12950. First National Bank (Crofton, NE)

View Charter #8186 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
8186
Charter Number
8186
Start Date
May 31, 1932
Location
Crofton, Nebraska (42.729, -97.496)

Metadata

Model
gpt-5-mini
Short Digest
da3f0df3

Response Measures

Full suspension, Books examined

Other: Receiver appointed and later payments made to creditors; bank remained permanently closed.

Receivership Details

Depositor recovery rate
34.7%
Date receivership started
1932-06-01
Date receivership terminated
1937-08-31
Share of assets assessed as good
25.1%
Share of assets assessed as doubtful
58.0%
Share of assets assessed as worthless
17.0%

Description

Articles report a heavy run/withdrawals that depleted cash reserves and led the board to close/suspend the First National Bank of Crofton in late May/early June 1932. A federal receiver was in charge by September 1932 and subsequent reports (1933) describe payments from the defunct bank, indicating permanent closure/receivership.

Events (6)
1. April 21, 1906 Chartered
Source
historical_nic
2. May 31, 1932 Run
Cause
Local Banks
Cause Details
Heavy withdrawals that appear related to regional bank failures/contagion (other local banks had failed, precipitating deposit runoff).
Measures
None specifically besides later board decision to close; heavy withdrawals depleted cash reserve.
Newspaper Excerpt
The First National of Crofton only two days before. There was quite a heavy run on the bank the previous day, it is reported.
Source
newspapers
3. June 1, 1932 Receivership
Source
historical_nic
4. June 1, 1932 Suspension
Cause
Local Banks
Cause Details
Depleted cash reserve due to large withdrawals; officers state withdrawals and depleted reserve forced the board to close to protect depositors. Failure may have been hastened by failures of nearby banks (regional contagion).
Newspaper Excerpt
First National Forced To Suspend on Account of a Depleted Reserve ... withdrawal of deposits are given by officers as the reason for suspension.
Source
newspapers
5. September 5, 1932 Receivership
Newspaper Excerpt
Burchmore had resided in Norfolk more than year as receiver for the Norfolk National bank and the First National banks Tilden, Hartington and Crofton, Nebr.
Source
newspapers
6. February 24, 1933 Other
Newspaper Excerpt
A draft for $10,266.98 was received from bonds which secured Knox county deposits in the First National bank of Crofton ... This is the second payment made from the defunct bank.
Source
newspapers

Newspaper Articles (14)
1. June 2, 1932 The Hartington Herald Hartington, NE
Article from The Hartington Herald, June 2, 1932

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Article Text

IS CLOSED YEARS AFTER 49 OF SERVICE First National Forced To Suspend on Account of a Depleted Reserve Last Bank Is First National Once Had Deposits People Are Shocked by Closing The First National Bank Hartington last Thursday night being for half century lackyear. depleted cash and withdrawal given officers the for pension The bank might have operate for while longer, stated but, in order protect their depositors, the board of directors decided to Failure of the local bank doubt hastened, if not precipitated. the closing the First of Crofton only two days before. There quite heavy the bank the previous People Were Stunned People have accustomed do business with the First National Bank of Hartington for many years stunned when they down town Friday morning and found notice door that was closed. The failure this bank the which Hartington and county without facilities. years had strong banks. The Hartington National in 1928, Cedar County 1931 and the First National in the hands Other Cedar county banks have failed during the past Farmers State and the Fordyce State. The this city Organized in 1883 Organized 1883, was one the oldest and strongest banks northeast Nebraska and at deposits almost In June, 1920 peak year, deposits aggregated $950,000. When bank closed deposits had dwindled to In the First National and the Farmers State Bank. which located the present Hartington Building Loan building, merged occupied building on the corner Washington avenue and Fifth street. Officers the bank when closed its doors were Louis Goetz, president; Beste, vice-presiCarl cashier, and Lloyd Lynde Alphonse Lamassistant cashiers. Louis Goetz. Spork, John Hirschman, Carl Pedersen. Geo. Beste and Lloyd Lynde and the following owned stock the First National Bank: Amundson, Theo. Beste estate, Beste, Cameron, Dendinger, Dorsey, Mrs. Dan Felber, George, Louis Goetz, Aug Gohman, Mrs. Sarah Gordon, John Hochstein Mrs. Ethel Kerr estate, Krause, Lammers, K. Lammers, Lammers, McKenzie, Lloyd Lynde, Mrs. Ella Mason, Mrs. Hazel Olsen, Oswald, LuR. Parks, Pedersen, Peters, Ready, Mrs. Ready, Mrs. Robinson, Helen Scoville, Scoville, Spork, Agatha Uhing estate and Mildred W. Haggart. Lyon, bank examiner, arrived Friday make the inventory and now charge. Officers state that the percentof dividends which the institution will pay will depend on this year's and the prices which brings. Three former ficers of the First National and prominent its affairs for many Robinson, R. G. Mason and Weston.

2. June 9, 1932 The Plainview News Plainview, NE
Article from The Plainview News, June 9, 1932

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Article Text

HARTINGTON'S LAST BANK IS CLOSED Hartington.-The First National of Hartington closed its doors last Thursday night after being in business for half a century lacking one year. A depleted cash reserve and withdrawal of deposits are given by officers as the reason for suspension. The bank might have continued to operate for a while longer, it is stated; but in order to protect their depositors, the board of directors decided to close. Failure of the local bank was no doubt hastened, if not precipitated by the closing of the First National of Crofton only two days before. There was quite a heavy run on the bank the previous day, it is reported.

3. June 9, 1932 The Homer Star Homer, NE
Article from The Homer Star, June 9, 1932

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Article Text

pond, he found the fish still the Proof the Elmo farm four northeast Hartington recently when bolt killed fine horses and stunned others and but failed ignite The lightning entered the barn through hay two that had with their during hour The two were killed two an adjoining stall stunned, was little that happened be the barn the time. pulled apart like paper folincident. of 2000, more without bank, First National Bank having closed doors just after being for nearly half century depleted reserve withdrawal of deposits are given officers the for pension. The tinued longtheir the board of decided Failure the bank no doubt hastened, closing the Crofton before. quite the bank the day, report-

4. June 17, 1932 The Ashton Herald Ashton, NE
Article from The Ashton Herald, June 17, 1932

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Article Text

Hartington, County Sea: Now Without a Bank Hartington people are stand. ing around on the street corners in little groups discussing the latest news. The news is un. pleasant and distressing an. other bank failure. The First National has closed its doors following, it is said, a heavy run The institution had made a heroic fight and the community hop., ed against hope that it might weather the economic storm, but it finally succumbed. The crash was no doubt hastened, if not OC. casioned, by the failure of the First National Bank of Crofton Failure of this bank creates an extraordinary situation. A county seat without a bank which formerly had three. In 1907 this community had three flourishing institutions— the Hartington National, the First National and the Farmers State. Later the First National and the Farmers State combined and still later the Cedar County State was organiz. ed. The first crash came in 1928 with the closing of the Hartington National, the Cedar County State failed in 1931 and now the last survivor has gone into the hands of the receiver.

5. September 5, 1932 Kearney Hub Kearney, NE
Article from Kearney Hub, September 5, 1932

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Article Text

Nebraska News Notes. Nebraska City, Neb., Sept. Violet Turnbaugh, 15, was near here yesterday afternoon when she stepped into deep hole the Missouri river. The girl had been wading with number compan Boats of Nebraska City Outboard Motor association races aided in searching for the body. Norfolk, Neb., Sept. B. 59, federal bank receiver, died here yesterday. He receiver for the Norfolk National bank and the First National banks Tilden, Hartington Crofton, Neb. Grand Island, Sept. Viola Knop, ended her life yesterday She believed dispondent over health. Kennard, Neb., Sept. body Harry Japp, was found hanging from here Saturday ternoon. The youth had been missing from his home since Thursday was believed to have ended his life while over inability find steady employment. Dalton, Neb., Sept. 5.-State and county officials are seeking identity of safe cracksmen blew open the post office safe here and made off in cash and equal sum stamps pool hall and blacksmith also were entered, presumably by the same marauders.

6. September 5, 1932 North Platte Daily Telegraph North Platte, NE
Article from North Platte Daily Telegraph, September 5, 1932

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Article Text

BANK RECEIVER DIES Omaha, Sept. 5. Funeral services will be held here tomorrow for Frank B. Burchmore, 59, former Omaha insurance man and federal bank receiver, who died Saturday night at his home in Norfolk. Burchmore had resided in Norfolk more than year as receiver for the Norfolk National bank, and the First National banks of Tilden, Hartington and Crofton. is survived by his widow, one daughter, six sisters and a brother. The body will be cremated after services at the Masonic temple in charge of Right Angle lodge No. 303, A. F. and A. M., and Arthur Jones, Christian Science reader. An ad in the Telegraph reaches those in North Platte trade territory that are able to buy.

7. September 5, 1932 The Stockman's Journal Omaha, NE
Article from The Stockman's Journal, September 5, 1932

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Article Text

Fred Burchmore Dies Norfolk, Neb., Sept. B. Burchmore, 59, federal bank receiver, died here yesterday. He was receiver for the Norfolk National bank and for the First National banks Tilden, Hartington and Crofton, Neb.

8. September 8, 1932 The Crofton Journal Crofton, NE
Article from The Crofton Journal, September 8, 1932

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Article Text

FRANK BURCHMORE TAKEN SUDDENLY AT NORFOLK HOME Frank B. Burchmore, 59, former Omahan and federal bank receiver, died suddenly Saturday night at Norfolk, Nebr., his home for the past year. At time of his death. Mr. Burchmore was United States government bank receiver for the Norfolk National, and the First National banks at Tilden, Hartington and Crofton, Nebr.

9. September 8, 1932 Norfolk Daily News Norfolk, NE
Article from Norfolk Daily News, September 8, 1932

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Article Text

New Receiver for National Harald Nomland, new receiver the Norfolk National bank, arrived here late Wednesday and assumed new duties Thursday morning. Mr. Nomland succeeds the Frank Burchmore, who died suddenly short time ago, He will receiver for the First National bank of Tilden, the First National Crofton and the First National Hartington. experienced bank receivcoming here from Kearney where held that position for the City National bank. Prior to his service there Mr. Nomland bank receiver at Stockton and Phillipsburg, Kan. He married and has daughter years old. The family will move here once.

10. September 10, 1932 The Omaha Morning Bee-News Omaha, NE
Article from The Omaha Morning Bee-News, September 10, 1932

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TRANSFER BANK RECEIVER KEARNEY. Sept. Nomland, receiver of the City National bank of Kearney, has been transferred to Norfolk, where he will be in charge of the Norfolk National bank and the First National banks at Hartington, Tilden and Crofton. Affairs of the City National are in the final stages of liquidation, and the final dividend, probably 2.8 per cent and amounting to approximately $50,000, probably will be ready in October. With the payment of this final dividend, the creditors will have received trifle 50 per cent of the total approved claims of $1,682,000.

11. February 16, 1933 The Crofton Journal Crofton, NE
Article from The Crofton Journal, February 16, 1933

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Article Text

Holiday Committee Meet Bank Receivers An Agreement Is Reached and MisUnderstandings Clear Up At Hartington The Crofton Farmers Holiday com mittee which met, with officials in charge of the defunct First National Bank of Crofton, Monday afternoon at Hartington, report a very satisfactory meeting. The various misunderstandings were discussed, suits against borrowers were dropped for the present. Those who represented the farm er were Ames Thompson, Ray Kramer, Paul J. Kohles and E. J. Gobel. These reperesenting the bank interests were Herald Nomland, re ceiver; Otto Burkhardt, Alfonse "Tubby" Lammers, and Mr. Weod ward. Mr. Nomland and the holiday com mittee stated Monday, that it was recently incorrectly stated in Sionx City papers that the First National Bank of Crofton had filed suits against 56 borrowers. According the committee this is false. There were 15 against whom pro ceedures were started, all these have been satisfactorily settled. The meeting was called by a spacial arrangement between the Hol iday committee and Mr. Nom nd According to one newspaper cor respondent the new admini will use the war debts to bargain with for increased W rld trade All right, SO we don't for increased debts in return the shipment cel of goods from Europe.

12. March 2, 1933 The Crofton Journal Crofton, NE
Article from The Crofton Journal, March 2, 1933

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Article Text

Knox County Receives $10,000 From Closed Bank Edw. J. Lenger Receives Money Of The Crofton First National Bank With a communication, dated Feb. ruary 24, received by Edw. J. Lenger, Knox county clerk, a draft for $10, 266.98 was received from bonds which secured Knox county deposits in the First National bank of Crofton. The draft was received from G. H. Pipkin of the Kansas City Mo. Reserve bank who was instructed in the matter by Harald Nomland, bank receiver. The amount represented the deposit amounting to $10 106. and interest on it. The par value of the bonds was $12,500. They were sold in order to pay the amount. This is the second payment made from the defunct bank. The other was around $5,000 received by the Crofton school board on school deposits.

13. March 9, 1933 The Wausa Gazette Wausa, NE
Article from The Wausa Gazette, March 9, 1933

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KNOX COUNTY RECEIVES $10,000 FROM CLOSED BANK Edw. J. Lenger Receives Money Of The Crofton First National Bank With a communication, dated Feb ruary 24, received by Edw. J. Lenger, Knox county clerk, a draft for $10,266.98 was received from bonds which secured Knox county deposits in the First National bank of Crofton. The draft received from G. H. Pipkin of the Kansas City, Mo., Re serve bank who was instructed in the matter by Harold Nomland, bank receiver. The amount represented the deposit amounting to $10,106.79 and interest on it. The par value of the bonds was $12,500. They were sold in order to pay the amount. This is the second payment made from the defunct bank. The other was around $5,000 received by the Crofton school board on school deposits.-Ex.

14. August 3, 1933 The Tilden Citizen Tilden, NE
Article from The Tilden Citizen, August 3, 1933

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Forrest Lear Is Named National Bank Receiver Forrest Lear of Norfolk, present in bankruptcy for the Norfolk has been named receiver for the Norfolk National bank, also First National bank of Tilden and First tional bank of Crofton, succeeding Harold Nomland, who was appointed receiver following the death of Burchmore. understood that Mr. Lear will continue for the present as referee bankruptcy although he assumed the position receiver at the close of business Wednesday. John Wehr, clerk and field who has been manager, charge of the bank here will tinue his position is announced.