8422. First National Bank (Detroit Lakes, MN)

View Charter #3426 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
3426
Charter Number
3426
Start Date
November 8, 1926
Location
Detroit Lakes, Minnesota (46.817, -95.845)

Metadata

Model
gpt-5-mini
Short Digest
af1f3b6d55527159

Response Measures

None

Receivership Details

Depositor recovery rate
40.5%
Date receivership started
1926-11-23
Date receivership terminated
1931-10-24
OCC cause of failure
Governance
Share of assets assessed as good
25.7%
Share of assets assessed as doubtful
56.2%
Share of assets assessed as worthless
18.1%

Description

Contemporary articles report the First National Bank of Detroit Lakes was closed Monday (prior to Nov 12–13, 1926 coverage) by order of its board/directors and did not reopen; subsequent runs at other local banks followed. The articles describe depleted reserves and closures by the state banking department of other banks, but for the First National the closure appears to be a board-ordered suspension that proved final. Date for the First National closure inferred as 1926-11-08 (the Monday before Nov 12, 1926 reports).

Events (3)
1. December 29, 1885 Chartered
Source
historical_nic
2. November 8, 1926 Suspension
Cause Details
Closed by order of the board of directors; depleted reserves and local banking distress precipitated closure.
Newspaper Excerpt
The First National bank here was closed Monday.
Source
newspapers
3. November 23, 1926 Receivership
Source
historical_nic

Newspaper Articles (11)
1. November 12, 1926 The Austin Daily Herald Austin, MN
Article from The Austin Daily Herald, November 12, 1926

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DETROIT LAKES CRASH MORE BANKS Dual Closings Today Boosts Week's Failures To Three ONE CLOSED MONDAY Shooting Of Two Bankers With Financial Crises [By Associated two Callaway with deposits 000 because of depleted reserves. Closing of the Security State Bank of Detroit Lakes its totaling $780,000. Continuation records of the First National the largest bank in the which closed Monday. Wounded Better Word from physicians that Norby and Frank Murphy, county bankers, found wounded in the Callaway bank, were improving The two bank closings, one here the other follow closely he discovery of the wounded bankers behind the locked doors the Callaway State Bank. Sletvold County Attorney clines to comment on the developments today before he has made investigation closing and shooting of the SecurBank, brother of Norby Lake Park. of the two found shot in the State Bank of laway, Becker County, Tuesday. A run on the Security Bank the last was responsible for the according to state bank examiner, now in charge.

2. November 12, 1926 Morning Pioneer Mandan, ND
Article from Morning Pioneer, November 12, 1926

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BANK SHOOTING AFFRAY ENDS IN BANK'S CLOSING INSTITUTIONS WITH WHICH NORBY AND MURPHY ALIGNED SURPEND Investigation of State Continues RUN ON BANKS FOLLOWS FIND. ING OF WOUNDED BANKERS Detroit Lakes, Minn., Nov. 12 (AP) mysterious shooting of Norby and Frank Murphy, Becker county bankers, in the Callaway State bank Callaway early in the week. followed today by the closing two more Becker county banks by the state department. The institutions are the Security State Bank Detroit Lakes, with posits of $780,000 and the Citizens' State Bank of Callaway, with deposits of $150,000 The First National Bank here was closed Monday. H S. Erickson, president of the Callaway bank, is also cashier the Security Closing of the Callaway bank fol. lowed the shooting affray there Tues. day which Frank Murphy, cashier and W. Norby, stockholder were found wounded in the former's of fices. The cause the shooting and who is responsible for it, has not been determined. County Attorney O. Sletvold declined to comment on the developments today before he had more intensive investigation of the clos and shootings. Today the Security State Bank of this place failed to open its doors. J. Norby president of the bank, brother of Norby, the man who suffering with wounds in hospital Shortly after the Security State Bank closed today word was celved here that the Citizens' State Bank Callaway had closed its Whether the bank closings any connection with the unexplained shooting the two Becker county bankers is, point which has not been cleared. County Attorney Sletvold was vestigating the possibility of there being connection. but he declined make any comment on the situathan "was other Thursday night deputies from the State Bank Examiner's office officals the Security bank and the county with officers of attorney consulted Callaway bank the It was decided to close the bank today. and place all assets in the hands of state banking commis. sion. Mr. Sletvold announced that there no criminal action hinted in the close of the bank Officials said the bank was closed to preserve what was left of the after depositors safely to off pay the state department has had time to go over the books and collect on outstanding paper of the bank been permitted the bank Had of the run althe face open in stay bank and county cials ready assert the result might disastrous to more Closing the Security bank. said, has temporarily halted National plans of the First reorganization in Detroit bank remaining The State Bank, was the Detroit face run. this morning preparing business men on hand. but money off all than pay to more positors. Sletvold said attorney County question Murphy unable to would be wounds until about their and Norby delay is This Saturday sioned after by the condition of the seriously men. the more Norby event he should and in the special grand the called investigate be

3. November 12, 1926 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, November 12, 1926

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TWO BECKER COUNTY BANKS ARE CLOSED State Banks at Callaway and Detroit Lakes Fail to Open Their Doors Today Detroit Lakes, Minn., Nov. 12.(AP)-Two Becker county banks with total deposits of $930,000 were closed today by the state banking department because of depleted reserves. The institutions are the Security State Bank of Detroit Lakes, with deposits of $780,000. and the Citizens' State Bank of Callaway, with deposits of $150,000. The First National bank here was closed Monday. H. H. Erickson, president of the Callaway bank. is also cashier of the Security bank Closing of the Callaway bank followed the shooting affray there Tuesday in which Frank Murphy, cashier, and W. J. Norby, a stockholder, were found wounded in the former's office. The cause of the shooting and who is responsible for it has not been determined. Declines to Comment County Attorney A. O. Sletvold declined to comment on the developments today before he had a more intensive investigation of the closings and shootings. Financial uneasiness started here with the closing of the First National bank with deposits of approximately $800,000. A few months before the Merchants National bank with deposits of $500,000 closed its doors. Today the Security State bank of this place failed to open its doors. L. J. Norby. president of the bank. is a brother of W. J. Norby, the man who is suffering with wounds in a hospital here. Shortly after the Security State bank closed today, word was received here that the Citizens' State bank at Callaway had closed its doors. Whether the bank closings have any connection with the unexplained shooting of the two Becker county bankers is a point which has not been cleared. Investigation Under Way County Attorney Sletvold was investigating the possibility of there being a connection, but he declined to make any comment on the situation, other than he "was investigating." Thursday night deputies from the state bank examiners' office, officials of the Security bank and the county attorney consulted with officers of the Callaway bank. It was decided to close the bank today and place all assets in the hands of the state banking commission. Mr. Sletvold announced that there is no criminal action hinted in the closing of the bank. Officials said the bank was closed to preserve what was left of the assets to pay off depositors safely after the state department has had time to go over the books and collect on outstanding papers of the bank. Had the bank been permitted to stay open in the face of the run already begun, bank and county of ficials assert the result might have been still more disastrous to depositors. Closing of the Security bank, it is said. has temporarily halted plans for reorganization of the First National. The remaining bank in Detroit Lakes, the Detroit State bank, was preparing this morning to face a run, but money is on hand, business men say, to more than pay off all depositors. County Attorney Sletvold said he would be unable to question Murphy and Norby about their wounds until after Saturday. This delay is occasioned by the cond: tion of the men. Mr. Norby is the more seriously wounded. and in the event he should die, Mr. Sletvold said, a special grand jury will be called to investigate the shooting.

4. November 12, 1926 The Bismarck Tribune Bismarck, ND
Article from The Bismarck Tribune, November 12, 1926

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TWO BECKER COUNTY BANKS ARE CLOSED State Banks at Callaway and Detroit Lakes Fail to Open Their Doors Today Detroit Lakes, Minn., Nov. Becker county banks with deposits of $930,000 were closed today by the state banking department because of depleted reserves. The institutions are the Security State Bank Detroit Lakes, deposits of $780,000. and the CitiState Bank with deposits $150,000. The First National bank here was closed Monday H. H. Erickson, president of the Callaway bank. also cashier of the Security bank Closing of the Callaway bank followed the shooting affray there Tuesday in which Frank Murphy, cashier. and W. Norby, stockholder, found wounded in the former's office. The cause of the shooting and who responsible for it has not been determined. Declines to Comment County Attorney A. O. Sletvold declined to comment on the developments today before he had more intensive investigation of the closings and shootings. Financial started here with the closing of the First National bank with deposits of approximately few months before the Merchants National bank with deposits of $500,000 closed its doors. Today the Security State bank of this place failed to open its doors. Norby. president of bank. is brother of W. Norby, the man who is suffering with wounds in hospital here. Shortly after the Security State bank closed today, word was ceived here that the Citizens' State bank at Callaway had closed its doors. Whether the bank closings have any connection with the unexplained shooting of the two Beckcounty bankers is point which has not been cleared. Investigation Under Way County Sletvold was investigating the possibility there being connection, but he declined to make any comment the situation, other than he "was investigating. Thursday night deputies from the state bank examiners' office, officials of the Security bank and the county attorney consulted with officers of the Callaway bank. It was decided to close the bank today and place all assets in the hands of the state banking commission. Mr. Sletvold announced that there no criminal action hinted in the closing of the bank. Officials said the bank closed to preserve what was left of the assets to pay off depositors safely after the state department has had time to go over the books and collect on outstanding papers of the bank Had the bank been permitted to stay open in the face of the run already begun, bank and county ficials assert the result might have been more disastrous to depositors. Closing of the Security bank, said has temporarily halted plans for reorganization of the First National. The remaining bank in Detroit Lakes, the Detroit State bank. was preparing this morning to face run, but money on hand. business men say, to more than pay off all depositors. County Attorney Sletvold said would be unable to question Murphy and Norby about their wounds until after Saturday. This delay occasioned by the cond:tion of the men. Mr. Norby is the more seriously and the event he should die, Mr. Sletvold said, special grand jury will be called to investigate the shooting.

5. November 13, 1926 Evening Star Washington, DC
Article from Evening Star, November 13, 1926

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TWO BANKS CLOSE AFTER SHOOTING Mystery of Wounding of Two Men in Minnesota Institution Nnexplained. By the Associated Press. DETROIT LAKES, Minn., Novem. ber 13.-The mysterious shooting of two bankers in the Citizens' State Bank of Callaway, Minn., was fol. lowed yesterday by the closing of that bank and the Security State Bank here because of depleted reserves. Physicians said another 24 hours must elapse before they will permit authorities to question W. J. Norby, stockholder in the Callaway Bank, and Frank Murphy, its cashier, found in the bank Tuesday suffering from bullet wounds. H. S. Erickson, president of the Callaway Bank, also is cashier of the Security Bank here and both institutions were closed after runs had caused withdrawals imperiling their resources, the banks' officials said. The Security Bank here had deposits of $780,000 and the Callaway Bank had $150,000 in deposits. A. O. Sletvold, county attorney, said he had found nothing in the closing of the banks to warrant any action by him. The closing of the First National Bank here Monday, followed by the unexplained shooting of Norby and Murphy, "caused uneasiness among depositors of the Callaway Bank and Security Bank," in Sletvold's opinion, and led to the runs that forced their closing.

6. November 13, 1926 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, November 13, 1926

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TRUST COMPANY IN KANSAS CITY CLOSES KANSAS CITY, Nov (A. The Federal Trust Company of Kansas City, with deposits about $2,000,was closed late today by the Board Governors who voted the institution the hands of State Commissioner. Heavy by in the last the Laughlin the board the were amply protected. DETROIT LAKES Minn, Nov 12 of the failure within The First National, the Margest bank in Becker County, Monday Norby, president of the Securbrother Norby Lake Park, the two bankers found shot the bank Callaon the during the responsible for the closing.

7. November 13, 1926 Public Opinion Chambersburg, PA
Article from Public Opinion, November 13, 1926

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BANK CLOSES DOORS KANSAS CITY, MO. CITY, Mo., Nov. 13 Federal Trust of City, deposits about closed yesterday the board governors, the institution the hands state finance Heavy runs depositors in the last caused the move, Laughlin declared. the board believed the were amply trust company general banking business. DETROIT LAKES, Minn. Nov. 13 with deposits of failed open marking the bank failure within The First National, the largest bank Becker county, closed Norby, president the Security Bank, brother Norby, the two found shot the State Bank of Callaway, Tuesday the Bank during the last for state bank now in charge.

8. November 13, 1926 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, November 13, 1926

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tion. The morning topic "Christian The Men's Bible class, which meets at 9:45 at the Liberty theater, will celebrate "Class marking beginning fourth year the class, of which the leader Three years ago the started with 23 men. Now It has 705 enrolled TWO MINNESOTA BANKS LIMP Decker County Institutions Have Depleted DETROIT Nov. 12. Becker county with total deposits of $930,000 closed today by the state depart of The institutions the State of Detroit with posits of and the Citizens bank of with deposits of $150,000 The First National bank here Monday Closing of the Callaway bank Tues. day found wounded in the K. C. Institution Shuts Doors. KANSAS CITY, Nov. 12. Federal Trust company of Kansas City was closed late today by the board of and voted to place the in the hands of the finance the bank in the caused said. He said the board believed the were The deposits will Boost Columbia Basin. John president of the Spokane Chamber of represent and the Columbia Basin Irrigation league the the western of the United States Chamber of Commerce Colorado Springs Decemand He program to make place the lumbia basin in nation wide deprogram and what means to business. folding metal shell but little larger has invented to portable

9. November 13, 1926 The Fresno Morning Republican Fresno, CA
Article from The Fresno Morning Republican, November 13, 1926

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Messenger Held Up; Bandits Take $35,000 Nov. masked men tonight held Belmont company West 000 they about to enter the the bank Police the who escaped the band that held robbed member textile firm and his sister payrolls more than $3,500 few hours earlier Two Banks Close In Minnesota DETROIT LAKES, Nov. Becker county banks, total deposits were closed today by the state banking department because of depleted reserves. The institutions are the Security State bank of Detroit deposits 780,000 and the Citizens' State bank with posits The First tional bank here was closed Monday. Closing of the Callaway bank folaffray Tuesday in which Frank Murphy, cashier, and Norby. stockholder, found wounded in the former's Board Of Governors Shuts Bank's Doors KANSAS CITY. Nov. Federal Trust Kansas City closed late today the board and voted place the bank the hands of the state finance commisHeavy runs on the bank in the last weeks caused the move, said. He the board believed the deposiamply protected. posits amounted about

10. November 13, 1926 Star-Herald Scottsbluff, NE
Article from Star-Herald, November 13, 1926

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Customers Become Suspicious After Two Officials Had Been Found Wounded. Detroit Lakes, Nov. Mysterious of bankers the Citizens State bank of Callaway, Minn. was followed today by the closof that bank and the Security State bank here because depleted Physicians said another hours must elapse before they will permit authorities question Norby, holder in the Callaway bank and Frank Murphy, its cashier, found suffering from bullet wounds received the bank Tuesday. H. Erickson, president of the Callaway bank also cashier the Security bank here and both institutions were closed after runs had caused withdrawals imperiling their resources, the banks' officials said. Norby and Murphy, found unconsclous locked room in the the Callaway bank were reported improving today but were not out danger, their physicians said. There has been definite of sponsibility for the double shooting. The Security bank heer had deposits of $780,000 the Callaway bank $150,000 in deposits. Sletvold, county attorney said he had found nothing in the closing of the banks to warrant any action by him. The closing the First National bank here Monday. followed by the unexplained shooting of Norby and Murphy "caused uneasiness among positors the Callaway bank and curity Sletvold's opinion, and led to the runs that forced their closing.

11. November 19, 1926 The Producers News Plentywood, MT
Article from The Producers News, November 19, 1926

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TWO MORE MINNESOTA BANKS FAIL Institution Where Two Bankers Were Found Shot Closes Doors - Three Day Run Shuts Security State. Two Becker county banks with total deposits of $930,000 were closed by the state banking department because of depleted reserve. The institutions are the Security State bank of Detroit Lakes and the Citizens State bank of Callaway, scene of the shooting of W. J. Norby and Frank Murphy, Becker county bankers recently. Failure of the two institutions marked the third bank failure in Becker county within a week. The First National bank of Detroit Lakes, largest bank in the county, closed Monday by order of the board of directors. A. J. Veigel, commissioner of banks announced at St. Paul that the deposits of the Security State bank at Detroit Lakes totaled $780,000 while those of the Callaway institution totalled $150,000. Officer in Two Banks H. S. Erickson, president of the Callaway bank, is also cashier of the Security State bank at Detroit Lakes. L. J. Norby, president of the Security bank, is a brother of W. J. Norby, former cashier of the closed Becker county bank of Lake Park, who was wounded in the Callaway shooting incident. Frank Murphy, the other wounded banker, is president of the Callaway institution. W. J. Norby is a stockholder in the Callaway institution. Closing of the Security State bank and the First National bank leaves Detroit Lakes with but one bankThe Detroit Lakes State bank. The remaining bank was preparing this morning to face a run as a result of the closing but money is on hand, business men say, to more than pay off all depositors. A three-day run on the Security State bank, said to have been precipitated by the closing of the First National bank. was responsible for the closing, O. L. Granvold, a state bank examiner, announced today. Closing of the two Detroit Lakes banks, inability to make collections, and depleted reserve, were given as causes of the Callaway failure. The immediateca use for the failure was the closing of the Detroit Lakes bank, it was said. Several years ago Callaway's two banks, the State bank and the Citizens State bank, each of which was capitalized at $10,000, consolidated and were capitalized at $25,000. The State bank was backed by the First National bank of Detroit Lakes and the Security State bank backed the Citizens State bank. When the consolidation was completed, each of the Detroit banks retained an interest in what became the Citizens State bank of Callaway.