The Bank of North Dakota is reporting a third straight year of record earnings, and is well on its way to a fourth.

President Eric Hardmeyer told members of the state Industrial Commission on Thursday that profits were up 18 percent last year, to $42.9 million. Total assets grew 13 percent to $2.3 billion.

Commercial, residential, student and agricultural loans all increased in 2006, Hardmeyer said. The bank's total loan volume grew $290 million to $1.8 billion. The $241 million in agricultural loans included $20 million in disaster relief for farmers and business owners.

"2006 was a groundbreaking year for us in terms of our financial growth, as well as the beginning of construction on our new building," Hardmeyer said.

Employees expect to move into the new bank building near the Missouri River on Bismarck's west edge in December. The structure will replace the current downtown headquarters, which was built in an old auto assembly plant and later expanded into an adjacent grocery store.

This year could set another profit record for the state-owned bank. Hardmeyer said first-quarter income already is at $12.5 million.

"Our budget for 2007 is $44.6 million. I think we are well on our way to achieving that," Hardmeyer said. "The numbers are excellent."

Gov. John Hoeven said he was pleased with the bank's performance last year.

"A really outstanding year in terms of loans, which represents an investment in the state's growth and diversification of our economic base," he said.

Hoeven, Attorney General Wayne Stenehjem and Agriculture Commissioner Roger Johnson make up the Industrial Commission, which is the bank's board of directors.