In March 1890, a group of farmers and businessmen met to establish a state bank in Lexington. At this time, state bank charters were less restrictive than Federal charters in agriculture and real estate lending. These investors appointed Watts Parker and Hal Pettit Headley to draft a charter for submission to the legislature in Frankfort. The organizers were N. F. Berry, Louis Straus, Charles Seelback, George A. DeLong, James R. Howard, D. Frank Frazee, Hal Pettit Headley, Judge Jeremiah R. Morton, William H. Boswell, Robert C. Estill and Will Withers.
Central Bank's charter was approved by the General Assembly on April 23, 1890. The bank located its offices on the northwest corner of Short and Upper Street (on the site of the Morrison Mansion). The bank's capital stock was set at two hundred thousand dollars, fifty percent to be paid within three months.
Watts Parker, Milton J. Durham and James C. Rogers were selected as the first President, Cashier and Teller, respectively. Mr. Durham was the former Comptroller of the Treasury in Washington under President Grover Cleveland. The doors were opened for business at nine o'clock on December 10, 1890.
In 1893, Mr. Parker was succeeded as President by Louis Straus and shortly before the turn of the century John L. Barkley became the bank's President. In January 1901, the directors "resolved that on account of the high taxes and low rate of interest" the bank would reduce its capital by half and redeemed one thousand shares in an exchange of stock certificates.
During September 1905, there were discussions regarding a merger with the Third National Bank. However, in January 1906 the bank's directors consolidated with the Central Bank to form the Lexington Banking and Trust Company.
