Citizens National Bank - Waynesboro, PA

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: national
Bank ID: 5832
Charter Number: 5832
Start Date: August 24, 1927
Location: Waynesboro, Pennsylvania (39.752, -77.582)

Metadata

Model: gpt-5-mini
Short Digest: 08686779

Response Measures

Full suspension, Books examined

Other: Temporary receiver appointed by National Bank Examiner to reorganize; closure described as precaution against expected withdrawals caused by rumors.

Description

Article (Franklin Repository, 1927-08-24) reports Citizens' National Bank closed temporarily for reorganization after circulation of wild and unfounded rumors and to prevent heavy withdrawals. National Bank Examiner appointed temporary receiver; officials state bank is entirely solvent and expected to reopen after reorganization. No specific falsified communication described, so treated as rumor-driven run leading to precautionary suspension and planned reopening.

Events (4)

1. May 23, 1901 Chartered

Source: historical_nic

2. August 24, 1927 Run

Cause: Rumor Or Misinformation
Cause Details: Circulation of wild and unfounded rumors about the bank's safety prompted expectation of heavy withdrawals.
Measures: Bank temporarily closed for reorganization; National Bank Examiner took charge as temporary receiver to prevent withdrawals.
Newspaper Excerpt: The action of the board of directors in temporarily closing the institution taken merely as precautionary step to prevent heavy withdrawal of deposits which were expected from the circulation of wild and unfounded rumors as to the bank's safety
Source: newspapers

3. August 24, 1927 Suspension

Cause: Rumor Or Misinformation
Cause Details: Temporary closing taken as a precautionary step to prevent heavy withdrawals caused by circulating rumors about the bank's safety.
Newspaper Excerpt: which recently closed its doors for a reorganization ... National Bank Examiner White, who took charge of the bank's affairs soon as it was closed, has been appointed temporary receiver for the active reorganization
Source: newspapers

4. * Reopening

Newspaper Excerpt: he never was as hopeful and confident that there was no reason whatever to prevent the bank from reopening after the reorganization was completed
Source: newspapers

Newspaper Articles (1)

1. August 24, 1927 Franklin Repository (Daily) Chambersburg, PA

Article from Franklin Repository (Daily), August 24, 1927

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Article Text

WAYNESBORO BANK ENTIRELY SOLVENT By International Waynesburg, Aug 24,-Confidence in the solvency of the Citizens' National Bank here, which recently closed its doors for a reorganization, has replaced the feeling of apprehension felt following the closing, it was believed here today. National Bank Examiner White, who took charge of the bank's affairs soon as it was closed, has been appointed temporary receiver for the active reorganization. White said that this work is going forward with dispatch. The bank, it was learned, is entiresolvent, and never was in great danger. The action of the board of directors in temporarily closing the institution taken merely as precautionary step to prevent heavy withdrawal of deposits which were expected from the circulation of wild and unfounded rumors as to the bank's safety, it was announced. The institution has capital stock $500,000 and surplus fund of which, together with its other assets, will be more than ample to secure the depositors, from any bank officials declared that the local institution has been every aid from strong financial interests in and other outside points has added the confidence of the people The bank's affairs will not require any liquidation of its assets said one of the officials. He added that he never was as hopeful and confident that there was no reason whatever to prevent the bank from reopening after the reorganization was completed. The Union Deposit and Trust Company experienced slight run after became known that Lhe Citizens' Bank was closed, but the withdrawals were not heavy, and at the close of the day the president stated that the situation was well in hand.