National Bank - Sabetha, KS

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 4626
Charter Number: 4626
Start Date: January 16, 1932
Location: Sabetha, Kansas (39.902, -95.801)

Metadata

Model: gpt-5-mini
Short Digest: c7cf3bab

Response Measures

None

Receivership Details

Depositor recovery rate: 54.2%
Date receivership started: 1932-01-18
Date receivership terminated: 1937-09-21
Share of assets assessed as good: 33.4%
Share of assets assessed as doubtful: 58.4%
Share of assets assessed as worthless: 8.2%

Description

Articles (Jan 16–17, 1932) report the National Bank of Sabetha failed to open and its affairs were placed in the hands of the federal bank examiner. No run occurred; closing attributed to steady withdrawals over 2–3 years and dwindling reserves. No reopening mentioned; classified as suspension leading to closure/receivership.

Events (3)

1. September 7, 1891 Chartered

Source: historical_nic

2. January 16, 1932 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Gradual shrinkage/steady withdrawal of deposits over two to three years causing dwindling reserves; directors placed affairs with federal bank examiner.
Newspaper Excerpt: NATIONAL BANK OF SABETHA IS CLOSED ... the bank failed to open its doors. ... the directors to place the affairs of the bank in the hands of Bank Examiner Wright of the tenth federal district at Kansas City.
Source: newspapers

3. January 18, 1932 Receivership

Source: historical_nic

Newspaper Articles (3)

1. January 16, 1932 Lincoln Journal Star Lincoln, NE

Article from Lincoln Journal Star, January 16, 1932

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Article Text

NATIONAL BANK OF SABETHA IS CLOSED Kas. (UP). Because the officers of the National Bank loath to accept deposits which would result from the of the final dividend the closed Citizens State bank of Sabetha, the bank failed to open its doors. Thefinal bank dividend amounted to 500. There was no run on the National Bank of Sabetha, but A. Collins, president, stated slowly dwindling reserve caused by deposits faster loans could be caused the directors to place the affairs of the bank in the hands of Bank Wright the tenth federal district at KanCity. W. Donahue, to Sabetha to take charge of the bank. President stated the bank's are $746,000, including loans discounts of $483 bonds $158,000; bank building, fixtures and safedeposit vault, $78,000; and other real estate $27,000. Liabilities of $486,000; capital, $60,000; surplus and $42,000: circulations, $60,000; rediscounts, $98,000.

2. January 16, 1932 York News-Times York, NE

Article from York News-Times, January 16, 1932

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Article Text

BANK Because the officers of the National Bank of Sabetha were loath to cept deposits which would result day from the payment of the final dividend of the closed Citizens State bank of Sabetha, the bank failed open its doors this morning. The nal Citizens bank dividend amountThere was no run on the National Bank of but president, stated slowly dwingling reserve caused by déposits diminishing faster than loans could be retired caused the directors voluntarily place the affairs of the bank in the hands of Bank Examiner Wright of the tenth federal district Kansas City.

3. January 17, 1932 Falls City Daily News Falls City, NE

Article from Falls City Daily News, January 17, 1932

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Article Text

Steady Withdrawal of Deposits Over Period of Three Years Given as Cause. SURPRISE, BUT NO EXCITEMENT National bank of Sabetha did not open for business Saturday morning, much to the surpise of the citizens. This was an old established bank with resources of Loans and discounts $483,000 Cash and bonds Building and deposit 78,000 Other real estate 27,000 $746,000 The cause of the closing was gradual shrinkage of deposits at rate greater than the bank could realize on outstanding loans. There was no run on the bank, but steady withdrawal extending over period of two or three years. Collins, president of this bank, said that in his judgement $60,000 would be sufficient to provide reorganization, but could not state at this time just what effort would be made in this direction. This closing bank does not affect the Sabetha Saving and Loan association, an adjunct of the bank. Glen Sewell was cashier of the closed bank. Mrs. George Mosiman home from few days spent with friends in Omaha. Miss Gertrude Long has been selectas assistant secretary to the Chamber of Commerce and will spend full time in the office. Blaine Yoder was elected secretary early in the week. Total Deposits were $486,000 Capital 60,000 Surplus and profits 42,000 Rediscounts 98,000