Overdraft and KITE have two different definitions.
This story says that he had two banks, the House Bank and the Bank of Coronado. I’d bet my right hand, that he would write himself checks from his House Bank checking account, which didn’t have any funds in it, to cover pending transactions at his Bank of Coronado account which had insufficient funds. That is the definition of check kiting or circular check kiting. He probably didn’t do it in time and that is why he is mentioned as having overdrafts at his Bank of Coronado. Rinse, repeat as desired.