$51.1 million is a lot of money.

That’s the amount of profit made by the Bank of North Dakota last year.  According to this associated press article, it was a record.

The Bank of North Dakota is a state-owned bank.   The article indicates that the majority of the profit came from growth in business loans.  That registers as economic growth.

From the article:

The bank’s loan portfolio at year’s end rose 14.2 percent, totaling just over $2 billion. Its largest growth was in commercial loans, which rose 22 percent, to $689.2 million.

“We believe that North Dakota’s economy will continue to diversify and remain strong,” Hardmeyer said. “Loan volume will continue to grow, and quality (of loans) will be good to excellent.”

Student loans totaled $643.3 million last year, an increase of 14.6 percent from 2006. Farm loans rose 4.7 percent, to $252.9 million, while residential loans increased 8.2 percent, to $419.7 million. The bank’s total assets on Dec. 31, 2007 were $2.78 billion.

Separately, the Industrial Commission approved $429,490 in loan write-offs for 2007. During the year, the bank also collected $67,269 on loans that were previously written off, which decreased the net total of soured loans to $362,221.

A loan that is written off is no longer counted as part of the bank’s assets, although collection efforts continue.

In a memo to the Industrial Commission, Hardmeyer said the bank was forecasting $163 million in loan growth in 2008. The Bank of North Dakota holds tax revenue collections, and its cash on hand is rising as state revenues grow.

“Because of the strong North Dakota economy, state revenue will provide for a growing deposit base,” Hardmeyer’s memo says. “Additionally, a robust economy will bring about increased demand for financing opportunities, as business and farming enterprises expand or start up.”