North Dakota’s State Bank Posts $231.8 Million in 2025 Net Income

North Dakota’s state-owned bank earned $231.8 million in 2025 as politicians in other states cite its public-banking model and Washington funds planning for a possible state bank.

At year-end 2025, the Bank of North Dakota held $10.7 billion in assets and generated $231.8 million in net income. Its return on investment was 17.2%, and its total return to North Dakota was 4.69%. During the year, it originated and renewed $2.5 billion in business, commercial and student loans.

Local financial institutions deliver the bank’s loan programs through partnerships with the state lender. Its operating policy calls for helping existing financial institutions rather than harming them. Bank of North Dakota President and CEO Don Morgan called it “a really powerful financial tool.”

North Dakota established the bank in 1919 after the Nonpartisan League took control of the governor’s office and Legislature in 1918. The League’s 1919 program also established a state mill and elevator. The bank is owned, controlled and operated by the state, and the Industrial Commission operates and controls it. It is the country’s only operating state-owned bank.

State law gives the institution a mission to promote agriculture, commerce and industry. State funds and funds held by state penal, educational and industrial institutions must be deposited there, subject to constitutional and statutory provisions.

Democratic socialist politicians elsewhere have cited the bank as a public-banking model. North Dakota Gov. Kelly Armstrong, a Republican, said he does not think the state could create the institution today. “I’m sure glad we have it,” Armstrong said.

Washington’s fiscal 2027 budget appropriated $300,000 to establish a work group for a possible state bank. The group must examine potential capital sources, recommend a structure and outline an implementation plan. The appropriation funds planning; it does not establish a bank.

An update is due Dec. 31, 2026, and the full report is due June 30, 2027.