The Bank of Webster was chartered in 1902 with capital stock of $10,000. In 1966, a group of individuals from Devils Lake were enlisted to purchase the Bank of Webster and in June 1967, permission was granted to move the bank to Devils Lake.

On January 16, 1968, the corporate name and headquarters of the Bank of Webster, Webster, North Dakota, changed to Western State Bank, Devils Lake, North Dakota. At that time, the bank had $600,000 total assets and 125 checking accounts.

Western State Bank acquired the State Bank of Towner in October 1994 and in June 1997, the State Bank of Towner and Western State Bank merged, totaling assets of $124 million.

Western Finance & Lease, a subsidiary of Western State Bank, began leasing a wide variety of commercial equipment in 1990. The company currently has over $100 million in leases with offices in Devils Lake and West Fargo.

The bank in West Fargo opened in February 1999 and is a community focused, full service banking operation. In 2007, another convenient location was opened at 4302 13th Ave. S. in Fargo, in the center of Fargo's retail district. This bank features concierge-style banking which is new to the market and organization. Concierge stations further enhance the personable, customer service interaction of banking.

In 2000 an Employee Stock Option Plan was formed allowing the employees to invest in the company they make successful every day. The response was overwhelming with employees committing 84% of their retirement stock to purchase company stock!

Today the Western State Bank Board of Directors consists of Gary Lochow, Ray Horne, Lee Anderson, Brian Houkom, Paul Lange, Todd Heilman, Alan Mathern, Brad Jacobson, and Kyle Nelsen.