Banks played an important part in the growth of Cave City. The H.Y. Davis State Bank, the oldest continuous business in Cave City, was founded in 1888. Hardin Young Davis, Sr., the founder, was one of the town’s most prominent citizens. He had four sons, all of whom followed their father’s lead and became bankers. Two of his sons, Sam and Ernest, stayed at their father’s bank. H. Y. Davis, II, became a banker at Upton, and Arch M. Davis became a wealthy Louisville banker.

According to the newspaper of 1888, “Judge H. Y. Davis opened his new bank for business here last Monday. The building is new, handsome and commodious and is said to be the best of its kind in the Green River Country. Knowing persons are already predicting its undoubted success. There is no reason why it should not succeed with such a man as H. Y. Davis at its head and backed by the best section of farming country in southern Kentucky. It fills a long felt want in this locality and its establishment is hailed with delight by business men throughout this country.”

The Bank was known as H. Y. Davis and Company and operated in the two-story brick building which now houses Davis Insurance. S. D. Caldwell was the bookkeeper. In the early years of the twentieth century it joined the National Banking system, but withdrew from that organization in 1916 and took the name H. Y. Davis State Bank. It weathered the depression and the Bank Holiday of 1933.

In 1972 the bank merged with the Citizens Bank and Trust Company, Glasgow, and became the H. Y. Davis Office of that company. The bank has seen many name and ownership changes over the years, Transfinancial, Star Bank, Firstar Bank and presently the U.S. Bank.

The Peoples Bank was organized in January 1897 and located on the corner of Broadway and First Street. The bank was thoroughly metropolitan, transacting every description of legitimate business, and accounts and collections were solicited. Samuel Davis Caldwell, Sr., an important banker in Cave City, was the founder and first cashier. Mr. Caldwell became the second president of the bank and held that position for nearly 65 years.

The bank was acquired by the New Farmers National Bank in December of 1979, becoming the fourth branch of that bank in the county. In 1983 it became part of Glasgow Bancshares Corporation, a one-bank holding company created for this purpose. In 1989 a new modern facility was built on the opposite corner from the original location. This new facility featured two drive-thru teller lanes, a new 24 hour clubhouse, expanded hours and plenty of customer parking. Simultaneously with the holding company’s acquisition of Bowling Green Bank and Trust Company (BGBT) in 1991, the name of the holding company was changed to Commonwealth Bancorp, a multi-bank holding company.

In 1993, Commonwealth Bancorp acquired 100% ownership of NFNB and BGBT. Subsequently, Area Bancshares Corporation (ABC) acquired Commonwealth Bancorp, making NFNB a wholly-owned subsidiary of ABC. On July 15, 2002 Area Bancshares (ABC) merged with BB&T, making the Peoples Bank the BB&T Bank.