Central State Bank was originally chartered as Clayton State Bank in the small village of Clayton, Illinois. Three McCoy Brothers are credited with the founding of Clayton in 1834. Charles, being an ardent admirer of Henry Clay, named this infant town “Clay-ton,” in honor of the great statesman. The Barlett and Wallace State Bank was founded in 1887. W. T. Craig, W. H. Craig, James Wolford and other townspeople organized Clayton State Bank in 1928.

By the end of 1931, 2,298 banks had closed, and before the depression ended, more than 5,000 banks had failed. Clayton State Bank survived in this period and continued to grow.

Clayton State acquires Barlett & Wallace State Bank

As the following minutes show, Clayton State Bank bought out the Barlett and Wallace State Bank in 1931.
Clayton, Illinois
March 7, 1931

In the merger between Clayton State Bank and the Barlett and Wallace State Bank, Henry Sparks became President; James Moffett, Vice-President, and Walter H. Craig, Cashier. Mr. Craig became President of the Bank in 1944 and devoted fifty-five years to his banking career in Clayton. The Bank showed steady growth and in 1968 had footings of $2,500,000. Isabel Craig Baptist, daughter of Walter H. Craig, and her husband, Frank C. Baptist took over the operations of the bank after the death of her father.

The Baptists owned the Bank until 1978 when John E. Kinscherff and his wife, WandaLee, purchased it. One day, the Kinscherffs stopped by Clayton State Bank and asked Mr. Baptist if he would be interested in selling his interest in the bank. After negotiations with him, and gaining approval from the State of Illinois, Clayton Bancshares, Inc., formed and the Bank was purchased and remodeled and open house was held December 2, 1979. Assets were $4,000,000 at this period in time.

Management was committed to serving the needs of its customers and local lending continued to be emphasized. The bank was expanded and a drive-in window was put in. The new owners made necessary changes in the banks policies and its personnel. The credit needs of the community were given first consideration. John Kinscherff assumed the presidency of the bank and Gene Seybould was hired as Executive Vice-President and Cashier. For the eight-month period ending August 31st 1978 the bank experienced a 5.9 percent increase in total assets. The sale of the bank to the new owners had a favorable impact on the community.

In the meantime, banking laws changed and branches could be set up in adjoining counties. The Kinscherff’s oldest son, John Michael had received his degree in ag-economics from the University of Illinois and had attained farming and banking experience. A new facility was started at Pleasant Hill, Illinois. The name of the Bank was changed from Clayton State to Central State Bank to better reflect the expansion of the Bank. Employees in Clayton chose “Central” from the Central High School in Camp Point. Mike became President of the Bank, and the Pleasant Hill branch grew very quickly. He has many customers from Missouri as well as the Pike and Calhoun county area.

In 1998, Nations’ Bank in Quincy sold their building at 12th and Jefferson, and Central State Bank remodeled and opened up another full-service facility there. In one year of operation, this bank had reached over six million in assets, which were more than the assets of Clayton State Bank when the Kinscherffs purchased it in 1979. The main office for the Mortgage Division was moved from the old Post Office Building to this location.

Central State Bank has all the latest technology as well as old-fashioned and neighborly service. Do your banking either way you wish. OUR INTEREST IN OUR CUSTOMERS IS LONG-TERM, COMPOUNDED ANNUALLY, AND APPRECIATED DAILY. You are not just a name or number to us-You are part of our Family. We care about you and your family. If we can help you and yours to fulfill your dreams and goals, we will. We are friends doing business with friends. Keep Central State Bank central to your banking needs. Stop in for a visit soon.

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