On August 17, 1926, twenty-five investors associated themselves together for the purpose of establishing a bank in Joaquin, Texas. The investors included residents and well-known businessmen from Joaquin and surrounding towns. The first Board of Directors for the new corporation was selected from those investors and on September 17, 1926, the group was granted a charter from the Department of Banking of the State of Texas. With $25,000 in capital stock, Texas State Bank was ready to offer banking services to the residents of this East Texas town.

The bank served the area well and by 1979 the capital stock of the bank had increased to $210,000. Ownership in the bank remained with individual shareholders until 1983 when Joaquin Bancshares, Inc. purchased controlling interest in the bank. The bank remains an independently owned community bank today with Joaquin Bancshares, Inc. being the sole stockholder.

Texas State Bank remained a one location bank operating in the town of Joaquin until 1991 when the first branch bank was established. The bank currently operates in Shelby, Angelina, and Tyler Counties having branch offices in Haslam, Timpson, Huntington, Center, Lufkin, and Chester along with a central data processing center also in Lufkin. In addition to its many Texas customers, Texas State Bank also serves a large number of residents from nearby towns along the western Louisiana border.