Farmers State Bank was founded in 1922 by about 50 area farmers and small business proprietors to meet the banking needs of a rural but fast growing community. In order to reopen its doors after the depression era bank holiday, each of the stockholders was required to reinvest his or her initial capital investment, effectively doubling the stockholder equity in the corporation. Most did, but several who could not sold to existing or new stockholders who had the cash available. As with many small community banks, Farmers State Bank had only one office for many years located in its town of origin, Munith. In 1977, the office was relocated to a newly constructed building next to the original location. In 1990 the first branch location was added in Stockbridge, and in 1995 the Grass Lake office opened for business.