National Bank - Herndon, VA

Episode Information

Episode UID: 963501621
Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 96350 national
Charter Number: 9635
Start Date: January 9, 1935
Location: Herndon, Virginia (38.970, -77.386)

Metadata

Model: gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest: f3be190fccd576a7

Response Measures

None

Receivership Details

Depositor recovery rate: 75.0%
Date receivership started: 1935-01-10
OCC cause of failure: Fraud
Share of assets assessed as good: 61.2%
Share of assets assessed as doubtful: 15.2%
Share of assets assessed as worthless: 23.6%

Description

Inspectors found a $70,000 shortage prompting closure and FDIC takeover.

Events (4)

1. January 10, 1910 Chartered

Source: historical_nic

2. January 9, 1935 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Examiners discovered an approximate $70,000 shortage in the bank's accounts, prompting directors to close the bank.
Newspaper Excerpt: the Herndon National Bank, closed last night by its directors after national bank examiners had found a shortage in its accounts of approximately $70,000.
Source: newspapers

3. January 10, 1935 Receivership

Source: historical_nic

4. January 10, 1935 Receivership

Newspaper Excerpt: The Federal Deposit Insurance Corp. today took over the Herndon National Bank, closed last night by its directors ... Representatives of the F. D. I. C. moved into the closed institution today, and began an audit.
Source: newspapers

Newspaper Articles (1)

1. January 10, 1935 Evening star Washington, DC

Article Text

Shortage of $70,000 Found in Bank—Payments Within 10 Days. By a Staff Correspondent of The Star. HERNDON, Va., January 10.—The Federal Deposit Insurance Corp. today took over the Herndon National Bank, closed last night by its directors after national bank examiners had found a shortage in its accounts of approximately $70,000. Officials of the F. D. I. C., operating under the new deposit guarantee legislation, expect to pay off all depositors up to $5,000 within 10 days, they said today. Representatives of the F. D. I. C. moved into the closed institution today, and began an audit. As soon as they are completed, the payments will begin. Officials in Washington said they expected to act "very speedily."