replied affirmatively to questions that frozen paper cattle loans were the cause of their closing. It was announced today that all business done during the forenoon yesterday was kept separate and that deposits made will be returned in full

10. December 20, 1925 Star Tribune Minneapolis, MN
Article from Star Tribune, December 20, 1925

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Two Additional Banks Close Doors in Denver Denver, Dec. 19. (By Associated Press.) small state failing to their dors yesterday, left Den pen ver with five closed banks. The banks, with total deposits of ap proximately $4,250,000. are the Broadway National bank, the Drovers' tional bank and the North Denver bank, which closed yesterday, and the Capitol Hill State bank and the Metropolitan State bank, which did not open today.

11. December 20, 1925 The Daily Worker New York, Chicago, NY
Article from The Daily Worker, December 20, 1925

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FIVE BANKS CLOSE IN DENVER WITHIN TWENTY-FOUR HOURS DENVER, Colo., Dec: 18.-The Metropolitan State Bank and the Capitol Hill State Bank closed their doors here today, bringing the number of banks to close up within 24 hours to five. The North Denver State Bank closed after examiners had taken charge of the Broadway National & Drovers' National Banks. Total deposits of $4,000,000 are involved. "Frozen" assets are given as the reasons for the closing of the banks. Depositors fearing loss of their savings have started runs on the other banks in the city.