The Frederick Community Bank has a storied and community-focused history since the beginning. The bank started out as the Clarence State Bank and was founded in 1908 by the bank’s first president David Arthur Frederick. The Frederick family wanted to help serve the local farmers and their communities in the Clarence and Goodwine areas. The bank’s focus was to serve the agricultural community, provide banking services to the local businesses, meet the financial needs of the community, and serve the local taxing bodies.

During the nation-wide banking moratorium of 1933 issued by Franklin D. Roosevelt, the Clarence State Bank and the Farmers State Bank of Goodwine were closed for only a few days and were reopened after regulators were satisfied that they were in a strong financial condition. Also, in the same year, First National Bank of Paxton was reorganized as First National Bank in Paxton by a group of area leaders; Sherman Frederick, David Arthur Frederick, G.M. Lundahl, A.R. Sheldon, C.G. Bobo, H.P. Larson and W. A. Kreitzer.

On October 20, 1941 Cissna Park State Bank was formed from a merger of the assets of the Clarence State Bank and the Farmers State Bank of Goodwine.

In 1969, First National Bank in Paxton opened its drive-up facility where the Middlecoft Hotel had been located prior to burning down.

In 1983, First National Bank in Paxton doubled its size by expanding into the D&R Drug Shop location next door to the original bank in Paxton. This allowed First National Bank in Paxton to offer more services to the community in Paxton-area.