|| Print ||
|Articles - March 2011|
|Wednesday, March 02, 2011|
Page 2 of 4
There is only one state bank in the nation, the Bank of North Dakota. It was established in 1919 to give farmers more control and greater access to capital. Ninety-two years later it has evolved into a 170-employee institution with $4.2 billion in assets and an impressive record of performance. “We’ve had record profits for seven years in a row,” says bank president Eric Hardmeyer.
Hardmeyer has run the bank for the past 10 years. As an indication of the importance of his role, his predecessor John Hoeven left to become first governor and later U.S. Senator.
Hardmeyer explains that the Bank of North Dakota is funded through captive deposits. All taxes and fees collected by state government funnel through the treasury into the state bank, rather than going out to bid with private banks. The state bank uses that money to fund state services and manage a $2.8 billion loan portfolio, partnering with community banks in the private sector to boost agriculture and small business.
If that sounds like socialism, well, it kind of is. And it has worked. North Dakota has the lowest unemployment rate in the nation. Property values did not fall there during the housing crash. The bank transferred $340 million back to the state in dividends over the past dozen years, but has not contributed any money for the current biennium because, amazingly, it is not needed. While Oregon and other states are struggling with billions of dollars in shortfalls, North Dakota enjoys a budget surplus.
Hardmeyer is quick to clarify that he doesn’t recommend that other states try to replicate his bank’s model. Asked what advice he has to offer to states considering it, he says: “You’d better staff it with bankers, not economic development folks. Or else you will have a very expensive, short-lived experiment… The other issue is to make sure you aren’t competing with the private sector.”
Linda Navarro, CEO of the Oregon Bankers Association, says the Bank of North Dakota resulted from a “quirk of history” that has little to do with modern realities. “For most community banks, the crux of their business is commercial lending,” she says. “They are looking for good business loans to make… They just need to make sure the loans can be repaid.”
Bill Humphreys, CEO of Corvallis-based Citizens Bank, says he has studied the North Dakota model and concluded that a state bank would be against the interests of the state and taxpayers. “I don’t see how a state-owned bank could enter the marketplace and all of a sudden start making loans that aren’t being made now,” he says. “Unless they decide they’re going to take on greater levels of risk.”
Humphreys and other bankers point out that one driving reason behind the financial meltdown was loose, easy credit without proper collateral. A state-run bank committed to lending to businesses would “share the consequences of higher risk with the taxpayers,” Humphreys says. “This is not a good time to do this. If you look at the state as a business, they are in such a deficit position that they have no business investing in anything.”
Thursday, March 26, 2015
Cycling to work is all the rage. But not everyone wants to arrive at the office messy, sweaty — and unfashionable.
Thursday, March 19, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
There are 278 companies licensed to operate as brewery, according to the Oregon Liquor Control Commission. Here are three new beer-making hubs slated to open soon.
Wednesday, March 04, 2015
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
On Wednesday night, a couple days ahead of the 2015 season kickoff, Major League Soccer and the Players Union reached an agreement.
Friday, March 27, 2015
BY LINDA BAKER
My daughter turned 18 last week, and for her birthday I got her a Car2Go membership. Not to label myself a disruptor or anything, but it felt like a groundbreaking moment. The two of us, mother and child, were participating in a new teen rite of passage: Instead of handing over the car keys, I handed over a car-sharing card — with the caveat that she not use the gift as her own personal car service.
Thursday, February 26, 2015
BY KIM MOORE | OB RESEARCH EDITOR
Employment in Oregon is almost back up to prerecession levels — and employers are having to work harder to entice talented staff to join their ranks. This year’s 100 Best Companies to Work For in Oregon project showcases the kind of quality workplaces that foster happy employees.
Monday, March 02, 2015
BY KIM MOORE | OB RESEARCH EDITOR
Portland-based healthcare provider ZoomCare said it plans to “remake American healthcare” by expanding its on-demand urgent care model to emergency, surgery, dental and primary care, among others.
Friday, February 27, 2015
BY OB STAFF
The 100 Best list recognizes large, medium and small companies for excellence in work environment, management and communications, decision-making and trust, career development and learning, and benefits and compensation.
|Bike Chic: 7 stylish options for cyclists|
|Beam Me Up|
|Get on the bus!|
|Emperor of the Sea|
|The Road to Reinvention|
|Epitaph for a Boondoggle|
|FLOTUS: Tech industry to train, hire 90K vets|
|'Man-made' earthquakes becoming more frequent, powerful|
|FCC poised to block Comcast, Time Warner merger|
|Dunkin' Donuts, Domino's lead junk food revival|
|Pulitzer-winning journalist chooses PR|
|Taco Bell up, Chipotle down|
|Lilly Pulitzer line at Target crashes site|
A new report highlights how Oregon bankers are giving back to their communities.
Since 1932 Tidewater Transportation & Terminals (operating as Tidewater Barge Lines and Tidewater Terminal Company) has operated a multicommodity transportation and terminal company based in Vancouver, Washington. The friendly expression on the company’s shipping containers reflects the attitude of about 330 safety and community-conscious employees but belies how complicated the barge business really is.
The Port of The Dalles has run marine facilities since the 1930s, but they are part of a larger mission to strengthen the local economy. They focus on regional economic development with a strong bent toward adding good-paying jobs in high tech, manufacturing and other industries.
Thinking about an MBA? Join us for our upcoming Wine & Cheese Information Session to learn more about Concordia University's MBA program.
Providing attendees with unique taste of the Northwest Reception.
CFM Strategic Communications turns 25 this year and is celebrating with a revamped website, special events for firm alumni and clients, a special-label wine and a list of 25 stories about its client work over the past quarter century.