11821. National Bank (Kinston, NC)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
national
Bank ID
9044
Charter Number
9044
Start Date
April 21, 1931
Location
Kinston, North Carolina (35.263, -77.582)

Metadata

Model
gpt-5-mini
Short Digest
3c0ea58c

Response Measures

Full suspension, Books examined

Other: Later (1936) receiver appointed for the National Bank of Kinston, indicating eventual failure several years after the 1931 suspension.

Receivership Details

Depositor recovery rate
18.0%
Date receivership started
1931-05-01
Date receivership terminated
1937-09-16
Share of assets assessed as good
37.5%
Share of assets assessed as doubtful
59.0%
Share of assets assessed as worthless
3.5%

Description

On Apr 21, 1931 the National Bank of Kinston was ordered by the national bank examiner not to open (suspension by examiner for 'frozen' assets). A heavy run followed that forced the First National Bank to close later that morning. Papers report officers hoped to reorganize/reopen but no clear confirmation of reopening is provided in these articles. Also a run occurred on the Farmers and Merchants bank but it remained open. Later (1936) receiver appointment mentions the National Bank of Kinston, indicating eventual receivership, but that is outside the immediate April 1931 episode.

Events (4)

1. February 25, 1908 Chartered
Source
historical_nic
2. April 21, 1931 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals triggered by the earlier suspension of the National Bank of Kinston and reports of frozen loans; officers blamed depositor hysteria while one account cites 'frozen loans' as reason.
Measures
Officers posted notice of closing 'for the protection of depositors'; leaders used brass band, soapbox appeals and false fire alarms to distract crowds; First National directors considered reorganization and reopening.
Newspaper Excerpt
Forty-eight minutes after the opening hour, the First National bank closed against a heavy run.
Source
newspapers
3. April 21, 1931 Suspension
Cause
Government Action
Cause Details
Ordered closed by the national bank examiner because assets were found 'frozen'; examiner ordered bank not to open for business.
Newspaper Excerpt
The National Bank of Kinston did not open this morning upon orders of the national bank examiner, who said he found its assets 'frozen.'
Source
newspapers
4. May 1, 1931 Receivership
Source
historical_nic

Newspaper Articles (11)

Article from The Charlotte News, April 21, 1931

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Article Text

Two Kinston Banks Close Financial Institutions Shut Doors Within HourRun Started On Another. Kinston, April tional Bank Kinston failed business National Bank forced its doors middle the Merchants and Farmers Bank experiencing The National Bank Kinston closed by order the national examiner who said assets developed National the other closed the officers decided Heath president National Bank of Kinston and Tingle McCoy president of the First National and Harvey executive vice-president and Each of the banks understood deposits approximately Figures published by the banks listed condition March 31, follows: Harvey, vice-president cashier. Bank of Kinston: J. cash- Marrying for money resort.


Article from The Herald, April 21, 1931

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Article Text

BANKS CLOSED Kinston, N. C., April 21. (AP) banks closed here today. The National bank of Kinston ordered not to open today the national bank examiner. Later, the First National, facing heavy run, posted notice closing. Deposits in the two closed banks totaled more than $2,000,000.


Article from The Daily Review, April 21, 1931

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Article Text

TWO BANKS IN ONE NORTH CAROLINA CITY CLOSE DOORS Kinston, N. C., April 21.-The National Bank of Kinston failed to open for business today and fortyeight minutes after the opening hour, the First National Bank closed against a heavy run. Frozen loans were given as the reason for closing the latter bank. The officers said they closed for the protection of the depositors only. Leading citizens on soap boxes, a brass band and a false fire alarm were resorted to in an effort to divert the frenzied depositors.


Article from Hickory Daily Record, April 22, 1931

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Article Text

KINSTON BANK MAY RE-OPEN SHORTLY April Directors the First National bank here, which closed yesterday when faced by after the run National Bank of Kinston suspended, today considering possible re-organization and opening but no announcement was expected for day or at Farmers and Merchants bank, remaining financial institution, appeared definitely have the storm which broke following yesterday's closings. It remained open throughout yesterday, augmented its cash reserve night and appeared to be doing normal business today. The National Bank of Kinston closed by the Nationbank examiner because of


Article from The Salisbury Post, April 22, 1931

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Article Text

Kinston Bank Holds Out Against Kinston, April Directors the First National bank here. which closed yesterday when fired faced run after the National flee Bank Kinston suspended, who considering mobile and no escaped. nouncement was expected for day so least. The Farmers and Merchants bank. remaining financial beaten. stitution. appeared definitely weathered storm which about it following yesterclosings. remained open throughout augmented cash reserve night peared be doing normal busitoday. The National Bank of Kinston ordered closed by the national bank examiner because of "frozen count


Article from Washington Daily News, April 22, 1931

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Article Text

Directors Of Closed Bank Consider Plans Re-organizing KINSTON Apr. Directors the First National Bank here. which closed yesterday when faced run after the tional Bank of Kinston suspended. today were possible organization and re-opening but no was expedted for day least. The Farmers Merchants Bank, only remaining financial institution, appeared have weatherthe storm which broke about following yesterday's closings. remained throughout yesterday, augmented its cash reserve last night and doing today. The National Bank of was ordered closed by the National Bank examiner because of "frozen Heath president of the National Bank of Kinston and Tingle cashier. H. McCoy president of the First National and W. B. Harvey executive and cash- Figures published by the banks in condition March 31, follows: First surplus and deposits, McCoy, president, Harvey, and cashier National Bank of $120,000; surplus and prifits, $54.000; deposits, Heath, president, Tingle cashier.


Article from Chattanooga Daily Times, April 22, 1931

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Article Text

FRANTIC EFFORTS FAIL TO CHECK RUN ON BANK KINSTON, N. C., April 21 fire and today effort to halt run Kinston's remaining bank after others had closed. false fire alarms, rung in hopes they would distract crowd depositors gathered the Farmers and Merchants failed draw interest. did playing brass band, which was brought action. of commerce representatives pleaded from for the depositors to leave their money with the bank meeting all demands this run began when the National Bank Kinston failed morning later the First National bank closed.


Article from The Charlotte Observer, April 22, 1931

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Article Text

KINSTON BANKS CLOSE IN PANIC False Fire Alarms Ring and Band Plays When Run on Remaining Bank Starts. KINSTON. April distant band played and false fire alarms rang In an effort to distract them, depositors stormed the Farmers and Merchants bank of Kinston today after two others had closed. but found all their demands met. Tonight the bank's officers ex. pressed belief the run was over. The banks closing were the National bank of Kinston and the First National bank of Kinston Upon orders of the national bank examiner. who said he found its assets "frozen," the National bank of Kinston did not open this morning. Runs started on the other banks and 48 minutes later the First National closed. PLEAD ON SOAP BOXES. Chamber of Commerce representatives stood on soap boxes before the Farmers and Merchants bank and pleaded with the depositors to leave their money in the bank, the only remaining financial institution in the city. They also arranged for the band to play and for the fire alarms to be turned in. Approximately in deposits were tied up with the closing of the two banks. Officials of the First National said its affairs were in excellent condition and blamed the closing on the hysteria of depositors. Officers planned to seek to reopen SMALL LOSS SEEN. W. Heath, president of the National bank of Kinston, said the depositors would lose very little through the bank's closing. He said its officers were considering the possibility of reorganizing and reopening it. The bank was capitalized at $120,000. On March 31 its officers reported it had deposits of $1,105,000 and surplus and profits of $54,000. J. P. Tingle is cashier of the bank. The First National bank's deposits, as of March 31, were reported to be $1,167,000. with surplus and profits of $77,000. It was capitalized at $125,000. Officers of the Farmers and Merchants bank said deposits during the last hour of business today were greater than withdrawals. They said they had "considerable sum" in cash on the way here from Richmond for use if there were heavy withdrawals tomorrow.


Article from The News and Observer, April 22, 1931

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Article Text

One Fails To Open; Another Shuts Doors Because of Heavy Run Kinston, April was black Tuesday for Kinston. was the most hectic day in the city's recent history. The National Bank of Kinston, oldest local financial institutions. failed to open for business. Depositors swarmed down on the National Bank and Farmers and Merchants Bank runs. The was forced to close. latter weathered the storm. Excitement rife; ruled Queen Gordon Streets, where all three in stitutions are Crowds Harangued. Business leaders chamber of commerce rallied quickly. "Soapboxers" harangued the crowds effort to stem the runs. False alarms were rung from points the business district effort divert them. Even band played, parading through the streets. milling depositors continued the Farmers Merchants and First National. minutes after opening, latter went directors posted notice closed door the effect business been pended protection of depositors. Harvey, executive stated examination First National's affairs night showed to excellent dition without liability against directors stockholders. In Good Shape. Will Allen, ident the and said state institution better shape the winter. Farmers Merchants been regarded locally sort financial gibraltar. the orators who addressed Among the crowds from the curbsides Fred Sutton, member of islature: Rouse, former several business Plato Collins, tary the chamber commerce. department store manager funds before the crowd's entered bank deposit them. Stranger Lends Hand. Hawaiian broke the speakstranger, staying temporarily,' money in these banks. going there." the managers chain stores in the city had confer red agreed not day. made cent during their usual deposits. The mayor made appeal the public This carried extras. midst paper officers the First citement National announced they would close (Please Turn to Page Two.)


Article from Statesville Record and Landmark, April 23, 1931

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Kinston Has Its Bank Troubles One Bank Ordered Closed. Another Wrecked By Third to Remain Open by Use of Brass Band, Soap Orators and False Fire Alarms. Kinston, April banks closed here today and officers of the only one turned to drastic to save in the face which brass band, soap orators and false fire alarms failed The National Bank, of Kinston, was ordered today by the open minutes after the First National Bank. facing heavy runs, posted note was closing similar run was in progress the Farmers and Merchants Bank, which, however, was still withstanding the inroads of withdrawals at Deposits in the closed banks totaled more than $2,000,000.


Article from Henderson Daily Dispatch, November 30, 1936

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FRANK FAGAN MADE RECEIVER OF BANKS Goldsboro Man Given Two More To Make Five Banks He Is Now Administering Goldsboro, Nov. 30 (AP)-Frank F. Fagan, of Goldsboro, has been appointed receiver of the First National Bank of New Bern and the National Bank of Washington, N. C., and will assume his duties December 5, it was announced today. Fagan will continue as receiver of the Wayne National Bank of Goldsboro the First National of Kinston, and the National Bank of Kinston.