1935-12-12-daily-olympian-p5-conversion-of-onb-banks-to-branches
December 12, 1935 Daily Olympian Page 5:
12 BANKS IN MERGER MOVE
SPOKANE, Dec. 12. (AP)—Conversion of nine-eastern and central Washington banks into branches of the Old National Bank and Union Trust Company, of Spokane, and the transfer of the business of three others to the branches was, announced today by N. A. Telya, president.
The banks-to be: converted are: the Bank of Davenport, Harrington State Bank, First National Bank, Reardan, the First National Bank of Ritzville, First National Bank in Sprague, Security National Bank of Palouse, Prosser State Bank, First National Bank of Grandview, and the First National Bank of Sunnyside.
Business of the First State Bank of Washtuena will be transferred to the First National Bank of Ritzville, that of the First National Bank of Medical Lake to the First National Bank of Reardan and the State Bank of Spangle to the Old National at Spokane, Telya said.
The plan has been approved by the comptroller of currency and the state supervisor of banking, the announcement said.
“This action does not mean expansion, but, on the contrary, concentration for the purpose of operating economies, with savings of duplication of costs and charges,” Telya said. “It will provide more complete banking facilities for the communities served, as it will extend trust and other services to points where they are not now available and will substantially enlarge, the loaning capacity of each branch, enabling it to care more fully for the legitimate business requirements of the locality.”
Controlling interest in the converted banks is held by the Investments and Securities Company, of: Spokane, and pledged to the Reconstruction Finance Corporation, Telya said. The conversion, he added, will release approximately $450,000 of capital to apply on its indebtedness, which heretofore has been reduced from $3.584,000 to $1,377,042. Under the new move the indebtedness will be reduced: further to $927,042.
Local Managing officers will continue as managers of the branches. A. G. Fleming, for many years president of the Sunnyside Bank, will become a member of the Old National board of directors and a vice-president of the latter bank.
