Peace Garden News

Standard & Poor's (S&P) has reaffirmed the Bank of North Dakota's (BND) credit rating as A+/Stable, according to a report released on January 14. This affirmation aligns with previous ratings issued by S&P in November 2023. S&P, a U.S.-based financial services company known for its financial research, typically conducts annual reviews of financial institutions, with more frequent assessments if changes are warranted.

The Industrial Commission, which oversees BND and includes Gov. Kelly Armstrong as chairman, Attorney General Drew Wrigley, and Agriculture Commissioner Doug Goehring, highlighted key strengths identified in the review. These include "very strong risk-adjusted capital" and "strong credit quality and conservative management." The Commission expressed appreciation for S&P's recognition of the bank's solid strategy and funds management.

S&P also noted a decrease in the nonperforming assets ratio over the past decade. The agency stated that "the net charge-off rate has been under 15 basis points annually despite significant energy and agriculture commodity price volatility," attributing this to BND's robust credit selection and underwriting practices.

Don Morgan, President/CEO of BND, commented on the rating: "Our strong credit rating reinforces the excellent quality of Bank management and should reassure North Dakotans of the stability Bank of North Dakota provides so the state can respond quickly when needed."

The full report from S&P is available at bnd.nd.gov. The Bank of North Dakota remains committed to its mission to support agriculture, commerce, and industry since its founding in 1919. It is notable as the only state-owned bank in the United States.