40 Years of Profits -- Bank of ND
May 6, 2013

For Immediate Release
Marc Armstrong
(707) 343-6334

40 Years of Profits -- Bank of ND Makes $81.6M in 2012

Sonoma, CA – The Bank of North Dakota (BND), the only state-owned bank in the United States, released its 2012 Annual Report
on April 23rd, with a record-setting amount of $81.6 million in profits, making 2012 its 40th continuous year of profitability. Its assets grew 14 percent – to almost $6.2 billion, showing strong growth in commercial loan sectors, including infrastructure financing.

Even though its Lending Services Portfolio balance increased from $2,996 million in 2011 to $3,274 million in 2012, credit losses shrunk from $52.9 million in 2011 to $52.3 million in 2012, indicating a healthy portfolio. The commercial loan portfolio grew from 36% to 40% of the Lending Services portfolio, representing $1.273 billion in loans. Student loans and residential loans decreased proportionally from 35% and 19%, respectively, to 32% and 18%. Agriculture loans remained at the same relative percentage year-to-year at 10%, growing to $343 million in 2012 from $289 million in 2011.

As an example of BND’s approach to partnering with local banks, Lutheran Social Services (LSS) of North Dakota received financing from Unison Bank of Jamestown to take a former hospital in Jamestown, ND and convert it to a senior living center. “The power of a BND partnership is it allows us to work with a local lender that may not otherwise have been able to participate in a project of this size,” said Jessica Thomasson, Director of LSS Housing. “Our organization values its local lender relationships, and BND can really help make those relationships possible.” BND partners with financial institutions when a borrower’s financing needs have outgrown the legal lending or exposure limits of the originating lender.

With each year of profitability, the Bank of North Dakota demonstrates that public solutions exist as a proven alternative to the seemingly never-ending Wall Street banking scandals. This alternative will be thoroughly discussed at the annual Public Banking 2013 conference, co-hosted by the Public Banking Institute and the Green MBA Program of Dominican University at Dominican University on June 2/3/4. It will be an opportunity to discuss public banking as a conservative and lower risk solution for cities, counties and states faced with on-gong revenue shortfalls.

Entitled "Funding the New Economy," the conference will address developments within the political/banking environment both nationally and internationally and introduce steps and strategies being taken on local levels to work through political and legal obstructions to establishing a public banking network.

On Sunday, June 2nd at 7pm at Angelico Hall at Dominican University, Birgitta Jónsdóttir, the newly re-elected Icelandic Parliamentarian, will join Matt Taibbi, the well-known investigative journalist for Rolling Stone magazine, author of five books and an outspoken critic of the national financial elite banking system. Together, with Ellen Brown (author ofWeb of Debt) and Gar Alperovitz (author of What Then Must We Do?), they will have a conversation on how our economy has been hijacked by the financial elite and what steps can be taken to reclaim it. This conversation is open to the public for a $35 fee.

More conference information is available at www.publicbanking.org and www.publicbankinginstitute.org.

The Public Banking Institute is a non-profit, non-partisan educational organization dedicated to the creation of a network of public banks nationwide and to citizen education.

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