The Pineville Loan & Savings bank, which was organized in 1910 and has been in continuous operation since that time, closed its doors at 2 o’clock Friday afternoon at the recommendation of Thurman Williams of Raleigh, state bank examiner, in conference with the offices and directors of the bank. Action followed an investigation of the bank’s affairs that was begun some days ago.
The closing of the institution is attributed by Examiner Williams to a too free extension of the bank’s credit and resources by C.S. Oakley, cashier of the bank, who resigned his position some days ago. It was the opinion of Mr. Williams, expressed Saturday afternoon after two days’ investigation of the affairs of the bank, that it would pay out.
There was no run on the bank and only three or four checks presented for checking out deposits Friday, it was said.
Mr. Oakley is said to have gone to his former home in Ridgeway, Va., to raise funds in an effort to straighten out the affairs of the institution and was expected back at Pineville Monday, although his resignation has been accepted.
DISCREPANCY NOT KNOWN
A representative of Scot, Charmley & company, certified public accountants here, has been at Pineville some days making an audit of the bank’s affairs, and pending the completion of that none of the officials of the bank or the bank examiner would venture an opinion as to the amount of the discrepancy or the extent of the assets as compared with the liabilities at the present time.
The report of the bank’s condition at the close of business on April 28 showed, under the head of resources, loans and discounts to the amount of $66,641.94, over drafts, unsecured, $268.98; furniture and fixtures and bank building, $5,066.85; cash in vault and net amounts due from banks, bankers and trust companies, $3,408.91.
The liabilities were enumerated as follows:
Capital stock paid in, $15,000;
Surplus fund, $7,500;
Undivided profits, less current expenses and taxes paid, $2,798.68;
Bills payable, $7,500;
Deposits subject to check, $21,732.85;
Time certificates of deposit, $20,207.18;
Cashier’s check outstanding, $647.70;
Total, $75,385.91
State Bank Examiner John Mitchell made a trip to Pineville about the middle of the week and called in Examiner Williams from Raleigh after a call came for Mr. Mitchell to go to Elkin.
TO NAME RECEIVER
The process of liquidation of the bank’s affairs, Examiner Williams said, would be the appointment of a receiver by the State Corporation Commission, which appointment is subject to confirmation by a judge of the superior court.
The present officers of the bank are W.M. Morrow, president; Sam Hoover, vice-president; C.S. Oakley, secretary-treasurer and cashier (resigned). S.H. Kell, R.B. Johnston, W.H. Bell and W.C. Barnett, directors, with the officers. Mr. Oakley, the third cashier the bank has had since its organization, filled the position about two years before his resignation several days ago. He is interested in a lumber business at Pineville and a stockholder in a realty and building concern here in Charlotte.
From the front page of The Charlotte News, Sunday morning issue, May 29, 1921
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But Nine Banks Have Closed in North Carolina. . . Five-Month Record of State Banks Is Regarded as a Remarkable Showing
By Jule B. Warren, Staff correspondent of The Times
Raleigh, May 28—Only nine banks in North Carolina have found themselves in such condition that the bank examiners found it necessary to close their doors and ask that receivers be appointed during the past five months, according to information at the office of the Corporation Commission. As compared with bank failures of other states, this is a remarkable showing. And even these banks which have been forced to close their doors have every reason to believe that the depositors and stockholders will not lose money through the cessation of business, for the receivers believe it will be possible to get matters adjusted so that the banks will be able to meet their liabilities.
All the banks, which have been closed under the direction of the state bank examiners have been small ones, and the trouble has been in the main the inability of the banks to collect the money it has loaned to farmers and business men who dealt with farmers. The banks in all cases did not want to push the farmers for payment, realizing that this would result in bankruptcy for the major portion of these who had borrowed money, and this course would have made it impossible ever to have collected any of the obligations.
Chief Bank Examiner Latham is not apprehensive over the situation in North Carolina banking circles. He believes the banks on the whole will workout of the period of depression and all of them will be on a better paying basis in the near future.
CONSERVATION MANAGEMENT
When it is considered that only nine of the 500 state banks in North Carolina have been forced to close down on account of the tremendous drop in farm products and the consequent poor business for the average business man and merchant, it will be seen that the banks have held their own very well. This indicates that as a rule they have been conservatively and wisely managed. The banking department has been keeping close watch on the situation and is in constant touch with all of the institutions which have been having trouble making collections on their outstanding notes.
The condition in other parts of the country is worse than in North Carolina. This is true despite the fact that few staple products of any section have decreased in value as much as the money crops of North Carolina. The bankers generally believe the worst of the business trouble is over and that the coming few months will show marked improvement in conditions.
From the front page of The Charlotte News, Sunday morning issue, May 29, 1921
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