First National Bank - Gridley, CA

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 11164
Charter Number: 11164
Start Date: January 1, 1920*
Location: Gridley, California (39.364, -121.694)

Metadata

Model: gpt-5-mini
Short Digest: e4af12cc

Response Measures

None

Receivership Details

Depositor recovery rate: 13.8%
Date receivership started: 1921-01-29
Date receivership terminated: 1930-10-27
OCC cause of failure: Economic conditions
Share of assets assessed as good: 25.1%
Share of assets assessed as doubtful: 5.1%
Share of assets assessed as worthless: 69.8%

Description

The First National Bank of Gridley suspended operations by board order on Dec. 18, 1920 due to insufficient reserves caused by heavy loans to rice growers and storm damage to the rice crop (local agricultural shock). Subsequent articles identify a receiver appointed in 1920 and receiver activity into the 1920s (suits in 1929), indicating the suspension led to a receivership/closure rather than a mere temporary reopening.

Events (5)

1. April 12, 1918 Chartered

Source: historical_nic

2. January 1, 1920* Receivership

Newspaper Excerpt: Spencer ... came to Gridley in 1920 as receiver for the defunct First National bank and was active in the local Presbyterian church during several years residence here. Spencer served ... until he left this city after the bank's affairs were cleaned up.
Source: newspapers

3. December 18, 1920 Suspension

Cause: Local Shock
Cause Details: Insufficient reserves resulting from heavy loans to rice growers; storm damage to the rice crop hastened the closing.
Newspaper Excerpt: California Bank Is Temporarily Closed GRIDLEY, Dec. 18.-The First NaTional bank of Gridley, Cal., today temporarily suspended operations by order of the board of directors, Manager J. A. Shafer announced... The suspension presumably was due to insufficient reserve, resulting from heavy loans made to rice growers in this district. The condition of the rice crop due to storms hastened the closing.
Source: newspapers

4. January 29, 1921 Receivership

Source: historical_nic

5. May 9, 1929 Other

Newspaper Excerpt: Joseph A Gamble, receiver of the First National Bank of Gridley, filed suit in the county clerk's office today against J. A. Schafer... to quiet title to a lot in Parkside addition in Gridley.
Source: newspapers

Newspaper Articles (3)

1. December 18, 1920 The Seattle Star Seattle, WA

Article from The Seattle Star, December 18, 1920

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Article Text

California Bank Is Temporarily Closed GRIDLEY, Dec. 18.-The First NaTional bank of Gridley, Cal., today temporarily suspended operations by order of the board of directors, Manager J. A. Shafer announced, The suspension presumably was Que to insufficient reserve, resulting from heavy loans made to rice grow. ers in this district. The condition of the rice erop due to storms hastened the closing. Deposits were said to total $200,000.

2. May 9, 1929 Oroville Mercury Register Oroville, CA

Article from Oroville Mercury Register, May 9, 1929

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Article Text

Bank Receiver Institutes Suit Joseph A Gamble, receiver of the First National Bank of Gridley, filed suit in the county clerk's office today against J. A. Schafer, Clara E. Schafer, F. M. Eidson, A. M. Klepinger. F. A. Schalow and others to quiet title to a lot in Parkside addition in Gridley.

3. January 3, 1933 Appeal-Democrat Marysville, CA

Article from Appeal-Democrat, January 3, 1933

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Article Text

Spencer, Known As Bank Receiver, Buried at Merced GRIDLEY, Jan. 3. Henry P. Spencer, 79, who came to Gridley in 1920 as receiver for the defunct First National bank and was active in the local Presbyterian church during several years residence here, died last week at Merced, according to word received by local friends. Spencer served as elder, choir leader and superintendent of the Sunday school in the local Presbyterian church until he left this city after the bank's affars were cleaned up. He was church leader in Merced, where he had resided since 1913. Spencer was prominent as a founder of the Livingston bank, an officer in Merced bank and receiver of a number of banks. He had held membership and offices in various Masonic lodges and branches of Masonic order, including Knights Templar, the Mystic Shrine and Eastern Star. Spencer survived by two daughters by first marriage and the widow of a second marriage.