While the present Farmers State Bank was organized in December of 1943, its history dates back much further to the first Farmers State Bank which was formed in 1919 under the direction of Mr. Edward Daigle. It operated as an independent bank until 1936 when it merged with the Bank of Commerce which had its principal banking house in Crowley, with branches in Iota, Rayne and Church Point.

In 1943 the Farmers State Bank resumed its charter under the its current name Farmers State Bank & Trust Co. and began operations again as an independent banking institution on January 1, 1944. At the time of its organization, capital stock was $100,000 with a paid-in surplus of $20,000.00. A total of 100 stockholders were included when the new bank was formed. The bank was located on Main Street between J. E. Daigle & Son Co., Ltd. and Langley Millinery Store. Deposits at opening time were $1,719,743 and the bank had three employees.

Original members of the Board of Directors included Edward Daigle, who headed the bank as president, P. Roy Horecky, Edward E. "Jack" Daigle, M. W. Scanlan, Sr., T. R. Daigle, N. A. Harmon, Benjamin Daigle, E. L. Melancon and Homer Bellard. Oscar Guidry joined the board later in 1944.

In 1965 the Farmers State Bank & Trust Co. moved to its present building located at 110 W. Plaquemine Street and more than quadrupled its office space. The bank continued to grow and opened branches in September of 1984 at 250 S. Main Street in Church Point and in October of 1994 in Cankton. In 1988 the bank purchased the old J. E. Daigle Building located across from the main office. After extensive renovations, it now houses the bank's boardroom, bookkeeping department, data processing center and a civic room. Renovations of the main office were completed in 2002.

In March 2004, Farmers State Bank entered into the Lafayette market with the opening of its newest location at 1950 Ridge Road in the Judice area.