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, nearly 2,300 banks had closed, and before the depression ended, more than 5,000 banks had failed nationwide. Clayton State Bank survived during this period and, in fact, continued to grow.
Clayton State Bank bought out the Barlett and Wallace State Bank in 1931. As a result, 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.