781. First National Bank (Dinuba, CA)

View Charter #9158 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
9158
Charter Number
9158
Start Date
February 20, 1926
Location
Dinuba, California (36.543, -119.387)

Metadata

Model
gpt-5-mini
Short Digest
d8045ac5

Response Measures

Full suspension, Books examined

Other: Later a receiver was appointed (M. C. Chase) and suits/assessments followed.

Receivership Details

Depositor recovery rate
65.4%
Date receivership started
1926-07-09
Date receivership terminated
1931-12-01
OCC cause of failure
Economic conditions
Share of assets assessed as good
0.2%
Share of assets assessed as doubtful
1.1%
Share of assets assessed as worthless
98.7%

Description

A depositor run (about ten days) in late February 1926 forced the First National Bank of Dinuba to close and a national bank examiner to take charge. Bank officials blamed street rumors. Although there were hopes/negotiations to reopen and stock assessments/reorganization were discussed, the bank became insolvent and a receiver was appointed (commission received Sept 3, 1926) and subsequent litigation confirms permanent failure.

Events (7)
1. June 4, 1908 Chartered
Source
historical_nic
2. February 20, 1926 Run
Cause
Rumor Or Misinformation
Cause Details
Run began after announcement of a planned stock assessment and spread by 'street rumors' that depositors said caused large withdrawals (articles repeatedly attribute closing to street rumors).
Measures
Directors voted a stock assessment; assessment was said to be underwritten; officials sought outside assistance and negotiated reorganization efforts.
Newspaper Excerpt
run on the bank during ten days that drained the institution of its surplus
Source
newspapers
3. February 24, 1926 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank suspended operations after heavy run caused by street rumors and withdrawals which depleted surplus; board voted to turn bank over to national bank examiner Waldron; bank failed to open Wednesday morning following the run.
Newspaper Excerpt
Doors of the First National bank at Dinuba ... are closed today, and a national bank examiner is in charge
Source
newspapers
4. March 13, 1926 Other
Newspaper Excerpt
reorganization of the institution is practically completed and that a reopening may be expected ... depositors withdrew about $200,000. ... negotiations are at a point now where ... a reopening may be expected (optimistic statements and reorganization talks).
Source
newspapers
5. July 9, 1926 Receivership
Source
historical_nic
6. September 3, 1926 Receivership
Newspaper Excerpt
Murray C. Chase, local attorney, had received his commission as receiver for the defunct First National bank of this city from the comptroller of the currency at ... (Sept. 3).
Source
newspapers
7. May 5, 1927 Other
Newspaper Excerpt
The Dinuba bank became insolvent in February, 1926. ... receiver for the First National Bank of Dinuba $1,500 ... case arose out of stock transaction ... prior to the bank becoming insolvent (litigation by receiver).
Source
newspapers

Newspaper Articles (15)
1. February 25, 1926 The San Francisco Examiner San Francisco, CA
Article from The San Francisco Examiner, February 25, 1926

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Article Text

Bond Notes NEW YORK, Feb. (INS) A nationwide syndicate headed by Blair and Company of New York, BANK FAILURE today offered an issue of $40,000,000 Dominion of Canada ten-year 4½ per cent gold bonds, due Feb. 1, 1936, at 98% and Interest. This is The First National Bank at part of a $105,000,000 refunding op- Dinuba, Tulare county closed yeseration by the Dominion. terday and national bank * * aminer was placed in charge. Failure of the bank involves 167 The new issue of $4,000,000 City stockholders. It was capitalized of City, and 4% per cent for $200,000 and held deposits. bonds, dated Feb. 1, 1926, and due chiefly of farmers in the surroundAugust 1929, was offered by the ing country, of $750,000. First National Bank' of New York John E. Calkins. Governor of the and associates. The per cent Federal Reserve Bank, stated yesbonds are offered at 100 and interterday that the Federal Reserve est and the 4% per cent, bonds at Bank was in no way connected prices to yield 4.05 per cent. with or responsible for the failure. * Governor Calkins statement was Offering of $1,500,000 Seattle elicited by a statement made by Lighting Company 6 per cent sinkI. H. Newman, director of the First ing fund gold debenture bonds, due National at Dinuba, that its failure Feb. 1936, was made by A. was due in part to the refusal of Leach and Co. at 98 and accrued the Federal Reserve Bank to extend credit until next fall when * * Spitzer, Rorick and Co. distributed an issue of $50,000 City of Wauchula. Fla., 6 per cent improvement bonds. Harris, Forbes and Company in behalf of the syndicate which of. fered $15,000,000 German consolidated municipal per cent bonds announced that the issue has been oversubscribed and the books closed. Negotiations for $20,000,000 American loan to the Italian Public Utility Credit Institute have been completed. according to reports from the financial district today. Public offering of the bonds is expected to made later in the

2. February 25, 1926 The Oakland Post Enquirer Oakland, CA
Article from The Oakland Post Enquirer, February 25, 1926

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Article Text

Dinuba Bank Closed; Examiner in Charge Doors of the First National bank at Dinuba, Tulare county, are closed today, and a national bank examiner is in charge, it is reported. A heavy run on the bank followed news that the directors were planning to vote a stock assessment, and the doors closed yesterday,

3. February 26, 1926 The Reedley Exponent Reedley, CA
Article from The Reedley Exponent, February 26, 1926

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Article Text

Withdrawals by Depositors Forces First National Bank to Suspend Business The First National Bank of Dinuba failed to open its doors Wednesday morning after run on the bank during ten days that drained the institution of its surplus and made the action necessary, according to announcement by bank ficials. Waldron, national bank examiner, took charge of the bank Thursday on vote of the board of directors that the institution be turned over to him. Mr. Waldron has made no statement relative to the condition of the bank. The bank stockholders recently held meeting at which per share assessment on each $50 share was made and was then stated that the assessment had been underwritten and with this new start the bank was in good shape. However. the run on the bank, started by the levying of the assessment, proved more than it could stand. It is stated that no other banks the Alta District are in the least affected by the closing of the First National of Dinuba. The First National bank has 167 stockholders locally and more than thousand depositors. Newman, director of the bank and former Tulare county pervisor, said: "Everything has been done that could be done to save the bank. Mr. Frank Wilson, our president, has worked indefatigably for the past six months without pay to save the institution, but seems it was to no avail. The present crisis came about because was insisted that many of our loans be written off and stockholders assessment made at this

4. February 26, 1926 The Reedley Exponent Reedley, CA
Article from The Reedley Exponent, February 26, 1926

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Article Text

NO CAUSE FOR ALARM The failure of the First National Bank of Dinuba, announced on Wednesday of this week, is not cause for alarm by the people of Reedley. From good authority the Exponent is led to believe that the situation at Dinuba resulted from needless alarm and that had there been that confidence in the Dinuba institution which its condition and the action of the directors justified, our sister city to the south would not now be meeting the serious situation with which it is confronted. It will be cheering to the people generally, however, to know that the directors of the Dinuba bank have great hope of reopening the doors of that institution within a few days. Few banks in towns of the size of Dinuba and Reedley could withstand such a run as the Dinuba bank met during the ten days previous to its close, but depositors in Reedley banks have no cause for anxiety. A recent report of the condition of the Reedley National Bank showed it to be in very good condition, financially sound and able and ready to meet the customary demands of business, while the Bank of Italy, with the backing of the parent bank at San Francisco, with a total profit in all their banks of $360,000 a day, reveals a story that needs no comment. Conditions have not been good, to be sure, but many people who were in great financial stress one year ago realized considerable on their prodnets last year and paid off many of their debts, reestablished credit and the community is facing a brighter outlook. Calmness and reason at this time will forestall any disaster to the business interests of Reedley and the community in general. ance runs around 38 and 40. Comrades F. G. Everett and H. C. Kuse took over the kitchen Tuesday evening and put on one of the best feeds the boys have had in some time. Reedley Post is to have a baseball team in the twilight league this summer. The post has a fine array of stars and ex-stars in the diamond game in its membership and is going out to take the city championship when the season opens. H. C. Kuse was named temporary head of the Legion team by Commander Frane.

5. February 27, 1926 Tulare Advance-Register Tulare, CA
Article from Tulare Advance-Register, February 27, 1926

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Article Text

STREET RUMOR IS BLAMED BY BANK DINUBA, Feb. of the First National Bank of Dinuba was caused by run on the bank which started from street rumors and not because the financial condition of the bank was unsound, an official of the bank said today in declaring that may soon be ready to reopen. Statements by bank officials that neighbor banks had refused to provide help emergency were later withdrawn.

6. February 27, 1926 Woodland Daily Democrat Woodland, CA
Article from Woodland Daily Democrat, February 27, 1926

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Article Text

BANK TO REOPEN DINUBA-Closing of the First National Bank of Dinuba was caused by a run on the bank started from street rumor and not because of its financial condition, an ofifcial of the bank said today in announcing it will soon reopen.

7. February 27, 1926 Visalia Daily Times Visalia, CA
Article from Visalia Daily Times, February 27, 1926

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Abridged Notes Of City Genereux, formerly of this city, accompanied by several residents of Los Angeles and Pasadena, where the Genereux family now sides, were here last night and today on business. With Mr. Genereux were Arthur Love and Charles Dryden, of Los Angeles and B. Hahn. Pasadena. The men were here in connection with the details of an exchange of Redlands and Drum Valley lands. Loren Brehmer, four-year-old son of Mr. and Mrs. Brehmer, of Alva. Oklahoma, who was seriously injured yesterday afternoon when he was struck by an automobile, expected to recover, according to information from the attending physician this afternoon. The child was removed to the Kaweah hospital last evening after an examination disclosed broken left leg. badly injured hip and other injuries. The boy was visiting here with his parents in the home of his grandfather, H. Brehmer, mile east of here, when he was hurt. Mr. and Mrs. James Rangel, who reside on Grape street, are announcing the birth of son at 12:15 o'clock yesterday. The young man, who weighs seven pounds, is named James Rangel Junior. DINUBA, Feb. of the First National Bank of Dinuba was caused by run on the bank which started from street rumors and not because the financial condition of the bank is unsound, an official of the bank said today in declaring that it may soon be ready to reopen. Statements by bank officials that neighbor banks had refused to provide help in the emergency later withdrawn.

8. February 27, 1926 Marysville Democrat Marysville, CA
Article from Marysville Democrat, February 27, 1926

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Glenn Co. Man Is Kept on State Board James farmer Hamilton Glenn and Los Angeles members of the board of regents of the University of fornia by Governor Friend W. Richardson today The appointments are for terms. will office until March 1942. Rumors Cause of Dinuba Bank closing DINUBA. Feb. of the First National Bank of Dinuba enused run the bank which started from street and not because the financial condition of bank is unsound, an official of the bank said today in declaring that may be ready reopen. Statements by bank officials that neighbor had refused to prohelp in the emergency were later withdrawn.

9. February 28, 1926 The Modesto Bee Modesto, CA
Article from The Modesto Bee, February 28, 1926

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Run on Bank Laid To Street Rumors DINUBA, Feb. 27.-Closing of the First National Bank of Dinuba was caused by run on the bank which started from street rumors and not because the financial condition of the bank is unsound, an official of bank said today declaring that It may soon be ready to open Statements by bank officials that neighbor banks had refused to provide help in the emergency were withdrawn.

10. March 1, 1926 The Fresno Bee Fresno, CA
Article from The Fresno Bee, March 1, 1926

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FIRST NATIONAL BANK AT DINUBA MAY OPEN DOORS Mayor Andrews, Cashier Of Gives Out Optimistic Statement BIG OIL COMPANIES PROFFER ASSISTANCE Single Big Deposit Drawn Out Started Run Which Closed Establishment Bee Bureau) Co.). March present First National Bank of recently closed durwill and reopened for spoken by Mayor Harry Andrews, cashier the bank. stated that proffers of re-organized had terests, the Shell and the Standard Oil Companies Officials of the Shell Oil Company in San Francisco admitted they had the Cashier said the run upon bank in large measreport about Dinuba that certain large Industrial concern operating in the DInuba withdrawn large He declined to whence this emanated. during $300.withdrawn by including withdrawal of the large concern, followed shortly after and placed the financial such position that unable to bolster its tottering At the time the closing the assumption control by the national an sessment to be levied to bring impaired finances up to standards by the federal government. This was crop failures. The coming condition made this woubled state affairs one under which the bank could not keep doors open because short time to pending and probably will be com. pleted. statement under the authorization of the bank officials meeting for to-morrow at M. Its follows: isation the National Bank about thirty and Interested citizens, to busy pre- (Continued on Page 12)

11. March 14, 1926 The Fresno Bee Fresno, CA
Article from The Fresno Bee, March 14, 1926

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WILSON SILENT ON BANK PLAN DINUBA (Tulare Co.). March 13. -Frank H. Wilson. president of the First National Bank here which cently closed its doors. said tonight that he could neither deny nor affirm current that the reorganization of the in. stitution is practically completed and that a reopening may be expected "Negotiations are at point now where do not know just what will happen. Wilson said. expect to return to San Francisco Monday and suppose Ralph P. Merritt will too. After return there be def. inite announcement of plans. Of course we hope to reopen just as as we Wilson and Merritt were to-day occupied with their usual business. and not working the reorganization. the bank president said Rumors have been current for several that ment was upon stockhold ers, and loan from the Anglo. London- of San Francisco was on re-establish the local finance house The closing followed run upon the bank which depositors withdrew about $200,000. It is understood that the will be with federal and that therefore the for ing must be nearly complete

12. September 4, 1926 The Fresno Morning Republican Fresno, CA
Article from The Fresno Morning Republican, September 4, 1926

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Commission Arrives For Bank Receiver DINUBA, Tulare Co., Sept. 3.Murray C. Chase, local attorney, had received his commission as receiver for the defunct First National bank of this city from the comptroller of the currency at

13. May 5, 1927 The Fresno Morning Republican Fresno, CA
Article from The Fresno Morning Republican, May 5, 1927

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BANK RECEIVER WINS DECISION That E. Thormahlen and E. Dickey must pay to M. C. Chase, receiver for the First National Bank of Dinuba $1,500 through an assessment of the comptroller of the treasury, United States Judge Edward J. Henning desfded yesterday, after hearing arguments in the case. The Dinuba bank became insolvent in February, 1926. The case was the first of a series brought by Chase against stockholders of the Dinuba bank. The defendants in the remaining cases have demanded jury trials and the hearings were set over for the term of court. The case arose out of stock transaction between Thormahlen and Dickey just prior to the bank becoming insolvent Each then claimed the other owed the money. It was Judge Henning's ruling that either was eligible to pay the sum, but that that matter must be decided in the courts. Attorney William A. White, on behalf of Dickey. announced that he would bring suit in state courts in Tulare county to force Thormahlen to pay the $1,500. White yesterday represented both Dickey and Thormahlen. while Chase was represented by George Cosgrave.

14. April 11, 1928 The Fresno Morning Republican Fresno, CA
Article from The Fresno Morning Republican, April 11, 1928

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BANK RECEIVER WINS VERDICT S. COURT Judgment For $11,000 Given In Dinuba Stock Case Verdict for $11,000 returned yesterday afternoon by jury in the United States district court against H. E. Vogel and O. Everts, B. Vogel. Louise Aldrich and Millie Hall in favor of M. Chase, of the de. funct First National bank of Dinuba. The jury less than 10 minutes in reaching its verdict. The suit Instituted by Chase was to collect of $50 share levied by the of the currency on the stock of the bank and was by the defendants on the grounds that bank's directors giving $200. 000 promissory note upon which the assessment was had done illegally. Judge William P. James, declined to admit testimony the action of the the compdecision final one. It was indicated that appeal STOCK PURCHASE CASE Judge der ordering in the matter to submit case Murray Bourne against the Inyo Chemical company for bal claimed to be due on the pur chase of $25,000 of the stock the Standard Potash company Trial of the started Monday before the court without jury Jurors in yesterday F. Howard, foreman J. R Erskine, C. Evins and Judge James leave for Los Angeles today and there will be no further session of the special term of until Tuesday when Judge Paul McCormick is to preside.

15. August 15, 1931 The Fresno Morning Republican Fresno, CA
Article from The Fresno Morning Republican, August 15, 1931

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Dinuba Bank Receiver Granted Court Permit To Sell Property The petition of M. Chase celver for the insolvent First Na. tional bank of Dinuba, to sell certain real and personal property of the bank Gallaher was granted by the court yesterday Although the book value of the property involved $29,417.95. the price to be paid by Gallagher is according to the petition. Two pieces of real property having book values of $3,000 and $2,425 are to be sold for $1 each James T. Barstow is attorney for the receivership.