7454. Citizens National Bank (Frostburg, MD)

View Charter #4926 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
4926
Charter Number
4926
Start Date
March 1, 1933*
Location
Frostburg, Maryland (39.658, -78.928)

Metadata

Model
gpt-5-mini
Short Digest
766ab669e8d858ef

Response Measures

None

Receivership Details

Depositor recovery rate
74.0%
Date receivership started
1933-06-08
Date receivership terminated
1941-07-15
Share of assets assessed as good
47.8%
Share of assets assessed as doubtful
40.9%
Share of assets assessed as worthless
11.3%

Description

Articles report the bank was placed in conservatorship (since March 1933) and then the conservatorship was terminated with the bank's business closed and the Comptroller appointing a receiver (Thomas B. Finan) on June 10, 1933. Former officers were later indicted for making false entries, indicating bank-specific malfeasance. A November 1933 filing by the receiver seeks authority to sell securities and contemplates opening a new bank with acceptable assets, but no article confirms resumption of the original bank; thus this is classified as suspension leading to closure with receivership (suspension_closure).

Events (5)
1. June 12, 1893 Chartered
Source
historical_nic
2. March 1, 1933* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank placed under conservatorship in March 1933 amid later allegations; former president, cashier and director indicted for conspiracy and making false entries, indicating internal malfeasance.
Newspaper Excerpt
Since March the bank been operating under directed by but the conservatorship was ordered terminated with the close business yesterday.
Source
newspapers
3. June 8, 1933 Receivership
Source
historical_nic
4. June 10, 1933 Receivership
Newspaper Excerpt
Thomas R. Finan ... appointed receiver for the Citizens' National Bank, Frostburg, Md., announced today by the Federal Reserve Bank of Richmond upon notification from the Comptroller of the Currency who made the appointment.
Source
newspapers
5. November 23, 1933 Other
Newspaper Excerpt
Petition Cites Reorganization Plan of Frostburg Bank ... plan of reorganization which contemplates the opening of a new bank with acceptable assets, to be purchased from the Citizen's National Bank, Frostburg, has now been approved by the Comptroller of the Currency, Treasury Department.
Source
newspapers

Newspaper Articles (3)
1. June 10, 1933 The Herald-Mail Hagerstown, MD
Article from The Herald-Mail, June 10, 1933

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Article Text

FINAN SELECTED BANK RECEIVER Va., pointment Thomas R. Finan, Md. as receiver for the Citizens' National Bank, Frost burg. Md., announced today by the Federal Reserve Bank of Rich. mond upon notification from the Comptroller of the Currency who made the appointment. Since March the bank been operating under directed by but the conservatorship was ordered terminated with the close business yesterday.

2. June 11, 1933 Evening Star Washington, DC
Article from Evening Star, June 11, 1933

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Article Text

FINAN NAMED RECEIVER FOR BANK AT FROSTBURG Special Dispatch to The Star. CUMBERLAND, Md., June 10.Thomas B. Finan, this city, prominent in banking and industrial circles, has been appointed receiver for the Citizens' National Bank of Frostburg, which has been in the hands of Emery G. Hitchins as conservator. Emery G. Hitchins, former president; Frank Watts, former cashier, and Paul L. Hitchins, nephew of Hitchins, former director and attorney of the bank, have been indicted in the Federal Court. They are charged with conspiracy to violate the national banking act with making false entries among other charges.

3. November 23, 1933 The Republican Oakland, MD
Article from The Republican, November 23, 1933

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Article Text

RECEIVER OF BANK GETS POWER TOSELL SECURITIES Petition Cites Reorganization Plan of Frostburg Bank In connection with its proposed reorganization, a petition has been filed in equity in the Circuit Court of Allegany county by Thomas B. Finan, receiver, and William C. Walsh, attorney, in which application is made for authority to sell certain securities held by the Citizen's National Bank of Frostburg. An order of court has been signed by Judge Albert A. Doub granting this authority, provided permission is given by the U. S. Comptroller of the Currency. The petitioner has filed a list of securities of the approximate value of $118,000. The application sets out that a plan of reorganization which contemplates the opening of a new bank with acceptable assets, to be purchased from the Citizen's National Bank, Frostburg, has now been approved by the Comptroller of the Currency, Treasury Department. This provides for the sale by petitioners of certain securities and which are held as free assets. Authority is also asked to deposit with the properly organized committees of unpledged securities which are now or may hereafter become in default.