Directors of the First State Bank of Sterling City, the town's earliest financial institution, had this two-story brick commercial building constructed in 1910. It originally housed the State Hotel and the banking operation, which was acquired in 1926 by the First National Bank. Other offices that have been located here include those of doctors, the telephone company, post office and city hall. E. B. Butler also operated a drugstore here from 1926 to the 1960s. Businessmen associated with the site have included many of the prominent early leaders of the community.