10456. First Bank & Trust Company (Hendersonville, NC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust
Start Date
November 20, 1930
Location
Hendersonville, North Carolina (35.319, -82.461)

Metadata

Model
gpt-5-mini
Short Digest
80cc02035db3ce39

Response Measures

None

Description

The First Bank & Trust Company of Hendersonville failed to open on Nov 20, 1930 and a notice said it had been placed in the hands of the State Banking Department for liquidation. Runs developed on the American Bank & Trust Co. and Citizens' National after this closing, but those were separate institutions. The primary action for this bank was a closure/suspension by directors/state leading to liquidation/receivership.

Events (2)
1. November 20, 1930 Receivership
Newspaper Excerpt
notice on the door which said the institution had been placed in the hands of the State banking department for liquidation.
Source
newspapers
2. November 20, 1930 Suspension
Cause
Government Action
Cause Details
Bank failed to open and directors placed the institution in the hands of the State Banking Department for liquidation (notice posted on door).
Newspaper Excerpt
The First Bank & Trust Co., failing to open at the regular hour this morning, had a notice on the door which said the institution had been placed in the hands of the State banking department for liquidation.
Source
newspapers

Newspaper Articles (15)
1. November 20, 1930 Evening Star Washington, DC
Article from Evening Star, November 20, 1930

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FOUR NORTH CAROLINA BANKS CLOSE DOORS Asheville Institution With $18,000,000 Deposits Among Those Involved. By the Associated Press. RALEIGH, N. C., November 20.-Four banks in Western North Carolina, including the Central Bank & Trust Co. at Asheville, with deposits of $18,000,000, closed today, John Mitchell, State bank examiner, announced here. Mitchell said his office had been advised that the Central Bank & Trust Co. of Asheville closed this morning and the Biltmore-Oteen Bank of Asheville, the First Bank & Trust Co. of Hendersonville and the American Bank & Trust Co. of Hendersonville had also closed their doors. HENDERSONVILLE, N. C., November 20 (AP)-Three Hendersonville banks closed their doors today, leaving this city without banking facilities. The First Bank & Trust Co., failing to open at the regular hour this morning, had a notice on the door which said the institution had been placed in the hands of the State banking department for liquidation. Runs immediately developed on the American Bank & Trust Co. and the Citizens' National. Depositors stood in long lines in an effort to draw out their savings. The American remained open only a few minutes. Its officials in closing it issued a statement saying the action had been taken for the protection of depositors and because of the run. The Citizens' closed after an hour. Its officials declared the institution "perfectly solvent."

2. November 20, 1930 The Leaf-Chronicle Clarksville, TN
Article from The Leaf-Chronicle, November 20, 1930

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SIX BANKS CLOSE TEMPORARILY IN NORTH CAROLINA Five Institutions Follow Central Bank & Trust Company's Action LIBERTY INVENTORY State Had $354,707.54 in Nashville Concern in Receivership NOV Central Bank Trust company, largest financial Institution in tion, failed to open for business today and by noon other western North Carolina had closed their doors. Capitalized at $1,000,000, Central Bank Trust company on September had deposits of 000,000. Its was given as Other banks closing were the Biltbank, Asheville, including its branch the Oteen veterans' the First Bank Trust company of Hendersonville, the American Bank Trust company of Hendersonville, the Citizens National bank of Hendersonville, and the Bank of Lowell, of Lowell, out by the board directors of the Central Bank Trust company said the bank was closed in anticipation of heavy run. The closing of the three banks at Hendersonville left that city of approximately residents without banking facilities. State Had Funds in Liberty NOV. An inventory of the Liberty Bank Trust company which went into chancery court today and showed deposits the state Tennessee totalling State deposits this and two other closed banks have been Attorney General Smith Four Others Close C., Four banks in western North Carolina, including the Central Bank Trust Asheville with deposits

3. November 20, 1930 The Evening Sun Baltimore, MD
Article from The Evening Sun, November 20, 1930

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CAROLINA BANKS FAIL Three More Close In Kentucky. President Of One Institution Hangs Self [By the Associated Press] Asheville, N. Nov. CenBank and Trust Company, largest financial institution in this immediate section, failed to open for business today and by noon five other western North Carolina banks had closed their doors. Capitalized at CenBank Trust Company on September 24, the date of the last bank call, had deposits of approximately $18,000,000. Its resources were given at that time as $21,753,000. Other Banks Close Other banks closing were the BiltBank here, including its branch at Oteen Veterans' Hospital the First Bank and Trust Company, Hendersonville: the American Bank and Trust Company, Hendersonville the Citizens National Bank, Hendersonville, and the Bank of Lowell, John Mitchell. State Bank Examiner, notified of the Central Bank and Trust Company's failure to open and expected to send an examiner here immediately to take charge of Heavy Run Anticipated A statement given out by the board directors said the bank was closed anticipation of heavy run. [By the "This action." the statement said, taken solely to conserve the in- New Nov. 20-Dr. Abraham terests of the depositors and only after Flexner, director of the Institute became apparent that such step Advanced Study in Newark, wise. During past few days the book criticizes American univerbank has been forced withstand sities for teaching "rubbish." heavy withdrawals of funds.' notice posted on the door of the In American, First Bank and Trust Company, Hen- lish and German." published the said the Oxford University Press, he declares been placed in the bands of the State sort of easy rubbish which may Banking Department for liquidation. counted toward an degree capitalized $150,000, had passes the limits of credibility." [Continued On Page Institutions, he adds, "have

4. November 20, 1930 Fitchburg Sentinel Fitchburg, MA
Article from Fitchburg Sentinel, November 20, 1930

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More Carolina Banks Closed RALEIGH N C. Nov 20 or Four banks in western North Carolura, including the Central Bank & Trust Co. at Asheville, with deposits of $18,000,000, closed today, John Mitchell. state bank examiner announced here. Mitchell said his office had been advised that the Central Bank & Trust Co of Asheville closed this morning and the bank, the Firht Bank & Trust Co of Hendersonville, and the American Bank & Trust Co of Hendersonville had also closed JEFFERSON CITY. Mo Nov 20 (AP) The Hannibal Trust Co. of Hannial. with total of closed today by its board of directors, the state finance department announced

5. November 20, 1930 The Journal Meriden, CT
Article from The Journal, November 20, 1930

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NEW ENGLAND BANKERS CALLED Infrequency of Suspensions Pointed to With Pride 6 IN 9 YEARS Institutions in North Carolina Closed Nov. 20. (AP) treasurer of the Industrial Trust company Providence. the characterized New England bankers an the session sixth New England conference The conference marking the fifth the England this an the council and the New England The first session preceded and the opening of the first the conference Clayton suspensions New England. During the year when the middle many bank there the six New states. Frank Partridge president Vermont company Proctor. Vt., who followed Clayton spoke of responsibility of bank directors the served their He said during address while he did want himself the motest the highest bank to the letter and spirit the Edward president the Hampshire bank Concord. urged the bankers and accept "safe to aid borrowers sound Wilbur the First bank of Boston, urged use of all possible safe- Stability in Industry. Stability in industry and employmust be brought about through improvement in industrial managethe New England Council told today by Redfield Proctor "The soundest remedy for unemployment said the force for the New England dustries had been negligent said the search business wae seriously undervalued power companies New land will have spent 1930 instead the which the estimate reported Presithe Charles Edgar. Boston Edison Electric company and chairman the cil's power presented by Rodman member the committee predicted that the power business would have yearly growth "something the neighborhood ten per Governor John H. Trumbull Connecticut urged New England states "meet the challenge of the aviation industry' and thereby fit by the further development of rapid means of transportaand communication. Raleigh Nov. banks western North Carolina. including the Central Bank and Trust company Asheville with deposits closed Mitchell state bank examiner announced said his office had been advised that the Central and Trust company of Asheville this the bank, the First Bank and Trust pany and the American Bank and Trust Hendersonville had also closed their doors. Hendersonville, N. Nov. 20. (AP) -Three their today leaving the city The First Bank and Trust pany had notice door this which the had been placed in the of the state banking department for invesRuns immediately developed on the American Bank Trust company the Citizens National. Both institutions closed their doors within hour.

6. November 20, 1930 Sun Herald Biloxi, MS
Article from Sun Herald, November 20, 1930

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Six Banks Close In North Carolina Asheville, N. C., Nov. 20.-(P)The Central Bank and Trust Company, largest financial institution in this immediate section, failed to open for business today and by noon five other western North Carolina banks had closed their doors. Capitalized at $1,000,000, the Central Bank and Trust Company on Sept. 24, the date of the last bank call, had deposits of approximately $18,000,000. Its resources were given at that time as $21.753,000. Other banks closing were the Bilt. more-Oteen bank here, including its branch at the Oteen Veterans Hospital; the First Bank and Trust Company of Hendersonville; the American Bank and Trust Company, Hendersonville the Citizens National Bank, Hendersonville, and the Bank of Lowell, Lowell, N. C. A statement given out by the board of directors said the Central Bank & Trust Company was closed in anticipation of heavy run. "This action," the statement said, "was taken solely to conserve the interests of the depositors and only after it became apparent that such step was wise. During the past few days the bank had been forced to withstand heavy withdrawals of funds."

7. November 20, 1930 The Free Lance-Star Fredericksburg, VA
Article from The Free Lance-Star, November 20, 1930

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CONSERVE ASSETS Nov. The Central Bank and Trust Company, !argest financial institution in this immediate section, failed to for business today and by noon five other western North Carolina Banks had closed their doors. Capitalized $1,000,000 the CenBank and Trust Company, September the date of the last bank had deposits of approximately $18,000,000 with surplus. Its were given that time $21,753,000. Other banks closing were the BiltBank here, including its branch at Otsen Veterans Hospital, the First Bank Trust Company Hendersonville: the American Bank and Trust Company, Hendersonville: The Citizens National Bank, and the Bank John Mitchell. State bank examiwas notified the Central ner, Bank and Trust Company's failure open and was expected to send examiner here immediately take charge Feared Heavy Run. statement given out by the board of directors said the bank was closed in anticipation of heavy action," the statement said, taken solely conserve the inof the depositors and only became apparent that such step was During the past days the bank has been forced withstand heavy withdrawals funds. notice post on the door of the First Bank and Trust Company, Hendersonville, said the institution had been placed the hands the State Banking Department for liquidation. capitalized had surplus of $204,261 and according to its last condition. Others Soon Close. Heavy runs early in the morning the Bank and on Trust and the Citizens Company Bank at Hendersonville National and they soon closed The American Bank and ust smallest of the three Company, banks. had deposits of approximate$160,000. The Citizens National capitalized $100,000. had plus of $150,000 and deposits The Bank of in Gaston County, had deposits $70,000 the time of its last statement. capitalized at $20,000. Whether its failure to open today connect:d with the other failures could learned. The closing of the three banks Hendersonville left that city of proximately 8,000 residents without banking facilities. Other banks in Asheville said this afternoon that they had experienced but were in dition to meet any their depositors might make of them. Banks Closed Nov. Hendersonville banks closed their doors today, leaving this city without banking facilities. The First Bank and Trust Company, failing to open the regular hour this had notice on the door which said the institution had been placed in the hands the State Banking Department for Runs immediately developed on the American Bank and Trust Company and the Citizens stood in long lines in effort to draw out their savings. The American remained open only few minutes. Its officials in ing issued statement saying the action had been taken for the protection depositors and because the The Citizens closed after an hour. Its officials declared the institu"perfectly solvent. Real Estate Blamed. RALEIGH, Nov. The primary cause the closing of the Central Bank and Trust Company, of Asheville, and other western North Carolina banks today named by John Mitchell, State Bank Examiner, as the collapse real estate values in the section from "highly inflated statement here he "Immediately preceding the lapse the Florida real estate boom, large number of high powered real estate operators transferred their activities from Florida, largely in Asheville Hendersonville. The result their activities was to produce inflated plane of real estate highly values. The resulting collapse estate, other values, impossible for the failed New Building to Be of Brick, English Type of Architecture with Dormer Windows and Small Panes of Glass. With plans and specifications completed work of erecting two story red brick service station-restaurant the site of the present James Horton filling station the corner of the National Bouleand Princess Anne street will begin at today. The building, to be of English design with dormer windows on front and side and shingled roof, be reared by Mr. Horton an estimated cost of $15,000. and will replace the station now standing. Plans for the projected structure drawn by Courtenay Welnoted Richmond architect. who also designed the recently erected home Dr. H. Reichel College Heights. The Taylor Manufacturing Company, contractors this city, have been engaged to construct the building. The lower floor of the building will contain the service station fice and salesroom while upstairs which seat fifty diners, is planned. Mr. Welton's carries throughout the picturesque effect of English architecture, the upper floor projecting several feet beyond the lower. The dormer windóws are to be made of innumerable small panes of glass diversion from the two large panes now in vogue. Workmen will start immediately the present station and while building operations are under way the business will be conducted from the warehouse situated in the rear the station. When completed the structure will stand number of feet further beyond the street than that now used, affording broader driveway for servicing cars and more open view to passing motorThe dimensions of the proposed building. according to the specifications, call for width of feet and length of Four dormer windows in front and two on each side will grace the structure while shingled roof will add to the pression of age.

8. November 20, 1930 The Buffalo Times Buffalo, NY
Article from The Buffalo Times, November 20, 1930

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Three Hendersonville, N. C., Banks Closed by Runs HENDERSONVILLE Press N. C., Nov. 20. -Three Hendersonville banks with aggregate deposits of more than $2,000,000 closed during runs today. They were: The First Bank and Trust company, deposits $813,338; the Citizens National Bank, deposits, $1,077,397; the American Bank and Trust compan deposits $55,012. Officials of the Citizens National. and American Bank and Trust announced the institutions were solvent and would re-open.

9. November 20, 1930 The World-News Roanoke, VA
Article from The World-News, November 20, 1930

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BANKS IN SIX NORTH CAROLINA CLOSE DOORS terests the depositors and only after that the past days During forced withstand the bank been withdrawals of funds heavy door of notice posted First Trust the institution the of the had for liquidaIt capitalized and deposits to its last statedeveloped in the Heavy runs American and on the Citizens Trust and tional Bank they and Trust ComThe smallest the banks, $160.had deposits The National capitalized 000 had surplus of $150,000 deposits Lowell Gaston the Whether failure today was with the other not be learned. The closing of the three banks at Hendersonville left city apresidents without proximately Asheville said this Other had experienced withdrawals. but were in condition meet demands might make them.

10. November 20, 1930 The Atlanta Journal Atlanta, GA
Article from The Atlanta Journal, November 20, 1930

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Six North Carolina Banks Close Doors To Conserve Assets ASHEVILLE N C., Nov. 20.-(P)The Central Bank and Trust Company largest financial institution in this immediate section failed to open for business Thursday and by noon five other western North Carolina banks had closed their doors Capitalized at 1,000,000. the Central Bank & Trust Company on September 24 the date of the last bank call had Its were given at that time $21,753,000 Other banks closing were the BiltOteen Bank here, including its branch at Oteen Veterans Hospital the First Bank & Trust Company the American Bank & Trust Company Hendersonvill the Citizens National Bank Hender sonville and the Bank of Lowell, John Mitchell, state bank examiner was notified of the Central Bank & Company's failure to open and was expected to send an examiner here immediately to take charge of A statement given out by the board of directors said the bank was closed in anticipation of a heavy run A notice posted on the door of the First Bank & Trust Company Hendersonville said the institution had been placed in the hands of the State Banking Department for liquidation of $204.261 and deposits according to its last stateof condition The American Bank & Trust Comsmallest three banks had deposits approxmiately $160. 000 The Citizens National capitalat $100,000 had surplus of deposits $70 000 at the last It was at MITCHELL BLAMES COLLAPSE OF BOOM IN REAL ESTATE RALEIGH N C. Nov. the closing of The primary the Central Bank and Company North Mitchell state bank exam the estate the section from a highly In statement issued here he said the of boom. -powered their largely in Asheville ville inflated was real The impossible for failed banks to liquidate their receivables sufficient volume to meet demands of depositors situation is purely local one does not in any reflect in the generally and should no Bankers Trust Closes 20 The Trust Company capitalized at $500 Thursday after the Central Bank of the Bank Canezville suspended The BankTrust brought thirteen the number banks which have suspendKentucky Monday six of them are in Louisville 62 Closed: One Reopens LITTLE ROCK Ark banks in Arkansas was reported to the State Banking Department Thursday bringing the week to The Bank at Heber Springs suspended Thursday Those Tuesday suspending Thursday the Bank of Ozan at Ozan the Bank of Strawberry both for five and two banks Bald Knob State Bank and

11. November 20, 1930 The Taylorville Daily Breeze Courier Taylorville, IL
Article from The Taylorville Daily Breeze Courier, November 20, 1930

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NO. CAROLINA BANKS CLOSED Raleigh, N. C., Nov. 20. (A.P.) Four banks in western North Carolina, including the Central Bank & Trust Company at Asheville, with deposits of $18,000,000, closed today, John Mitchel, state bank examiner, announced here. Mitchell said his office had been advised that the Central Bank and Trust Company of Asheville, closed this morning and the Biltmoreoteen bank, the First Bank and Trust /Co. of Hendersonville, and the American Bank and Trust Company of Hendersonville, had also closed their doors.

12. November 21, 1930 The Oregonian Portland, OR
Article from The Oregonian, November 21, 1930

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SIX MORE BANKS CLOSE FIVE NORTH CAROLINA INSTITUTIONS FAIL. Several Suspend Because of Runs; Hannibal, Mo., House Also in Hands of State Officials. ASHEVILLE N. C., Nov. 20.-(AP) -The Central Bank and Trust company, Asheville's largest financial institution, failed to open for business today. A notice posted on the door advised the public that the bank was closed on order of the board of directors for the of assets The bank's last statement of condition showed more than $18,000,000 on as deposit. The Biltmore-Oteen bank also closed. The Central bank was capitalized at $1,000,000 and its last statement of condition issued September 24, gave its surplus as $1,000,000. HENDERSONVILLE. N. C., Nov. 20.-(AP)-Three Hendersonville banks closed their doors today, leaving this city without banking facilities. The First Bank and Trust company failed to open at the regular hour It had notice on the door which said the institution had been placed in the hands of the state banking department for liquidation. Runs developed on the American Bank and Trust company and the Citizens National and they soon closed. JEFFERSON CITY, Mo., Nov. 20.Hannibal Trust company, Hannibal Mo. with total resources of $1,523,720. was closed today by its board of directors, the state finance department announced. Heavy withdrawals as result of the recent bank closings in Quincy, III., across the river from Hannibal, was given the cause. The bank according to the last statement filed here, had deposits of $1,124,814 loans of $1,002,537 and capital stock of $200,000

13. November 21, 1930 The Pittsburgh Press Pittsburgh, PA
Article from The Pittsburgh Press, November 21, 1930

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REALTY NOTES CLOSE 6 BANKS North Carolina Examiner Blames Failure to Liquidate Securties for Trouble By The United Press RALEIGH, N. G.-Closing yesterday of six banks in North Carolina was attributed today by John Mitchell. chief bank examiner. to failure to liquidate real estate securities acquired during an inflated boom period four years ago The affected institutions are The Central Bank and Trust Company. Asheville The Biltmore-Oteen Bank, suburban institute partly owned by the same Asheville interests. The Leicester, (N. C.) Bank, affiliated Trust with the Central Bank and Company The First Bank and Trust ComThe Citizens National Bank, Hendersonville. The American Bank and Trust Company, Hendersonville The Citizens and American Bank at Hendersonville were closed by directors after heavy runs resulting from failure of the First Bank and Trust The Asheville closing resulted in heavy runs on the American National Bank, controlled by the Central Bank and Trust Company, which were weathered successfully with aid of federal reserve funds sent by truck from Richmond, Va. L. Jenkins, president of the American National, said his bank was in good condition and would open today as usual, despite the Notices posted on the closing banks in Asheville indicated directors had decided to close to conserve assets for the benefit of depositors. Chief Examiner Mitchell emphasized the fact that the condition of banks generally throughout the state was excellent.

14. November 21, 1930 Evening Star Washington, DC
Article from Evening Star, November 21, 1930

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WARRANT FOLLOWS FALSE BANK RUMOR AS LOUISVILLE, KY. (Continued From First Page.) voted unanimously to continue, whether salaries are paid or not, pending the clearing up of the present difficulties An armored truck with $1,000,000 in cash arrived here late yesterday from the Charlotte branch of the Federal Reserve Bank of Richmond, for the Wachovia Bank & Trust Co. Officials reported deposits in this bank yesterday practically equaled withdrawals. Officials of the National Bank of Commerce, another of the city's large financial institutions, said the bank gained in deposits yesterday. Banks besides the Central Trust Co. to close yesterday were the BiltmoreOteen Bank, at Biltmore, Asheville suburb; the First Bank & Trust Co., the Citizens' National Bank and the American Bank & Trust Co., all of Hendersonville; the Bank of Lowell, at Lowell, the Clay County Bank of Hayesvile, and the Bank of Leicester, Buncombe County. Total deposits tied up by the closings is more than $24,000,000. A statement issued by the directors of the Central Bank & Trust Co. said they had decided at a meting early yesterday not to open the bank and to turn the institution over to the State Banking Department for liquidation. Blames Land Boom. While the directors' statement gave no reason for the bank's failure, John Mitchell, chief State bank examiner in a statement at Raleigh attributed it to "collapse of a highly inflated plane of real estate values." He said: "Immediately preceding the collapse of the Florida real estate boom, a large number of high-powered real estate operators transferred their activities from Florida, concentrating largely in Asheville and Hendersonville. The result of their activities was to produce a highly inflated plane of real estate values. The resulting collapse in real estate, as well as other values, made it impossible for the failed banks to liquidate their receivables in sufficient volume to meet demands of depositors. "This situation is purely a local one and does not in any way reflect conditions in the State generally and should cause no uneasiness concerning the selvency of other banks within the State." SIX INDIANA BANKS FAIL.

15. November 21, 1930 The Herald-Mail Hagerstown, MD
Article from The Herald-Mail, November 21, 1930

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BANKS WESTERN NORTH CAROLINA CLOSE Real Estate Boom Blame for Failure of Institutions Asheville, N. C., Nov. 20, With the real estate boom of a few years ago held responsible by the State Banking Department, the Central Bank and Trust Company here failed today, causing four other banks in western North Carolina to close their doors, and tying up towal deposits of more than $22,000,000. The Bank of Lowell, at Lowell, Gaston county, also closed today, but its closing was said to have no connection with the western North Carolina situation. Whether any of the banks would reopen was in doubt tonight. The Central Bank and Trust Company alone had deposits of more than $18,000,000 at the time of its last statement of condition on September 24. The other banks closing were: The Bank in Biltmore. Asheville suburb, with deposits of $615,051; the First Bank and Trust Company, Hendersonville, deposits, $1,207,628; the Citizens National Bank, Hendersonville, deposits, $1,077,397. and the American Bank and Trust Company, Hendersonville, deposits, $111,638. Four Banks Close Louisville, Ky., Nov. 20, (A).Two Louisville banks were closed today and two just across the Ohio river at New Albany, Ind., as a result of financial' difficulties following Monday's closing of the $54,000,000 National Bank of Kentucky. As the total of Kentucky banks closed was brought to twelve, plus the two New Albany banks, nine building and loan associations in Louisville took advantage of the law permitting them to require 30 days' notice for withdrawals. This was announced as purely precautionary measure nad the institutions were described as in good condition. The banks closing today were the Liberty State Bank, deposits. $286.000, and the American Bank and Trust Company, deposits. $2,430,000. both of New Albany. and two in Louisville, the Bankers Trust Company, deposits. $965,000, and the Union Central, deposits. $500.000. The two New Albany banks had no connection with any Louisville bank. Suspension Report Little Rock, Ark., Nov. 20, Suspension of four more banks in Arkansas was reported to the State Banking Department today, bringing the total this week to 62.