Sears is acquiring a bank in South Dakota.

Unders terms of an agreement in principle, Sears’ Dean Witter Financial Services group will acquire all of the shares of Hurley State Bank, which has assets of $12 million. Terms were not disclosed. The acquisition is likely to go through unless the Federal Deposit Insurance Corp. objects over the next 90 days. The bank, whose commercial loan portfolio will be sold, will become part of the new Discover credit card operation that Sears will introduce this fall.