Highland National Bank - Pittsburg, PA

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 12414
Charter Number: 12414
Start Date: September 21, 1931
Location: Pittsburg, Pennsylvania (40.441, -79.996)

Metadata

Model: gpt-5-mini
Short Digest: ffc1d302

Response Measures

Full suspension

Receivership Details

Depositor recovery rate: 82.5%
Date receivership started: 1931-09-28
Date receivership terminated: 1940-05-29
OCC cause of failure: Economic conditions
Share of assets assessed as good: 19.4%
Share of assets assessed as doubtful: 79.6%
Share of assets assessed as worthless: 1.1%

Description

Multiple articles (dated 1931-09-21) report the Highland National Bank of Pittsburgh was threatened with large withdrawals after the affiliated Bank of Pittsburgh closed; directors placed the bank in the hands of the Comptroller of the Currency to protect depositors. No article indicates the Highland later reopened; classification assumes closure/placement with federal control constitutes permanent suspension/closure in this episode.

Events (4)

1. July 17, 1923 Chartered

Source: historical_nic

2. September 21, 1931 Run

Cause: Local Banks
Cause Details: Threatened large withdrawals triggered by the closing/failure of the affiliated Bank of Pittsburgh (withdrawals by banks in other sections noted).
Measures: Directors decided to place the institution's affairs in the hands of the Comptroller of the Currency to protect depositors and creditors.
Newspaper Excerpt: the Highland National Bank posted a notice stating that closing action was taken because of threatened withdrawals which would jeopardize the interests of creditors and depositors.
Source: newspapers

3. September 21, 1931 Suspension

Cause: Local Banks
Cause Details: Suspension followed the decision to ask the Comptroller/controller to take charge after threatened withdrawals tied to the Bank of Pittsburgh's closing.
Newspaper Excerpt: they ... decided to place the institution's affairs in the hands of the controller of the currency.
Source: newspapers

4. September 28, 1931 Receivership

Source: historical_nic

Newspaper Articles (7)

1. September 21, 1931 The Washington Times Washington, DC

Article from The Washington Times, September 21, 1931

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Article Text

4 BANKS CLOSED IN PITTSBURGH PITTSBURGH, 21 Sept. (I.N.S.).-Three Pittsburgh financial institutions closed their doors today. In all cases, the protection of depositors and stock holders was assigned as the cause. The banks effected are The Bank of Pittsburgh, N. A. and its subsidiary, The Highland National Bank, and the Franklin Savings and Trust Company and its produce yards branch. James C. Chaplin, vice chairman of the Pittsburgh Clearing House Association. issued a statement saying: "The general banking situation in Pittsburgh is among the best of any city in the country, due largely to Pitts. burgh's old-fashioned caution and conservatism." The Highland National Bank posted a notice stating that closing action was taken because of threatened withdrawals which would jeopardize the interests of creditors and depositors. ALBANY. N. Y. Sept. 21 (I.N.S.).-The Capital Trust Company of Schenectady was taken over by the State superintendent of banks, Joseph A. Broderick. and its doors were closed this morning because of frozen assets. The bank liabilities at close of business Saturday were $1,800,000. Liquidation will be begun immediately and it is expected a dividend will be paid in about 90 days. The Capital Trust Company was organized in 1935. Henry A. Allen is the president.

2. September 21, 1931 Evening Star Washington, DC

Article from Evening Star, September 21, 1931

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Article Text

THREE PITTSBURGH BANKS ARE CLOSED Highland National and Franklin Savings (State) Follow Bank of Pittsburgh. By the Associated Press. PITTSBURGH, September 21.-The Highland National Bank of Pittsburgh and the Franklin Savings and Trust Co. of Pittsburgh, a State institution, were closed today following the decision of the directors of the Bank of Pittsburgh. National Association, to ask the controller of the currency to take charge of its assets. The Highland National Bank was closely identified with the Bank of Pittsburgh, National Association. J. D. Swigart, chief State bank examiner, said the Franklin savings institution was closed because it had a large share of its funds on deposit with the Bank of Pittsburgh, National Association. Closing of the latter institution was announced early today. James C. Chaplin, vice president of the Clearing House Association of Pittsburgh, said the action was due to a drain "which has arisen most largely from withdrawals of deposits made by banks in other sections of the country." The bank reported assets of $53,343,953 last July 1. The directors of the Highland National Bank said that institution was threatened with large withdrawals due to the closing of the affiliated bank, and that it was their opinion that the best interests of the depositors and creditors would be most fully protected by suspension. They, therefore, decided to place the institution's affairs in the hands of the controller of the currency.

3. September 21, 1931 Des Moines Tribune Des Moines, IA

Article from Des Moines Tribune, September 21, 1931

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Article Text

THREE PITTSBURGH BANKS SHUT DOORS Highland National bank. burgh, and the Franklin Savings and Trust of Pittsburgh, state institution. closed Monday fol. lowing decision of the Bank rectors ask the comptroller the currency to take charge of its assets. The Highland National bank identified closely the bank chief state bank examiner. said the Franklin Savings institution closed had large share its on deposit Bank of the Bank burgh, was early Monday. The reported assets of last Highland National the institution with the of total $3,857.318 and of The Franklin had June and of 470,000.

4. September 21, 1931 The Evening Times Sayre, PA

Article from The Evening Times, September 21, 1931

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Article Text

PITSBURGH, Sept. Two Pittsburgh banks and sidiary of one failed their doors today, the board directors taking the action in the case one bank and its subsidiary and the state closing the second stitution. he bonk of Pittsburgh, and subsidiary, the Highland tional bank, failed open for iness. The action followed nouncement by the boards that the institutions would closed serve assets and protect deposit- The Franklin Savings and Trust company, capitalized $175,000 closed by the state banking department, in the interests of the depositors, announced. The bank Pittsburgh, organized 1810 capitalized $3,000,000. Its last statement 1931, showed total assets $53,343,953 and deposits $46,921,065. The Highland bank had deposits $3,857,318 and assets of $4,889,according statement 1931. Member banks of the Pittsburgh Clearing House association nounced they would pay cent the receivers' certificates the Bank of Pittsburgh, when issued. The general banking situation Pittsburgh one of the best city the country due largePittsburgh's old fashioned conservatism and caution" ment issued by James Chaplin, vice chairman the Pittsburgh Clearing House said following closing the Bank Pittsburgh,

5. September 21, 1931 The Cincinnati Post Cincinnati, OH

Article from The Cincinnati Post, September 21, 1931

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Article Text

GRAF ENDS SEA FLIGHT BRAZIL, Sept. Graf Zeppelin arrived Pernambuco at 6:50 last night to complete its third over the South Atlantic. big Friday PITTSBURGH BANKS CLOSE PITTSBURGH, Sept. Pittsburgh banks and subsidiary of one failed to open today. They were the bank of Pittsburgh, its subsidiary, the Highland National Bank. Franklin Trust

6. September 22, 1931 The Pittsburgh Press Pittsburgh, PA

Article from The Pittsburgh Press, September 22, 1931

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Article Text

SPEEDS ACTION IN BANK CLOSING Receiver Hastens Work of Straightening Out Institution's Affairs Thomas of the the Comptroller Currency, receiver for Bank of Pittsburgh today promised hasten preliminary work in straightening the bank's affairs. believed by bank officials that least 30 must elapse before receivers' certificates. upon which be The Clearing House offer through able receivers' certificates at member banks may extended the Highland National Bank the Frank lin Trust Company which closed yesterday was ported The had protected deposit the three banks.

7. September 24, 1931 The Record-Argus Greenville, PA

Article from The Record-Argus, September 24, 1931

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Article Text

FOURTH BANK IS SUSPENDED Small Pittsburgh Bank, Merchants Savings and Trust, Fails to Open. Pittsburgh, Sept. 24 (/P) The Merchants Savings & Trust company here, failed to open for business today. It was the fourth bank to AUSpend business here this week. A notice posted on the door of the bank, n. small institution. assigned the closing to recent heavy withdrawals. The bank was closed by J. D. Swigart, chief examiner of the State Départment of Banking. The bank of Pittsburgh. N. A., the Highland National hank and the Franklin Savings & Trust company closed Monday. William D. Gordon, secretary of banking. said the action was taken to protect depositors, and stockholders and to conserve the assets so that withdrawing depositors might not obtain preference. The bank's report last June 30 showed total assets of $1,356,706; and deposits, $1,003,290. The capital was $125,000: the surplus, $75,000: and undivided profits, $13,505. Secretary Gordon said the Institution had no affiliation with any other bank or trust company. There were about 2.000 depositors and officers of the institution were quoted as saying they would be paid in full.