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The history of Alden State Bank began in 1906 when the Farmers & Merchants Bank was organized as a privately held unincorporated bank. The bank was located in the East half of Higgins Store in downtown Alden. In 1924 the bank moved down the street to a building on Torch Lake near the boat launch.

Because of changing regulations and the need to raise additional capital to support the bank's growth, it became apparent that the bank would be better off operating as an incorporated state chartered bank. In 1947 the Farmers & Merchants Bank was incorporated into the Alden State Bank.

In 1961 the bank built a new office where it is currently located at 10564 Coy Street, Alden, MI. The bank's continued growth warranted building a branch in Elk Rapids in 1992, Bellaire in 1998, and Central Lake in 2002.

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