The Farmers and Merchants State Bank: how it compares with its peers
Against 9 SD banks with half to twice its assets, The Farmers and Merchants State Bank's strongest measure in Q2 2026 is net interest margin (4.40% vs. a 3.79% peer median). Its weakest relative measure is assets per employee ($6.0M vs. $7.7M).
| Measure | This bank | Peer median | Rank |
|---|---|---|---|
| Return on assets Annualized net income over average assets. | 1.25% | 1.47% | Middle third Ahead of 44% of peers |
| Net interest margin Annualized net interest income over earning assets. | 4.40% | 3.79% | Top third Ahead of 67% of peers |
| Efficiency ratio Noninterest expense per dollar of revenue. Lower is better. | 65.63% | 65.49% | Middle third Ahead of 44% of peers |
| Assets per employee Total assets over full-time-equivalent staff. | $6.0M | $7.7M | Bottom third Ahead of 11% of peers |
| Loans to deposits Net loans and leases over total deposits. | 40.98% | 44.80% | Context |
What it means for lending operations
Its efficiency ratio of 65.63% is above the 65.49% peer median: it spends more to earn each dollar of revenue than most banks its size. Staff time on manual borrower verification (collecting pay stubs, bank statements, and employment letters, then re-keying them) is one of the larger controllable costs behind that number.
Banks closest in size
- The Farmers State Bank of Turton Turton, SD · $41M
- The First National Bank of Frederick Frederick, SD · $29M
- Andes State Bank Lake Andes, SD · $28M
- Richland State Bank Bruce, SD · $50M
- Bryant State Bank Bryant, SD · $53M
- Sunrise Bank Dakota Onida, SD · $58M
Questions about The Farmers and Merchants State Bank
How big is The Farmers and Merchants State Bank?
The Farmers and Merchants State Bank, established in 1934, is headquartered in Scotland, SD. It reported $36M in total assets in its Q2 2026 FDIC call report and operates 1 office.
What is The Farmers and Merchants State Bank's return on assets?
1.25% annualized in Q2 2026, against a 1.47% median for 9 SD banks with half to twice its assets, ahead of 44% of them.
What is The Farmers and Merchants State Bank's efficiency ratio?
65.63% in Q2 2026: it spent about 66 cents in noninterest expense for each dollar of revenue. The peer median is 65.49%, and lower is better.
Is The Farmers and Merchants State Bank growing its loans?
Net loans grew 0.2% over the year to Q2 2026, while deposits grew 3.4%.
Sources and method
Figures are from the FDIC’s public call report data for the quarter ending 06/30/2026, via FDIC BankFind. Return on assets and net interest margin are annualized year to date. Peers are SD banks with half to twice its assets in the same quarter, excluding this bank. The page refreshes daily, so new quarters appear as banks file. Compare another bank or see every South Dakota bank ranked.