6358. Pendleton Bank (Falmouth, KY)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 1, 1931*
Location
Falmouth, Kentucky (38.677, -84.330)

Metadata

Model
gpt-5-mini
Short Digest
a4e5fca8423cc3a7

Response Measures

None

Description

Articles report a silent run and heavy withdrawals weeks before the bank closed in November; the bank then closed and was placed in the hands of the State Banking Commissioner, with a liquidator appointed in spring 1932. Cause of run appears bank-specific (poor loan collections, drought losses) rather than mere rumor. OCR errors in Article 2 (missing years and garbled sentences) were corrected where obvious.

Events (3)
1. October 1, 1931* Run
Cause
Bank Specific Adverse Info
Cause Details
A silent run/heavy withdrawals driven by slow collections on notes and drought-related losses that forced the bank to borrow to meet demands.
Measures
Bank had to borrow money to meet withdrawal demands; brought in cash (First National carried cash to meet emergencies for local banks).
Newspaper Excerpt
Several weeks before the bank closed there silent run and the bank had to borrow money to meet these demands
Source
newspapers
2. November 1, 1931* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Following the run and deteriorating asset/loan situation (including drought losses and slow note collection), the bank closed and was turned over to the State Banking Commissioner.
Newspaper Excerpt
The Pendleton Bank closed its doors Nov. and the affairs the bank placed in the hands of the State Banking Commissioner
Source
newspapers
3. May 1, 1932 Receivership
Newspaper Excerpt
Light Appointed Bank Liquidator ... The Pendleton Bank closed its doors Nov. ... the affairs the bank placed in the hands of the State Banking Commissioner ... Majority of Depositors Must Be Secured Before Courtney Is Ousted. ... Light appointed to take place ... received official notice ... he would be relieved of duties on May ... appointed to take place (liquidator). (Article dated 1932-04-29). (OCR corrected for clarity). The closing of the Pendleton Bank ... more than 3,000 accounts ... deposits of more than $300,000. (Article dated 1932-04-29). ... (Article OCR garbled; dates inferred from context). (Article indicates appointment of liquidator/light in spring 1932). (Article OCR very garbled; appointment of liquidator noted). (OCR very garbled; appointment of liquidator in spring 1932 is clear).
Source
newspapers

Newspaper Articles (2)
1. November 19, 1931 The Cynthiana Democrat Cynthiana, KY
Article from The Cynthiana Democrat, November 19, 1931

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Article Text

MONEY TAKEN BACK CINCY George W. Berger, President of the First National Bank, and a number of armed guards in two cars conveyed $100,000 to a Cincinnati bank on last Friday afternoon. The money was safely delivered to the depository of one of the largest banks in that city. This large sum of money was conveyed to Falmouth in an armored car on Wednesday of last week to meet any run on the bank following the closing of the Pendleton Bank. While this money was in Falmouth it was guarded during the night by special local guards. It was possibly the largest sum of money that ever slept in Falmouth over two nights. It developed that there was no need for this money to be brought to the First National, as there was no run made on the bank. This shows that the people of Falmouth and Pendleton county are very conservative in matters of this kind. It was well known that the First National Bank caried $186.000 in cash money of its own to meet any emergency or legitimate demand for money. There was as much money deposited in the First National Bank on Wednesday as was withdrawn.-Falmouth Outlook.

2. April 29, 1932 The Falmouth Outlook Falmouth, KY
Article from The Falmouth Outlook, April 29, 1932

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Article Text

Light Appointed Bank Liquidator Majority of Depositors Must Be Secured Before Courtney Is Ousted. Courtney, bankcommissioner for the Pendleton Bank, received on official notice last Friday from Dorman, State BankCommissioner, Frankfort, that he would be relieved of duties on May and that Honorable Martin Light McKinneysburg, this county, was appointed take place. No charges preferred against Mr. Courtney. On other hand. his work and he asked to render service Mr. Light that he could. It seems that monkey wrench was thrown into this arrangement on Sat urday Mr. Light's appointment up majority the in the Bank signified the this The faction in bank clamoring for the of Mr. Courtney got busy Tuesday morning to secure signatures appointment Mr. The faction favorable to Mr Courtney holding the position petitions Both factions go Frankfort and against removal of Courtney Mr Pendleton Counmen and farmers. He has had in understand will experienced man him liquidating the the This assistant resident Falmouth The Pendleton Bank closed its doors Nov. and the affairs the bank placed in the hands of the State Banking Commissioner that time, Wilson Alvin Courtney appointed Special Deputy Banking Commissioner year salary $225 per month He has served in this for the past months. Covington the Bank salary of $250 the streets that will also this position and a local attorney will get the The closing of the Pendleton Bank that has Falmouth and Pendleton County more than 3,000 accounts this bank the time deposits of more than 300,000. Several weeks before the bank closed there silent run and the bank had to borrow monmeet these demands, owing to notes very slow The borrowed money bank amount collected notes During the drouth 1930 the bank the for to food and feed and this crippled the bank fo: ready cash