Although there was definite concern from banks across the state when Bank of North Dakota first opened its doors, those relationships have strengthened over the years. As BND celebrates its 100th anniversary, it has become an integral part of the state’s financial institution network, relied upon and utilized as a resource by local financial institutions. Indeed, as a $7 billion bank with 180 full time equivalent employees, the local lenders are distribution channels for the Bank’s programs, benefitting their clients and spreading risk for their institution.
Barry Haugen, president of the Independent Community Banks of North Dakota (ICBND), shared in 2016, “Community banks are vital to the financial success of rural America, particularly as it relates to agricultural lending. Nowhere is that more true than in our state where ICBND-member banks provide financing for a diverse agricultural economy in a very rural state. Critical to our ability to fund diverse needs is Bank of North Dakota’s very important partnership with these local community banks. The programs developed and implemented by Bank of North Dakota provide the flexibility for community banks to serve their customers in times of growth and expansion, or periods of challenging commodity process as we’re currently experiencing. Without a doubt the Bank of North Dakota’s proactive response to the needs of its partners strengthens the important role that independent community banks provide in North Dakota.”
North Dakota Bankers Association president Rick Clayburgh provided these comments for the Bank’s 2016 Annual Report, “As the only state-owned bank in America, Bank of North Dakota is a unique financial institution and is the envy of many other states. The North Dakota Bankers Association (NDBA) is a champion of Bank of North Dakota. We applaud the agility, stability and opportunity Bank of North Dakota provides state government, local communities and citizens. North Dakota’s banks work closely with BND. Our members look at Bank of North Dakota as a partner, not a competitor. BND is agile when it comes to providing assistance and creating programs to meet the changing needs of our state. Whether it be adapting to fluctuations in major economic sectors like agriculture and energy, responding to catastrophic flooding, or helping first-time homeowners and startup businesses, BND can mobilize assets and partner with North Dakota banks to provide opportunities for communities and customers. BND programs help banks help their customers.”
Bank of North Dakota participates in loans made by local financial institutions. This allows smaller community banks to be a part of large business efforts in their communities. A typical loan scenario is demonstrated:
At times, financial institutions themselves need financing, whether for acquisition or refinancing of bank stock, and BND provides the Bank Stock Loan for these situations.