Farmers' Bank of Delaware

Farmers' Bank of Delaware was the second bank chartered by Delaware. It operated from 1807 until 1981, when it was on the verge of bank failure and was acquired by Girard Bank. At that time, the bank had 28 branches.[1] For most of its existence, the bank was 49% owned by the state government, although it was privately managed.[2]

Farmers' Bank of Delaware
IndustryBanking
FateAcquired by Girard Bank
Founded1807 (1807)
Defunct1981 (1981)
HeadquartersDover, Delaware

History

On February 4, 1807, the Delaware General Assembly passed legislation allowing the Farmers' Bank to incorporate and issue $500,000 of capital, via 10,000 shares at $50 each. The bank was incorporated by Henry M. Ridgely in Dover, with branches in New Castle and Georgetown. Established to provide banking and credit services to farmers in Kent and Sussex Counties,[2] the bank also ended the 12 years of monopoly enjoyed by the National Bank of Delaware in banking services in the state.

A supplementary charter on January 22, 1813, added a fourth branch in Wilmington.[2]

In 1816, the Second Bank of the United States selected the bank as a local depository for federal revenues.[2]

In 1837, the bank was selected as the depository for the federal surplus.[2]

In 1899, the branch in New Castle was closed after the city went into decline.[2]

In February 1976, the bank held merger talks with Girard Bank.[3]

In 1976, the state of Delaware increased its ownership from 49% to 80% after the bank lost $20.8 million in 1975 and the Federal Deposit Insurance Corporation (FDIC) noted that it would cost more to liquidate the bank than to inject capital.[4] As part of the deal between Governor Sherman W. Tribbitt and the FDIC, the state of Delaware agreed to keep all its deposits in the bank.[5]

On December 20, 1981, when the bank was on the verge bank failure, it was acquired by Girard Bank for $38.6 million, which required the passage of a special statute that allowed the Pennsylvania-based Girard Bank to acquire a Delaware bank.[5] Girard Bank was acquired by Mellon Bank in 1984 and was sold in 2001 to Citizens Financial Group.[6]

Management history

Among the presidents of the bank were:

  • Henry M. Ridgely (1807-)
  • Allan Thomson (October 22, 1831, to January 7, 1836)
  • James A. Bayard, Jr. (January 7, 1836, to January 5, 1843)
  • David C. Wilson (January 5, 1843, to March 31, 1865)
  • Charles I. du Pont (April 6, 1866, to December 12, 1868)
  • Francis Barry (January 7, 1868, to January 8, 1878)
  • George Richardson (January 3, 1878, to at least 1888)
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References
  1. Gilbride, Neil (June 26, 1983). "BANKING HAVEN". The Washington Post.
  2. "Farmers Bank of the State of Delaware". SNAC.
  3. "FARMERS BANK TALKS MERGER WITH GIRARD". The New York Times. February 5, 1976.
  4. DANFORTH, A. EDWARDS (July 24, 1977). "When a State Rescues a Bank". The New York Times.
  5. Boyer, William W. (November 5, 2013). Pivotal Policies in Delaware: From Desegregation to Deregulation. Rowman & Littlefield. ISBN 9781611494846.
  6. "Institution History for GREENVILLE OFFICE (792716)". Federal Financial Institutions Examination Council.
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