Falmouth Institution blames Heavy Withdrawals
Falmouth, Ky., Nov. 4 – Heavy withdrawals of deposits recently was credited today as the cause for the Falmouth Pendleton Bank of Falmouth, a state institution with resources of nearly $1,500,000, to close its doors here yesterday. The action came on orders of the Board of Directors and formal notice was sent to the State Commissioner of Banking in Frankfort. “Eighteen months ago the Citizens Bank here faced a failure and we thought we would do the community a good turn by taking it over and guaranteeing its liabilities while the directors and stockholders of the Citizens Bank guaranteed its assets,” Charles W. Thompson, cashier, said. “When some of them hesitated about making good their guarantees and the depositors became scared and withdrawals were more than we could stand,” he concluded. The bank was capitalized at $83,000 and had a surplus of a like amount. The last published statement showed deposits of $1,350,000.
Kentucky Post, November 4, 1931