5587. State Bank (Walkerton, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 1, 1931*
Location
Walkerton, Indiana (41.467, -86.483)

Metadata

Model
gpt-5-mini
Short Digest
ae8d3a2bee3ed1c0

Response Measures

None

Description

The State Bank of Walkerton was closed by order of the Indiana state banking department after an examination found it insolvent (May 1932) and a receiver was sought/appointed. There was an earlier temporary closure (about 12 days) and a November reopening under depositor waivers in late 1931, but the May 1932 suspension led to receivership and permanent liquidation. Cause of suspensions relates to bank-specific adverse assets and government action (closure by state exam). Dates are taken from article publication dates and referenced hearing/receiver dates.

Events (3)
1. November 1, 1931* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Temporary November 1931 closure followed by reopening under depositor waivers; bank struggling with frozen commercial paper and liquidity problems; plan toward eventual liquidation noted.
Newspaper Excerpt
the bank reopened last Nov. after having been closed 12 days, when ... per cent of the depositors signed waiver whereby they could not withdraw more than 15 per cent of their deposits ...
Source
newspapers
2. May 20, 1932 Suspension
Cause
Government Action
Cause Details
Closed on order of the state banking department after an examination found the bank insolvent; illiquid assets (commercial paper) and inability to make collections to meet withdrawals.
Newspaper Excerpt
the State bank of Walkerton, which was forced to close its doors Friday night for the second time within seven months. ... The bank closed on order of the state banking department when an examination ... placed the bank in insolvent condition
Source
newspapers
3. June 6, 1932 Receivership
Newspaper Excerpt
Mr. Gerber's report, covering the period from June 6, 1932, when the receiver was ordered by Circuit Judge Dan ... shows ... deposits and assets being liquidated. Louis W. Gerber, receiver, ... took charge the Walkerton bank a year ago ... there remained on hand $9,132.12 and the dividend to depositors ... soon to be paid. (June 27, 1933 article summarizing receiver's report.)
Source
newspapers

Newspaper Articles (4)
1. May 25, 1932 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, May 25, 1932

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Article Text

WALKERTON BANK RECEIVER Pyle Sets Hearing June Closed Twice in Seven Months. The state banking commissioner, Luther Symons, today asked Circuit Judge Dan Pyle to name receiver for the State bank of Walkerton, which was forced to close its doors Friday night for the second time within seven months. Judge Pyle set June at o'clock the time for hearing the petition and naming receiver. The bank closed on order of the state banking department when an examination that frozen sets had placed the bank an solvent condition, according petition. Joseph McCord, deputy commissioner, in charge of the bank and is making check of assets. According to W. W. Place, vice president cashier of the bank, the reopened last Nov. after having been closed 12 days, when per cent of the depositors signed waiver whereby they could not withdraw more than 15 per cent of their deposits before Dec. 1931, and 10 per cent before the following dates: March 1932, and Dec. 1932, and each corresponding date in 1933 and 1934. Mr. Place stated that the plan had been made toward eventual liquidation, but that the bank's ficers found it impossible to make collections to meet the withdrawals. The bank was capitalized at 000 and had surplus $14,000. While no definite figure was given the amount frozen assets, Mr. Place said that of which most was in commercial paper purchased year ago, caused acclosing of the bank, although more than $100,000 had been made.

2. May 25, 1932 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, May 25, 1932

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Article Text

ASK WALKERTON BANK RECEIVER The state banking er. Luther Symons. today asked Circuit Judge Dan Pyle to name receiver the State Bank of Walkerton. which forced close its doors Friday night for the second time in seven months. Judge o'clock the time for hearing the petition and naming the receiver.

3. May 26, 1932 Journal and Courier Lafayette, IN
Article from Journal and Courier, May 26, 1932

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Article Text

Asks Bank Receiver SOUTH BEND, Ind., May Luther F. Symons, state banking commissioner, has asked Circuit Judge Dan Pyle to name receiver for the State bank of Walkerton which closed its doors Friday night for the second time within seven months. Judge Pyle set June 1 for hearing the petition.

4. June 27, 1933 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, June 27, 1933

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Article Text

BANK RECEIVER TO PAY DIVIDEND Valkerton State Depositors Will Get Second Payment. Depositors of the closed State Bank of Walkerton, who received 10 per cent dividend amounting to $18,823.27 recently, will receive another payment on their frozen accounts soon, according to the first report filed in circuit court today by Louis W. Gerber, receiv- Mr. Gerber's re ort, covering the period from June 6, 1932, when the was ordered by Circuit Judge Dan to June 17, 1933, shows that the bank's have been reduced $56,389.61 and the net reenriched by $4,553.54 in on hand. The formerly was cashier and at present vice president the Farmers' State bank of Wyatt. When he took charge the Walkerton bank year ago the institution had only $11,256.13 in cash on hand and available against total liabilities of $266.195.59, which $219,486 represented deposits. He has collected $24,127.47, of which interest on obligations owing the bank, the liabilities have been reduced Swintz, $20,957.04 by offsets against acpresident counts, report shows. president The statement shows the president total expenses the Mrs. club: including the salary of Mr. GerBusiness attorney fees, were $3,- Domer, the year. This figure is $4,553.54 than the interest collected. said that bank under the rewith profit of 081.29 for the benefit of the depositors. At the close business June 17, according to the report, there remained on hand $9,132.12 and the dividend to depositors be from this and other funds to be collected.