St. Stephen's UMC was formed in 1964 through the merger of Mt. Olive Methodist Protestant and First Methodist Church, creating a unified congregation of approximately 800 members. Mt. Olive incorporated in 1889, and a church at the corner of Second and State Streets was constructed in 1893. First Methodist originally formed in 1867 as Delmar Methodist Episcopal and held services at a private home until 1868. A church was then constructed at the corner of First and State Streets and dedicated on November 30, 1872. In 1892, that church was destroyed by fire, and a new church was constructed in 1893, including the present sanctuary.