First National Bank - Hermosa Beach, CA

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 12209
Charter Number: 12209
Start Date: December 27, 1932
Location: Hermosa Beach, California (33.862, -118.400)

Metadata

Model: gpt-5-mini
Short Digest: 17c388f0

Response Measures

None

Receivership Details

Depositor recovery rate: 33.8%
Date receivership started: 1932-12-29
Date receivership terminated: 1937-12-31
Share of assets assessed as good: 5.5%
Share of assets assessed as doubtful: 80.4%
Share of assets assessed as worthless: 14.1%

Description

The First National Bank of Hermosa Beach closed Dec. 27, 1932 and was placed in liquidation under receiver F. W. Heathcote. Articles describe receiver actions (opening for filing claims, office moves) and dividend payments to creditors; there is no article evidence of a depositor run prior to suspension or of any reopening as an operating bank.

Events (5)

1. May 29, 1922 Chartered

Source: historical_nic

2. December 27, 1932 Suspension

Cause: Government Action
Cause Details: Bank closed and placed in liquidation with a federal receiver in charge (receiver appointed; bank in liquidation).
Newspaper Excerpt: The First National Bank of Hermosa Beach closed its doors on Decmber 27. 1932,
Source: newspapers

3. December 29, 1932 Receivership

Source: historical_nic

4. January 19, 1933 Receivership

Newspaper Excerpt: The First National Bank, in liquidation, will be open tomorrow (Friday) for the filing of claims ... national bank receiver in charge of liquidation. Depositors must apply at the bank for claim blanks. (Hermosa Beach Review 1933-01-19).
Source: newspapers

5. September 7, 1933 Other

Newspaper Excerpt: Heathcote, receiver, announces that he now ready commence paying first dividend to depositors and other creditors in the amount of 15 per cent of their claims (Daily Breeze 1933-09-07).
Source: newspapers

Newspaper Articles (7)

1. January 19, 1933 Hermosa Beach Review Hermosa Beach, CA

Article from Hermosa Beach Review, January 19, 1933

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Article Text

FIRST NAT'L. OPEN FRIDAY FOR CLAIMS Depositors Must Apply At Bank For Necessary Claim Blanks STATEMENT PUBLIC Assets of Bank Are $48,598 In Excess of Liabilities; Assessment Levied With assets showing balance of $48,598.92 over liabilities, depositors who have viewed the statement of the First National Bank of Hermosa Beach, as of the closing date, are more optimistic about the bank "paying out." pointed out, too, that the stockholders have received notice of an 100 per cent assessment, which, when all paid, will total $50,000, making the assets of the bank nearly $100,000 in excess of liabilities. According to the statement, bills receivable total $78,978.86. Cash on hand was $2,045.02. Assets other than bills receivable and cash hand are listed at $228,322.28 and include bonds, real estate, bank fixtures, etc. understood this figure was arrived at after chargeoffs for depreciation had been made. Total assets were $228,346.16 at date of closing. Under liabilities are listed the following: Liabilities, unsecured (representing ordinary individual deposits), $110,722.48. Deposits secured by pledge of assets of the bank, aggregating $138,016.51 as collateral, $111,694.79. The secured deposits are those of city, county, etc. Rediscounts, secured by pledge of assets of the bank, nil. Bills payable, secured by pledge of assets of the bank, aggregat$102,656.91 as collateral, $38,329.97. This item includes the sum borrowed by the bank from from the Reconstruction Finance corporation. Total liabilities of the bank are The First National Bank, in liquidation, will be open tomorrow (Friday) for the filing of claims and will remain open for period of three months, according to Heathcote, national bank receiver in charge of liquidation. Depositors must apply at the bank for claim blanks. Statements will not be mailed but may be obtained the bank after the claim sheet has been notarized.

2. January 26, 1933 Hermosa Beach Review Hermosa Beach, CA

Article from Hermosa Beach Review, January 26, 1933

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Article Text

COOPERATION WILL WORK Bank Statement At Time of Closing Explained By Receiver Although involving the opening of new set of books and ords and the furnishing of elaborate reports to Washington, required by the federal government before the doors of tional bank can be opened for the filing of claims, W. Heathcote, receiver of the First National Bank of Hermosa Beach reports that considerable progress is being made. The bank was opened last Friday for the filing of claims and at later date Receiver's Certificates will be issued to those whose claims have been filed and approved. One of the federal regulations requires national bank receiver to place in the window statement showing the condition of the bank at the time it closed, indicated by its own books. Mr. Heathcote explains that this statement naturally shows the various assets of the bank alt face value and shows the liabilitities, the latter mostly representing deposits. The statement, however, does not show the capital of the bank and consequently dicates an apparent excess of sets over liabilities. An article appearing in our last issue contained the figures taken from this statement and resulted in some confusion. It was pointed out by the ceiver that the assets as shown are subject to considerable readjustment. Many bonds purchased by the bank have depreciated value, due to the general nomic conditions prevailing and consequently cannot now be sold for the amount paid for them. In similar fashion, many loans made by the bank are proving slow and difficult to collect, while some may be entirely uncollectible due to the borrower having gone into bankruptcy or for other reasons. are interested in returning to the depositors the amount their deposits, so far as possible and at the earliest possible date," Mr. Heathcote states. can be done only to the extent that assets can be converted into cash. This means that we must collect loans from those to whom the money was advanced and the welfare of the entire community can be greatly improved by the borrowers recognizing this situation and making an earnest fort to repay their debts to the bank. Money so paid used pay dividends and therefore goes back into the community." receiver also points out that if to render to the (Continued on page 4)

3. May 25, 1933 Hermosa Beach Review Hermosa Beach, CA

Article from Hermosa Beach Review, May 25, 1933

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Article Text

FIRST NATIONAL BANK RECEIVER MOVES OFFICES W. Heathcote, receiver of the First National Bank of Hermosa Beach, which is in liquidation, announces the removal of his office from the former bank quarters at the corner of Hermosa avenue and Pier avenue to his new office at 1324 Hermosa avenue. Removal to the new quarters being made today (Thursday). The telephone number will main as previously, 2313. The old banking room at the corner of Pier and Hermosa avenue will be renovated and prepared for rental. The location considered the most desirable in town and no difficulty should expenienced in renting it. The building owned by the First Holding company.

4. September 7, 1933 The Daily Breeze Torrance, CA

Article from The Daily Breeze, September 7, 1933

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Article Text

FIRST NATIONAL HERMOSA, PAYS PER CENT Must Present Certificates; Other Payments Totaling $106,000 Made Here's good news for depositors First National Bank which closed Its doors on December 1932. Heathcote, receiver. announces that he now ready commence paying first dividend to depositors and other creditors the amount of 15 per centtheir claims HOW TO COLLECT Payments will he made only those who have proven their claims and who hold receiver's and such certificates must be presented at the receiver's office for endorsement before dividend checks will be delivered. Any depositors or other creditors unable to visit the receiver's office Hermosa Beach in person may communicate with him by mail. OTHER PAYMENTS The First National Bank of Hermosa Beach has, since closed its doors, in addition to the present dividend unsecured creditors, has paid the sum of approximately $106,000 on secured claims, public deposits and in the form of repayments on borrowed money. OTHER BANKS Statements made morning dicate that immediate dividends will be available in any of the other three South Bay banks now in quidation. According to Thomas Healy, assistant to Walter Robinson, deputy superintendent of banks, in charge of liquidation ceedings for the State Bank of Manhattan Beach, the First Bank of Hermosa Beach, and the American Commercial and Savings Bank Redondo Beach, it was impossible to predict exactly when dividend would be declared in any the REDONDO BEACH Financial status the three banks show that according to ap pearances the American Commen cial and Savings Bank in Redonds Beach should be the first to declare dividend payment. With deal of the funds due on payments at the First Bank of Hermosa Beach, and *State Bank proceedings held up by suit, not give any definite information concerning the outlook other than to say that it did look hopeful.

5. September 8, 1933 The Redondo Reflex Redondo, CA

Article from The Redondo Reflex, September 8, 1933

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Article Text

BANK RECEIVER TO PAY 15% DIVIDEND F. W. Heathcote, receiver for the First National Bank of Hermosa Beach, announces that he is now ready to commence paying first dividend to depositors and other creditors in the amount of fifteen per cent of their claims. Payments will be made only to those who have proven their claims and who hold receiver's certificates which must be presented at the receiver's office for endorsement before dividend checks will We delivered. Any creditors unable to visit the receiver's office in Hermosa Beach may communicate with him by mail. The First National Bank of Hermosa Beach closed its doors on Decmber 27. 1932, and in addition to paying the present dividend to unsecured creditors, the sum of approximately $106,000 has also been paid on secured claims, public deposits and in the form repayment money borrowed.

6. February 15, 1934 The Daily Breeze Torrance, CA

Article from The Daily Breeze, February 15, 1934

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Article Text

in New Location made by Heathcote. receiver of the First National Bank of Hermosa Beach. that the interests of economy in and reduce costs of he closing his office in Hermosa Beach 20. for the February of consolidating the liquidapurpose tion in question with others being handled from Huntington Park. The address of the after Feb20 will be 2705 East Florence ruary avenue, Huntington Park, telephone Jefferson

7. February 23, 1934 The Redondo Reflex Redondo, CA

Article from The Redondo Reflex, February 23, 1934

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Article Text

Moved in the interest of "economy" and in order to reduce the cost of liquidation, the Hermosa Beach office of F. W. Heathcote, receiver for the defunct First National Bank of Hermosa Beach, closed. In the future transactions concerning the bank will be handled from his Huntington Park office, where another bank is being liquidated by him The Huntington Park address 2705 East Florence avenue. The telephone number is Jefferson In his statement mailed last week to the bank's debtors, Heachcoate declared "Some people apparently lose sight of the fact that the bank is merely clearing house for loaning the money of depositors. It is not the bank's money which is loaned and any hardship or distress caused to positors by the failure of bank usually caused by failure of the borrowers to keep their promise to repay the money borrowed. The general economic situation in the south bay district would very greatly improved if all debtors of failed banks in the district would recognize this situation and realize that by paying their debts would enable the receivers concerned to distribute this money back to the depositors, who turn would be able to put the same money back into circulation in the communities."