9800. First & Moorhead National Bank (Moorhead, MN)

View Charter #2569 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
2569
Charter Number
2569
Start Date
December 22, 1928
Location
Moorhead, Minnesota (46.874, -96.768)

Metadata

Model
gpt-5-mini
Short Digest
6637de45

Response Measures

Full suspension

Other: Receiver appointed and assets liquidated; new bank organized to purchase good assets under comptroller approval.

Receivership Details

Depositor recovery rate
63.4%
Date receivership started
1928-12-24
Date receivership terminated
1935-11-30
OCC cause of failure
Economic conditions
Share of assets assessed as good
56.0%
Share of assets assessed as doubtful
35.9%
Share of assets assessed as worthless
8.1%

Description

Directors closed the bank in late December 1928 citing 'false rumors' that precipitated heavy withdrawals. The bank suspended (closed) Dec. 22–24, 1928, entered receivership and was liquidated; a new bank under a new charter later purchased assets. Thus the run led to suspension and permanent closure (receivership/liquidation).

Events (5)
1. October 6, 1881 Chartered
Source
historical_nic
2. December 22, 1928 Suspension
Cause
Rumor Or Misinformation
Cause Details
Board of directors voted to close/suspend operations pending reorganization because of deposit withdrawals driven by false rumors; closure intended to protect depositors' resources and allow reorganization or liquidation steps to be taken.
Newspaper Excerpt
Progress of liquidation since suspension of the First and Moorhead National bank, which closed December 22, 1928, shown statement...
Source
newspapers
3. December 24, 1928 Receivership
Source
historical_nic
4. December 24, 1928 Receivership
Newspaper Excerpt
H. Wray has been placed receiver by Irwin Wright, chief bank examiner for this pending re-organization. / Westlin, receiver ... statement of condition of the receivership ... Dec. 31, 1929 reflects liquidation progress since the bank suspended about year ago, ... December 22, 1928. Receiver's Statement (1931). } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } }
Source
newspapers
5. December 24, 1928 Run
Cause
Rumor Or Misinformation
Cause Details
Widespread false and vicious rumors about the bank's stability led to heavy withdrawals.
Measures
Directors voted to close the bank pending reorganization to protect resources against the run.
Newspaper Excerpt
the directors blamed circulation of false rumors regarding the stability of the institution for the run.
Source
newspapers

Newspaper Articles (13)
1. December 23, 1928 Nevada State Journal Reno, NV
Article from Nevada State Journal, December 23, 1928

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Article Text

Minn., Dec. First and Moorhead National bank, with deposits of more than $2,000,000, was voted meeting directors here The step decided method protecting against run the while reorganization is being effected, statement issued by directors said. directors blamed circulation of false the stability the institution for the

2. December 24, 1928 The Houston Post Houston, TX
Article from The Houston Post, December 24, 1928

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Article Text

Minnesota Bank Is Closed by Directors OUR CHRISTMAS MOORHEAD. Minn., Dec. (AP) -Closing of the First and Moor GIFT TO YOU head National Bank. with deposits of more than $2,000,000 was voted at As Special Holiday of directors here. Program We Offer You decided as method of protecting resources against run TRIPLE on the bank.

3. December 24, 1928 The Houston Post Houston, TX
Article from The Houston Post, December 24, 1928

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Article Text

Minnesota Bank Is Closed by Directors the First and Moorhead National Bank. with deposits of more than $2,000,000 was voted at meeting directors The step was decided as method of protecting resources against a run on the bank.

4. December 24, 1928 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 24, 1928

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Article Text

MOORHEAD NATIONAL BANK CLOSED DUE TO MONEY WITHDRAWAL Directors Call for Reorganization After Run 'Is Started by Rumors' Moorhead, Minn., Dec. 24.-Closing of the First and Moorhead National bank pending reorganization was announced Saturday by members of the board of directors following a meetIng held by them. The directors, in a statement, said that the spread of false rumors regarding the bank had resulted in such n withdrawal of deposits that the action was deemed necessary to pro-

5. December 24, 1928 The Lima News Lima, OH
Article from The Lima News, December 24, 1928

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Article Text

BANK CLOSES DOORS TO PROTECT DEPOSITORS MOORHEAD, Minn., Dec. 24.(AP) - Closing of the First and Moorhead National bank, with deposits of more than $2,000,000. was voted at a meeting of directors here today. The step was decided on as method of protecting resources against a run on the bank, while a reorganization is being effected, statement issued by directors said. The directors blamed circulation of false rumors regarding the stability of the institution for the run.

6. December 25, 1928 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, December 25, 1928

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Article Text

DILWORTH BANK CLOSES DOORS, FEARING RUN Dilworth, Minn., Dec. 24.-(AP) run on the Dilworth State Bank of Dilworth as result of the of the First and Moorhead National Bank of Moorhead directors of the Dilworth indecided to close that bank statement that the bank closed don't owe cent to any Owen M president of the Dilworth State Bank day of the circumstances and prevent possible to close the bank pending Some of the officers of the First and Moorhead National of Moorhead are directors of the Dilworth Re-Opening Plans Talked. for reorganization of the First National bank of closed Saturday by order of the board of are to be taken up immediately. it announced today by bank officials. The bank was closed pending reorganization, due to continued Leavy withdrawais of deposits resulting from "widespread false and vicious rumors,' according to officials The statement of the bank, issued Oct. 3. showed the bank had more than a quarter of million dollars, in quick consisting of Other bonds and securities and cash This statement showed capital surplus and profits with surplus and $1,954.14 in divided Since that time the undivided profits item had to $20 000 and Christmas greeting card published few days before the undivided profits of Bank officers maintain that the bank was and is in good condition. that there has been considerable liquidation this fall of their out standing loans and that the closing was decided upon solely to protect depositors and allow and reopening H. Wray has been placed receiver by Irwin charge Wright, chief bank examiner for this pending re-organization.

7. December 29, 1928 Moorhead Daily News Moorhead, MN
Article from Moorhead Daily News, December 29, 1928

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Article Text

DEPOSITORS MEET TODAY F. H. Peterson was named temporary chairman of a depositors' committee named today by depositors of the closed First and Moorhead National bank of Moorhead. A committee of from three to seven men will be named by the depositors' meeting today. Depositors of the closed First and Moorhead National bank in numbers that filled the Moorhead high school auditorium, leaving little standing room, met this afternoon. The purpose of the meeting, as previously announced, was to form a depositors' committee to act for creditors of the bank in whatever affair might develop. F. H. Peterson, Moorhead attorney, explained to the gathering that the depositors' committee would have no power or authority except to assist the bank receiver in negotiations. Leslie Welter Sr. called the meeting to order. A temporary organization was to be effected before the naming of a committee was to be considered.

8. March 9, 1929 Moorhead Daily News Moorhead, MN
Article from Moorhead Daily News, March 9, 1929

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Article Text

bank. operating under . new charter, employees of the closed bank will continue their work as far as possible. Committee Reports When opened the bank will have a capital of $100,000 and $50,000 surplus. The full report of the depositors' committee as presented today fol- "Acting under instructions from the general depositors and under pormission of the banking department, your committee made a very careful and complete examination of the assets of the First and Moorhead National bank. After doing this. it was the opinion of your committee that It was neither feasible nor possible to reorganize and reopen the closed bank under its charter and that It was virtually necessary that a new bank operating under a new charter, be organized to give this community adequate banking facilities. "Under arrangements duly approved by the comptroller of currency, the new bank which will soon have completed its organization and be ready to open for business will purchase a considerable number of the good assets of the closed bank at full face value and accrued interest to date of purchase; thereby permitting a 50 per cent cash dividend to be paid to depositors at once. The balance of the bank's assets will be trusteed and further dividends will be distributed as these assets are liquidated and collected by a representative of the comptroller of currency. "The committee wishes the depositors to fully understand that no assets have been sold except at full face value with accrued interest and that the remainder of the assets are held in trust, intact, and exactly as they were on the day the bank suspended operations. "It is the opinion of the committee that depositors' interests have been safeguarded and protected to the fullest possible extent under the plan approved by the comptroller of currency. "At this time, the committee wishes to acknowledge the splendid co-operation received from the banking department and its representative, Mr. Schram."

9. January 14, 1930 Moorhead Daily News Moorhead, MN
Article from Moorhead Daily News, January 14, 1930

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Article Text

FIRST & MOORHEAD NATIONAL BANK STATEMENT RELEASED Editor Moorhead Daily News: For the information of creditors of the First and Moorhead National bank and your readers generally, have compiled some facts and figures showing the condition of the receivership at the close of business on December 31, 1929, reflecting liquidation progress since the bank suspended about year ago, The statement covers such details am authorized to publish, and is follows: Statement of Condition of First and Moorhead National Bank, of Date of Its Quarterly Report, December 1929. ASSETS (At Suspension, Dec. Bills receivable $1,564,200.03 Assets other than bills receivable 702,319.56 Stock assessment 150,000.00 Total of all assets coming into the hands of the REMAINING ASSETS UNCOLLECTED Bills receivable 874,835.36 Assets other than bills receivable 114,436.28 Assets acquired since suspension 49,910.87 Stock assessment 86,992.87 Total assets uncollected $1,126,175.38 Total claims proven on unsecured $1,471,346.54 Total unproven unsecured liabilities 51,665.21 Total liabilities secured: Public deposits, counts, $170,002.20 431,728.39 Total additional liabilities proven 6,501.45 Total of all liabilities $1,961,241.59 Dividends paid to date Secured and preferred claims paid 414,917.07 Cash on hand 14,831.41 should be explained that the item of "cash does not reprenet collections on assets since the payment of the first dividend of 50 per cent on May 1929. Collections made since May 1929. total nearly but this has been sum used largely to carry an agreement entered into with the First National bank in Moorhead unacceptable assets transferred to it on 1929. Our contract with the First National bank in Moorhead will very soon completed. making future collections on remaining assets available for payment of further dividends to SCHRAM,

10. February 7, 1931 Moorhead Daily News Moorhead, MN
Article from Moorhead Daily News, February 7, 1931

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Article Text

STATEMENT SHOWS & CENT DIVIDEND, TOTALLING $777,264.79 HAS BEEN PAID. Contract With First National Bank Completed, Receiver's StateShows. Progress of liquidation since suspension of the First and Moorhead National bank, which closed December 22, 1928, shown statement of condition made public today by Westlin, receiver. Dividends totalling percent, have been paid, cording to the and cured and preferred claims paid $530,676.35. Contract Completed Mr. Westlin also revealed the repurchase held closed institution with the First National bank in Moorhsed now completed all cash hand and future collections on remaining will be available for payment future dividends to creditors. An agreement had been made the First National bank in Moorhead repurchase unacceptable assets tarnsferred to it on May 1929. The statement issued by Mr. Westlin shows cash hand on which represents the cash on hand since completion of the contract with the First Nation- Collections made since the First and Moorhead National suspended while out of the total collections during the year the sum has been used to carry out the agreement with the First National. Assets the closed institution the of listare at including receivable, other assets cash hand. and stock assesment. Remaining Assets Remaining assets uncollected, December 1930, totalled including assets acquired since suspension. Liabilities $2,073,371.56 Listed liabilities claims are total proven on unsecured liabilities, total unproven cured claims, $26,507.78: total secured cancelled by total rediscounts paid, $170,002.20, and total additional proven,

11. February 9, 1931 Moorhead Daily News Moorhead, MN
Article from Moorhead Daily News, February 9, 1931

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Article Text

RECEIVER'S STATEMENT EDITOR MOORHEAD DAILY NEWS: Crystals Fitted For the information of creditors of the First & Moorhead National "Walk a Flight and Buy Right" bank, and your readers generally, have compiled some facts and figures showing condition of the receivership at the close of business on December 31, 1930. reflecting liquidation progress since the bank suspended. The statement covers such details as I am authorized to publish, and it is as follows: Statement of conditioin of the First & Moorhead National Bank JEWELRY of Moorhead, Minn., as of date of its quarterly report, December 31, 1930: 21/2 Bdw Fargo. Over Woolworth's ASSETS (At Date of Suspension, December 22, 1928). Bills receivable $1,564,200.03 Assets other than bills receivable and cash on hand assessment 150,000.00 Stock Total of all assets coming into the hands of the receiver $2,416,519.59 REMAINING ASSETS UNCOLLECTED (Dec. 30, 1930) Bills receivable 791,236.08 Assets other than bills receivable 88,461.03 45,646.95 Assets acquired since suspension Stock assessment 76,431.86 Total assets uncollected $1,001,775.92 Total of all liabilities Dividends paid to date (50 per cent) Secured and preferred claims paid. 777,264.79 530,676.35 $2,073,371.56 $ 40,389.81 Cash on hand Cash on hand represents net cash on hand since the completion of the contract with the First National Bank in Moorhead. Collectons made since suspension total $1,311,411.88. Out of the total collections during the year 1930, the sum of $165,613.49 has been used to carry out an agreement entered into with the First National Bank in Moorhead, to repurchase unacceptable assets transferred to it on May 1, 1929. Our repurchase contract with the First National Bank in Moorhead is now completed and all cash on hand and future collections on remaining RENEE Violnist. assets will be available for payment of future dividends to creditors. WESTLIN, Receiver.

12. March 15, 1932 The Fargo Forum, Daily Republican, and Moorhead Daily News Fargo, ND
Article from The Fargo Forum, Daily Republican, and Moorhead Daily News, March 15, 1932

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Article Text

NEW DIVIDEND WILL BE ISSUED 8 Per Cent Payment To Be Paid Moorhead Bank Depositors Between $120,000 and $125,000 will put in circulation among Moorhead residents about April as the result of approval by the United States comptroller of currency of the second dividend by the First and Moorhead National bank, which pended operations Dec. 22, 1928. O. M. Westlin, receiver for the inMenday the dividend, for per and to depositors have the for first for 50 per was paid May 1929, giving depositors close to The institution has paid nearly one and quarter million dollars ferred claims and the first dividend, Westlin declared. "The contract for paying the first dividend not completed the fall of 1930, the amount represented in includes only funds in 1931, the said. "The checks covering the second dividend should be back from Washington ready for distribution by April

13. September 23, 1933 Moorhead Daily News Moorhead, MN
Article from Moorhead Daily News, September 23, 1933

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Article Text

560 Acres of Land Is Sold for $5,525 Five hundred sixty acres of land, all but quarter section of which located in Clay county and stituting part of the assets of the closed First and Moorhead National bank. was sold today for $5,525. The sale was conducted hearing Clav county district court before Judge Nye, on petition of Westlin, bank receiver. One quarter located Traill county, was sold Fred Downs, near Hillsboro, for 000. He was the only bidder. Two quarter sections, located south Moorhead. were sold Fred Brophy, Moorhead, for and another also south of Moorhead, was sold to Emil and Carlstrom, near Moorhead, for