The 2nd bank in Magnolia, the Columbia County Bank, was organized in May 1892. The bank made loans to local merchants, which allowed local businesses to move from a barter system to a credit system with local farmers. Now with credit, the merchants borrowed from the bank and bought supplies. During the year the farmers sold their crop and
were paid, they then paid the merchants and the merchants paid the bank. Then the cycle would start again. This cycle was another boost to the Magnolia economy and is significant in making the downtown area of Magnolia a Commercial Historic District. Columbia County Bank was located on the square at 105 South Court Square in 1908.