A more thorough explanation:

A state bank is a financial establishment that provides services such as depositing, loaning, exchanging, or issuing money and transmitting funds. It is usually a member of the Federal Reserve System and is supervised by a state or federal banking authority. A state bank can also be an institution that receives deposits or exercises fiduciary powers similar to those permitted to national banks.

For example, a state bank can be a bank for cooperatives, which is a bank within a system of banks established to provide a permanent source of credit to farmers' cooperatives and supervised by the Farm Credit Administration. Another example is a savings bank, which primarily makes home mortgage and some other consumer loans, receives deposits, and pays interest on them.

These examples illustrate how state banks provide financial services to different sectors of the economy and are regulated by different authorities depending on their specific functions.