On December 7, 1940, Lake City Bank officially became a member of the Federal Reserve System. Even though state-chartered banks weren’t required to join, doing so included benefits. For example, membership allowed the bank access to better credit terms, coin and currency, and a smoother system for transactions between banks.

Being part of the Federal Reserve System also helped Lake City Bank stand out from other state-chartered banks. The widespread bank failures of the Great Depression left customers nervous about where they kept their money. Knowing Lake City Bank had the backing and oversight of the Federal Reserve System helped calm their fears.

Though joining the Federal Reserve System subjected Lake City Bank to stricter oversight, the bank’s leadership knew it was the right thing to do for its customers.