On July 20, 1919, twenty-eight local men and women invested $15,000 to charter the Bank of Magnolia. On September 29, 1919, the Bank opened for business in a new 500 square foot building in the center of the town of Magnolia, KY. This building was expanded in 1958 and again in 1968. The Bank's first president was Logan S. Lamkin who served from 1919 to 1957. Howard L. Lamkin succeeded Logan S. Lamkin as president and served in this capacity until 1977. Herbert E. Peace served as the Bank's third president from 1977 until 1983. Ronald L. Sanders was elected the Bank's fourth president in 1983 and retired December 31, 2017, after 34 years. The Bank operated in one location until 1981. In 1980, the Board of Directors applied for and received regulatory approval to establish a banking office in Hodgenville, KY, the county seat of LaRue County. On February 2, 1981, the Bank opened its first branch, a 2,400-square foot facility, in Hodgenville. This office was enlarged to 3,600 square feet in 1987. In December 1996, the Bank was the successful bidder of a Fifth Third branch office at 606 North Lincoln Boulevard in Hodgenville. Bank of Magnolia acquired the deposits and building in the transaction. Upon completion of this acquisition, the Bank reached a milestone of 60 million dollars in total assets. In November 1998, the Board of Directors applied for and received regulatory approval to relocate the 606 North Lincoln Boulevard branch south of Hodgenville near the Parkway Plaza Shopping Center. The 2,500-square foot full-service facility opened in June 2000. In April 2003 the Board of Directors applied for and received regulatory approval to establish a banking office at 651 West Dixie Avenue in Elizabethtown. The 3,600-square foot full-service facility opened in February 2004 with a staff of eight bank employees. As a reflection of this expansion into Hardin County, the bank changed its name to Magnolia Bank. The change honors the bank's past, but also reflects the bank's progressive philosophy of serving new markets.