First State Bank SouthWest

What First State Bank SouthWest does

First State Bank Southwest is an FDIC-insured, privately held community bank chartered in 1903 and headquartered in Worthington, Minnesota. The bank operates six physical branches across southwest Minnesota and South Dakota, serving individual consumers, small-to-medium businesses, and agricultural customers through deposit products (checking, savings, money market, CDs, IRAs, HSAs), credit products (consumer, mortgage, construction, HELOC, business, commercial real estate, SBA, USDA, FSA-backed agricultural loans), and digital banking channels (online banking, iOS/Android mobile app, mobile deposit, remote deposit capture, bill pay with P2P, cash management with ACH, and a loan payment portal). Its wholly-owned subsidiary, First State Insurance Agency Southwest, distributes personal, commercial, and crop insurance from multiple carriers, extending wallet share inside the same regional footprint.

The bank generates revenue primarily through net interest income on loans — agricultural real estate and equipment lending has been a stated specialty for over a century — supplemented by deposit account fees, debit and credit card interchange, new account fees, and insurance commissions. Local ownership and resident directors enable rapid underwriting decisions, a structural feature marketed explicitly against larger regional institutions. Government-backed lending partnerships (SBA, USDA Rural Development, FSA, Minnesota Housing Finance Agency) expand the banker's effective product shelf beyond on-balance-sheet capacity.

The technology stack is conventional community-bank infrastructure rather than proprietary IP. The bank's website is attributed to ProfitStars (a Jack Henry & Associates product), suggesting a vendor-provided core and digital platform typical for institutions of this scale. No patents, AI/ML capabilities, or proprietary technology assets are disclosed. Distribution rests on the six-branch physical network plus a digital surface that includes a mobile mortgage officer directory (mymortgage-online.com) and active social media (LinkedIn, Facebook, Instagram). The competitive position is built on local presence, agricultural underwriting expertise, relationship switching costs, and multi-decade community ties rather than technology differentiation.

Name

First State Bank SouthWest

Legal name

First State Bank Southwest

Website

https://firststatebanksw.com

Company type

Private

Founded year

1903

Operating status

Operating

Headcount range

11–50 employees

Short description

First State Bank Southwest is an FDIC-insured community bank chartered in 1903, operating six branches across southwest Minnesota and South Dakota to deliver consumer, business, and agricultural banking plus affiliated crop and casualty insurance to rural customers.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Commercial Banking (52211), Commercial Banking (522110)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Small Business Banking (Microbusiness/Sole Proprietor) (FSABAAAI)

akta.pro secondary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

Keywords

• Community banking services
• Agricultural lending
• Commercial real estate loans
• Consumer deposit products
• Small business banking

Headquarters

HQ city

Worthington

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Interest Income from Loans: Primary revenue stream from interest on agricultural loans, commercial real estate loans, consumer loans, home mortgages, and lines of credit. Agricultural lending has been a core focus for over 100 years.
2. Deposit Account Fees: Monthly maintenance fees, overdraft fees, ATM fees, and other account-related service charges. Some fees are waived with minimum balance requirements.
3. Credit Card Interchange: Revenue from credit and debit card transaction interchange fees on Visa and MasterCard transactions
4. New Account Fees: Fees associated with opening new deposit accounts and services
5. Insurance Commission Revenue: Revenue from First State Insurance Agency Southwest, an independent insurance agency offering coverage through multiple insurance carriers for personal, business, and agricultural insurance

Pricing tiers

Go-to-market motion1 record

Distribution channels7 records

Marketing channels6 records

Core offering

First State Bank Southwest is a full-service community bank that takes deposits, makes loans, and provides related financial services to individuals, businesses, and agricultural customers across southwest Minnesota and South Dakota. Core offerings include checking, savings, CDs, IRAs, and HSAs; consumer, mortgage, home equity, construction, and auto loans; business operating lines, installment loans, commercial real estate, and SBA loans; agricultural operating lines, equipment and livestock financing, and farm real estate loans; Visa and MasterCard credit cards; and insurance products distributed through its affiliated First State Insurance Agency Southwest.

Product overview

First State Bank Southwest is a community bank offering a comprehensive suite of banking products and services across personal, business, and agricultural segments. The bank's core offerings include multiple checking and savings account types (Lifestyle Checking with up to 2.60% APY, Simply Free Checking, Student Checking, Hometown Checking, Passbook Savings, Money Market, CDs, IRAs, and HSAs), credit products (Visa/MasterCard credit cards, auto loans, personal loans, home mortgages with HELOC, and construction loans), and business services (business checking, savings, operating lines of credit, installment loans, commercial real estate, and SBA loans). The bank also provides specialized agricultural lending (operating lines, equipment/livestock financing, farm real estate, crop insurance) and insurance products through its First State Insurance Agency Southwest subsidiary. Digital banking capabilities include Online Banking, Mobile Banking App with Mobile Deposit, Cash Management with ACH payments and payroll direct deposit, Bill Pay with Person to Person payments, Remote Deposit Capture for businesses, a Loan Payment Portal, and a suite of Financial Calculators. The bank operates six locations serving southwest Minnesota and South Dakota, with digital channels enabling 24/7 account access.

Differentiator

Problem solved

Functional benefit

Brands

• First State Insurance Agency Southwest: Independent insurance agency offering personal, business, and financial services coverage from multiple insurance providers.

Products and services

• Personal Checking Accounts Personal checking account lineup for individual consumers, including high-interest rewards checking, no-fee checking, student checking, and interest-bearing checking with optional membership benefits such as accidental death insurance and discounts.
• Personal Savings and CDs Personal savings vehicles including passbook savings, money market savings, and certificates of deposit offering guaranteed returns for individual customers.
• Retirement and Education Savings Accounts Tax-advantaged retirement and education savings products for individuals, including Traditional and Roth IRAs, Coverdell Education Savings Accounts, and Health Savings Accounts (HSAs).
• Debit and ATM Cards Free debit cards and ATM cards providing 24/7 purchasing power, cash withdrawals, and balance access for personal banking customers.
• Personal Credit Cards Personal Visa and MasterCard credit cards (Classic, Gold, and standard MasterCard) with Visa Checkout, offered to individual consumers.
• Auto Loans Financing for new and used vehicles including cars, trucks, motorcycles, and RVs with competitive rates and flexible payment plans.
• Personal Loans Unsecured term loans for home renovations, tuition, vacations, personal use, and debt consolidation with competitive rates and flexible terms.
• Home Mortgages Home purchase and refinance mortgages with fixed and adjustable rate options, plus government program variants (Rural Development and Minnesota Housing Finance Agency) for eligible borrowers.
• Home Equity Line of Credit (HELOC) Revolving home-secured line of credit allowing borrowers to draw funds as needed without maintenance fees.
• Construction Loans Construction financing for residential builds structured as a line of credit that transitions smoothly to permanent mortgage financing upon completion.
• Student Loans (College Ave Referral) Referral-based access to undergraduate, graduate, parent, and refinance student loan products from College Ave Student Loans.
• Business Checking Accounts Business checking account options, including a no-fee Simply Free Business Checking, a standard Business Checking with $5 monthly maintenance fee, and an interest-bearing Business Interest Checking for business customers.
• Business Savings and Money Market Interest-bearing business savings and tiered business money market accounts with limited check writing and maintenance fee waivers on minimum balances.
• Business Retirement and HSA Products Tax-advantaged employee benefit accounts for businesses, including Business HSAs, SIMPLE IRAs, and SEP IRAs.
• Business Credit Cards Business Visa and MasterCard credit cards with competitive rates, Verified by Visa security, online access, and interchange revenue for the bank.
• Business Operating Line of Credit Pre-approved revolving credit line for small and medium businesses to cover seasonal fluctuations, inventory, and overtime payroll, with interest paid only on funds used.
• Business Installment Loans Fixed-term installment financing for business equipment, vehicle purchases, permanent working capital, and other long-term business needs with flexible payment terms.
• Commercial Real Estate Loans Financing for purchasing, expanding, or refinancing commercial buildings or land, with flexible terms and SBA 504 program rate options for small businesses.
• SBA Loan Programs Small Business Administration guaranteed loans including SBA Micro Loan (up to $35,000), SBA Express (up to $350,000), SBA 7a Guaranty (up to $2 million), and SBA 504 (up to $1 million) programs with below-market fixed rates.
• Agricultural Operating Line of Credit Flexible revolving line of credit for farmers to manage seasonal cash flow, operating expenses, and uncertainties throughout the agricultural production cycle.
• Equipment and Livestock Financing Loans for new and used farm equipment and breeding livestock purchases with flexible terms, including the bank's First Choice Ag Loan program.
• Farm Real Estate Loans Long-term agricultural mortgages for farm real estate purchases, expansion, and refinancing, with FSA-guaranteed loan options and Southwest Initiative Foundation loan programs.
• Crop Insurance Agricultural crop insurance products distributed through First State Insurance Agency Southwest, protecting farms against weather-related losses.
• First State Insurance Agency Southwest Independent insurance agency offering personal, business, agricultural, and financial services insurance products through multiple carriers, generating commission revenue for the bank.
• Online Banking Secure 24/7 online banking platform for personal, business, and agricultural customers to view balances, transfer funds, monitor transactions, and manage accounts.
• Mobile Banking App Free iOS and Android mobile banking app for smartphones and tablets, supporting bill payment, fund transfers, balance checks, account alerts, mobile deposit, and ATM/branch location.
• Cash Management Business cash management service providing account information access, ACH payment initiation, and payroll direct deposit capabilities for business customers.
• Remote Deposit Capture Electronic check deposit service for business customers to scan and deposit checks remotely without visiting a branch.
• Bill Pay and Person-to-Person Payments Online bill payment service enabling payments to anyone in the country via electronic, ACH, or check delivery, plus person-to-person electronic payment capabilities.
• Loan Payment Portal Online payment platform powered by SmartPay Biller Direct enabling one-time and recurring loan payments for borrowers.
• Additional Banking Services Additional in-branch and electronic banking services including Direct Deposit, Night Deposit, Safe Deposit Boxes, U.S. Savings Bonds redemption, and Wire Transfers.
• Identity Theft Protection Credit monitoring service providing immediate alerts for credit changes, new account openings, and payment delinquencies, along with identity restoration services for personal banking customers.
• VISA Gift Card Prepaid Visa gift cards accepted anywhere Visa is accepted, available for purchase for a $5 per card fee.

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Ten partnerships are on record, tiered minor and core.

• College Ave Student LoansminorGTM or Marketing PartnerFirst State Bank Southwest has partnered with College Ave Student Loans to offer student loan products for undergraduate and graduate students, as well as parent loans and student loan refinancing options. The partnership provides referral services to help customers achieve higher education financing goals.
• U.S. Small Business Administration (SBA)coreStrategic or Co-development PartnerSBA 7a Loan Guaranty Program for loans up to $2 million, SBA Express Program up to $350,000, SBA Micro Loan Program up to $35,000, and SBA 504 Loan Program for commercial real estate and equipment up to $1 million. The partnership provides below-market fixed rates and flexible repayment options.
• Southwest Initiative FoundationcoreStrategic or Co-development PartnerNon-profit financing organization offering revolving loan fund, renewable energy loan program, regional centers loan program, small communities loan program, and micro-enterprise loan program to support local businesses in southwest Minnesota.
• U.S. Department of Agriculture (USDA) Rural DevelopmentcoreStrategic or Co-development PartnerUSDA Rural Development Business & Industry Loan Guaranty Program providing guaranteed financing for working capital, machinery and equipment, buildings and real estate. Maximum loan amount up to $25 million with repayment terms up to 25 years.
• Rural DevelopmentminorGTM or Marketing PartnerRural Development Loans offering 100% financing with no down payment for eligible borrowers. Borrower's adjusted household income restrictions apply and home must be used as primary residence in rural areas.
• Minnesota Housing Finance AgencyminorGTM or Marketing PartnerPartnership offering attractive fixed interest rate mortgages with closing costs that may be borrowed at 0%. Income restrictions apply for eligible buyers.
• Farm Service Agency (FSA)coreStrategic or Co-development PartnerFSA Guaranteed Loans available for farm real estate and equipment/livestock financing, providing government-backed loan guarantees to help farmers access credit.
• CME GroupminorGTM or Marketing PartnerAgricultural market information link provided to customers for commodity pricing and market intelligence.
• Minneapolis Grain Exchange, Inc.minorGTM or Marketing PartnerAgricultural commodity exchange link for grain pricing information and futures market access for farmers.
• University of Minnesota ExtensionminorGTM or Marketing PartnerAgricultural education and extension services link providing research-based information for farmers.

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• First Bank & Trust: South Dakota-based community bank with comparable personal, business, and agricultural banking focus, similar regional scale, and overlapping geography in the upper Midwest.
• Dacotah Bank: Multi-state community bank across North Dakota, South Dakota, and Minnesota with a comparable mix of ag, business, and personal banking and rural footprint.
• Minnwest Bank: Minnesota-based community bank with strong agricultural lending heritage and similar deposit, loan, and treasury product offerings serving rural and small-business customers.
• Choice Financial Group: North Dakota community bank holding company with strong agricultural and small-business banking exposure and a comparable community-bank operating model in the upper Midwest.
• United Prairie Bank: Minnesota community bank providing ag, business, and personal banking with comparable scale and a similar relationship-driven model in southwestern Minnesota.
• CorTrust Bank: Regional community bank headquartered in South Dakota serving consumers, businesses, and agricultural customers with a similar product suite and branch-based model.

Regional players

• Bell Bank: Larger upper Midwest community bank operating in North Dakota and Minnesota, with overlapping ag, business, and consumer banking products but greater scale and broader geographic reach.
• Alerus Financial: Upper Midwest bank and wealth management firm serving North Dakota and Minnesota with comparable consumer and business banking, though operating at significantly larger scale.
• Bremer Financial Services: Minnesota-headquartered regional bank offering personal, business, and ag banking across the upper Midwest; serves similar customer segments but at materially larger scale than First State Bank Southwest.

Broad incumbents

• Heartland Financial USA (HTLF): Multi-state community banking franchise operating several bank charters across the Midwest and West, including the upper Midwest; competes broadly with First State Bank Southwest in ag and small-business lending but at substantially larger scale.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/firststatebanksw
• LinkedInlinkedin.com/company/first-state-bank-southwest
• Instagraminstagram.com/firststatebanksw

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about First State Bank SouthWest