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. Soon after its opening, the Great Depression hit the United States in 1929. 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.
The Iowa State Bank in Algona has flourished since then and in 1978, as the bank celebrated 50 years in business, the new Iowa State Bank building was built at the corner of Call and Thorington Streets. The 2-story colonial brick building is adorned with white pillars on the building’s south side. The current bank president is Tom Larson who was elected in March 2001.