ver 50 years before the inception of First State Bank, a pioneer to the area of Bastrop County envisioned the community of Smithville.  In- 1832, M.M.M. Hill purchased Edward Burleson's rights to the headwaters on the Colorado River in Central Texas.  He began a farm and ranch operation in 1835 before Texas declared it's independence from Mexico.  His son, J.W. Hill married Maria Yerger, whose father, John C. Yerger operated a mercantile and hardware business in Alum Creek, half-way between Bastrop and Smithville.  In 1875, the firm of Yerger & Hill was founded in Bastrop County.  In 1888, grandfather, son-in-law, and grandson formed the firm of Yerger, Hill & Son and continued the mercantile operations that had moved to Smithville in 1883.

he grandson, Yerger Hill, was educated on the East Coast and wanted to found a financial institution.  With the help of his father and grandfather, the Bank of Smithville was established in 1895.  It was located at 200 Main Street in Smithville, Texas (in the front of the hardware store of Yerger, Hill & Son.  After seven years of prosperity, local merchants and residents formed a partnership and owned the Bank of Smithville. The State of Texas permitted private banks to become state chartered financial institutions in 1907.  The Bank of Smithville changed it's name to First State Bank in 1907 and incorporated its assets by issuing shares of stock to the investors.

erger Hill, Jr. returned to Smithville after graduating from Rice, S.M.U., and the Harvard School of Business in 1927. He served as President of First State Bank from 1928 until his death in 1977.  He founded the Smithville Savings and Loan Association in 1935, now Community Bank in Smithville. When Yerger Hill, Jr. died in 1977, his son, Yerger Hill, III, a practicing attorney was elected to serve on the Board of Directors.  He has served as Chairman of the Board from 1977 to present and has overseen the growth of the bank to five locations and approximately $200,000,000 in assets.  Barry Williams, President, has organized the bank's personnel, loan portfolio, and provided the necessary leadership to make this Central Texas bank a mainstay to all the communities it serves.