3140. Second National Bank (New Hampton, IA)

View Charter #7607 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
7607
Charter Number
7607
Start Date
May 3, 1926
Location
New Hampton, Iowa (43.059, -92.318)

Metadata

Model
gpt-5-mini
Short Digest
b938e9dd1d893217

Response Measures

Full suspension

Receivership Details

Depositor recovery rate
87.5%
Date receivership started
1931-07-14
Date receivership terminated
1938-02-09
Share of assets assessed as good
48.2%
Share of assets assessed as doubtful
46.1%
Share of assets assessed as worthless
5.6%

Description

1926 articles report withdrawals caused by false rumors leading directors to close the bank (suspension). By 1933 the bank is listed as in receivership (RFC loan authorized to receiver), indicating permanent closure/receivership after the suspension. Dates are taken from newspaper publication dates and phrasing.

Events (5)
1. February 11, 1905 Chartered
Source
historical_nic
2. May 3, 1926 Run
Cause
Rumor Or Misinformation
Cause Details
Withdrawals were prompted by circulation of false rumors about the banks in the Shaffer chain.
Measures
Directors closed the banks' doors to avoid giving preference to certain depositors; reorganization to start.
Newspaper Excerpt
Withdrawals caused by circulation of false rumors prompted the directors' action
Source
newspapers
3. May 3, 1926 Suspension
Cause
Rumor Or Misinformation
Cause Details
Board of directors closed the banks after heavy withdrawals caused by false rumors; closure intended to permit reorganization and avoid preferential payouts.
Newspaper Excerpt
Five banks ... were closed yesterday by the board of directors.
Source
newspapers
4. July 14, 1931 Receivership
Source
historical_nic
5. September 7, 1933 Receivership
Newspaper Excerpt
Second National Bank of New Hampton (receiver) $24,000. Loans ... authorized in July ... reported Sept. 7, 1933 by RFC report excerpted in newspaper article.
Source
newspapers

Newspaper Articles (2)
1. May 4, 1926 Evening Star Washington, DC
Article from Evening Star, May 4, 1926

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Article Text

FIVE BANKS IN IOWA CHAIN CLOSE DOORS False Rumors Blamed-Directors to Reorganize Companies, President Says. By the Associated Press. NEW HAMPTON, Iowa. May 4. Five banks of the Shaffer chain, located at Bassett. Ionia, Fredericks burg and New Hampton, were closed yesterday by the board of directors. Withdrawals caused by circulation of false rumors prompted the directors' action in an effort to avoid giving preference to certain depositors, President W. G. Shaffer said. All of the banks, he said, would "pay out well." Reorganization is to start immediately. The Second National Bank of this town was the largest involved.

2. September 7, 1933 The Daily Nonpareil Council Bluffs, IA
Article from The Daily Nonpareil, September 7, 1933

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Article Text

MORE BANK LOANS ARE CANCELLED REPORT OF R. F. C. SHOWS DECREASE IN JULY DISBURSEMENTS. MUCH NOT GIVEN OUT WASHINGTON, Sept. 7, The report of the Reconstruction Finance corporation for July shows that Iowa banking and credit institutions withdrew or cancelled more loans than were authorized or received during the month. The following loans were authorized in July: City Trust and Savings bank, Boone, $50.200 (no amount disbursed to July 31.) First National Bank of Indianola (receiver) $23,000. Second National Bank of New Hampton (receiver) $24,000. Loans totaling 896,257 were authorized by the Regional Agricultural Credit corporation at Sioux City, of which $960,202 was not disbursed to July 31. The Russell State Bank and Trust company withdrew or cancelled a $15,000 loan previously authorized, and the Des Moines Mortgage company withdrew or cancelled a $2,710,550 loan. The First National Bank of Ackley (receiver, cancelled or withdrew $3,000; Citizens National Bank and Trust company of Knoxville (conservator) $10,000; National Bank of Milton (receiver) $7,500. and the Burlington Joint Stock Land Bank of Des Moines, $168,000 These amounts. which were cancelled or withdrawn. do not represent the entire sum of authorized loans