Sealy developed on the Gulf, Colorado and Santa Fe railway in 1879, and its quickly growing economy was supported by cotton, rice, corn, cattle, and related agricultural businesses. In 1907, F.W. Hackbarth, Jr. and his son, John Hackbarth, developed commercial buildings along Main Street, and on May 20, 1907, Citizens State Bank formed and occupied the southwest corner of the John Hackbarth building. R.A. Engelking, a successful businessman and president of the Sealy Oil Mill Co., became the first bank president. The bank opened with capital of $25,000 and assets of $46,000, and in 1917 relocated across the street to the southeast corner of Main and Fowlkes Streets. It survived money panics and the Great Depression, and by the 1930s Farmers National Bank and Sealy National Bank had closed, leaving it as the only bank in Sealy. Engelking served as president from its organization until 1938. By 1939, capital had grown to $75,000 and assets to $660,456. Other long-serving presidents included E.W. Josey from 1938 to 1945 and G.R. Borgel from 1946 to 1961. The bank experienced its greatest growth in the 1960s, with assets in the millions of dollars, and completed a new facility in January 1967. Its assets shrank during the recession of the 1980s, but it survived without additional capital. Employment stability contributed to the business's success and community relations, with about fifty twenty-five year employees. More than a century after opening, Citizens State Bank continued to provide funds reliably and to serve as a source of strength for the community.