Beginning of Peoples Bank of the South traces to 1917

‘To follow in my grandfather and father’s footsteps is special’- David Reynolds‘

LAFOLLETTE, TN (WLAF)- Peoples Bank of the South’s roots run deep, deep on the corner of West Central and North Tennessee Avenues. It’s more than just that the bank sits there, the main office. That corner, as the story goes, is where David Reynolds and Sam A. Mars actually met and discussed opening a bank there more than 100 years ago.

The bank opened for business on May 22, 1917. It had a capital stock of $25,000, around $630,000 in today’s money, deposits of $1,495, now days almost $41,000.

More than 100 years later, the Reynolds family continues to own and operate Peoples Bank of the South. David Reynolds, co-founder, was the first of the Reynolds family at the bank followed by the hiring of his daughter-in-law Mildred Reynolds in 1932.

G.B. Gallaher joined the bank in 1920 becoming president in 1926. In 1960, under the leadership of Gallaher, a new bank building was constructed on the same corner (new bank in above photo).

David Reynolds son, John T. “Jack”, came onboard in 1953 and worked his way up to Executive Vice-President by 1959. In 1963, Jack Reynolds was elected president and served 43 years, the bank’s longest tenured president.

In 1999, the bank’s main office moved to a new 15,200 square foot facility constructed beside the previous main office building, the green building, located in the main business district of La Follette.

In January 2006, David Reynolds, son of Jack Reynolds was elected president. David Reynolds continues to serve in that role. “It is a true honor to be president and serve such a wonderful community. Words can’t express how special it is for me to follow in my grandfather and father’s footsteps,” said David Reynolds.

The bank started as Peoples Bank. However, in 2007, the bank changed its charter from a national bank to a State of Tennessee chartered financial institution. That change came with a name change to Peoples Bank of the South.

Peoples Bank of the South has locations on Jacksboro Pike at Ridenour Lane, across from Woodon’s Mall. There is also a Peoples Bank of the South at the Clinton-Norris Exit 122 off I-75.

In 2017, Jack Reynolds, the long time and late president and chairman of the board of directors, shared some stories from years ago like he’d just pulled them from his hip pocket. 

Reynolds called himself a 1929 model, the year he was born, and the stories he tells from that era are like something from a Norman Rockwell book or painting.  That’s all the more reason to believe that La Follette was indeed classic small town America back in those days.

This particular story goes back to Halloween night circa 1940.  Reynolds relays – “My pal Dick Cooper and I had firecrackers, and we would throw them out on Riggs Hill in front of Dick’s house (at the corner of South Tennessee Avenue and West Chestnut Street).  Here came a car.  We lit one and threw it out in the street.  Who was it?  Police Chief Nicholson and Police Commissioner Peters!  The chief had a flashlight ‘this big around’.  We ran into the Cooper’s garage and jumped in his parents car; a ’38 Chrysler.  I ended up in the back and laid down in the floor.  Chief knew we were in there and shined that big light everywhere except down.  I was scared.  I had a pocket full of firecrackers so I threw them up in the back of the car, and when they landed, you could hear it.  The chief came back in the garage and shined the light thinking he knew we were in there, but he left the garage without finding us.  I feel like he knew we were in there.  He left, and we didn’t throw anymore firecrackers.  We quit that deal.”

John T. “Jack” Reynolds shares stories and history in a 2017 WLAF interview.

On May 20, 2017, the bank celebrated its 100th year with a large gathering at The Stables. More than 700 people attended. WLAF’s Charlie Hutson shares a photo below of that special day.

Betty Kay Reynolds Huskisson, daughter of Jack Reynolds, was named Chairman of the Board in 2022. Before that year was out, it was announced that Peoples Bank of the South reached $200-million in assets with deposits totaling $184,597,316; all beginning with a handshake on Peoples corner some 108 years before. (WLAF NEWS PUBLISHED-09/22/2025-6AM-PHOTOS COURTESY OF WLAF’S CHARLIE HUTSON)