The State Bank of Commerce, successor to the Bank of Commerce organized in 1901, was organized May 1, 1903. Its officers were Bennett F. O'Neil, president, Thomas L. Greenough, vice president, Maurice H. Hare, cashier, and Charles Z. Seelig, assistant cashier. Additional directors were Albert Burch, Ewan McIntosh, August Paulsen, and G. Scott Anderson who was also a director of the Lane Lumber Company. Later E.S. Wyman succeeded Hare as cashier and in July 1906 Harry L. Day, a major depositor in the bank--the Day family interests had a total of 12 different accounts--joined the board of directors.

The bank was suspended in May 1911 following O'Neil's unsuccessful campaign for governor. A combination of campaign expenses, bad investments and excessive borrowing--on the closing date of the bank his indebtedness comprised 70% of the bank's total loans--depleted the bank's reserves and he was unable to honor depositors' demands when they began withdrawing their money. The bank was turned over to the state bank commissioner and Harry L. Day was named trustee, thus giving him physical control of the bank's records. He asked Bland & Wilson Accountants of Spokane to go over the books and prepare a report. They concluded the failure was due to "excessive and dishonest financing of the personal enterprises of B.F. O'Neil, President and G. Scott Anderson, Director, aided and abetted by E.S. Wyman, Cashier," and also "the abstraction of funds for the private use of B.F. O'Neil."