A HOME OWNED, INDEPENDENT BANK
OF HOME STATE BANK
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
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.
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.
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.
January, 1965, Larry Olson was elected President, a position he
continues to hold today, after over 50 years.
State Bank moved into a new modern facility at 3rd &
Main in April of 1972, and continues to operate today from that
bank became, for the first time in 1978, a nationally top-rated
bank, and continues to enjoy that status yet today.
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.”