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In December, 1914, a group of Royal residents met for the purpose of establishing the Home State Bank (the third bank in town). The bank was to be capitalized through the sale of 250 shares of stock at $100 per share. The stock was fully subscribed to very quickly by several area people, many whose ancestors remain bank customers.

On March 12, 1915, the fledgling bank was authorized to do business, and opened on March 15th, 1915. A state charter was received on April 20th, 1915. The bank’s first balance sheet showed total assets of $11,972.50. The going interest rate paid at this time was 5%, and 8% was charged on all loans.

The early 1920’s through the mid-1930’s presented extremely difficult times, causing the other two banks in town to close. Through prudent lending practices and conservative management, Home State Bank was able to keep its doors open.

The mid ‘30’s saw great improvement in the banking climate, and the bank began to prosper, allowing a growth to over $2,000,000 in total assets by 1963.

In January, 1965, Larry Olson was elected President of the bank and held that position for more than 50 years until his passing December, 2016. The Olson family continues to be involed in the operations of the bank to date.

Home State Bank moved into a new modern facility at 3rd & Main in April of 1972, and continues to operate today from that location.

The bank became, for the first time in 1978, a nationally top-rated bank, and continues to enjoy that status yet today.

Home State Bank, after over 100 years, is the oldest continuously operating bank in Clay County. The bank has weathered many difficult times, but has always continued to serve its customers and the community with honesty, courtesy, and professionalism. It is through these efforts and overwhelming customer loyalty that Home State Bank is truly the “the bank of generations.”

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All text and original graphics copyright © 2012 Home State Bank

Home State Bank, 202 3rd Ave, PO Box 79, Royal, IA 51357 | 712-933-5511 | 877-474-5511 | FAX: 712-933-2397
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Home State Bank NMLS #769771