A Spokane Banking Combine Swallows Newport's First National Bank
The Union Securities Co., which already controls 25 Inland Empire banks, buys into Newport's First National — and installs its own man as president.
On Friday last a deal was consummated by Daniel N. Twohy, president of the Old National Bank of Spokane, whereby the Union Securities Co. of Spokane secured an interest in the First National Bank of Newport. The purchase of stock had been under consideration for a week, during which J. D. Bassett, president of the Union Securities Co., and representatives of the big institution had looked over the affairs of the local bank.
The Union Securities Co., prominent among whose stockholders are F. A. Blackwell, president of the I. W. N. and Panhandle Lumber Co.; D. N. Twohy, president of the Old National Bank of Spokane; T. J. Humbird, of the Humbird Lumber Co.; ex-Senator J. D. Bassett, of Whitman county, and other prominent capitalists and business men of the Northwest, now control 25 banks of the Inland Empire. Its stockholders are men of large affairs, and the fact that they have become interested in Newport business circles cannot fail to prove of advantage to the community and an aid in its upbuilding. Among the financial institutions of this section controlled by the Union Securities Co. are the Bank of Spirit Lake, the Calispel Valley Bank of Usk, and the Ione State Bank.
The local institution started business in November, 1905, as the Pend Oreille Valley State Bank, with a capitalization of $15,000. Charles F. Craig, president of the institution since its organization, was its founder. In August, 1907, it was transformed into a National bank, with a capitalization of $25,000. The bank owns its building at the corner of Washington avenue and Third street, and has had a successful business career, never missing a dividend period.
At a meeting of the directors held Friday afternoon, F. A. Blackwell was elected president, succeeding Charles F. Craig, who takes the position of cashier. Henry Tweedie continues as vice-president, and the three officers, with Jacob Martin and John B. Tarbet, constitute the directorate. Albert E. Reid, who has served continuously as cashier and who has earned an enviable reputation as a banking man, will for a time remain with the institution.
“Its stockholders are men of large affairs, and the fact that they have become interested in Newport business circles cannot fail to prove of advantage to the community and an aid in its upbuilding.”
A century before out-of-town capital consolidated rural banks, a Spokane holding company quietly absorbed Newport's hometown bank and swapped its founder out of the presidency. The same pattern — local institution, distant owners, a promise of 'upbuilding' — is the story of small-town banking today.
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