Iowa State Bank opened its doors for business on March 1, 1928, at 9:00 A.M. after securing their banking charter and the public’s confidence. Previously three other banks had failed in Algona and only one bank, the Kossuth County State Bank, remained in business. The first financial statement listed $62,500 on the resource side and $50,000 capital plus $12,500 surplus on the liability side.
Survives Great Depression
As the only bank in Algona to survive the Great Depression, Iowa State Bank remained the only bank in town until 1936. Although many current citizens may not recall the Great Depression, the Iowa State Bank was the only bank in Algona on March 6, 1933, when newly-elected President F.D. Roosevelt ordered all the banks in the nation to be closed indefinitely while the government set up new rules to combat the Depression
25 Years and Growing …
In 1953 the bank celebrated its 25th anniversary. By this time, deposits had grown to over $5,000,000. A few years later in 1957 the bank had outgrown its quarters. Rather than relocate, it was decided to rebuild in the same location at the corner of State and Dodge Streets. The second story was completely removed from the corner building and reconstruction did start “from the ground up.” The historic stone structure of the old bank was retained in the corner construction. This building still stands today. In 1954, Algona native Harold Gilmore served as bank president until his retirement in 1959 after which he continued to work as Cashier & Vice President.
“The One with the Pillars Out Front”
In 1978 as the bank celebrated 50 years in business, the new Iowa State Bank building was built at the corner of Call & Thorington Streets. The 2-story colonial brick building is adorned with white pillars on the building’s south side. Tom Van Overbeke was named President in March 2014 while Tom Larson continues to serve as Chairman and CEO. Larson served as President from March 2001 until March 18, 2014. He was preceded by Paul H. Johnson who served as President from 1976 thru March 2001. Al Agena served the bank as President from 1959 to 1976.
Adds Ruthven Office
On November 1, 2001, consumers in Ruthven, Iowa, joined the Iowa State Bank of Algona as the bank assumed the operations of the Ruthven State Bank as a result of the merger of the two banks.
Adds Offices in Corwith & Wesley
The Iowa State Bank of Algona announces the addition of two new banking offices in Corwith and Wesley, Iowa, after the purchase of the former Corwith State Bank. The purchase was made by Mid-Iowa Bancshares Co. of Algona, the holding company for the Iowa State Bank. Customers of the former Corwith State Bank will enjoy a host of new banking features while working with the same familiar staff in both offices.
Note: The source of information for this historical feature was compiled by Elisabeth Johnson in the “The History of Iowa State Bank,” 1988. Ms. Johnson is the daughter of former Chairman and CEO Paul H. Johnson.