Hempstead County Bank & Trust Company

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: trust
Start Date: December 29, 1925
Location: Hope, Arkansas (33.667, -93.592)

Metadata

Model: gpt-5-mini
Short Digest: beea856e4d5a5ca3

Response Measures

None

Description

Article (Dec 30, 1925) reports a brief run on Dec 29, 1925 and the bank was placed under the deputy state bank commissioner and closed under the five-day voluntary reorganization provision. Difficulty in realizing loans ('frozen loans') is cited as the underlying problem; officials expected reopening within the statutory period or takeover by other banks.

Events (2)

1. December 29, 1925 Run

Cause: Bank Specific Adverse Info
Cause Details: Brief run triggered by inability to realize quickly on loans (frozen loans) leading to liquidity pressure.
Measures: Bank officers requested state supervision; bank closed pending reorganization under five-day voluntary closing provision of state law.
Newspaper Excerpt: As a result of a brief run late yesterday ... the Hempstead County Bank and Trust Company today was placed in the of the state bank commissioner
Source: newspapers

2. December 30, 1925 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Closed after brief run and inability to realize loans; placed in charge of deputy state bank commissioner and closed under state law for reorganization.
Newspaper Excerpt: Lee Majors, deputy state bank commissioner is in charge. The institution will be closed, it was said, pending ion... bank probably would be reopened within the five days premitted under the state law for voluntary closing of banks for reorganization.
Source: newspapers

Newspaper Articles (1)

1. December 30, 1925 The Daily World Helena, AR

Article from The Daily World, December 30, 1925

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Article Text

BANK AT HOPE CLOSES AFTER A SMALL RUN OFFICIALS SILENT, BUT UNDERSTOOD SUSPENSION FORERUNNER OF REORGANIZATION STATE IN CHARGE Deputy Bank Commissioner Assumes Control of Hempstead County Bank and Trust Company Following Suspension-Frozen Loans Blamed for Plight of Institution Hope, Ark. Dec. AP)-As a result of a brief run late yesterday and inability to realize quickly on loans the Hempstead County Bank and Trust Company today was placed in the of the state bank commissioner by its officers. The institution will be closed, it was said, pending ion. Lee Majors, deputy state bank commissioner is in charge. The bank capital stock of $100,000 and deposits of approximately $650,000. has been regarded as one of the strongest financial institutions in this section. Officials of the bank today were reticent but said the bank probably would be reopened within the five days premitted under the state law for voluntary closing of banks for reorganization. L. Betts is president of the bank and Roy Anderson cashier Little Rock, Dec. 30 AP Lee Majors, deputy state bank commissioner today took charge of the Hemp stead County Bank and Trust Company at the request of the bank was here today by Loid Raidwater. state bank The action followed brief run on the bank late yesterday, closing being under efaux of the state law permitting banks to close for five days voluntarily for reorganization. Mr Rainwater said that be was not in position to AVe out full de tails of the situation but that be did not think depositors would lose any thing He said the bank either would reopen within few days or that other banks will take it over. InabilBY to realize quickly on loans caused the action of the officials of the bank