Town Financial Corporation was formed in July of 1968 to purchase majority interest in Citizens State Bank in New Castle.

At that time, Town Finance operated a chain of small loan offices with 11 offices in Michigan and 15 in Indiana.  The holding company became known as Town Financial Corp. and was organized on July 23, 1968. On March 31, 1986 ,Town Finance was renamed Pacesetter Financial Services and operates six branches throughout Indiana and Michigan

Bank Computer Services came into existence in July 1970, but was not part of the holding company.  It was formed as a cooperative venture between Citizens State Bank, First National Bank of Hartford City and The Bank of Montpelier.  Town Financial Corp. purchased the banks' interests on June 30,  1976.  Since then, Bank Computer Services has been a subsidiary of Town Financial.

Pacesetter Bank was formed in September 1997 when the former First National Bank of Hartford City and the Bank of Montpelier along with City Savings & Loan merged to make up the new bank.