2606. First American Bank Trust Company (West Palm Beach, FL)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: March 8, 1927
Location: West Palm Beach, Florida (26.715, -80.053)

Metadata

Model: gpt-5-mini
Short Digest: 201470b0

Response Measures

None

Description

The First American Bank Trust Company failed to open on March 8, 1927 and posted a notice that business was suspended for the protection of depositors. Directors stated the bank was solvent and would reopen after reorganization; newspaper reports show it reopened in late May 1927. Runs occurred on other local banks but the First American itself is reported as suspending (to protect depositors) and later reopening.

Events (2)

1. March 8, 1927 Suspension

Cause: Local Banks
Cause Details: Closed following failures and heavy withdrawals in other Palm Beach banks and continued large withdrawals locally; managers said closure was for protection of depositors amid local banking failures and unsettled conditions.
Newspaper Excerpt: Directors of the First American Bank Trust Company stated the bank is solvent and would be opened after reorganization. No sooner had the First American Bank Trust Company posted notice that business suspended for the protection of depositors than other institutions...failed to open this morning.
Source: newspapers

2. May 25, 1927 Reopening

Newspaper Excerpt: First American Bank Trust Company has announced will re-open for business ... The First American Bank has increased its capital and carry surplus of $100,000...the bank after period during which officials worked constantly untie the tangle in which involved in March.
Source: newspapers

Newspaper Articles (8)

1. June 29, 1926 The Philadelphia Inquirer Philadelphia, PA

Article from The Philadelphia Inquirer, June 29, 1926

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Article Text

DEPOSITORS STORM CLOSED of City's Largest Institutions Suspend; State Takes Charge Heavy Cash Reserves Save Two Others Experiencing Similar Demands Special Inquirer WEST PALM June of the largest banking institutions West Palm the Commercial Bank Trust and the Palm Beach Bank and Trust Combusiness today. The the Commer cial Bank that would not for open business today. to allow for reorganization of its resulted the other banks. The Palm Beach Bank and Trust Company, unable meet the heavy demands its deposi forced close its doors State Bank Examiner attached Ernest arrived the scene and posting notice the that the the State Hundreds depositors the morning the closed. demanding their money. made that the bank had suspended. positors compelled leave building. They gathered outside, ing for hours, hopes that had been would have opportunity to withdraw their money. Reserves Save Other Banks Other banks simi lar the Palm Beach Bank and Trust but heavy cash reserves piled behind the tellers' appeared reassure depositors ficials the First American Bank Trust Company and the Citizens' Bank West Palm Beach announced that they prepared meet all mands. stated that but slight dents their reserve had been made today's withdrawals. and that sufficient cash was hand pay positors dollar for dollar without vice president the Palm Beach Bank and Company. stated that the bank will reorganize reopen for business within thirty sixty "Heavy from the time the bank opened its doors they closed noon the taken only thing could sixty days, Bank Company closed plans

2. March 8, 1927 Tallahassee Democrat Tallahassee, FL

Article from Tallahassee Democrat, March 8, 1927

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Article Text

THREE OTHER PALM BEACH BANKS Remaining Banks Suffer Run, With Armoured Car From Miami to Rescue West Palm Beach, Mar. First Bank Trust Company of Palm Beach and the Northwood Bank & Trust Company closed their doors this morning, following the failure of the First American Bank Trust Company to open. The reason for the closing of the First American Bank & Trust Company was given as the condition following the failure of Palm Beach banks last June, the hurricane, continued realty depression, upheaval in city affairs, failure of the First Bank Trust Company of Lake Worth, and continued large withdrawals during the past few weeks. The other two banks were closed, is believed, to forestall runs. The Citizens Bank and the Farmers Bank & Trust Company perienced large runs, and it rumored that an armored car left Miami with currency to assist them. Directors of the First American Bank Trust Company stated the bank was solvent and would be reopened after reorganization. was said the bank was closed for the protection of depositors.

3. March 8, 1927 The Oshkosh Northwestern Oshkosh, WI

Article from The Oshkosh Northwestern, March 8, 1927

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Article Text

THREE Institutions at Palm Beach and West Palm Beach Fail to Open and Runs Start on Two Others in the Latter Place Palm Beach, First Bank Trust company West Palm Beach their doors today when the First American Bank Trust company failed open this morning. Runs began two oth er West Paim Beach banks Police charge of the crowds that gathered front of the institutions maintained order Officials the Citizens' bank nounced that armored car had left Miami for West Palm Beach bearing large of currency for the Cit izens bank and the Farmers Bank Trust company Directors the First American Bank Trust company that bank solvent and would be solvent and would be opened after organization The directors stated that more OR hand Officers the First American bank which is capitalized $300,000 said had to closed of generat the failure of three Palm Beach banks June The First Bank Trust company officials gave for the ing. but that the bank closed order The Northwood which West Palm to have closed for the RESU OF MOR. Springfield. of Marstate at miles north closed run started rumored that holdings in the Northside bank which FROZEN ASSETS Mendota. Arlington closed today the direc tors examination the books auditors Froz en assigned by John cashier the of the Cassidy he believed of depositors money safe.

4. March 8, 1927 The Sentinel Carlisle, PA

Article from The Sentinel, March 8, 1927

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Article Text

Three West Beach Banks Close Their Doors West Palm Beach, leading banks the Palm Beach district doors day and started of the most zied runs the history Florida finance. Mid-day found jam med depositors seeking their money withdrawing from remaining the Runs the Farmers Bank and Citizens Bank West Palm such that armored from Miami bearing for panicky depositors. No sooner had the First American Bank Trust Company notice that business suspended for protection positors than other institutions Northwood Bank Trust West Palm Beach, and Bank Trust Palm Heavy withdrawals on all three banks during past eight months and unsettled conditions affairs this part the given reasons for closing

5. March 8, 1927 The Record Stockton, CA

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Article Text

BANKS WEST PALM BEACH, March First Bank and Trust Company of Palm Beach and the Northwood Bank Trust Company of West Palm Beach closed their doors today when First American Bank Trust Company falled to open this morning. Runs began on two other Palm Beach banks. Police took charge of the crowds that gathered in front of the Institutions and maintained order. Armored Car Ordered Officials of the Citizens' Bank announced that an armored had left Miami for West Palm Beach bearing large sum of currency for the Citizens' Bank and the Farmers' Bank Trust Company. Directors of the First American Bank Trust Company stated that the bank is solvent and would be opened after reorganization. The directors stated that have they more than legal reserve on hand. The First was capital. sued this morning showed: Loans and cash vault, cash other liabilities bills payable, deposits, $2,Cause Trouble The First American Bank's officers said had to closed of general conditions follow. failure three Palm Beach banks last the the depression real estate, the the city fairs, failure of the First Bank Trust Company few weeks Lake Worth, and continued large by depositors in the past More than $10,500,000 has been bank neak of deposits few ago, directors said. The Bank Company Palm Beach Is capitalized has surplus and undivided profits. No reason announced for but that the bank closed order to forestall The Bank, which the Beach believed have closed for the same reason. the First Bank Trust Lake Worth few weeks ago had apparently inspired here withdraw their accounts in large sums.

6. March 8, 1927 News Journal Wilmington, OH

Article from News Journal, March 8, 1927

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Article Text

FLORIDA BANKS CLOSING; PLAN REORGANIZATION WEST PALM BEACH, Mar. Central East Coast Florida banks were closed today. The First Bank Trust Company, of Palm Beach, and the Bank & Trust Company of West Palm Beach were closed when the First American Bank Trust Company failed to open. Runs began on two other West Palm Beach banks. Police took charge of the crowds that gathered in front of the institutions, and maintained order. Officials of the Citizens Bank announced an armored car had left Miami for West Palm Beach bearing large sum of money for the Citizens Bank and the Farmers Bank & Trust Company. Directors of the First American Bank Trust Company stated the bank is solvent and would be opened after reorganization. Directors stated they have more than legal reserve on hand. The First American was capitalized at $300,000. Officers of the First American Bank said it had been closed because of general conditions following the failure of three Palm Beach banks last June, the hurricanes, the continued depression real estate, the upheaval in the city affairs, the failure of the First Bank Trust Company few weeks ago in Lake Worth, and continued large withdrawals by depositors in the past few weeks. More than $10,500,000 has been withdrawn from the bank from peak of $13,500,000 deposits few

7. March 8, 1927 Troy Daily News Troy, OH

Article from Troy Daily News, March 8, 1927

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START BANKS CLOSE STREETS JAMMED WEST PALM BEACH AS DEPOSITORS SEEK TO SAVE MONEY CAR BRINGS CASH Heavy Withdrawals In Last 10 Months and Unsettled Conditions Are Blamed (By United Press) West Palm Beach, Fla., March Three leading banks of the Palm Beach district closed their doors to day and started one of the most frenzied runs in the history of Florida finance. Midday found jammed with depositors seeking to save their money by withdrawing from the maining banks. Runs the Farmer's bank and the Citizens bank of West Palm Beach such that an armored car was sent from Miami bearing cash for the panicky depositors. No sooner had the First American Bank Trust company posted notice that business was suspended for the protection of depositors than othinstitutions Northwood Bank Trust company West Palm Beach, and the First Bank Trust company of Paud Beach. Heavy withdrawals on all three banks during the past eight or 10 months and conditions this part of the state were given reasons for closing.

8. May 25, 1927 Johnson City Chronicle Johnson City, TN

Article from Johnson City Chronicle, May 25, 1927

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WED. WEST PALM May remaining closed for two months the result heavy runs last March. First American Bank Trust Company has announced will re-open for business Cornish, of Little Rock. Ark.. will head the new institution in the place of Brelsford. who became chairman the board. The First American Bank has creased its capital and carry surplus of $100,000, announced. The bank after period during which officials worked constantly untie thetangle in which involved in March. All had and has been charged claimed. Ernest Amos. comptroller of currency for Florida wired ulations to the officers of the bank. Lynn Dinkins president of the Trust Banking Co. and Pool, president of the Marine Bank and Trust both New added the rectorate Cornish, the new president of the First American.