3917. Citizens State Bank (Buhl, ID)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 2, 1921
Location
Buhl, Idaho (42.599, -114.759)

Metadata

Model
gpt-5-mini
Short Digest
45ab58bc

Response Measures

None

Description

Newspaper of Dec 8, 1921 reports Citizens State Bank of Buhl 'closed its doors temporarily' after a state examiner's visit because borrowers couldn't meet obligations (illiquid loans). Subsequent reports (Dec 23, 1921; Jan 26, 1922) list the bank among state banks that suspended operations and later refer to it among recent bank failures for which the state recovered losses from surety companies. There is no explicit article saying the bank reopened; the later characterization as a failure and payment by bonding companies indicates the suspension led to permanent closing. Date of suspension inferred from phrasing in the Dec 8, 1921 paper stating it 'closed ... Friday morning' (the previous Friday was 1921-12-02).

Events (1)
1. December 2, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Inability of borrowers to meet obligations promptly; borrowers had assets but could not immediately realize them (illiquid loans) leading to suspension.
Newspaper Excerpt
CITIZEN' STATE BANK OF BUHL CLOSES DOORS ... The Citizens State Bank closed its doors temporarily Friday morning, following a visit from State Bank Examiner Fraelich.
Source
newspapers

Newspaper Articles (3)
1. December 8, 1921 The Filer Record Filer, ID
Article from The Filer Record, December 8, 1921

Click image to open full size in new tab

Article Text

CITIZEN' STATE BANK OF BUHL CLOSES DOORS Inability of Borrowers to Meet Obligations Promptly is Cause: will Likely Reepen Shortly BUHL-The Citizens State Bank closed its doors temporarily Friday morning, following a visit from State Bank Examiner Fraelich. owing it is said to failure of borrowers who have plenty of assets on which they cannot not immediately realize, to meet obligations. It is said that the suspension is likely to be temporary as it is understood that heavy stockholders in the least are liable to provide for its reopening without awaiting more tedious liquidation. The other banks, the First National, and the Farmers National. are both said to be in excellent condition. It is said that there is a large sum of money belonging to the Buhl highway district tied up in the Citizens, but that it is fully insured. and there S no danger of loss to the district, or even material inconvenience

2. December 23, 1921 The Daily Star-Mirror Moscow, ID
Article from The Daily Star-Mirror, December 23, 1921

Click image to open full size in new tab

Article Text

STATE ASKS CASH LOST IN BANKS MAKES DEMAND ON SURETY COMPANIES FOR $110,400, IN BANKS NOW CLOSED. Demand for $110,400 in state funds held by state depositories which have closed their doors was made Tuesday on six surety companies by B. E. Hyatt, director of the bureau of public accounts, according to the Idaho Statesman. The surety companies which will meet this demand under the terms of the bonding contract are: The National Surety company, the United States Fidelity & Guaranty company, Fidelity & Deposit Company of Maryland Casualty company and the Aetna Casualty & Surety company. Under the terms of all depository bonds the state is entitled to the total deposit of the state when the banking institution suspended business, plus interest at 3 per cent on the daily balances from the date of last interest payment to the date of settlement by the surety company. The suspended national banks and the amount of state money on deposit in each follow: Blaine County National $11,600 a First National, Mountain Home 21,000 5,000 First National, Wendell First National, Burley 8,400 Total $46,000 State banks suspending operations, E with state funds deposited, are: a Union State, Nez Perce $ 8,400 Delco State Bank 3,800 Bellevue Bank & Trust 7,000 13,500 State Bank, Idaho Falls Citizens' State Bank, Buhl 17,500 Commercial State Bank, Burley 14,200 o Total $64,400 Total for state and national banks, p $110,400.

3. January 26, 1922 The Idaho Republican Blackfoot, ID
Article from The Idaho Republican, January 26, 1922

Click image to open full size in new tab

Article Text

IDAHO RECOVERS LOSSES IN THREE BANK FAILURES The state of Idaho has just received the sum of $28,050 from the National Security company and $5,800 from the Fidelity and Deposit company of Baltimore, covering the losses of three state banks in which state funds were deposited. These three banks were the Blaine County National bank of Hailey, the State bank of Idaho Falls and the Citizens' State bank of Buhl. Interest for the last quarter of 1921 and for the first twelve days in 1922 was also paid by the bonding companies. There was $11,600 on deposit in the Hailey bank at the time of its closing: $13,500 in the Idaho Falls bank and $13,500 in the Ruhl bank The state will not lost a cent on the closing of these banks.