Citizens National Bank - Frostburg, MD

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 4926
Charter Number: 4926
Start Date: June 9, 1933
Location: Frostburg, Maryland (39.658, -78.928)

Metadata

Model: gpt-5-mini
Short Digest: 353b802c

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

Bank was placed in conservatorship in March 1933 and then closed with receiver appointed by Comptroller in June 1933. Officers were indicted; receiver later sought authority to sell securities and effect a reorganization to open a new bank. No run is mentioned in the articles; closure appears to be a government-directed receivership.

Events (5)

1. June 12, 1893 Chartered

Source: historical_nic

2. June 8, 1933 Receivership

Source: historical_nic

3. June 9, 1933 Suspension

Cause: Government Action
Cause Details: Conservatorship in effect since March; conservatorship terminated and bank closed by action of Comptroller/Federal Reserve leading to receivership.
Newspaper Excerpt: the conservatorship was ordered terminated with the close business yesterday.
Source: newspapers

4. June 10, 1933 Receivership

Newspaper Excerpt: Thomas R. Finan, Md. as 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 has been filed in equity ... application is made for authority to sell certain securities held by the Citizen's National Bank of Frostburg ... plan of reorganization which contemplates the opening of a new bank ... 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.