1900-1909
Merchants & Farmers National Bank (the original name for First State Bank & Trust Co.) starts as a private bank in February 1902. The bank is located in the middle of the west side of the square on North St. Mary St. and publishes its first statement of condition in July 1902. Two years later the state constitution is amended to permit state banks. The financial Panic of 1907 creates a climate for banking reform that will provide security for depositors.
Thomas Born presided over the bank for one year, followed by R. E. Trabue from 1903 to 1910. From 1902 until 1910, local deposits increase from $6,021 to $93,239 as the Merchants & Farmers National Bank serves Panola County depositors.
1910-1911
On March 7, 1910, the Merchants & Farmers National Bank, with R. P. "Pink" Ash as president, changes its name to Guaranty State Bank and continues to grow, more than doubling deposits to a total of $233,318 in 1921. The bank's bookkeeping requires posting transactions by hand on ledger sheets. Most customers are farm families whose mean's of support are cotton, cattle, and timber.
1920-1929
Guaranty State Bank, with R. P. Ash at the helm, shows 1921 deposits of $233,318. in 1923 Mrs. I. I. (Berna Ash) Reeves becomes the bank's first woman officer. During this decade, Mr. A. L. Lipscomb, Sr., serves as interim president for a brief time. In 1925 Dan Shaw joins the staff at the age of 19.
That same year, the bank's name is changed to First State Bank. B. F. Payne Jr. purchases controlling interest in the bank and becomes its president in 1928.
Widespread economic optimism creates financial chaos with banks lending money for people to buy stocks and invest in risky land developments. First State Bank maintains its stable financial status throughout the decade, with deposits in 1929 of $285,170.
1930-1939
On the heels of the 1929 Stock Market Crash comes the Great Depression. B. F. Payne Jr. remains at the helm and the First State Bank's deposits total $232,070 by 1930. Despite fluctuations during the Depression, the bank ends the decade with total deposits of $346,000.
The discovery of oil and gas in East Texas partially insulates the area from the financial devastation of the Depression. In 1936, during the Texas Centennial year, natural gas is discovered in Panola County and the first of several gas plants built.
1940-1949
In the early forties, Milton Payne and Bill Applegate join the bank staff, but only for a brief time. They, along with Dan Shaw, join the Armed Forces during World War II. Under the continued leadership of President B. F. Payne Jr., bank deposits in 1940 total $517,048.
In 1943, the bank achieves a milestone - - deposits total more than a million dollars for the first time at $1,030,361. That year, Nettie Shaw is named as the bank's Assistant Cashier. Mrs. B. F. (Mary) Payne Jr. and Mrs. Nell Owens serve on the board in the absence of the men serving in the war. Luckily, all bank war veterans return home and to their jobs, safely.
By 1949, the bank undergoes a major remodeling. Also that year, the FDIC increased its coverage to $10,000.
1950-1959
B. F. Payne Jr. continues his leadership as president of First State Bank. Deposits in 1950 are $2,790,201. By the year 1959, deposits total $4,859,447.
On July 25, 1955, Welton Sanders joins the bank staff, beginning a career that's lasted more than four decades. Lynn Vincent joins the bank staff in 1957, and serves as the president today. Patsy Ross joins the bank staff in 1957, and after a 43-year career retires in 2000. In 1959, Foster Murphy, son-in-law of B. F. Payne Jr. and husband of Mary Francis Payne Murphy, joins the bank's board of directors.
1960-1969
The 1960's prove to be a decade of change, around the world and at First State Bank. The bank's deposits more than double during this decade, from $5,484,589 in 1960 to $12,153,187 in 1969. In 1961, the bank opens its first drive-in window on West Panola across the street from the current bank location. Milton Payne, at the age of 37, becomes president of the bank in 1962, a position he holds until 1984. In 1963, B. F. Payne Jr. dies.
On February 28, 1963, the bank's name changes to First State Bank & Trust Company with the addition of the Trust department. Women employees of First State Bank begin wearing uniforms in the 1960's. Lynn Vincent joins the bank staff in 1960 and Jim Payne comes on board in 1967.
In October 1968 the driver of an 18-wheeler loaded with propane stops at the light at the corner of West Panola and North St. Mary streets approaching the Square. He discovers his tanker is leaking and begins to alert all the surrounding businesses to evacuate. Fire erupts, destroying a closed service station and an adjoining donut shop. Luckily no explosion occurs or the damage would have been even greater. First State Bank later purchases the two adjoining commercial lots for future construction of a new bank building.
In the 1960's, Texas Utilities begins purchasing land to develop a lignite plant for the generation of electric power. The project creates many new jobs in Panola County.
1970-1979
The First State Bank & Trust Company experiences remarkable growth and expansion during this decade with 1972 completion of a new building at the corner of West Panola and N. St. Mary, major improvements in internal bank processes, and expansion of services to customer. The new building includes two new drive-in window lanes on the west side of the bank building. With President Milton Payne at the helm, the bank's deposits more than triple, from $12,570,877 in 1979 to $39,064,618 in 1979.
Bank Officers J. R. Duke, Ann Allen, Myrna Barnett Sullens, Sue Bishop, Emma Hardy, and Gene Giles join the bank staff in the 1970's.
Adding to the customer convenience is the new direct deposit system established for recipients of Social Security in 1975. Two years later, the bank begins offering the First State Club plan to customers, the first of its kind in the country. Two features of the plan are free checking and no minimum balance.
1980-1989
The First State Bank & Trust Company deposits in 1980 are $46,263,972. By the end of the decade, deposits total $197,699,777. In 1984, William C. "Bill" Applegate is named president, a position he holds until his retirement in 1988. Milton Payne serves as interim president for a year.
When BAI begins recognizing top-performing banks in 1982, First State Bank ranks in the top 1,200 in the nation. In 1988, Alex Sheshunoff announces that First State Bank has earned an A+, a rating the bank still maintains today.
Bank officers William Goolsby Jr., Georgia Shepherd, Priscilla Gentry, Rebecca Wiggins, Gwen Singleton, Peggie Snow, Charlene Burns, Phyllis Harris, and Judy Wilkerson join the bank staff in the 1980's.
The bank's first computer, an IBM System 36, is installed in the 1980's, completely filling an entire room. The bank begins using magnetic ink to streamline processing
In 1983, new drive-in windows are completed, and two years later, First State Bank begins offering an Automatic Teller Machine for customers.
Bank women face off in 1982 when the First State Bank Silver Dollar Sluggers challenge the First National Bad news Bankers in a benefit softball game to raise money to help defray medical expenses for the Rev. John Logan.
1990-1999
The First State Bank begins the new decade with a new president when Lynn C. Vincent is promoted to the position. Jim Payne is the new vice chairman and CEO, with Milton Payne as senior chairman of the board. David Murphy, grandson of B. F. Payne Jr. and son of Foster and Mary Frances Payne Murphy, joins the bank's board of directors. Deposits grow from $125,439,448 to $188,638,221 by 1999.
The bank's headquarters building undergoes a major renovation and expansion in 1990, adding the first and only escalator in Carthage and Panola County. The bank also upgrades to a new AS$00 computer system. Joining the bank staff during the 1990's are bank officers Kevin Smith, David "Scotty" Bates, Ronnette Cooke, Pam Works, and Judy Davis.
Penny Power struck Panola County in 1992 when CISD students at Baker Koonce School achieve their goal of collecting one million pennies. In 1996, First State Bank begins offering 24-hour Touchtone Telephone Account inquiry. Customers begin using smart cards, debit cards, and ATM cards during the 1990's.
2000 & Beyond
First State Bank begins a new Millennium, breathing a sigh of relief that Y2K fears proved to be unfounded, and the bank continues its tradition as a Blue Ribbon Bank. Deposits in the year 2000 total $200,257,731. Poised to celebrate 100 years in service to the people of Panola County in 2002, First State Bank continues its strong tradition of stability and customer service.
(This information and the photographs are taken from the First State Bank and Trust Company 2002 Calendar provided free of charge by the bank. Visit First State Bank at http://www.fsbcarthage.com.)
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03/21/2005