Total Assets
$222M
Total balance-sheet footings
FDIC Cert #1125 · Freeman, South Dakota · Est. 1899
Merchants State Bank - FDIC Bank Health Profile
A community-scale look at Merchants State Bank's own numbers, pulled straight from its quarterly FDIC Call Report.
- $222M
- Total assets
- A
- Health grade · Excellent
- 1.74%
- Return on assets
- 16.7%
- Tier 1 capital
Data updated July 2026
The verdict
Merchants State Bank earns a PlainBankData health grade of A (97/100), with well-capitalized at 16.68% Tier 1, profitable at 1.74% ROA, efficient (56% cost ratio).
- #2,888
- largest of 4,313 FDIC banks by assets
- 33rd
- percentile by asset size, nationally
- 16.68%
- Tier 1 ratio - above the 10% well-capitalized line
- 84th
- percentile for profitability (ROA), nationally
The grade above reflects PlainBankData's own read of the bank's regulatory filings, not an FDIC judgment, deposit coverage stays at $250,000 per depositor, per category, unaffected by it.
How Merchants State Bank's 97/100 score adds up
Each factor is scored from this bank's own FDIC Call Report figures, then summed to the composite health score.
Merchants State Bank's composite health score
Tier 1 Capital Ratio (16.68%) 40/40
Return on Assets (ROA) (1.74%) 25/25
Texas Ratio (1.45%) 20/20
Efficiency Ratio (55.94%) 12/15
97 of 100 points earned across four weighted factors. See our methodology for the full scoring formula.
Balance sheet at a glance
Total Deposits
$181M
Customer-funded liabilities
Net Loans
$148M
Outstanding loan book
Net Income
$4M
Bottom-line earnings
Capital adequacy vs federal thresholds
Where Merchants State Bank ranks
Every one of the 4,307 FDIC-insured banks with a computed health score, bucketed by score. Merchants State Bank's score of 97/100 falls in the highlighted band.
Merchants State Bank's size among FDIC-insured banks
Every one of the 4,307 FDIC-insured banks with reported assets, bucketed by total-asset scale (note the buckets are powers of 10, most banks cluster in the $100M-$1B range). Merchants State Bank's $222M falls in the highlighted band.
Safety metrics
Tier 1 capital ratio
Well-capitalized 10%
16.68% of risk-weighted assets - above the federal "well-capitalized" threshold of 10%.
Tier 1 Capital Ratio
16.68%
Texas Ratio
1.45%
Equity Capital
$33M
Profitability metrics
Return on Assets (ROA)
84th percentile nationally
1.74%
Return on Equity (ROE)
12.21%
Efficiency Ratio
55.94%
What the numbers say about Merchants State Bank
Merchants State Bank is an FDIC-insured institution (Certificate #1125) headquartered in Freeman, South Dakota, established in 1899. It holds $222M in total assets - 2,888th of 4,313 FDIC-insured banks, $181M in customer deposits, and $148M in net loans. On safety, its Tier 1 capital ratio of 16.68% is above the 10% well-capitalized threshold, and its Texas Ratio of 1.45% sits in the healthy range below 50%. It earns a PlainBankData health grade of A (97/100), a composite of Tier 1 capital, ROA, the Texas Ratio, and efficiency. All of it traces back to the bank's own quarterly FDIC Call Report filing.
Within South Dakota, Merchants State Bank ranks 35th of 56 FDIC-insured banks by asset size -- a mid-sized institution, neither among the state's largest nor its smallest.
Income & expense breakdown
$12M
Interest Income
$374K
Non-Interest Income
$5M
Non-Interest Expense
Asset quality, Texas Ratio detail
The Texas Ratio compares troubled assets to the capital available to absorb losses. Merchants State Bank reports a Texas Ratio of 1.45% - comfortably in the healthy band; non-performing loans are a small fraction of the bank’s loss-absorbing capital.
Texas Ratio
Caution 50%
1.45% - lower is safer; 100% is the level at which troubled assets equal loss-absorbing capital.
Top banks in South Dakota by total assets
Source: FDIC BankFind Suite, Call Report (FFIEC 031/041) Merchants State Bank (FDIC Cert #1125) - Tier 1 capital ratio, total assets, deposits, ROA/ROE · 2025 FDIC Call Reports filed quarterly; latest publicly-available vintage shown. Health grades are PlainBankData's interpretation of regulatory filings and are not official FDIC ratings.
Other banks in South Dakota
All South Dakota banks →| Bank | Assets | Grade | ROA |
|---|---|---|---|
| Citibank, National AssociationSioux Falls | $1.84T | A | 0.85% |
| Wells Fargo Bank, National AssociationSioux Falls | $1.82T | A | 1.41% |
| The Bancorp Bank, National AssociationSioux Falls | $9.3B | A | 2.81% |
| Pathward, National AssociationSioux Falls | $7.6B | A | 2.65% |
| Dacotah BankAberdeen | $4.8B | B | 1.01% |
| First Bank & TrustBrookings | $4.7B | B | 1.02% |
| First PREMIER BankSioux Falls | $4.2B | A | 1.67% |
| First Dakota National BankYankton | $3.2B | A | 1.38% |
Frequently asked questions
What is Merchants State Bank's health grade?▼
Merchants State Bank receives a health grade of A (97/100) based on four FDIC financial metrics: Tier 1 Capital Ratio (40%), Return on Assets (25%), Texas Ratio (20%), and Efficiency Ratio (15%). This bank demonstrates excellent financial health with strong capital ratios and profitability.
How large is Merchants State Bank?▼
Merchants State Bank holds $222M in total assets and $181M in deposits, ranking 2,888th of 4,313 FDIC-insured banks by asset size. It is headquartered in Freeman, South Dakota.
Is my money safe at Merchants State Bank?▼
Yes, deposits at Merchants State Bank (Certificate #1125) are FDIC-insured up to $250,000 per depositor, per ownership category, regardless of health grade.
What is Merchants State Bank's Tier 1 Capital Ratio?▼
Merchants State Bank has a Tier 1 Capital Ratio of 16.68%. This exceeds the 10% threshold for "well-capitalized" status under federal banking regulations.
What is the Texas Ratio for Merchants State Bank?▼
Merchants State Bank has a Texas Ratio of 1.45%. A ratio below 50% is generally considered healthy. The Texas Ratio measures non-performing loans against equity and reserves, a higher ratio signals greater exposure to loan losses.
How efficient is Merchants State Bank?▼
Merchants State Bank has an Efficiency Ratio of 55.94%. Below 60% is considered efficient, the bank converts a strong share of revenue into profit. This metric compares non-interest expenses to total revenue.
What to do with this
How to read Merchants State Bank's profile as a depositor or analyst.
- Merchants State Bank's grade reflects capital, profitability, and asset quality, read the four pillars before drawing conclusions. How grades work
- Compare Merchants State Bank against other South Dakota banks before moving funds. South Dakota banks
Not financial advice. Health grades are PlainBankData's interpretation of public FDIC Call Report data, not official FDIC ratings or predictions. Verify the latest figures at the FDIC BankFind Suite.
Every figure on PlainBankData is rendered directly from FDIC federal source data, no number is typed in by an editor. Informational only, not professional advice; consult a qualified professional before acting on it. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of Q4 2025.
Disclaimer: Data from the FDIC BankFind Suite. PlainBankData does not rate or rank banks as investment or safety recommendations. Health grades are informational only, computed from public regulatory filings. Always verify current standing directly with FDIC.gov before making financial decisions.