First National Bank - Sidney, NE

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 6201
Charter Number: 6201
Start Date: May 11, 1921
Location: Sidney, Nebraska (41.143, -102.978)

Metadata

Model: gpt-5-mini
Short Digest: 1eb4a994

Response Measures

Full suspension

Receivership Details

Depositor recovery rate: 43.2%
Date receivership started: 1921-05-27
Date receivership terminated: 1925-01-13
OCC cause of failure: Losses
Share of assets assessed as good: 46.3%
Share of assets assessed as doubtful: 49.0%
Share of assets assessed as worthless: 4.7%

Description

May 10–11, 1921: heavy withdrawals forced the First National Bank of Sidney to close (suspend) temporarily; it did not resume and was wound up under a receiver with a new Sidney National bank later chartered (March 1922) to take over business and pay depositors. Cause attributed in contemporaneous report to the existing financial stringency and withdrawals that reduced reserves. No indication of a misinformation-triggered (random) run.

Events (7)

1. April 9, 1902 Chartered

Source: historical_nic

2. May 11, 1921 Run

Cause: Macro News
Cause Details: Existing financial stringency led to heavy withdrawals that reduced the bank's reserve; a $10,000 cash check presented precipitated the run/withdrawals.
Measures: Bank closed (suspended) operations; officers stated suspension was temporary.
Newspaper Excerpt: The First National Bank of Sidney closed its doors today. Officers say it Is not insolvent. and that the suspension is temporary brought about by the existing financial stringency. Closing of the bank It was stated was due to the fact that withdrawals reduced the reserve below the point of safety. A depositor precipitated the closing by presenting a check for $10,000 when there was not that much cash on hand.
Source: newspapers

3. May 11, 1921 Suspension

Cause: Macro News
Cause Details: Suspension was attributed to the existing financial stringency and withdrawals that left reserves below safety (precipitated by a $10,000 check).
Newspaper Excerpt: The First National Bank of Sidney closed its doors today. Officers say it Is not insolvent, and that the suspension is temporary brought about by the existing financial stringency.
Source: newspapers

4. May 27, 1921 Receivership

Source: historical_nic

5. March 20, 1922 Receivership

Newspaper Excerpt: This new bank will take over the business of the First National bank of Sidney, which closed May 10, 1921, and will pay depositors in full under a certificate of deposit plan, which has been approved by the comptroller of the currency at Washington, D. C.... This company will attend to the liquidation of the assets of the First National bank. Mr. Chapman, the president of the institutions, comes from Colorado, where he has had banking experience. He also has been the receiver of the First National bank of Sidney, Chappel and Bridgeport.
Source: newspapers

6. November 28, 1924 Other

Newspaper Excerpt: Final Dividend Awaits Defunct Bank's Depositors Sidney, Nov. 28.-Receiver Wilson of the defunct First National bank, is unable to deliver dividend checks to many former depositors of that institution. He has recently announced the last dividend of 28 per cent,...
Source: newspapers

7. February 15, 1928 Other

Newspaper Excerpt: Read, former vice-president of the defunct First National bank here testified that thousand dollar note claimed by James Connell to be forgery was the property of H. Read, former president, not of the bank. Spurway, bank receiver, is suing Connell for collection on notes held by the bank.
Source: newspapers

Newspaper Articles (4)

1. May 12, 1921 Pueblo Chieftain Pueblo, CO

Article from Pueblo Chieftain, May 12, 1921

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Article Text

BANK CLOSES DOORS Sidney, Neb., May 11.-The First National Bank of Sidney closed its doors today. Officers say it Is not insolvent. and that the suspension is temporary brought about by the existing financial stringency Closing of the bank It was stated was due to the fact that withdrawals reduced the reserve below the point of safety. A depositor precipitated the closing by presenting a check for $10,000 when there was not that much cash on hand. The bank had a capital stock of $25,000 and deposits of $424,000. W. E. Swartzlander is president and Leslie Neubauer, cashier.

2. March 20, 1922 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, March 20, 1922

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Article Text

New Bank Chartered. Sidney.-The Sidney National bank has been chartered and will open about May 1. This new bank will take over the business of the First National bank of Sidney. which closed May 10, 1921, and will pay depositors in full under a certificate of deposit plan, which has been approved by the comptroller of the currency at Washington, D. C. The officers of the new bank will be Francis A. Chap. man, president; Ralph S. Price, vice president, and Charles L. Mann, cashier. The capital stock will be $50,000 with a paid up surplus of $25,000 at the start. There will also be organized and operated in the same building the Sidney Investment company with a capital stock of $300,000 and surplus of $200,000. They will handle the investments of the closed First National bank and act as holding company for the loans and deposits of the defunct bank. The officers of the Investment company will be Francis A. Chapman, president and Ralph S. Price, secretary and treasurer, with W. F. Swatzlander as general manager. This company will attend to the liquidation of the assets of the First National bank. Mr. Chapman, the president of the institutions, comes from Colorado, where he has had banking experience. He also has been the receiver of the First National bank of Sidney, Chappel and Bridgeport. Mr. Price has been assistant to Mr. Chapman and was formerly engaged in the banking business in Grand Island, where he was associated with the Grand Island State bank. Mr. Mann has lived in Sidney for several years and was formerly assistant cashier of the First National bank. - The new bank will occupy the quarters formerly occupied by the First National bank.

3. November 29, 1924 The Omaha Morning Bee Omaha, NE

Article from The Omaha Morning Bee, November 29, 1924

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Article Text

Final Dividend Awaits Defunct Bank's Depositors Sidney, Nov. 28.-Receiver Wilson of the defunct First National bank, is unable to deliver dividend checks to many former depositors of that institution. He has recently announced the last dividend of 28 per cent, but letters to scores of depositors, telling them the money is ready for them. have received no response. He has thousands of dollars on hand that he is unable to deliver to the depositers.

4. February 15, 1928 Evening World-Herald Omaha, NE

Article from Evening World-Herald, February 15, 1928

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Article Text

SUIT GOES TO JUDGE Read Testifies That Note Not Owned by Bank. Special Dispatch Sidney, Feb. Read, former vice-president of the defunct First National bank here testified that thousand dollar note claimed by James Connell to be forgery was the property of H. Read, former president, not of the bank. Spurway, bank receiver, is suing Connell for collection on notes held by the bank. The case was given to Judge H. Mantz Monday night.