Other: The bank closed and subsequently went into liquidation/receivership (receiver appointed); depositors and stockholders discussed rehabilitating the bank and placing new capital in escrow.
Receivership Details
Depositor recovery rate
65.8%
Date receivership started
1895-01-29
Date receivership terminated
1904-09-30
OCC cause of failure
Fraud
Share of assets assessed as good
18.5%
Share of assets assessed as doubtful
62.9%
Share of assets assessed as worthless
18.5%
Notes
Official receivership articles dated Feb 1895 conflict slightly with the provided known receivership date (1895-01-29).
Events (5)
1.July 3, 1886Chartered
Source
historical_nic
+8.4 years
2.November 8, 1894Run
Cause
Rumor Or Misinformation
Cause Details
Withdrawals by several heavy depositors provoked by false rumors that the bank was unsafe.
Measures
Cashier closed doors and posted notice to protect depositors; bank suspended payments.
Newspaper Excerpt
A quiet run was organized that went on all day yesterday...the rush commenced, and Cashier Kohl closed the doors.
Source
newspapers
same day
3.November 8, 1894Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank posted suspension after heavy withdrawals triggered by rumors; directors stated depositors would not lose money.
Newspaper Excerpt
Closed for the want of funds. O. H. Kohl, Cashier. Notice posted that suspension was due to lack of funds.
Source
newspapers
+82 days
4.January 29, 1895Receivership
Newspaper Excerpt
WASHINGTON, Feb. 6.-The Comptroller of the Currency has appointed William J. Broderick receiver of the First National Bank at San Bernardino, Cal.
Source
newspapers
same day
5.January 29, 1895Receivership
Source
historical_nic
Newspaper Articles (22)
1.November 9, 1894The Record-UnionSacramento, CA
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Article Text
Bank Failure. SAN BERNARDINO, Nov. 8.-The First National Bank in this city closed its doors this morning after remaining open about ten minutes. Notice was posted on the door: "Closed for the want of funds. O. H. Kohl, Cashier." One of the directors states that depositors will not lose a dollar, but the bank was forced to close by the withdrawal of large sums by a few heavy depositors who bad become alarmed by false rumors circulated in the last few days. It is understood that the cause of the failure originated in personal quarrels among the officers of the bank. President Joseph Brown, when interviewed, stated that the bank would not resume business, but would go into liquidation. The securities of the bank and its assets are sufficient to pay all depositors in full, and leave something to be distributed among the stockholders. The bank has a paid up capital of $100,000, and when it closed had deposits of about $200,000. Other banks in the city are not in the least atfected by the failure of the First National.
2.November 9, 1894The Daily Morning Journal and CourierNew Haven, CT
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Article Text
Bank Closed its Doors. San Bernadino, Cal., Nov. 8.-The First National bank of this city closed its doors this morning. A quiet run went on all' day yesterday and this morning a rush was made,
3.November 9, 1894The TimesRichmond, VA
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Article Text
Ren on 19 Bank Brenks It. SAN BERNARDINO. CAL. Nov. 8.The First National Bank, of this city, closed its doors this morning. A quiet run was organized that went on all day yesterday. Nothing was thought of it, but on opening this morning the rush com. menced, and Cashier Kohl closed the doors and posted the notice to protect all depositors. The bank was doing the largest business in the city. The bank officers have not yet made n statement. They closed with over $10,000 on hand, and there will be a surplus after danositors are paid.
4.November 9, 1894Wheeling RegisterWheeling, WV
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Article Text
National Bank Closed. SAN BERNARDINO, CALA., November 4. - The San Bernardino First National bank closed its doors this morning and has posted a notice that the suspension was due to lack of funds, The direc. tors assert that the bank's depositors will not lose a dollar. They state that the withdrawal of large sums of money by a few beavy depositors who bad become alarmed by the rumors that the bank was unsafe. broughton the failure.
National Bank Suspends. SAN FRANCISCO, Nov. 9. - The San Bernardino First National bank closed its doors and posted a notice that the suspension was due to lack of funds. The direcsors assert that the bank's depositors will not lose a dollar.
6.November 9, 1894The Portland Daily PressPortland, ME
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Article Text
Bank Closed Its Doors. San Berardino, Cal., November 8.-The First National bank of this city closed its doors this morning. Quite a run was organized that went on all day yeserday. Nothing was thought of it, but on opening this morning the rush commenced, and Cashier Kohl closed the doors. The bank was doing the largest business in the city.
7.November 9, 1894Birmingham Age-HeraldBirmingham, AL
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Article Text
CLOSED ITS DOORS. SAN BERNARDINO, Cal., Nov. 8.-The First National bank of this city closed its doors this morning. A quiet run was organized that went on all day yesterday. Nothing was thought of it, but on opening this morning the rush commenced, and Cashier Kohl closed the doors and posted the notice to protect all depositors. The bank was doing the largest business in the city.
8.November 9, 1894The Morning NewsSavannah, GA
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Article Text
A SAN BERNARDINO BANK SHUT. Depositors Organize a Run and the Suspension Follows. San Bernardino, Cal., Nov. 8.-The First National bank of this city closed its doors this morning. A quiet run was organized that went all day yesterday. Nothing was thought of it, but on opening this morning the rush commenced and Cashier Kohl closed the doors and posted the notice to protect all depositors. The bank was doing the largest business in the city, 1
9.November 9, 1894Evening JournalWilmington, DE
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Article Text
National Bank Suspends. SAN FRANCISCO, Nov. 9.-The San Bernardino First National bank closed its doors and posted a notice that the suspension was due to lack of funds. The direcsors assert that the bank's depositors will not lose a dollar.
10.November 9, 1894The Providence NewsProvidence, RI
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Article Text
Short of Funds. SAN BERNARDINO, Cal., Nov. 9.-The First National bank closed its doors yesterday because of a lack of funds. The directors state that the withdrawal of large sums of money by a few heavy depositors brought on the failure.
11.November 15, 1894People's VoiceWellington, KS
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Article Text
It is reported from Paris that the Government will ask the Chamber of Deputies for a credit of 60,000 francs for the expense of an expedition against the Hovas, the ruling tribe of Madagascar. The hostile operations will be under the direction of the Minister of Marine. Col. Borgoise des Bordes will hold the chief command. Governor Altgeid last Wednesday commuted to imprisonment for life the sentence of Gustave H. Menkhausen, of St. Clair county, who killed his wife about a year ago, and was condemned to belhung. In granting the commutation the Governor suggests that there is a possibility that the woman committed suicide and was not murdered. The First National Bank of San Bernardino, Cal., closed its doors last Thursday morning, and posted a notice that the suspension was due to lack of funds. The directors assert that the bank's depositors will not lose a dollar. They state that the with drawal of large sums of money by a few heavy depositors who had become alarmed by rumors that the bank was unsafe brought on the failure. The store of Julius Auerbach, at Wetmore, Mo., was looted last Saturday night, watches and clothing being taken.
12.November 16, 1894Hot Springs Weekly StarHot Springs, SD
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Article Text
California Bank Suspends, SAN BERNARDINO, Cal., special: The San Bernardino First National Bank has closed its doors and posted a notice of suspension due to lack of funds. The directors assert that the banks depositors will not lose a dollar.
13.November 21, 1894The StarReynoldsville, PA
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Article Text
LATE NEWS IN BRIEF. Items of Interest from Many Places For Hasty Reading. CAPITAL AND LABOR. The trouble with the dock laborers at New Orleans is about ended. Frank A. Knowles, a Salem, O., harness manufacturer assigned with liabilities 01 $4,200 and assets unknown. Depositors of the broken First Nationa Bank of San Bernardino, Cal., are arranging to run the bank themselves. The block coal miners of Brazil, Ind., declare that they will not go out, even if a strike should be ordered by President MeBride. Samuel Gompers. president of the American Federation of Labor, has gone to Chicago to aid union cloakmakers their in winning their strike.
14.November 23, 1894The HeraldLos Angeles, CA
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Article Text
THAT SUSPENDED BANK. An Attempt to Aid the San Bernardino Institution. In referring to the suspended First National bank of San Bernardino the other day N. J. Levinson of the Daily Sun of that city said "that it seems likely that the depositors will arrange to rehabilitate the bank soon. It is understood that the stockholders will not stand in the way and that they will place their stock in escrow for a certain length of time. Thus the principal debts of the bank will be temporarily provided for. The intention of the stockholders is to put new capital into the concern, put it on a sound basis and build it up."
15.February 3, 1895The Morning CallSan Francisco, CA
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Article Text
Elliott Appointed Receiver. SAN BERNARDINO, Feb. 2.-The depositors of the First National Bank united on E. D. Elliott, its bookkeeper, for permanent receiver at a meeting held this afternoon.
16.February 3, 1895The HeraldLos Angeles, CA
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Article Text
Agreed on a Receiver. SAN BERNARDINO, Feb. 2.-The depositors of the First National bank united on E. D. Elliott, its late book-keeper. for permanent receiver at a meeting this afternoon.
17.February 7, 1895Evening StarWashington, DC
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Article Text
Receivers Appointed. The controller of the currency has appointed William J. Broderick receiver of the First National Bank at San Bernardino, Cal., and Albert G. Whittemore receiver of the Dover National Bank at Dover, N. H.
18.February 7, 1895The Record-UnionSacramento, CA
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Article Text
Receiver Appointed. WASHINGTON, Feb. 6.-The Comptroller of the Currency has appointed William J. Broderick Receiver of the First National Bank at San Bernardino, Cal.
19.February 7, 1895The HeraldLos Angeles, CA
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Article Text
Bank Receiver Appointed. WASHINGTON, Feb. 6.-The comptrolier of the currency has appointed William J. Broderick receiver of the First National bank of San Bernardino, Cal.
20.February 7, 1895The Morning CallSan Francisco, CA
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Article Text
Broderick Appointed Receiver. WASHINGTON, Feb. 6.-The Comptroller of the Currency has appointed William J. Broderick, receiver of the First National Bank at San Bernardino, Cal.
21.April 23, 1895The San Francisco CallSan Francisco, CA
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Article Text
Will Be Paid a Dividend. SAN BERNARDINO, CAL., April 22.Receiver Broderick of the First National Bank announced to-day that the depositors of the bank could be paid a dividend of 20 per cent between the 15th and 20th of May next. This will amount to a little over $30,000.
22.June 15, 1895The HeraldLos Angeles, CA
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Article Text
Sued for a Big Sum The suit of William J. Broderick, as receiver of the First National bank of San Bernardino against Joseph Brown, formerly president of the bank, for $15,000 borrowed from the institucion upon notes, is on trial in the United States circuit court. The defendant sets up a counter claim of $20,500, which he says was a loan to the bank when it was in financial stress. The plaintiff maintains that it was a voluntary assessment. and similar in its nature to those of other shareholders who wanted to prevenu the bank from going to the wall.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
