First National Bank (Deming, NM)

View Charter #6974 on SPMC View balance sheet

Episode Information

Episode UID
697401488
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
69740 national
Charter Number
6974
Start Date
December 29, 1923
Location
Deming, New Mexico (32.269, -107.759)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
b5a0d762bee9273f

Response Measures

None

Receivership Details

Depositor recovery rate
17.2%
Date receivership started
1924-03-04
Date receivership terminated
1927-07-31
OCC cause of failure
Economic conditions
Share of assets assessed as good
20.7%
Share of assets assessed as doubtful
49.0%
Share of assets assessed as worthless
30.3%

Description

Closure resulted from surety/bond withdrawal and inability to pay a large county check, not from a depositor run.

Events (4)
1. October 2, 1903 Chartered
Source
historical_nic
2. December 29, 1923 Suspension
Cause Details
Surety company on the bank's bond cancelled coverage; county treasurer presented $30,000 check which the bank could not cash, forcing suspension.
Newspaper Excerpt
The First National Bank here closed its doors Saturday afternoon at 2:50 o'clock.
Source
newspapers
3. March 4, 1924 Receivership
Source
historical_nic
4. March 4, 1924 Receivership
Newspaper Excerpt
N. S. Graham, who had been appointed receiver of the First National Bank of Deming, which closed its doors December 29th last, had been instructed to take charge of same immediately by Henry M. Dawes, comptroller of the currency.
Source
newspapers

Newspaper Articles (5)
1. January 1, 1924 The Deming Headlight Deming, NM
Article from The Deming Headlight, January 1, 1924

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Article Text

1ST NATIONAL BANK CLOSED SATURDAY Demand For County Funds Causes Cessation Of Business BOND WITHDRAWAL IS BLAMED Similar Action By Bonding Company Closes Other Banks The First National Bank here closed its doors Saturday afternoon at 2:50 o'clock. The immediate cause of its closing was the presentation of a check for $30,000.00 by County Treasurer W. J. Berry. The reason the county treasurer presented a check for such a large amount was because the surety company which was on the bank's bond for the safety of the county funds deposited therein had given him notice that it would withdraw from the bank's bond at noon on December 31. The First National Bank was not alone in having its bond cancelled, but most of the banks throughout the state of New Mexico are being likewise treated by the surety companies in this wholesale cancellation of bonds. According to the conditions of the National Bank Act, the moment a bank is unable to cash a check when it is presented for payment it must close its doors, suspend all business and notify by wire the National Bank officials at Washington. This is what happened in the case of the First National Bank here. The bank examiner is due to arrive here Wednesday, January 2, at which time the books and affairs of the bank will be carefully examined, and if everything is found as it should be, the indications are that plans for the reorganization of the bank will be perfected. It is possible that this may be accomplished inside of the next thirty days. The First National Bank was organized in October, 1903, just a little over 20 years ago. It has 30 stockholders who are able to make payment equal to double the amount of their stock if called on to do so, but the present indications are that such action will be unnecessary. The capital stock of the bank is $40,000, and it has a surplus of an additional $40,000. Its resources are placed in excess of $500,000.00, and it has deposits in the neighborhood of $350,000.00. Ordinarily the bank has been paying annual dividends at the rate of 20 per cent. Since the bank closed its doors, many of its largest depositors have called personally on the vice-president and cashier and expressed their confidence in them and in their management of the bank's affairs; that they believed the conditions which caused it to close were due to circumstances over which they had no control. Evidently there is nothing radically wrong with the bank or the manner in which it has been managed. It simply did not have enough money on hand to cash a check for $30,000 on short notice, and its assets are so scattered and diversified that they cannot be realized on quickly in such an emergency. So what appears to be only a temporary closing of the bank may not be such a catastrophe as it might be. People generally seem to consider the circumstances in this light, and most of them are looking forward to the bank reopening at an early date. The sudden closing of the bank created some surprise, but it failed to cause a run on the other bank, which is the Bank of Deming, where the deposits during Monday were fully twenty times as much as the withdrawals. This bank is in a condition where it can easily stand any run likely to be made on it, but every indication is that no run will be made.

2. March 7, 1924 The Deming Headlight Deming, NM
Article from The Deming Headlight, March 7, 1924

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Article Text

N. S. GRAHAM, RECEIVER OF FIRST NATIONAL BANK, TO TAKE CHARGE Committee Soliciting The Sale of $50,000.00 in Stock For Purpose of Reorganizing Bank, Suspends Efforts Temporarily It was made known here Tuesday that N. S. Graham, who had been appointed receiver of the First National Bank of Deming, which closed its doors December 29th last, had been instructed to take charge of same immediately by Henry M. Dawes, comptroller of the currency, of Washington, D. C. Word to this effect was received by C. D. Barber, examiner in charge. It is quite probable Mr. Graham will arrive here by the time this is in print. The taking charge of the First National Bank has been held in abeyance for some time, pending efforts to reorganize and reopen the institution. It was necessary for the committee, appointed to solicit the sale of stock, to raise $50,000.00. This amount had not been secured Tuesday, and the workers for the reopening of the bank, have suspended their efforts for the present, altho we were informed by a director of the closed institution that satisfactory progress was being made along the line of reopening when notice came that the receiver would take charge at once. The statement was made by Mr. Longmoor, a deputy bank examiner, at a meeting here in the bank recently, that if the bank was thrown into the hands of a receiver, the depositors would receive not more than 10 per cent. If the receiver proceeds to dispose of the assets of the bank, it should not be very long before depositors will know exactly the amount they will get.

3. June 5, 1925 The Deming Headlight Deming, NM
Article from The Deming Headlight, June 5, 1925

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Article Text

What of the Future? Deming has lost its second and last banking institution. The Headlight submits that now is the time to sit steadily in the boat, for sane, think ing citizens to speak with wisdom and act with discretion. Accusations and recriminations might offer a safetyvalve for supressed feeling, but they mean nothing and ouly add to the general distress. Many Deming citizens have lost their savings, the result. in many cases. of long hard years of toil. They are entitled to the help and sympathy of every rightthinking person. A great misfortune has befallen, and it should draw the citizens together in a bond of understanding. Whatever may have been contributory causes of the failure. the fact remains that the hard economic conditions, largely brought about by the low price of cattle and the drouth, is the basic cause. These conditions caused the closing of the First National Bank, and another New Mexico bank that suspended on the*same day as the Bank of Deming. There may have been other reasons for the failure, but rehearsal of them at this time would contribute nothing toward the solution of Deming's problem. Deming citizens have not been pulling together, and the community is now gathering the bitter fruit of its failure to cooperate for the good of all. The outcome has been the simple answer to the formula of cause and result. Things could have been quite different. but it is too late to dwell on the past; what of the future' Will Deming now repent and mend its ways On the answer to that question depends the economic and social rehabilitation of this community. If every citizen will think for himself. and act in accordance with his own judgment, this city will have begun its regeneration-With charity for all. with malice toward none." The Sierra County Record is the name of a new weekly newspaper recently found among The Headlight's exchanges. It is published at Hillsboro by Lewis D. Thatcher. Hillsboro has ben quite awhile without a newspaper and no doubt the community is glad to have Mr. Thatcher fill a local need.

4. September 29, 1925 The Deming Headlight Deming, NM
Article from The Deming Headlight, September 29, 1925

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Article Text

NEW BANK RECEIVER Jacobs, receiver for the First National Bank here. also lena and Clifton. has resigned and he succeeded by Pottorff who ar rived from El Paso last night. The transfer will be made as Mr. Jacobs returns from Albuquerque.

5. December 7, 1926 The Deming Headlight Deming, NM
Article from The Deming Headlight, December 7, 1926

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Article Text

CARNIVAL The sixth annual Deming High Junfor Carnival was held the Deming at Armory Friday evening, 3d. The was arranged and sponsored by Principal Anderand the Junior The made by the Carnival will be used for the banquet and for sun dry school necessities, such centage of the high school paper, the Broadcaster. percentage pay football deficit. etc. The amount of money taken in the door and several booths amounted $440.00. The amount cleared will be approximately $275. The Armory was attractively decorated. Every organization and class in the school worked equally hard to its booth the most attractive and the best paying. The five hours from to proved to hours of fun and for every Upon ntering the Armory, wide choice of amusements given. Dutch Cafe. serpentine and confetti shooting in the air, pop corn stands, hot-dog stands, galleries, dancing and bar constituted some of the wonders the Carnival. As the evening advanced, the crown the Carnival Queen of 1926 took interest of all. The most popular the eight nominated queens was proved by system of voting. Saralois Kerr of the Senior class crowned Martin Wehmhoner, President of Student Council. Everyone departed at deciding that the Carnival of 1926 had offered the most fun of all the Carniand that this Carnival had been the best managed. great deal of credit should be given to Anderson and workers the management of the Carnival Every boy and girl should be response that or she made when asked do work. All were delighted with the attitude the trons of the school took the Carnival In every respect did they their hearty The students wish to express their appreciation for the loyalenabling the Carnival to be the success it really was. Pottorff, the very efficient ceiver of the First National Bank in Deming, has completed his arrangements the second and final dividend in the closing up of the affairs of that defunct institution. All the checks have been written, each for the payment of cent per the amount due each depositor, cording to his proof of claim which will be taken up when these final checks are issued. No further progress towards the of these checks can be made until they have all been sent to Washington signed. They cannot be sent to Washington until Mr. Pottorff receives notice from the comptroller advising him to take such action, and he awaiting this authorizaton. anticipated that the checks can be sent to signed and turned that can be made before Christmas, but it is not certain that this can done. The payment of these checks will mean the of approximately $28,000, which will exhaust the assets that bank. When this final dividend is paid the Jank will have paid total 17½ per cent to its depositors, which great deal more than of them anticipated. Many the depositors felt that they would be lucky they eventually received as much cent. Pottorff has been the receiver of the bank just little over year, and when he took charge of and alyzed its assets he felt inclined to lieve that the institution could never pay per cent dividend did not feel all discouraged, but went to work with to every cent in way sets that he could, and this total of percent is the result of his earnest efforts in that Receiver Pottorff well pleased at done much better for the positors than he had reason to anticipate could be done, and he is also well satisfied with the which has been accorded him by the people of Deming this vicinity. He being by the depositors here because of his promptness and the amount of the two dividends be has been able to pay.