Poolesville National Bank - Poolesville, MD

Bank Information

Episode Type: Suspension → Reopening
Bank Type: national
Bank ID: 8860
Charter Number: 8860
Start Date: September 3, 1931
Location: Poolesville, Maryland (39.146, -77.417)

Metadata

Model: gpt-5-mini
Short Digest: 0fe5c11d

Response Measures

None

Description

The Poolesville branch of the Central Trust Co. (listed as the Poolesville National) was closed by the State bank commissioner on 1931-09-03 when Central Trust failed and a receiver was appointed. The Poolesville bank later reopened as an independent Poolesville Bank (opened 1934-08-09) and subsequently was acquired by Farmers Banking & Trust Co. in 1936. No discrete depositor run at Poolesville is described in these articles; the closing was by regulator/commissioner action tied to the parent trust's failure.

Events (5)

1. September 9, 1907 Chartered

Source: historical_nic

2. December 14, 1929 Voluntary Liquidation

Source: historical_nic

3. September 3, 1931 Suspension

Cause: Government Action
Cause Details: State bank commissioner took over Central Trust Co. and closed its branches (including Poolesville) and qualified as receiver due to frozen/illiquid assets and large real-estate commitments.
Newspaper Excerpt: The Central Trust Co. of Maryland and 11 branch banks in this and adjoining counties closed their doors today, and the affairs of the institution were taken over immediately by George W. Page, State bank commissioner.
Source: newspapers

4. August 9, 1934 Reopening

Newspaper Excerpt: The Valley State Bank of Middletown, Poolesville Bank, Sykesville State Bank and Walkersville Bank replaced branches in those communities... The Central Trust Company... failed to open their doors for business on Sept. 3, 1931. ...Five independent banks arose today from the wreckage of the Central Trust Company and their doors opened for unrestricted business. Poolesville Bank replaced [the branch].
Source: newspapers

5. December 2, 1936 Other

Newspaper Excerpt: Richard F. Green, president of the Farmers Bank and Trust Company of Rockville today announced the acquisition of the Poolesville (Md.) Bank, which will be operated as a branch of the Rockville institution. ...The Poolesville institution formerly was a part of the Central Trust Company, which was closed by the bank examiners. About two years ago the stockholders banded together and reopened the Poolesville bank as an independent institution.
Source: newspapers

Newspaper Articles (5)

1. September 3, 1931 Evening Star Washington, DC

Article from Evening Star, September 3, 1931

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Article Text

State Examiner Takes Over Frederick Institution and 11 Branches; Deposits of $14,000,000 Involved. DIRECTORS TAKE ACTION AS RESOURCES SHRINK State Senator Said to Have Lost $2,225,000 in Washington Real Estate Transactions; Faces Trial in Connection With Pitts Prosecution. Special Dispatch to The Star. FREDERICK, Md., September 3. -The Central Trust Co. of Maryland and 11 branch banks in this and adjoining counties closed their doors today, and the affairs of the institution were taken over immediately by George W. Page, State bank commissioner. State Senator Emory L. Coblentz, president of the bank, issued a statement blaming frozen assets and "miserable publicity" received by himself in connection with the Federal investigation of the F. H. Smith Co. of Washington, for the failure of the bank. Coblentz was one of the principal witnesses at the trial of three Smith company officers in Washington last year. He is now under indictment in the Capital for "aiding in the commission of perjury" as a result of his testimony. He said the publicity attending his indictment disturbed public confidence and caused a seepage of deposits. Directors Reach Decision. Decision to close the bank and its branches was reached at a meeting of the directors yesterday. The Central Trust Co. holds deposits of approximately $14,000,000 about one-third of the total bank deposits of Fredcrick County. Mr. Coblentz said the bank's assets would be "more than sufficient in normal times" to meet its obligations. A notice signed by the directors said a plan of reorganization was being considered. Commissioner Page qualified this afternoon as receiver for the bank before Judges Hammond Urner and Arthur D. Willard of the Circuit Court. Immediately afterward he announced he would proceed immediately to liquidate the assets of the bank. He was unable to say whether the assets were sufficient to pay off all depositors in full. A complete audit of the trust company's accounts will not be necessary, Mr. Page declared, since he had the full co-operation of the bank directors. He said he did not know how long it would take to settle the accounts. Mr. Page blamed the failure on the fact that the bank had "a very large commitment in real estate outside of Maryland which is illiquid at the present time." The branch banks which closed are at Ellicott City, Emmittsburg, Middletown. Monrovia, Myersville, Poolesville, Smithsburg, Sykesville, Thurmont, Union Bridge and Walkersville. Of these branches. the most recent additions are the Washington Trust Co. of Ellicott City, the Valley Savings Bank of Middletown, the Poolesville National, the Walkersville Savings Bank and the two Smithsburg banks. Montgomery County had $50,000 on deposit in the Poolesville branch. Coblentz's Statement. The statement by Mr. Coblentz follows: "The board of directors of the Central Trust Co., at a meeting this afternoon, voted to place the bank in the hands of the bank commissioners in order that its assets might be conserved for the benefit of its depositors and stockholders. "As a result of the serious depression through which the country is passing, affecting as it does the value of securities and real estate, the bank finds itself with too large a proportion of its assets in a frozen condition. This is particularly true with reference to the loans (Continued on Page 2. Column 1.)

2. August 9, 1934 The Daily Times Salisbury, MD

Article from The Daily Times, August 9, 1934

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Article Text

5 NEW BANKS NOW REPLACE CENTRAL TRUST Institutions Are Opened In Western Maryland From Wreckage of 5-County Institution STOCKHOLDERS TO GET SIX PER CENT Another Sixteen Per Cent Will Be Paid By Defunct Bank On Order of The Court Frederick, Md., Aug. 9-(AP)Five independent banks arose today from the wreckage of the Central Trust Company of Maryland and their doors opened for unrestricted business The openings brought to seven the number of banks that have broken away from the defunct institution. The Western Maryland Trust Company replaced the main office of the Cantral Trust Company here while the Valley State Bank of Middletown, Poolesville Bank, Sykesville State Bank and Walkersville Bank replaced branches in those communities. Previously the mergers of the People's Bank of Smithsburg and the Washington Trust Company of Ellicott City with the Central Trust Company had been dissolved by orders of Circuit Court. Other branches of the defunct institution were located at Monrovia, Maersville, Thurmont, Union Bridge and Emmitsburg. With the opening of the five new Banks, dividends totaling about $600,000 were paid today on deposits in the Central Trust Company, by order of the court. Further dividends may be realized, it was intimated. Dividends totalling five dollars or less are being made to depositors in communities where new banks are not being opened, were paid by check. The other depositors in the former concern were credited with their dividends in the nearest new bank. Some 166 former depositors opposed the recorganization plans for the defunct bank. The court directed that these dissenters be paid their six per cent, today and that the remaining sixteen per cent. due them to close out their accounts be retained by the State Bank Commissioner, who acted as receiver, subject to the Court's further order. The central Trust Company, with its eleven branches in Montgomery, Carroll, Howard and Frederick counties, failed to open their doors for business on Sept. 3. 1931. The decision to close had been reached at meeting of the board of directors the previous afternoon for the purpose of protecting depositors and stackholders. The business depression was blamed for the closing by the bank's president, Emory L. Coblentz. He said the depression had affected the value of securities and real estate, placing a large proportion of the bank's assets in "frozen" condition. counties. He was acquitted in Fredas the "Miserable publicity' concerning Coblentz connection with the investigation of the affairs of a Washington banking concern. He said the connection served to disturb public confidence and cause a seepage of deposits. George W. Page, then State Bank Commissioner, who took over the affairs of the bank as receiver, said the institution's condition "was brought about by the institution's having a very large commitment in real estate outside of Maryland which is illiquid at the present time and cannot be realized upon." Coblentz, with four other officials of the bank, was subsequently indieted on banking charges in Frederick Montgomery, Howard and Carroll today in the family mausoleun in erick. The charges were guashed in Montgomery and a conviction on a Howard county charge was overruled by the Court of Appeals. Indictments are still pending in Howard and Carroll counties.

3. December 2, 1936 The Washington Times Washington, DC

Article from The Washington Times, December 2, 1936

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Article Text

POOLESVILLE BANK BOUGHT AS BRANCH ROCKVILLE, Md., Dec. 2.-Richard F. Green, president of the Farmers Bank and Trust Company of Rockville today announced the acquisition of the Poolesville (Md.) Bank, which will be operated as a branch of the Rockville institution. According to Mr. Green, the present capital stock of the Farmers Banking and Trust Company has been increased by $26,000 through this transaction. which, together with the branch bank now operated at Kensington, Md., gives the entire system a capital stock of $155,200. The surplus has been increased from $10,200 to $15,000, while undivided profits amount to $56,000, he added. Under Mr. Green The revised institution at Poolesville will be under the general supervision of Mr. Green and an executive committee, which includes Thomas D. Darby, as chairman; Walter E. Matthews, James B. Runkels, Carl T. Fisher and Benjamin White. The latter has also been appointed cashier. The Poolesville institution formerly was a part of the Central Trust Company, which was closed by the bank examiners. About two years ago the stockholders banded together and reopened the Poolesville bank as an independent institution. Negotiations for the transfer of the bank to the Farmers Banking and Trust Company have been under way for several months, Mr. Green said. Prosperous Community The area served by the Poolesville institution is a prosperous farming community and the bank will serve the needs of that area to an even greater advantage because of its connection with the larger institution, Mr. Green ex, plained. The Farmers Banking and Trust Company opened after the banking holiday when depositors agreed to allow 15 per cent of their deposits to remain in the bank and accept certificates of beneficial interest which bear interest of 3 per cent. Twenty-five per cent of these certificates have been paid to date, Green said, and the bank is now in a healthy condition and preparing to pay additional of these certificates.

4. December 2, 1936 Evening Star Washington, DC

Article from Evening Star, December 2, 1936

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Article Text

POOLESVILLE BANK BOUGHT BY CHAIN Joins Farmers Banking & Trust Company of Rockville. a Staff Correspondent of The Star. ROCKVILLE, Md., December 2.The Farmers' Banking & Trust Co. broadened the scope of its activities today and acquired the Poolesville Bank as a third link in a system which already included the parent institution here and a branch at Kensington. Negotiations for the new unit, a part of the now defunct Central Trust Co. at one time, but which reopened as an independent bank two years ago through the efforts of stockholders, have been quietly under way for the past several months, Completion of the transacton was announced by Richard F. Green, president of the Farmers' Banking & Trust Co., who said he would have general supervision over the branch at Poolesville. He is to be assisted by an executive committee including Thomas D. Darby, chairman; Walter E. Matthews, James B. Runkels, Carl T. Fisher and Benjamin White. White was apointed cashier. Acquisition of the Poolesville Bank ill increase the capital stock of the parent bank $25,000, making the capital stock $155,000 for the entire system. Surplus has been increased from $10,200 to $15,000, while undiided profits now total $56,000. Green declared the needs of Poolesville, à farming community in the northwestern section of Montgomery County, will be served to an even greater extent than before under the new set-up.

5. December 3, 1936 Montgomery County Sentinel Rockville, Gaithersburg, MD

Article from Montgomery County Sentinel, December 3, 1936

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Article Text

Poolesville Bank Is Taken Over By Farmers Trust New Branch Of Local Firm To Be Operated Like Kensington Bank Acquisition of the Poolesville Bank as a branch bank was announced this week by the Farmers Banking and Trust Company of Rockville. The Poolesville Branch will be operated in the same manner as the Kensington Bank of the Farmers Banking and Trus Company. According to Richard F. Green, president of the Farmers' Banking and Trust Company, the capital stock of the parent bank has been increased by $25,000, making a capital stock of $155,200 for the entire system, and the surplus has been increased from $10,200 to $15,000, while undivided profits amount to $56,000. The bank will be under general supervision of Mr. Green and an executive committee which includes Thomas D. Darby, chairman; Walter K. Matthews, James B. Runkels, Carl T. Fisher and Benjamin White, the latter also having been appointed cashier. 1 The Poolesville Bank formerly was 1 a part of the Central Trust Company, which was closed by the bank examt iners. About two years ago, the C stockholders banded together and reopened the Poolesville Bank as an S independent institution. Negotiations for the transfer of the bank to the S Farmers Banking and Trust ComI pany have been under way for months. ( The area served by the Poolesville Bank is a prosperous farming comI munity and the bank will serve the I needs of that area to an even greater C extent because of its connection with e the larger institution, Mr. Green explained. The Farmers Banking and Trust S Company opened after the banking r holiday when depositors agreed to allow 15 percent of their deposits to I remain in the bank and accept certifia cates of beneficial interest which bear interest of three percent. The ( bank already has paid 25 percent of I these certificates and is in a healthy I condition at present, Mr. Green said. (