Individuals prominent in banking and investing in the Aberdeen area chartered the Farmers and Merchants Bank in Aberdeen, SD on April 12, 1955.

On November 24, 1964, several of the same individuals organized Dacotah Bank Holding Company, which later became Dacotah Banks, Inc. (DBI). As its first purchase, the firm acquired a controlling interest in Security Bank in Webster, SD, and its associated insurance agency and building company.

In 1969, DBI received regulatory approval as a registered bank holding company and purchased controlling interests in Farmers and Merchants Bank in Aberdeen, Citizens State Bank in Clark, SD, and Citizens Bank in Mobridge, SD.

On December 10, 1971, DBI filed with the Securities and Exchange Commission to become a publicly traded company, using the net proceeds from the stock sale to acquire an interest in Bank of Lemmon in Lemmon, SD.

During the 1970s, DBI strengthened its position as a multi-bank holding company through retained earnings and prudent lending policies, actions that would prove essential to the survival of the Company and its customers in the approaching farm crisis.

The 1980s dawned with a drought affecting the western half of Dacotah Bank’s service area. The drought, coupled with low commodity prices and high interest rates, devastated farming and ranching communities. Rather than giving up on our farm and ranch accounts, we stayed in the trenches and saw hundreds of local farmers and ranchers through the worst agricultural calamity since the Great Depression. “The fortunes of our company to a great extent are tied to the success and well-being of the farmers and ranchers and small businesses with whom we do business,” wrote then-chairman Rodney Fouberg to DBI stockholders.

On September 8, 1981, DBI acquired Bank of Cresbard in Cresbard, SD and in January 1982 acquired Faulk County Bank in Faulkton, SD. On May 8, 1987, DBI acquired the failed First State Bank in Sisseton, SD from the Federal Deposit Insurance Corporation.

The 1990s ushered in a new expansion phase de-novo branching -- “from the ground up” --through our Clark charter we opened a branch in Watertown, SD. This was the bank’s first expansion into a major population area by means other than acquisition of a charter.

Dacotah Bank established (through our Aberdeen charter) branches on the west side of Sioux Falls, SD (1990), downtown Sioux Falls (1994), Rapid City, SD (1999), and a second location in Aberdeen (1999). De-novo entry into growing population centers of the state added to our deposit and loan portfolios and showcased us as a locally owned bank large enough to handle most needs and small enough to provide personalized service. Referring to challenges brought about by deregulation and acknowledging the company’s success in starting new branches, Chairman Fouberg said: “We continue to look for ways to serve our existing customer base. In spite of increased competition and moderate growth, community banks like ours remain the backbone of their areas.”
 
Also during this decade, we entered, through acquisition, the abstract and title business in Webster, SD (1994) and Huron, SD (1995), changed our corporate name from Dacotah Bank Holding Company to Dacotah Banks, Inc. (DBI) and the names of each banking location to Dacotah Bank (1995), completed the purchase of all minority interests in six subsidiary banks (serving 16 communities) and collapsed their charters into one Aberdeen-based charter (1997), passed the $500 million assets mark (1998), and introduced internet banking to our customers (1998).

In February 2000, Dacotah Bank grew beyond the borders of our home state by acquiring Rolla Holding Company and its two charter banks, First State Bank in Rolla, ND (branches in Belcourt, Regent, and Reeder, ND) and First National Bank in Hettinger, ND.

In March 2000, DBI acquired the holding company for First National Bank in Bowbells, ND, with branches in Flaxton and Minot, ND (North Broadway). Farmers and Merchants Bank of Valley City, ND was acquired by the holding company in September 2001.

Also during this decade branches were added in Minot (South Broadway), Rapid City (Main Street), and Sioux Falls (East 10th Street) (2004), Dickinson, ND (2006), purchased a small branch location in Brookings, SD from BankFirst (2006), added a branch at the intersection of 57th Street and Cliff Avenue in Sioux Falls (2007), and added a location in Custer, SD (2008).

In 2012, we crossed the $2 billion in assets threshold and acquired branches in Morris and Chokio, MN in 2013.

On July 15, 2015, Dacotah Bank entered the Jamestown, ND market.

On July 3, 2020, Dacotah Bank acquired First State Bank Claremont and Stohr Agency with locations in Groton and Langford, SD and established locations in Fargo and Bismarck, ND in 2022, and developed a corporate banking team in Minneapolis, MN in 2023.