First National Bank - Chatham, VA

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 10821
Charter Number: 10821
Start Date: February 2, 1931
Location: Chatham, Virginia (36.826, -79.398)

Metadata

Model: gpt-5-mini
Short Digest: 17e3f69a

Response Measures

None

Description

Article (The Bee, Feb 2 1931) discusses the First National Bank of Chatham having been closed and indicates serious mismanagement, pledged assets, large discrepancies and declining condition for years. No explicit run described; the bank had closed and appears to remain closed with court/state commission involvement. Date of closure not specified in article; used publication date as reference.

Events (4)

1. February 2, 1916 Chartered

Source: historical_nic

2. May 24, 1930 Voluntary Liquidation

Source: historical_nic

3. February 2, 1931 Other

Newspaper Excerpt: they and their counsel should have access to the records the banking division the State Corporation Commission ... upon request made of the State Corporaton Commission with the approval of the court, such access will be granted and recommend that court proper decree direct and authorize to make such request .
Source: newspapers

4. February 2, 1931 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Mismanagement: assets pledged improperly, large discrepancies between book values and actual assets, charge-offs for bad debts and depreciation over several years leading to closing.
Newspaper Excerpt: purchase made the assets of the First National Ban of Chatham, and the liabilities th bank without any authorit whatsoever ... the affairs the bank have been in declining condition ... prior to its closing
Source: newspapers

Newspaper Articles (1)

1. February 2, 1931 The Bee Danville, VA

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Article Text

June improper source. in the hands Notes which are have been renewed collateral holders bank retaining the retaining the old collateral holder instances renewal notes note. In some the bank are for by from that old note amounts collateral holder. leas the three instances the bank received notes in the hands ments lateral holders but failed to accoun the holder of the collateral these The result would be that the makers of pear to still bound for the although fact they amount the bank sums that should paid have reduced them. Money has been borrowed from oth banks and the assets of the ban pledged apparently without Sec. 4149(50) the pliance purchase made the assets of the First National Ban of Chatham, and the liabilities th bank without any authorit whatsoever from either stockholder or directors, far the records the Chatham show. operation of the bank eleven immediately prior to its closing conducted loss charge-offs for bad debts depreclation. matter of fact filed with the report dicates rather strongly that for proximately four years the affairs the bank have been in declining condition. These together the remarkably large discrepancy tween the actual value of the and their supposed value on the bank's books inclines the to the opinion that the searching should be made the bank's period years. As an incident to an fort the are of the opinion that highly important that they and their counsel should have access to the records the banking division the State Corporation Commission insofar they deal with fairs of the Chatham Savings Bank We are advised that upon request made of the State Corporaton Commission with the approval of the court, such access will be granted and recommend that court proper decree direct and authorize to make such request.