Merchants State Bank
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Data as of · sourced from FFIEC call reports. How we update
Merchants State Bank is an FDIC-insured commercial bank headquartered in Freeman, SD, established in 1899 (FDIC certificate 1125), and it is supervised by the Federal Reserve. At Q2 2026 it reported total assets of $219.6M, up 2.3% from Q2 2025, the 35th largest of 56 banks headquartered in South Dakota. It reports no CET1 ratio; its Tier 1 leverage ratio was 17.26% at Q2 2026, above the 9% community bank leverage ratio requirement for being considered well capitalized.
- Charter
- Commercial bank
- Regulator
- Federal Reserve
- Deposit insurance
- FDIC
- FDIC certificate
- 1125
- Headquarters
- Freeman, SD
- Established
- 1899
- Total assets, Q2 2026
- $219.6M
- Assets vs Q2 2025
- +2.3%
- Tier 1 leverage ratio, Q2 2026
- 17.26%
- Domestic offices
- 4 FDIC institution directory, current count
- Routing number
- 091402277
- Holding company
- H & W HOLDING COMPANY
- Asset rank in state
- 35th of 56 in South Dakota
Merchants State Bank carries far more capital than most banks of its size. The Freeman, South Dakota bank had $220 million in assets at June 30, 2026, up 2.3% from a year earlier. It funds 17.26% of its assets with Tier 1 capital, higher than about 9 in 10 of the 2,660 banks with $100 million to $1 billion in assets (median 10.99%). It also holds commercial real estate loans equal to only 24% of its capital, a small fraction of the median of 1.2 times for banks its size.
Net income for the quarter rose 15% from a year earlier, to $1.2 million. Problem loans, meaning loans on nonaccrual or 90 or more days past due, net of government guarantees, rose to 0.32% of loans from 0.21% a year earlier.
As of June 30, 2026, Merchants State Bank reported a return on assets of 2.12%, a nonperforming-loan ratio of 0.32% and a Texas ratio of 1.29%. The figures come from its call report filed with the FFIEC.
Merchants State Bank ranks as the 35th largest of the 56 banks based in South Dakota, by total assets at Q2 2026. From Q1 2026 to Q2 2026, its total assets rose 0.9% to $219.6M, loans were flat and deposits rose 2.4%. The largest part of its loan book on June 30, 2026 was farmland and other real estate loans, at 49.2% of total loans, ahead of agricultural production loans at 19.0%. Its 4 offices in the FDIC Summary of Deposits are in 4 cities in SD; its Freeman office books 52% of its branch deposits. By the capital ratios in its Q2 2026 call report, Merchants State Bank meets the community bank leverage ratio test for well capitalized.
Headquarters Profile
- Address
- 305 S Main St, Freeman, SD 57029
- County
- Hutchinson
- Charter
- Commercial bank, state charter, Fed member, FRB-supervised
- Primary Regulator
- Federal Reserve
- FDIC Region
- Kansas City (Region 11)
- Federal Reserve member
- Yes
- Federal Reserve district
- District 9, Minneapolis
- Fiduciary (trust) powers
- —
- Call Report form
- FFIEC 051
- Established
- August 8, 1899
- Domestic offices
- 4 FDIC institution directory, current count
- Employees (FTE)
- 30
- Domestic deposits
- $180.7M
- Allowance for credit losses
- $946K
- Net charge-offs (YTD)
- $11K
- Average total assets
- $225.1M
- Average total loans
- $147.3M
- Average interest-bearing deposits
- $137.4M
- Tax status
- Subchapter S
- Ownership
- Stock
- Community bank
- Yes
- FDIC-insured since
- January 1, 1934
- FDIC Cert
- 1125
- Fed RSSD
- 289757
- Website
- www.msb-sd.com →
- Parent Holding Company
- H & W HOLDING COMPANY (RSSD 1363908)
Profitability
Q2 annualizedBalance Sheet
Income Statement
Operating & Funding
Ratios tagged annualized use the Q2 income alone. The UBPR and FDIC annualize the year to date instead. FDIC BankFind divides by the average of quarter-end total assets, the UBPR by RC-K average assets. The YTD margin is the UBPR's tax-equivalent figure over its own average earning assets; FDIC BankFind's margin is not tax-equivalent. As a community bank leverage ratio filer, Merchants State Bank reports no risk-based capital ratios; its Tier 1 leverage ratio applies. How we compute these figures
Quarterly trends
From Q3 2023 to Q2 2026, Merchants State Bank's total assets ranged from $208.7M (Q3 2023) to $221.5M (Q4 2025), and it earned a profit in all 12 quarters. The line under each chart compares Q2 2026 with Q2 2025. How these charts are built
$219.6M total assets against $214.7M; $184.3M total liabilities against $184.3M.
$146.6M net loans and leases against $139.9M; $180.7M total deposits against $173.7M.
$51.0M securities against $47.2M; $11.8M cash and balances due against $16.3M.
$3.1M total interest income against $3.0M; $795K total interest expense against $888K.
$2.3M net interest income against $2.2M.
$93K total noninterest income against $110K; $1.2M total noninterest expense against $1.1M.
$0 provision for credit losses against $0.
$1.2M net income against $1.0M.
2.12% return on assets against 1.88%; 4.48% net interest margin against 4.18%.
17.26% tier 1 leverage ratio against 16.39%.
Inside the full Merchants State Bank terminal
21 quarters of trends · 8 tabs · peer percentiles · watchlist alerts
Unlock this bank, freeMerchants State Bank rankings
Its closest position to the top of a national ranking is 376 of 3,611, for ROA; its furthest is 2,548 of 3,640, for Texas Ratio.
Quarterly trend: last 8 quarters
From Q3 2024 to Q2 2026, its return on assets ran from 1.06% (Q4 2024) to 2.12% (Q2 2026) and its net interest margin ran from 3.94% (Q4 2024) to 4.48% (Q1 2026).
| Quarter | Leverage | ROA | NPL | Texas | NIM |
|---|---|---|---|---|---|
| Q2 2026 | 17.26% | 2.12% | 0.32% | 1.29% | 4.48% |
| Q1 2026 | 17.13% | 1.61% | 0.33% | 1.39% | 4.48% |
| Q4 2025 | 16.68% | 1.22% | 0.33% | 1.45% | 4.32% |
| Q3 2025 | 16.90% | 1.93% | 0.35% | 1.49% | 4.38% |
| Q2 2025 | 16.39% | 1.88% | 0.21% | 0.94% | 4.18% |
| Q1 2025 | 16.05% | 1.76% | 0.48% | 2.22% | 4.10% |
| Q4 2024 | 15.77% | 1.06% | 0.20% | 0.99% | 3.94% |
| Q3 2024 | 15.75% | 1.73% | 0.22% | 1.00% | 4.05% |
Swipe the table sideways to see every column.
Branch Network
View all 4 branches → Branch count from the FDIC Summary of Deposits, June 30, 2026. The domestic office count above is the FDIC's current figure, so the two can differ.
| Branch | Location | ZIP | Deposits |
|---|---|---|---|
| Merchants State Bank (main office) | Freeman , SD | 57029 | $94.1M |
| Viborg Office Branch | Viborg , SD | 57070 | $42.4M |
| Hurley Branch | Hurley , SD | 57036 | $31.8M |
| Irene Branch | Irene , SD | 57037 | $12.5M |
Regulatory record
Facts as filed or published, not a rating.
- Deposit market share
- <0.1% of deposits in SD, rank 41 of 82 institutions
- Period: June 30, 2026. Source: FDIC Summary of Deposits.
- SBA 7(a) lending
- 1 loans, $260K approved, $260K average. 0.00% of that year's loans have since been charged off
- Period: Federal fiscal year 2003 (October to September). Source: SBA 7(a) and 504 loan data (FOIA).
- Not on file
- Enforcement actions, Mortgage lending (HMDA), Consumer complaints, CFPB enforcement, CRA examination rating. No record from these sources, which is not the same as a clean record. Sources
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Frequently asked about Merchants State Bank
What are Merchants State Bank's total assets?
As of the Q2 2026 filing, Merchants State Bank reported total assets of $219.6 million in its FFIEC call report.
Where is Merchants State Bank headquartered?
It is headquartered in Freeman, SD, United States.
When was Merchants State Bank founded?
It was established in 1899, per the FDIC institution directory.
Is Merchants State Bank FDIC-insured?
Yes. It is an FDIC-insured commercial bank (FDIC Certificate #1125). Deposits are insured up to $250,000 per depositor, per insured bank, for each account ownership category, per FDIC rules.
Who regulates Merchants State Bank?
Merchants State Bank's primary federal regulator is the Federal Reserve.
How many branches does Merchants State Bank operate?
It operates 4 domestic offices, per the FDIC institution directory. That count includes administrative and limited-service offices as well as full-service branches.
What is Merchants State Bank's Texas Ratio?
Its Texas Ratio is 1.29% in its Q2 2026 call report, within the healthy range (at or below 50%, the level at which problem assets reach half of the capital cushion). The Texas Ratio measures non-performing assets against the bank's capital and reserves.
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