On December 17, 1909, First State Bank of Abernathy opened for business with capital of $10,000. Deposits the first day were $2,214.90. The seven original stockholders were W.A. Shelton, C.A. Burrus, W.H. Ragland, S.R. Merrill, N.C. Hix, Vince Stambaugh and Dr. M.C. Overton, the famous pioneer doctor whose name is still seen all over nearby Lubbock.

By the end of 1949, deposits had reached $2,665,354.54. In June of 1958, the bank moved to a larger and more modern building on the corner of Avenue D and 9th Street in Abernathy. In 1972, an adjoining two-story brick building was purchased. In 1975, the building was incorporated into the present structure. In 2003 Tom and Denise Turner bought the bank with support from partners and have operated it as a locally owned bank ever since.

The First State Bank of Abernathy has now added locations in Haskell and Stamford.