Citizens National Bank (Stoughton, WI)

Episode Information

Episode UID
930401590
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
93040 national
Charter Number
9304
Start Date
June 13, 1932
Location
Stoughton, Wisconsin (42.917, -89.218)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
fa23191bdc579ba4

Response Measures

None

Receivership Details

Depositor recovery rate
78.5%
Date receivership started
1934-01-10
Date receivership terminated
1940-01-19
Share of assets assessed as good
33.4%
Share of assets assessed as doubtful
52.2%
Share of assets assessed as worthless
14.3%

Description

Suspended Mar. 2, 1933; operated under conservatorship then placed in receivership in Jan. 1934.

Events (7)

1. January 2, 1909 Chartered
Source
historical_nic
2. June 13, 1932 Other
Newspaper Excerpt
the directors decided on Saturday that all depositors must be treated alike—and safeguarded. ... deferred payment agreement which guaranteed 100 percent to depositors.
Source
newspapers
3. March 2, 1933 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large indebtedness (RFC loan ~$80,000) and substantial uncollected assets led to suspension.
Newspaper Excerpt
receiver's statement ... covering the entire period since the bank's suspension on Mar. 2, 1933.
Source
newspapers
4. April 1, 1933* Reopening
Newspaper Excerpt
Deposits in checking accounts established since the bank re-opened under a conservatorship last spring ... are in an entirely different class.
Source
newspapers
5. January 1, 1934* Receivership
Newspaper Excerpt
the bank went receivership last January. Receiver B. C. Olejniczak ... statement submitted ... covering period since the bank's suspension.
Source
newspapers
6. January 10, 1934 Receivership
Source
historical_nic
7. August 15, 1934 Other
Newspaper Excerpt
STOUGHTON, closed Citizens' National bank will release per cent of the total deposits, Thursday morning. The release of these 'frozen' funds authorized by the bank's receiver.
Source
newspapers

Newspaper Articles (4)

Article Text

THE PRICE OF GOSSIP That the Citizens National Bank has been in a sound position all along is proved by the deferred payment agreement which guaranteed 100 percent to depositors. Despite the assurance given to the community for months past that this is the case, there has been an undercurrent of talk. It requires only a careless statement, even by someone who wouldn't be able to read a financial statement if it were available, to unsettle the mind of a listener. Thus is was, that some customers of the local bank were made restless; and the directors decided on Saturday that all depositors must be treated alike—and safeguarded. While the action of the Citizens National puts that institution in the strong position where each customer is assured there will be no "run on the bank," the step at the same time inconveniences some of the smaller depositors who rely upon checking accounts to meet current obligations. It is the price paid for idle baseless talk by those in many cases who had no money involved, and prattled merely to have themselves heard. It might be repeated—that there is a PENITENTIARY PENALTY for such talk. You would be doing only the fair thing to your community and yourself by reporting any offenses. We repeat also with emphasis the fact that our Stoughton banks are extra ordinarily safe. One of the best banking situations to be found in the state of Wisconsin is right here in Stoughton.


Article Text

Deposits in checking accounts established since the bank re-opened under a conservatorship last spring are in an entirely different class, however. In accordance with the governments instructions such funds have been kept liquid at all times being either in the bank's vaults or else on deposit with the federal reserve bank. These funds will be paid back to depositors as soon as all checks have been returned to the bank. The Citizens' National is the first Stoughton bank to be closed in more than 30 years and there naturally is much speculation as to what percentage of their money depositors will receive.


Article Text

Receiver Presents Statement STOUGHTON, Wis.—That the progress being made by the closed Citizens National bank towards the payment of a dividend is of interest to its hundreds of depositors around Stoughton, goes without saying. Despite the government's unnecessarily sphinx-like attitude towards depositors whose life savings are at stake, some little light is thrown on the bank's affairs by the statement submitted to the treasury department by Receiver B. C. Olejniczak as of June 30, and covering the entire period since the bank's suspension on Mar. 2, 1933. This correspondent is indebted to Receiver Olejniczak for a copy of the statement but official red tape prevents the receiver from making any explanatory comment, no matter how much he personally might like to do so, and whatever explanatory remarks are ventured are therefore this correspondent's own. Before presenting the receiver's statement, it is well to state that at the time of its suspension, the bank owed the RFC $80,000 and the First Wisconsin National bank in Milwaukee $15,000 secured by bonds as collateral. During the conservatorship of F. O. Phillips, who had been president of the bank, which lasted until the appointment of Mr. Olejniczak as receiver early in January, sufficient assets were realized upon to take up the notes to the First Wisconsin and also to pay some $10,000 on the RFC loan, leaving the balance of $70,000 of that loan as the bank's sole liability aside from deposits, according to statements made by ex-directors of the institution last winter. Whether or not the $70,000 has been paid is not made clear in the statement and when asked for specific information upon this point, Mr. Olejniczak replied that it was a question he could not answer. The receiver's statement follows: Assets Assets, as of Mar. 2, 1933 (book value, not actual) $597,184.04 Additional assets acquired since suspension (book value, not actual) ...... 12,459.39 Stock assessment (100%) .. 50,000.00 Total Assets to be accounted for ........ $659,643.43 Cash collected from assets $156,131.98 Cash collected from additional assets ......... 43.26 Cash collected from stock assessment ......... 11,694.67 Total cash collected .... $167,869.91 Offsets allowed on assets... 19,266.75 Losses charged off: On assets ............ 2,597.31 Remaining assets: Uncollected assets ...... $419,188.00 Uncollected additional assets ............. 12,416.13 Uncollected stock assessment ............. 38,305.33 Total remaining uncollected assets ........ $469,909.46 Total assets accounted for $659,643.43 Liabilities Secured liabilities at date of suspension ......... $142,967.95 Unsecured liabilities at date of suspension ..... 374,748.90 Additional liabilities established ............. 39.72 Total liabilities this date $517,756.57 Secured and preferred liabilities paid in cash ... $ 96,294.84 Unsecured liabilities offset 19,315.44 Unsecured liabilities for which Receiver's Certificates have been issued.. 325,788.72 Unpaid secured liabilities (both proved and unproved) ............. 36,016.12 Unsecured liabilities not paid or proved ......... 40,341.45 Total liabilities accounted for ............. $517,756.57 Collections and Disbursements Collections from all sources: Cash collected from assets and stock assessment .. $167,869.91 Cash collected from interest, premium and rents 3,583.83 Cash collected by receiver and held in trust for owners ............. 28.35 Total collections to be accounted for ....... $171,482.09 Disbursements of every character:


Article Text

Stoughton Bank Frees $113,989 Release Funds Thursday Is Authorized Receiver STOUGHTON, closed Citizens' National bank will release per cent of the total deposits, Thursday morning. was announced today. The release these "frozen" funds authorized by the bank's receiver, Olejniczak. The bank went receivership last January.