Founded in Garfield State Bank Northwest, marks 115th year

In the Summer of 1902 the Johnson family of Garfield, already established hardware and dry goods merchants, figured a competitive local financial institution, a bank, was needed. One that could easily, conveniently, confidently and securely entrust their neighbors’ business, harvest and cattle money deposits.

A place where the farmers could borrow against their assets for seed, feed and need from a local lender who understood their business cycles, capital requirements, their personal ebbs and flows. The farm and ranch customers – quickly joined by other local merchants — also had another requirement. They wanted a bank where the staff and management knew them by name – not just for convenience and efficiency, but also for security. The Johnson family sought out a building and founded the First State Bank of Garfield Oct. 25, 1902.

For decades the small community bank grew as the region’s agricultural and businesses enterprises developed. State Bank was so stable and strongly capitalized that they did not miss a single scheduled business day…even during the national panic of 1907, the crash and depression in 1929, World War I or II and the 2008 the great recession, actually one of State Bank’s best corporate years).

As the agricultural reputation of the Palouse grew regionally and nationally, and the bank’s clientele continued to expand, First State Bank of Garfield became State National Bank in 1922 under which they operated until the late 1990’s when, looking to increase their market share and having caught the eye of additional investors, the leadership opened a branch in North Spokane April 6, 1999, and moved their headquarters to a new branch in the Spokane Valley in February 1, 2000. There they expanded their full-service banking to include competitive commercial support services and mortgage lending.

In 2006, however, the Board of Directors decided that State National sounded too “institutional” and they felt they needed to return to their roots. The early 2000’s were also a time for confusion in the banking industry as multiple banks were merged and purged. The directors at State Bank wanted the assurance that their Bank could and would remain independent, so they changed from a federally chartered bank to a state chartered bank and reformed the holding company to accomplish these goals, and changed their name to State Bank Northwest.

State Bank branches in Garfield, North Spokane and the Spokane Valley celebrate their 115th anniversary Oct. 25.

State Bank has a third generation member of the original Johnson family still on its board of directors.