20973. First National Bank (Newport, TN)

View Charter #9632 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
9632
Charter Number
9632
Start Date
November 22, 1930
Location
Newport, Tennessee (35.967, -83.188)

Metadata

Model
gpt-5-mini
Short Digest
5f8d3fd1

Response Measures

Full suspension

Receivership Details

Depositor recovery rate
89.0%
Date receivership started
1930-12-04
Date receivership terminated
1936-06-30
OCC cause of failure
Governance
Share of assets assessed as good
79.6%
Share of assets assessed as doubtful
17.1%
Share of assets assessed as worthless
3.3%

Description

Multiple contemporaneous newspapers report heavy withdrawals and 'malicious and false rumors' caused a run and the First National Bank of Newport closed on Nov. 22, 1930. A federal receiver was later appointed (reported July 1932), indicating permanent closure and receivership.

Events (5)
1. January 7, 1910 Chartered
Source
historical_nic
2. November 22, 1930 Run
Cause
Rumor Or Misinformation
Cause Details
Malicious and false rumors triggered heavy withdrawals and a run on the bank.
Newspaper Excerpt
Malicious and false rumors' which brought a run were blamed for closing the First National Bank of Newport, Tenn.
Source
newspapers
3. November 22, 1930 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank closed (suspended operations) after steady heavy withdrawals attributed to malicious and false rumors.
Newspaper Excerpt
NEWPORT, Tenn., Nov. 22 (P).-The First National bank... closed today. J. A. Fisher, president, said the closing was decided upon because of steady and heavy withdrawals the past few days.
Source
newspapers
4. December 4, 1930 Receivership
Source
historical_nic
5. July 19, 1932 Receivership
Newspaper Excerpt
White F. Varden... recently in charge of the First National Bank at Newport, Tenn., ... national bank receiver, recently placed in charge of the First National Bank at Newport, Tenn., and later named to direct the affairs of the Bell National Bank at Pineville, has been made receiver ...
Source
newspapers

Newspaper Articles (5)
1. November 22, 1930 The Cleveland Press Cleveland, OH
Article from The Cleveland Press, November 22, 1930

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Article Text

BANK CLOSINGS NOW TOTAL 120 Four in South and West Are Added to Week's List of Suspensions By UNITED PRESS The total of bank suspensions in the South and Midwest during the week stood at 120 with two more closed today in North Carolina and one each in Tennessee and Minnesota. "Malicious and false rumors' which brought a run were blamed for closing the First National Bank of Newport, Tenn. The Bank of Murphy, N. C., oldest financial institution in western North Carolina, with deposits of $350,000. closed its doors The Bank of Black Mountain also suspended. The State Bank of Kinbrae, Minn., was closed by state examiners because of lack of reserve. Meantime in Little Rock Ark., the State Banking Department prepared to take charge of more than 30 banks which tions during the week

2. November 23, 1930 The Washington Herald Washington, DC
Article from The Washington Herald, November 23, 1930

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Article Text

Nov. 22 Seven banks in four states suspended business raising to 139 the total that have closed in the South and Midwest in the last Until today, bank closings in this area had occurred at the rate of 22 day The consensus among State banking depart ment heads was that the situ ation has been eased. REOPEN Bank and boards of operated in efforts speed the of those in stitutions financial affairs are in better number Arkansas banks already have resumed business, several through mergers with other institutions. Statements by officials of the majority of 15 Kentucky banks that were closed indicated that most of them were solvent. The resources of these institutions were at to The Arkansas banking department arranged to take charge of more than 30 banks that did not reopen today at the expiration of the five-day limit placed temporary suspensions by the State law. total of 65 banks closed in the state since rumors and heavy caused two suspensions in Little Rock. 15 C. BANKS CLOSED Three banks closed North Carolina today. increasing the total of suspensions in the State to Two banks were closed Missouri, the Bank Doniphan and the Pike County Bank of Bowling Green. Eleven State banks and one national bank are shut in the Heavy withdrawals during the last few caused the First Na. tional Bank of Newport. Tenn. to close. A bank notice blamed "malicious and false rumors' for the run. The State Bank of Kinbrae, Minn., was closed of un collected notes. The number of banks closed in other States follows: Indiana. Illinois. 5: Iowa, Kansas, and Nebraska.

3. November 23, 1930 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, November 23, 1930

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Article Text

Newport Bank Closes. NEWPORT, Tenn., Nov. 22 (P).-The First National bank, capitalized at $50, 000, closed today. J. A. Fisher, president, said the closing was decided upon because of steady and heavy withdrawals the past few days.

4. July 19, 1932 The Public Ledger Maysville, KY
Article from The Public Ledger, July 19, 1932

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Article Text

Appointed Receiver Of Third Bank In 18 Months White F. Varden. of this city, national bank receiver, recently in charge of the First National Bank at Newport, Tenn., and since appointed to take charge of the Bell National Bank at Pineville, has been appointed receiver of the Whitley National Bank at Corbin. Mr. Varden will be in charge of both banks and will continue to be assisted by T. J. Pickett, formerly of this city Both have been appointed to three different receiverships within a. period of eighteen months which will bespeak their ability to handle receiverships under government control. Mrs. White F. Varden and daughter, Miss Mildred Varden, have returned from a visit in Pineville with Mr. Varden.

5. July 20, 1932 The Daily Bulletin Maysville, KY
Article from The Daily Bulletin, July 20, 1932

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Article Text

White Varden Named Receiver White F. Varden, of this city, national bank receiver, recently placed in charge of the First National Bank at Newport, Tenn., and later named to direct the affairs of the Bell National Bank at Pineville, has been made receiver of the Whitley National Bank at Corbin. Mr. Varden will handle the affairs of both banks and will continue to be assisted by T. J. Pickett, formerly of Maysville.