First National Bank - Marengo, IL

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 1870
Charter Number: 1870
Start Date: August 27, 1932
Location: Marengo, Illinois (42.249, -88.608)

Metadata

Model: gpt-5-mini
Short Digest: 75a321cf

Response Measures

None

Receivership Details

Depositor recovery rate: 81.3%
Date receivership started: 1932-08-29
Date receivership terminated: 1938-04-23
Share of assets assessed as good: 9.0%
Share of assets assessed as doubtful: 66.0%
Share of assets assessed as worthless: 25.0%

Description

The First National Bank of Marengo failed (closed) on August 27, 1932 and was placed in receivership (Receiver Ross Davis). No bank run is described in the articles. Receiver obtained RFC loan in April 1933 and paid a 30% dividend to depositors in May 1933. Court litigation over transfer of the Community Building to the receiver was decided in favor of the receiver. Classified as suspension_closure because the bank closed and remained in receivership (permanent closure), not merely a temporary suspension or run-only event.

Events (6)

1. September 6, 1871 Chartered

Source: historical_nic

2. August 27, 1932 Receivership

Newspaper Excerpt: since that date has been in charge of Receiver Ross Davis, of Highland Park. The bank failed August 27, 1932, and since that date has been in charge of Receiver Ross Davis, of Highland Park. Receiver Davis has had numerous tangles to straighten out and now has things going more smoothly. RECEIVER GRANTED LOAN OF $65,000 BY RECONSTRUCTION FINANCE CORPORATION ... the receiver of the First National at Marengo. The bank failed August 27, 1932, and since that date has been in charge of Receiver Ross Davis, of Highland Park. The Community building was the personal property of E. D. Patrick, president of the bank. After the failure of the bank on August 27, 1932, Mr. Patrick offered the title of the building to the receiver for the benefit of the depositors. Receiver Davis ... began handing out checks to the depositors today for 30 per cent of their deposits, the first dividend paid since the bank failed in August, 1932. Tells Depositors Further Dividends Subject to Delay ... The 30 per cent reimbursement to the depositors amounts to ... The bank failed August 27, 1932. R.F.C. Aids Work of National Banks Toward Liquidation ... The First National Bank at Marengo ... recently paid 30% divi- (dividend).
Source: newspapers

3. August 27, 1932 Suspension

Cause Details: Article states the bank 'failed' on August 27, 1932 but does not specify a cause (no run or specific insolvency cause given).
Newspaper Excerpt: The bank failed August 27, 1932.
Source: newspapers

4. August 29, 1932 Receivership

Source: historical_nic

5. April 1, 1933* Other

Newspaper Excerpt: It was announced by the Reconstruction Finance corporation at Washington last evening that among the loans granted in April was one of $65,000 to the receiver of the First National at Marengo. With the aid of loan made from the Reconstruction Finance corporation in Washington, the receiver ... began handing out checks to the depositors today for 30 per cent of their deposits, the first dividend paid since the bank failed in August, 1932. The checks are now in Washington awaiting signature by the treasury department. The report that the dividend will be for 20 per cent of the deposit could not be confirmed. PAY 30 PER CENT DEPOSITORS ... began handing out checks to the depositors today for 30 per cent of their deposits, the first dividend paid since the bank failed in August, 1932. Tells Depositors Further Dividends Subject to Delay ... The loan is secured by the remaining assets of the bank, the receiver's statement explains. R.F.C. Aids Work of National Banks Toward Liquidation ... The First National Bank at Marengo ... recently paid 30% divi-
Source: newspapers

6. May 10, 1933 Other

Newspaper Excerpt: With the aid of loan ... the receiver the First National Bank of Marengo, began handing out checks to the depositors today for 30 per cent of their deposits, the first dividend paid since the bank failed in August, 1932.
Source: newspapers

Newspaper Articles (6)

1. May 2, 1933 Marengo Beacon/Republican-News Marengo, IL

Article from Marengo Beacon/Republican-News, May 2, 1933

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Article Text

Local Bank Receiver Wins Bankrupt Case March 31st an action was commenced in the Western Division of the District Court of the United States at Freeport by Edward Foltz, Jr. Attorney, Trustee of the estate of Patrick, Bankrupt, against Ross Davis, Receiver of the First National Bank, Marengo, Illinois. The sought to set aside conveyances certain real estate, cluding the Bank Building, made by Ernest D. Patrick, formerly president the First National Bank, to the Receiver shortly after the closing of the bank. motion to dismiss in the nature of demurrer was filed by the Receiver. This motion the Court sustained on the ground of want of equity, holding that the Petition in Bankruptcy filed by Patrick on January 1933 was filed more than four months after the effective date of the conveyances, which was in this case September 1932, the date of delivery. The Court held that the deeds did not come within the four months period therefore valid. Federal Judge, Hon. Charles Woodward, rendered the opinion sustaining the motion and dismissreceiver resented by Attorneys Raymond Real Chicago and CarWoodstock.

2. May 2, 1933 Belvidere Daily Republican Belvidere, IL

Article from Belvidere Daily Republican, May 2, 1933

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Article Text

DIVIDEND FOR DEPOSITORS OF MARENGO BANK RECEIVER GRANTED LOAN OF $65,000 BY RECONSTRUCTION FINANCE CORPORA. TION DIVIDEND CHECKS NOW IN WASHINGTON -RECEIVER WINS LEGAL FIGHT INVOLVING TITLE TO COMMUNITY BUILDING MARENGO BANK FAILED AUG. 27, 1932. Depositors of the closed First National bank, of Marengo, who have been waiting patiently for months for some word as to a dividend, soon will have their patience rewarded as the receiver is about ready to pay the first dividend. The bank failed August 27, 1932, and since that date has been in charge of Receiver Ross Davis, of Highland Park. It was announced by the Reconstruction Finance corporation at Washington last evening that among the loans granted in April was one of $65,000 to the receiver of the First National at Marengo. This borrowed money, together with the collections made, will permit the early payment of a dividend, the amount of which will be announced soon. The checks are now in Washington awaiting signature by the treasury department. The report that the dividend will be for 20 per cent of the deposit could not be confirmed. Receiver Davis has had numerous tangles to straighten out and now has things going more smoothly. Litigation involving the title to the three-story Community building in Marengo, which is the location of the bank, has been decided in favor of the receiver. The decision was made by District Judge. Charles E. Woodward in the federal court at Freeport Saturday. The Community building was the personal property of E. D. Patrick, president of the bank. After the failure of the bank on August 27, 1932, Mr. Patrick offered the title of the building to the receiver for the benefit of the depositors.\ On Sept. 2. 1932, Mr. Patrick executed a deed in favor of the receiver. When Mr. Patrick filed a petition in bankruptcy some months later one of his cred itors, Edward S. Foltz, Jr., of Rockford sought to have the deed transferring the Community building to the receiver set aside. After hearing the evidence and arguments In the case Saturday Judge Woodward held that the deed to the receiver was executed more than four months prior to the date of the filing of the bankruptey petition and that the transfer was therefore valid. The court sustained the demurrer filed in behalf of the receiver. The bankruptcy petition was filed January 6. 1933.

3. May 9, 1933 Belvidere Daily Republican Belvidere, IL

Article from Belvidere Daily Republican, May 9, 1933

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Article Text

$65,000 BY TION FINANCE TION DIVIDEND NOW LEGAL FIGHT TO COMMUN MALED AUG. Depositors the First National bank, of have been waiting patiently word soon have their patience rewarded the receiver about ready pay the first dividend. The bank failed August 1932, and since that date has been in charge of Receiver Ross Davis, of Highland Park. announced the corporation Washington Monday that among the loans granted in April one of to the receivof the First National at Marengo. This gether with the collections made, will permit the early the amount of which will be announced soon. The checks now Washington awaiting signature by the treasdepartment. The report that the dividend will be for 20 per cent of the deposit could not be confirmed. Receiver Davis has had numerous tangles to straighten and now has things going more smoothly. Litigation involving the title to the three-story Communbuilding in Marengo, which the location the bank. has been decided in favor of the receiver. The by District Judge Charles E. Woodward in the federal court Freeport Saturday. The Community building was the personal property of Patrick, president of the bank. After the failure of the bank on August 27, 1932, Mr. Patrick offered the title of the building the for the benefit of depositors. On Sept. 1932, Mr. Patrick executed deed in favor of the receiver. When Mr. Patfiled petition in bankruptey some months later one of creditors, Edward Foltz, Jr., of Rockford sought to have the deed transferring the building the receiver set aside. After and arguments in case Saturday Judge Woodward held that the deed to the receiver was executed than four months prior to the date the filing of the bankruptey transfer valid. The court the demurrer filed in receiver. The bankruptcy petition ed January 1933.

4. May 10, 1933 Belvidere Daily Republican Belvidere, IL

Article from Belvidere Daily Republican, May 10, 1933

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PAY 3O PER CENT DEPOSITORS OF BANK IN MARENGO of Closed First National Bank in Neighboring City Under Criticism for Failure to Give Any Advance Information to the Depositors Camplaint May be Forwarded to Washing. ton. Marengo, H.. May 10 With the aid of loan of made from the Reconstruction Finance corporation in Washington, the receiver the First National Bank of Marengo, began handing out checks to the depositors today for 30 per cent of their deposits, the first dividend paid since the bank failed in August, 1932. While the numerous depositors are gratified to receive a portion of their money dissatisfaction is being expressed over the policy of the receiver, Ross Davis, who has not seen fit to give the depositors any advance information as to the amount of the dividend which would be paid. The receiver seems be blissfully unawar? &-money of the depositors he is handling and that they are entitled to know something about his plans. With taxes due several of the depositors have sought to learn just how much of their deposits they could figure on getting In the first dividend. In spite of the fact that the dividend checks for 30 per cent had been forwarded to Washington in April, after making the loan from the

5. May 11, 1933 Belvidere Daily Republican Belvidere, IL

Article from Belvidere Daily Republican, May 11, 1933

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Tells Depositors Further Dividends Subject to Delay Marengo. May In making of the 30 per cent dividend, the receiver of the First National Bank of Marengo candidly tells the depositors they will have to wait for any further dividends until the loan of $65.000 made of the Reconstruction Finance corporation can be paid. The loan is secured by the remaining assets of the bank, the receiver's statement explains. The 30 per cent reimbursement to the depositors amounts to total of which means that the depositors still have 70 per cent of their money tied up in the closed bank. or total of about $338,480. The costs of the receivership to date total $10.or at the rate of nearly $1,150 month. The bank failed August 27, 1932.

6. May 25, 1933 The Herald Crystal Lake, IL

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R.F.C. Aids Work of National Banks Toward Liquidation Communities where national banks have closed are not as as those with closed state banks, through the work of the Reconstruction FinThe First National Bank at Marenclosed last through the Receiver recently paid 30% divi-