As of 2002, North Dakota's 107 insured banks had assets of $19.5 billion. Eighty-nine of those banks were state-chartered.
Despite the economic downturn that started in 2001, community banks (those with assets of less than $1 billion) headquartered in North Dakota reported sound assets, as past-due loan levels moderated as of late 2002. Although many farm banks had high loan delinquency levels due to low crop prices from 1998–2002, government support helped curb loan defaults.
During 2001/02, the Federal Reserve cut interest rates considerably, leading to fluctuations in net interest margins (NIMs) (the difference between the lower rates offered to savers and the higher rates charged on loans), but they did not signal an end to a long-term decline in NIMs since the 1990s.