Scott State Bank, originally named The Exchange Bank, was established in 1887. A.R. Scott, the founder, had an iron safe in his mill office and a number of his customers would leave money in it for safekeeping. He also cashed grain checks, and in this manner he "drifted into the banking business. He hired a cashier, Smith Walker, a Bethany native who had been working in Decatur. The banking business was conducted in the mill office until the office at 108 West Main (now Crowder Insurance Agency) was built in 1898.

The Exchange Bank continued to grow, and in 1904 the bank was incorporated and titled as it remains today, Scott State Bank. Capitalized at $30,000, the stock was owned by A.R. Scott and his wife Mary Jane Scott, and their sons Hugh, Troy and Samuel J., with the youngest son, Smith, coming into the bank in 1907.

In 1919 Scott constructed a new building at the corner of Main and Lincoln streets where the bank remains today. Measuring 100 by 90 feet, the two story brick structure was trimmed with Indiana Limestone. The building was erected by Hagerman and Hagerman of Sullivan at a cost of $75,000 and the formal opening was held June 20, 1920. From time to time over the years, changes and improvements have been made to the building. In 1976 the building was extensively remodeled and expanded and stands today as a monument to A.R. Scott and his vision for a bank that would continue to service the financial needs of the community.

The position of president passed on to family members throughout the years. Past presidents were Troy Scott, Joe Scott, Rodney Scott, and Mary Scott Woods. Sam Scott currently serves as president and has held this position since 1975. Tod Jeffers, Sr. Vice President of Scott State Bank, represents the fifth generation of the Scott family to be involved in the family banking business.