Palm Beach National Bank - Palm Beach, FL

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 12600
Charter Number: 12600
Start Date: March 9, 1927
Location: Palm Beach, Florida (26.706, -80.036)

Metadata

Model: gpt-5-mini
Short Digest: 3816882f

Response Measures

None

Receivership Details

Depositor recovery rate: 74.4%
Date receivership started: 1926-07-02
Date receivership terminated: 1931-05-09
OCC cause of failure: Economic conditions
Share of assets assessed as good: 41.9%
Share of assets assessed as doubtful: 38.8%
Share of assets assessed as worthless: 19.3%

Description

The bank is reported to have closed/failed to open in March 1927 and is later described as being in receivership with a receiver paying dividends in December 1927. Article 1 links the closure to the failure of the Bankers' Trust Co. of Atlanta, which sponsored a chain of banks, so the proximate cause is failure/distress of a correspondent/sponsoring bank rather than a pure depositor run in the articles provided.

Events (4)

1. November 25, 1924 Chartered

Source: historical_nic

2. July 2, 1926 Receivership

Source: historical_nic

3. March 9, 1927 Suspension

Cause: Correspondent
Cause Details: Closure attributed to fallout from the failure of the Bankers' Trust Co. of Atlanta, which had sponsored a chain of banks including Palm Beach National Bank.
Newspaper Excerpt: The Commercial Bank and Trust Co. and the Palm Beach National Bank, members of the chain, also closed.
Source: newspapers

4. December 4, 1927 Receivership

Newspaper Excerpt: BANK RECEIVER TO PAY INITIAL DIVIDEND ... the Palm Beach National dividend of 10 per ... Dividends will paid all depositors ... the bank took the office receiver ... the earned ... up to November ... checks aggregating the amount were issued by the ... receiver brought here ... dividends will be paid to all depositors ... the Palm Beach National bank ... was in receivership ... .
Source: newspapers

Newspaper Articles (3)

1. March 9, 1927 Evening Star Washington, DC

Article from Evening Star, March 9, 1927

Click image to open full size in new tab

Article Text

CLOSING OF BANKS AROUSES CONCERN "Man in Street" Regards West Palm Beach Suspensions With Apprehension. By the Associated Press. WEST PALM BEACH, Fla., March 9.-Ready money, an incident heretofore in this resort for the wealthy, was of prime concern today. The man in the street regarded apprehensively an abrupt suspension of three banks. Millionaire Winter visitors, attracted momentarily from their sports and tea dances, paused to offer financial assistance to two banks that had the burden of keeping the dollar in circulation. Citizens' Bank and the Farmers' Bank & Trust Co.-"as solid as Gibraltar," officials said-awaited additional funds from Jacksonville ,with which to augment a special consignment of $2,000,000 that yesterday enabled them to meet withdrawals and remain open until 2 o'clock, the regular closing time. Closed Banks Await Inspection. The three closed banks, with capital aggregating $500,000, awaited inspections by State bank examiners. The First American Bank & Trust Co. and the First Bank & Trust Co. of Palm Beach failed to open yesterday. The Northwood Bank & Trust Co. suspended business "in the interest of depositors" an hour after opening. Offers of assistance were made by several prominent tourists, some of whom had pressed through long lines of anxious clients bent on withdrawing accounts, to make comparatively large deposits. Volunteer to Assist. T. T. Reese, president of the Farmers' Bank, said that among those who were ley, volunteered Lexington, support Ky.; E. T. E. Stotesbury, R. BradPhiladelphia; S. Davies Warfield, Baltimore; John S. Phipps, Pittsburgh; A. J. Drexel-Biddle, Philadelphia; Thomas A. Clarke, Brooklyn, and F. C. Butler, Chicago. Mr. Reese, attributing the failures to several causes, said there was no real emergency. Last June the Palm Beach Bank & Trust Co. closed its doors after the Bankers' Trust Co. of Atlanta, Ga., failed. The Atlanta company had sponsored a chain of 83 banks, several of which were. in Florida. The Commercial Bank and Trust Co. and the Palm Beach National Bank, members of the chain, also closed. Two months later a hurricane

2. December 4, 1927 The Palm Beach Post West Palm Beach, FL

Article from The Palm Beach Post, December 4, 1927

Click image to open full size in new tab

Article Text

BANK RECEIVER TO PAY INITIAL DIVIDEND Tunnicliffe Announces Early Payment of 10 Percent to Depositors TOTAL OF $107.232.38 WILL BE DISTRIBUTED Report Shows Interest Due Institution Has Paid for Receivership Following the heels of nouncement by Cunningham, that dividends would be paid depositors of both First Nation. bank of Lake Worth the Palm Beach National dividend of 10 per of the Commercial Bank Trust company declared yesterday The dividend declared follow. Mr. return from Tallahassee where the approval of the given. Checks aggregating the amount were issued by the brought here by the Dividends will paid all deposi. the bank hold certificates issued Payments be made immediately presentation of the certificates. notification of the divi. dend being mailed out yester. day by Mr. Tunnicliffe holders of certificates in the The contents as hereby notified that first has issued by the of the be made at the office of the mercial Trust Palm Beach, and that the certificates presented that proper made ceiver's must the same the address given above the proper on the certificate, be turned to the owner together dividend Mr. as The bank took the office receiver last recent to the that the the earned the the up to No. vember had been the the and leave operating profit of dividends the National Lake Worth and the Palm Beach National bank December made Thursday Cunningham, for these He said that the dividend depositors First National bank of Lake Worth would and those the Palm Beach bank would With the payment of the dividend the Palm Beach stitution 1926 The dividend the Worth institution be its

3. December 2, 1933 The Palm Beach Post West Palm Beach, FL

Article from The Palm Beach Post, December 2, 1933

Click image to open full size in new tab

Article Text

Former Bank Receiver Here Dies in Boston Word received the Boston John receiver national banks Miami West Palm Beach His followed stroke, suffered three weeks earlier. He years Mr. Cunningham for many the employ the federal government, and served ceiver for Boston banks. He became widely known federal circles through his connection the office the comptroller currency and member the bureau criminal investigation, department of justice receiver Palm Beach National bank, the National Bank West Palm Beach the First National Lake Worth, Cunningham made enviable Rio Grande Texas cently voted for her cease being