Citizens National Bank (Kokomo, IN)

View Charter #4121 on SPMC View balance sheet

Episode Information

Episode UID
412101582
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
41210 national
Charter Number
4121
Start Date
October 23, 1931
Location
Kokomo, Indiana (40.486, -86.134)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
28f6947bdf1375b0

Response Measures

Full suspension, Books examined

Receivership Details

Depositor recovery rate
86.7%
Date receivership started
1931-10-23
OCC cause of failure
Economic conditions
Share of assets assessed as good
36.8%
Share of assets assessed as doubtful
52.1%
Share of assets assessed as worthless
11.2%

Description

Directors voluntarily closed the bank citing continued withdrawals though they claimed solvency; receiver subsequently appointed.

Events (5)
1. September 16, 1889 Chartered
Source
historical_nic
2. October 23, 1931 Receivership
Source
historical_nic
3. October 23, 1931 Receivership
Newspaper Excerpt
Frank W. Bryant, receiver of the Citizens' National bank of Kokomo, Ind., today filed suit ... (receiver named after suspension).
Source
newspapers
4. October 23, 1931 Run
Cause Details
Sustained withdrawals/depositor panic drained funds and prompted directors to close the bank.
Measures
Directors closed the bank at 10:30 AM to protect depositors and consulted federal banking authorities.
Newspaper Excerpt
Continued withdrawals were blamed for closing of the institution.
Source
newspapers
5. October 23, 1931 Suspension
Cause Details
Directors voluntarily suspended operations because of continued withdrawals and inability to meet demands.
Newspaper Excerpt
The Citizens National bank ... was closed by its directors today for the protection of depositors.
Source
newspapers

Newspaper Articles (17)
1. October 23, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 23, 1931

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Article Text

CLOSE KOKOMO BANK TO PROTECT PATRONS Directors Take Step Voluntarily; Solvency Is Claimed. By United Press KoKoMo, Ind., Oct. 23.-The Citizens National bank, Kokomo's largest banking institution, was closed by its directors today for the protection of depositors. A statement issued by officials said the bank was solvent and would be reorganized. Continued withdrawals were blamed for closing of the institution, which was organized forty-one years ago. Bennett B. Bobbitt was president and Paul Stanbro cashier. Deposits were $3,104,924.58 and resources $4:823,862.14. The Citizens bank absorbed the Howard National bank June 1, 1930.

2. October 23, 1931 The Kokomo Tribune Kokomo, IN

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INTEREST BY REACTION Citizens National Closing of Some Unusual Brings Activity to Them. CONTINENTAL TO WORKERS STEEL o'clock Friday afAt 2:30 E. Fredrick, John ternoon, board of the chairman of the Steel CorporaContinental the Tribune tion, requested to announce that employes of that concern who had not cashed their pay already would be paid at the checks plant at 10 o'clock Saturday morning. The influx of Continental with checks employes pay was causing a rush of busiUnion Trust bank ness at the that was being misinterpretto meet the ed. Money Continental's payroll will be at the plant Saturday morning at the hour named. of the Citizens With the closing which took place at National bank 10:30 o'clock Friday morning. came Interest to what general that event would have fect. if other banks of the uptown on the district, the Union Trust and Savthe Peoples Trust bank and and Savings As would be expected. the inmed. late effect somewhat increased activity at both Institutions. This was more marked the Union because its larger line Trust, of of depositors. The of exceptional the Union Trust, howactivity at in the main to the was due fact that was handling the paythe Continental Steel roll of That concern has several poration. hundred These began the bank at the pouring into place the appearhour, giving unusual rush of busiof an ness. Situation Explained This appearance, not unnaturally, by some persons was the general excitement due to the closing of the resulting from Citizens National As far as was (Continued on Page Two)

3. October 23, 1931 The Kokomo Tribune Kokomo, IN

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ACTION TAKE DIRECTORS TO CONSERVE INTERESTS DEPOSITORS OF BANK'S Continued Withdrawals Board in Statement Says Prompt Closing of Institution to Protect DeposiComes Consultation with Federal Banking Bank to be Solvent and Expresses Hope for Its Quick ReorComes as Surprise to Comin 1889. Organized Bank Examiner Here. Sanders. a national bank examiner, arrived in to take 2:30 o'clock Friday charge Kokomo of about the affairs of the Citizens National Bank. which was closed by order of the board of directors at 10:30 'clock Friday morning. Mr. Sanders said that safety deposit boxes at the bank could not be made accessible to the holders for two or three days He indicated, however, that all possible haste would be made to reopen that department. At o'clock Friday morning, following a meeting of the board of directors of the Citizens National Bank, the doors of that institution were closed. The following notice which was posted at the entrance informed the surprised public of what had happened: "NOTICE." account of continued withdrawals the directors of this bank feel it is advisable to close the of for "The protection Federal banking authorities have been consulted and agree that the directors are the course. following directors proper believe the bank to be solvent and hope to reorganize as quickly as possible." of Directors." "Board As soon as the doors had been closed and the notice posted, a crowd began to gather in front of the bank. Those who were near the doors read the notice and then conveyed the substance of its contents to those who were not close enough to make out the meaning of the few type- written lines. Spreads Quickly. News the closing spread News of and rapidity with amazing reached to all parts into the the and even of city, From countryside. adjacent district came the business to see for streams of persons whether the themselves been Kobank which financial inkomo's leading for several years stitution suspended operations. had the terse statement To many posted at the entrance was unbelievable. almost betoo, telephones Soon, with inquiries to jingle gan report that to whether the as was in circulation was true. frequent calls were By noon, rural discoming that the tricts, revealing news had already spread bethe city's borders. yond The bank's closing, seemunexpected to praced, was tically everybody. detailed explanation By way taken by the direcof the action said that there had tors, was of checkingbeen steady process the bank for out under way at first it slow some time. reached the It never proportions of an open "run." At time was there any appearance or even mild panic The drainage of deposits. however, on, and that process, went stendily exhausts bank's the long run, meet demands just ability efficiently had been rather Withdrawals the last few days more frequent than usual. The situation business Thursday evenclose of ing was such as to cause the and directors grave concern. ficers call for meeting This morning. At this o'clock Friday which an hour conference. the institution's proband looked squarely in the lems were the result that the resface. with for immediate olution providing drafted and adopted. closing was Opened at Usual Hour. In the meantime. the bank had business at the usual opened for the customary activihour, and ties were under way up to the moment the doors were closed and There been the notice posted. unusual of withdrawals rush during the hour and half the bank had been open. In fact, the scene in the big banking room had been quiet rather than active. Nothing about the appearance of the place even hinted at the action about to be taken. The directorate. after the closing had been announced. simply said It realized that first obligation to the bank's depositors, and that it had become apparent soon the in that to continue longer would operation day depositors to expose undue hazard, the decision to close reorganization was and plan reached. Although the directorate had been in communication with the authorities, counFederal banking them frankly regardseling with ing the situation. there natexaminer or other repbank of the department resentative the resolution closing the time adopted. nor had any the bank time The been here for some had been fully partment. however, advised of developments of last approved the and had few days directors decided to course the Boxes. Safety Deposit the bank that was reported had left bank examiner national for Kokomo, by Winchester, Ind., shortly before automobile and would arrive here toward the afternoon. It middle the probable that be soon decide making the safety time for upon the bank deposit department available for use of customers. Contents of safety deposit boxes of any way not, course, bank's though fected by the will be short necessity there of (Continued on Page Two)

4. October 24, 1931 The Times Hammond, IN

Article Text

CLOSES Ind., Oct. Trust Savings company, $260,000 state banking institution, its day It by deposThe on the bank the closing the Citizens National bank Three banks are left in Kokomo. assets critical industrial caused difficulties local banks Kokomo the worst Indiana, the result of the bad industrial situation here.

5. November 4, 1931 The Kokomo Tribune Kokomo, IN

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(Continued from Page One) qualifications for the particular recognized by all. being Fears of Creditors Should the case taken creditors feel. other county. that the receivercording would much more expenship sive than administered here. All of the receivership must the costs borne the bank's assets. out that the more receivership the expensive greater the loss the Attorney Herron out of the and could not city Wednesday for Information regardbe any additional to what ing his plans his answer and motion. He his pleadings court filed by the office assistant, Goldie Perry. herShe discharged self an attorney. the work assigned her without comment. If Mr. Herron really to for change of means venue from the county, the fact will be revealed Saturday, the hearday Attorney Herron is president of the Howard County Bar Association the veterans of the one legal had experience in bank liquidation served along with Grover Bishop in winding up of Trust the affairs the failed SeptemThe creditors of that ber, approximately cents on the dollar. South Kokomo Bank Pending Saturday, also. State Banking Competition by Symons for South Kokomo Bank, for the which was closed on October 23, at the same time the Citizens National Bank The creditors that operations. have prepared petition institution asking that Carl Showalter be receiver. he having indicatwillingness to serve same terms Mr. proximately willing to accept for George was liquidating the Trust. Whether some shareholder the South likely Bank and that Kokomo be sent out of the county too, not been change Creditors of the institulearned. know no such tion say they being under that none develops. press hope Citizens generally express hope that Attorney Herron his and not press for sider motion change of venue from the county Trust case, and that the Peoples that ever motion in the South Kokomo offered Bank case. practically, seems be impressed that the receiverships the creditors of the planned two institutions would be the most economical and most satisfactory that could devised, and that they that the affairs would the banks would be administered honestly, and the best interests every way those directly concerned. and the community as whole. MOTORS DIVIDEND New York, Nov. General Motors Corporation dividend of cents terly share the common stock.

6. November 27, 1931 The Kokomo Tribune Kokomo, IN

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BRINGS FIRST BANK RECEIVER CITIZENS FOR FILES ACTION COLLECTION OF NOTE. The first brought by Frank for the Citizens Bryant, receiver National Bank, against creditors of filed circuit the institution was court Friday morning. Defendants Beulah K Miller. White, Mildred William White, and Miller The action for $475. and asks that amount interest of $26.39 and together with of total attorney's fees $50, SHERLOCK OF London, called David Sherlock Holmes of while services died today his wife, who being died Monday He

7. February 18, 1932 The Kokomo Tribune Kokomo, IN

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Vicinity to Pay and Kokomo 200th AnniHomage on of His Birth. versary OFFICES WILL Schools and Programs by triotic Recalled. Stories well next Monand the two-hunFebruary 22, day, the birth of anniversary of dredth will observGeorge and vicinity Kokomo holiday. will the observance Officially. suspension the form take In public business county such postoffices, and banks. city offices and Hunt hus already of the departthe order announced the holiday under which ment, the Kokomo observed by to There be no postoffice. carriers, either city of by general delivery. the order and parcel money closed windows post the box throughout to box lesbe accessible other points Mall to and from received and will be postage calling mail bearing be delivservice for carrier. like cred by effect other be in offices the county. Regarding Because Trust comUnion Bank the only financial pany. will be closed. operating borne In mind This fact should circles and Indiby both business should make arrangeviduals, who sufficient to ments for cash from Saturday ovening their needs until Tuesday National bank, the Citizens W. Bryant anReceiver Frank there will nounces the day of pension for claims The and his work the however, will endeavor to catch up day. an fallen behind since work that has poriod was opened. the Some Old Traditions. Howard county ever possesThat George citizen who aed doubtful Tradition Washington in the ploneer period that two or three here there were county's borresiding within the him, these who had seen well stories are not them from the remove domain of doubt. that two It however, who soldiers the Revolution are buried in Howard be that both saw and may though there in OXistence no record any such dent. of these was Jack GulIton, whose body lies in the Twin Springs cemetery. The other Abner dust reposes Oak Mound cometery In the northwestern corner of Ervin township. Both died about Many Have Visited Tomb. however, has Howard county, many citizens who visited Washing- (Continued Page

8. April 20, 1932 The South Bend Tribune South Bend, IN

Article Text

BANK RECEIVER SUES FOR LEVY Frank W. Bryant, receiver of the Citizens' National bank of Kokomo, Ind., today filed suit in federal court against Earl D. Smith, of Delphi, Ind., holder of 48 shares of capital stock in the bank, for collection of a 100 per cent stock assessment ordered by the national comptroller of the currency. The plaintiff seeks judgment for $4,800 plus six per cent interest since the middle of January.

9. October 3, 1932 The Kokomo Tribune Kokomo, IN

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DEED GIVEN ALLEGE CREDITORS TO DELAY that An allegation piece property ance made to delay this city was in filed was out creditors Monday by Frank circuit court receiver of the Citizens. National bank. E. Osborne Scaand grave. According to the complaint. Mrs. VanBibber executed the Seagrave after giving notes the bank. The receiver seeks judg. sum $2,202.02 ment the the deed declared void asks that as against creditors of Mrs. Overson and Manning represent the receiver.

10. February 2, 1933 The Kokomo Tribune Kokomo, IN

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JUDGMENTS ENTERED BANK RECEIVER GETS CLAIMS AGAINST ARMSTRONGS ALLOWED. Judgmonts against Generous Armstrong and Arthur Armstrong, in favor of Frank W. Bryant. receiver of the Citizens National bank, for assessments due on capital stock owned by the defendants in the bank. have been entered by Judge Cripe in the circuit court. The judgments were taken when In the case of Generous Armstrong, the judgment is for $3,300. plus interest at 6 percent from Jannary 29, 1932. In Arthur Armstrong's case the judgment Is for $5,300. plus interest from January The court also entered an order garnisheeing cash belonging to the two Armstrongs. which now in the hands of A. V. Conradt and Harry O. Davis, trustees of the old Citizens bank stockholders pool. The amount in Cenerous Armstrong's case is $204. and in Arthur The court ruled that Receiver Bryant was entitled to these parcels of cash toward settlement of his claims against the defendants.

11. June 15, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 15, 1934

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Article Text

By Times Special OKOMO, June 15.-Several depositors of the Citizens National bank, K which has been in receivership for two and one-half years, have not filed claims for amounts they had in the bank when it suspended operations. According to Frank W. Bryant, receiver, some of the deposits are considerable amounts of money while others are very small. Several safety deposit boxes have not been opened during the receivership. Rental fees are delinquent on some of the boxes. In other cases, they have been kept paid.

12. December 10, 1934 The Kokomo Tribune Kokomo, IN

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BANK RECEIVER FILES FORECLOSURE SUITS Foreclosure actions have been filed in circuit court by Frank W. Bryant, receiver of the Citizens National bank, against EM Heaton, Susannah Heaton, the Fairlawn Realty Co., and the Bankers Trust Co. of Indianapolis as receiver for the Fairlawn company. and by Bryant as receiver of the Russiaville First National bank against John M. Stout, Mary L. Stout, and Louie Blanche Stout. In the suit against Heaton the receiver asks judgment for $4,000 and costs on a note given to the Kokomo Trust Co. in 1920, requests that a receiver for mortgaged farm property be named and the land sold. In the other case the receiver asks judgments totalling $651.44 on notes. Overson and Manning represent the receiver.

13. January 3, 1935 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 3, 1935

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Article Text

Indiana in Brief By Times Special OKOMO, Jan. 3.-Safety deposit boxes which have not been opened K in years and all trace of whose lessees have long since disappeared will be examined here soon in connection with the receivership of the Citizens National Bank. Attorneys for the receivers recently obtained from Howard Circuit Court an order to open all such boxes. They are considered as assets of the bank and in all cases the rental is long in arrears. Immediate purpose of the move is to get the boxes in condition to lease or sell. The contents of the boxes, many of which have not been opened for twenty years, will be kept confidential by the receivers who expect to make every effort to find the missing owners and restore to them their property.

14. April 12, 1935 The Kokomo Tribune Kokomo, IN

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Schrader & Co., George's Radio & Auto Service. Advertising—Merchants Display Service, Harry M. Lynch, Advertising Service. Financial institutions—Union Bank and Trust Co., First Federal Savings & Loan Association, Citizens National Bank receiver. Barbers—Johnson barber shop, Leo's barber shop, Hughes & Grier, Trobaugh's barber shop, F. M. Osborn, Frances hotel shop, Yohn Barber shop, U. G. Walden.

15. November 9, 1935 The Kokomo Tribune Kokomo, IN

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In Dollars and Cents, Citizens Bank Trusts and Guardianships Lead All Cases. It is believed that an examination of the records of the local circuit court for the ninety years that have elapsed since that tribunal was organized would reveal that, in amount of money involved, the trust and guardianship matters which were in the Citizens National Bank when that institution was closed, October 23, 1931, and which had to be gotten out of the bank and into new hands, taken together, constitute the largest piece of business the court ever handled. The various trusts and guardianships involved considerably more than two millions of dollars. New trustees had to be appointed for the several trusts and new guardians named for the many wards. This process necessitated the handling of more than 500 separate cases. This consumed many months and put into the records many thousands of pages of closely typewritten manuscript.

16. December 4, 1935 The Kokomo Tribune Kokomo, IN

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BANK RECEIVER MAKES CHANGES AMONG HELPERS Kern, Shrock and Schwartz Are Retired From Staff of Assistants. WILL REDUCE OVERHEAD Carpenter Says Change Made Dec. 1 Will Save $5,000 Yearly in Overhead. Three men who were members of the staff of assistants of Frank W. Bryant while he was receiver of the Citizens National Bank, were retired from their respective positions by the present receiver, James W. Carpenter, December 1. The three are Otto Kern, who handled most of the city real estate which was acquired by the receiver in settlement of loans made by the bank; John N. Shrock, who handled the farm properties the bank took over and who also assisted in administering the affairs of the Russiaville National Bank, of which Mr. Bryant was also receiver, and Arthur H. Schwartz, who for the last two or three years had looked after the renting of office suites in the Citizens National building. When Receiver Carpenter was seen Wednesday about the changes he had made, he said the retirement of Kern, Shrock and Schwartz became effective the first of the current month, and that the action was pursuant to a policy of reducing the overhead of the receivership. Now in Other Hands The departments that were handled by the three men mentioned, the receiver explained, are now to be looked after by W. J. Eberwein, chief assistant to the receiver, and Fred Goyer, retained from the former receiver's staff, with such help as Mr. Carpenter himself can find time to give them. He remarked that the consolidation of the several jobs would mean a saving of approximately $5,000 a year in the receivership's overhead. At the time Bryant relinquished the receivership to Carpenter, the Tribune indicated that some changes in the staff probably would follow within a short time. The change of receivers took place at the close of business on September 20, a little more than two months ago. Kern and Shrock were mentioned as among those whose connection with the receivership probably would be terminated ere long. It seems that while he was framing the consolidation of jobs, Receiver Carpenter decided also to include the position held by Schwartz. What Three Are Doing Mr. Schwartz has been engaged in the real estate business for several years and handled the Citizens Bank property from an office he maintained in the building. Mr. Shrock was engaged in the real estate business before he took over the farm division for the Citizens National. He has returned to the line, having opened an office in room 314 of the bank building. Mr. Kern, who came here from Indianapolis about four years ago, to become chief assistant to Receiver Bryant, has returned to the capital city, where it is understood he has a position. No Dividend News When Receiver Carpenter was asked Wednesday as to when another dividend could be expected for creditors of the Citizens National, he said he was not prepared at this time to make any statement on that subject, further than to say that he was working toward that end as rapidly as possible. It is a certainty, of course, that no further dividend will be paid this year. The last dividend, the fourth since the bank was closed on October 23, 1931, was paid last March. It carried the total distribution up to 61 2-3 per cent of the total of deposits at the time the bank suspended operations. Much Real Estate Receiver Carpenter says the bank still owns a large amount of real estate, composed in the main of downtown Kokomo business properties, a number of factory buildings, some of which are small, and several dwellings and vacant lots. The amount paid creditors in the future will depend largely on whether or not this real estate can be disposed of advantageously. Mr. Carpenter and Mr. Eberwein were out all Wednesday forenoon making a personal inspection of some of the real estate, with a view of determining prices to be asked for it should opportunities for sales arise in the near future. Real estate values have been rising in Kokomo the last few months, but whether they have appreciated enough to bring the bank's properties up to a level where they could be sold to the reasonable advantage of the bank's creditors is a question.

17. May 20, 1936 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 20, 1936

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DEPOSITORS TO BE PAID Closed Kokomo Bank to Allow 15 Per Cent Dividend. By United Press KOKOMO, Ind., May 20.-Distribution of $385,000, representing a 15 per cent dividend, to depositors in the closed Citizens National Bank, will be made June 1, James W. Carpenter, receiver, announced today.