8230. First National Bank (Reed City, MI)

View Charter #4413 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
4413
Charter Number
4413
Start Date
June 13, 1930
Location
Reed City, Michigan (43.875, -85.510)

Metadata

Model
gpt-5-mini
Short Digest
5d3a45042e5a1595

Response Measures

None

Receivership Details

Depositor recovery rate
57.3%
Date receivership started
1931-10-05
Date receivership terminated
1941-04-22
OCC cause of failure
Governance
Share of assets assessed as good
14.0%
Share of assets assessed as doubtful
69.8%
Share of assets assessed as worthless
16.2%

Description

Newspaper excerpts indicate the First National Bank of Reed City had a federal examiner report shortages, an arrest related to the shortage, and a receiver was appointed and acting in subsequent years (receiver suing in 1934). There is no clear description of a depositor run; instead the bank was found insolvent/short and placed in receivership, consistent with a suspension followed by permanent closure. OCR of the first article is poor; corrected key facts (shortage, receiver, arrest) are noted here.

Events (6)
1. September 10, 1890 Chartered
Source
historical_nic
2. June 13, 1930 Receivership
Newspaper Excerpt
Parkhurst of the First National bank of Reed City ... receiver ... Philip Holman ... the receiver deposited ... SheriN ErJohnson Reed City seized Bly's automobile on writ tachment sworn out Parkhurst of the First National bank of Reed City. Bly had been for the two banks ... Bly was taken into custody after the United States examiner ... reported shortage ... in the accounts of the receiver Depositors in the banks ... given by ... SheriN ErJohnson Reed City seized Bly's automobile on writ tachment sworn out Parkhurst of the First National bank of Reed City. Bly had been for the two banks ... Bly was taken into custody after the United States examiner ... reported shortage ... in the accounts of the receiver .
Source
newspapers
3. June 13, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Federal examiner reported a shortage in the bank's accounts (possible embezzlement/mismanagement) leading to intervention and appointment of a receiver
Newspaper Excerpt
United States examiner ... reported shortage of ... in the accounts of the receiver ... First National bank of Reed City
Source
newspapers
4. October 5, 1931 Receivership
Source
historical_nic
5. October 31, 1932 Other
Newspaper Excerpt
The bank later was declared insol[vent] ... former president of the First National of Reed City, Mich. ... in the $50,000 suit ... Parkhurst left California selling bank stock ... The bank later was declared insolvent when he was served with notice of Adamy's suit.
Source
newspapers
6. April 5, 1934 Other
Newspaper Excerpt
Directed Verdict For Bank Receiver ... Philip Holman, the First National bank of Reed City, who sued Arthur Adamy of Reed City to collect on two notes ... The judgment was for $13,106 and costs.
Source
newspapers

Newspaper Articles (3)
1. June 13, 1930 Detroit Free Press Detroit, MI
Article from Detroit Free Press, June 13, 1930

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Article Text

Bank Receiver Freed on Bond Allegan, Mich June Garver Bly, arrested here last night charge of government trust was arraigned before United States Commissioner Forest D. Simonds in and on Until Bly had the National bank of Allegan and for the First National Bank Reed Bly was taken into custody after the United States examiner of ceivers reported shortage of be tween and $5,000 in the accounts of the receiver Depositors in the banks by $75,000 given by ago SheriN ErJohnson Reed City seized Bly's automobile on writ tachment sworn out Parkhurst of the First National bank of Reed City. Bly had been for the two banks for eral but was recently by Philip Holman.

2. October 31, 1932 The Grand Rapids Press Grand Rapids, MI
Article from The Grand Rapids Press, October 31, 1932

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Article Text

RAYMOND UPHELD BY APPEALS COURT Setting Aside Service on J. Reed Parkhurst in Damage Suit Affirmed. Cincinnati, Ohio, Oct. The United of appeals Monday Judge Fred M. of Grand setting aside Reed Parkhurst of San Francisco, former president of the First National of Reed City, Mich. in the $50 Arthur Adamy of Reed City. Parkhurst left California selling bank stock to Adamy The bank later was declared insolclaimed he was under federal when he was served with notice Adamy's suit.

3. April 5, 1934 The Grand Rapids Press Grand Rapids, MI
Article from The Grand Rapids Press, April 5, 1934

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Article Text

Directed Verdict For Bank Receiver Reed City, April 5.-In the case Philip Holman, the First National bank of Reed City, who sued Arthur Adamy of Reed City collect on two notes totaling Judge Hal L. Cutler Wednesday gave a directed verdict for plaintiff The judgment was for $13,106 and costs. The fternoon court session was devoted to a memorial service for Charles Withey. former Osceola circuit judge Speakers included: Attorneys Judson E. Richardson. William Umphrey, R. B. Savidge and Miler M Callahan: Claude Curtiss, court stenographer: Frank Turner and V. R. Davy of Evart, Judge of Probate August L. Johnston and Judge Cutler.