First National Bank - Swea City, IA

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 5637
Charter Number: 5637
Start Date: October 29, 1927
Location: Swea City, Iowa (43.384, -94.315)

Metadata

Model: gpt-5-mini
Short Digest: 782e9f93

Response Measures

Full suspension, Books examined

Other: Bank placed in charge of a representative of the Controller of the Currency; receivership followed.

Receivership Details

Depositor recovery rate: 41.9%
Date receivership started: 1927-10-29
Date receivership terminated: 1932-08-01
OCC cause of failure: Economic conditions
Share of assets assessed as good: 24.6%
Share of assets assessed as doubtful: 60.0%
Share of assets assessed as worthless: 15.4%

Description

Newspapers report heavy withdrawals depleted reserves and the national bank was closed Oct 29, 1927 with a representative of the Controller of the Currency in charge. Subsequent articles (1929, 1932) refer to the bank as defunct and in receivership; assets later advertised for sale. Cause of the initial run is not attributed to a rumor or specific scandal in the articles—withdrawals are stated as the proximate reason—so run cause is categorized as 'other' and the suspension is listed as government action (Controller involvement).

Events (7)

1. December 13, 1900 Chartered

Source: historical_nic

2. October 29, 1927 Receivership

Source: historical_nic

3. October 29, 1927 Run

Cause Details: Heavy withdrawals depleted reserves; article attributes closing to depleted reserves from heavy withdrawals (no specific rumor or scandal named).
Measures: Bank was closed at noon and placed in charge of a representative of the Controller of the Currency.
Newspaper Excerpt: Three Kossuth County banks ... and the First National Bank at Swea City -were closed at noon today. ... Depleted reserves, due to heavy withdrawals, are assigned as reason for the closing in each case.
Source: newspapers

4. October 29, 1927 Suspension

Cause: Government Action
Cause Details: Closed and placed in charge of a Controller of the Currency representative due to depleted reserves from heavy withdrawals.
Newspaper Excerpt: the First National Bank at Swea City -were closed at noon today. ... the national bank is in charge of a representative of the Controller of the Currency.
Source: newspapers

5. August 9, 1929 Receivership

Newspaper Excerpt: SWEA CITY, Aug. 9.-Receiver Frank Bois of the First National bank. has severed his connections with the federal banking department and has accepted an engagement with the Bank of Detroit, Mich. He will be succeeded here by C. J. Obrecht, receiver of the defunct national banks ...
Source: newspapers

6. October 18, 1929 Other

Newspaper Excerpt: Since the banks closed two years ago this month, the borrowers have paid in more than a quarter of a million dollars on their obligations. ... the two defunct banks here, the First National and the State bank.
Source: newspapers

7. April 7, 1932 Other

Newspaper Excerpt: Receiver W. Helden, Swea City, likewise advertising the assets of the closed First National bank, of that town, at public sale.
Source: newspapers

Newspaper Articles (4)

1. October 30, 1927 Evening Star Washington, DC

Article from Evening Star, October 30, 1927

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Article Text

THREE BANKS CLOSED. Two Iowa Institutions in Hands of State Examiners. MASON CITY, Iowa, October 29 (AP).-Three Kossuth County banksthe County Savings Bank of Algona, the Algona State Bank, Algona, and the First National Bank at Swea City -were closed at noon today. The first two banks are in the hands of State banking examiners, and the national bank is in charge of a representative of the Controller of the Currency. Depleted reserves, due to heavy withdrawals, are assigned as reason for the closing in each case.

2. August 9, 1929 Globe-Gazette Mason City, IA

Article from Globe-Gazette, August 9, 1929

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Article Text

Bank Receiver Leaves Federal Department SWEA CITY, Aug. 9.-Receiver Frank Bois of the First National bank. has severed his connections with the federal banking department and has accepted an engagement with the Bank of Detroit. Mich. He will be succeeded here by C. J. Obrecht, receiver of the defunct national banks of Spirit Lake, Milford and Estherville. In addition to the First National bank here Mr. Obrecht will also have charge of the defunct First National at Armstrong. making five banks in his receivership. Mr. Bois will become credit man-

3. October 18, 1929 Globe-Gazette Mason City, IA

Article from Globe-Gazette, October 18, 1929

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Article Text

Economic Status of Swea City Community Is Improving Rapidly SWEA CITY, Oct. 18.-Improvements in the economic status of the community is reflected in the collections of the two defunct banks here, the First National and the State bank. Since the banks closed two years ago this month, the borrowers have paid in more than a quarter of a million dollars on their obligations. A steady stream of cash trickles in eevry month, some borrowers paying by the week, some making monthly payments while others wait several months for a surplus to accumulate before they make a payment. For the most part the bank receivers have been working hand in hand with the borrowers, making it as easy as possible for them. It is expected the affairs of the State bank will be closed this fall or winter since the building has been

4. April 7, 1932 Kossuth County Advance Algona, IA

Article from Kossuth County Advance, April 7, 1932

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Article Text

Two Bank Auctions. Receiver W. published in Friday's Mason City list assets the Security National bank, Mason City, and advertised the same for sale auction Friday, April The list took four columns of small type. Receiver W. Helden, Swea City, likewise advertising the assets of the closed First National bank, of that town, at public sale.