Medica Supports Local Communities through Innovative Program
MINNEAPOLIS — Medica, a non-profit health insurer, today announced an innovative program designed to support local economies throughout Minnesota by depositing millions of dollars into local community banks.
Medica's President and Chief Executive Officer, John Naylor, stated: "We recognize that there are Minnesotans throughout the state that have significant financial needs. Many of them turn to their local community bank for loans in these times of need. By banking locally, Medica is giving community banks more resources to support families and small businesses in our communities."
Under this program, Medica will deposit $20 million of its reserves in local community banks throughout the state. Medica will be supported in this effort by the Independent Community Bankers of Minnesota (ICBM). Medica anticipates about 80 banks will participate in the initial rollout of this program. The money deposited by Medica will be used, in turn, to invest in local economies through loans by the participating banks to businesses and individuals in the communities they serve. Medica will select participating banks based on the local economic needs of each community.
"As a non-profit health plan, Medica has an obligation to place its reserves in credible financial institutions to ensure that we can meet our health insurance obligations," said Naylor. "At the same time, we are always looking for innovative ways to invest in the communities we serve and we believe this is another way we demonstrate why Minnesotans place their trust in us."
"Community banks are conduits to promote the economic success of towns and cities across Minnesota," said ICBM President and CEO Jim Amundson. "At a time when gathering deposits is one of community banks' top priorities, Medica is choosing to bank locally. We are thrilled to partner with one of the state's most respected companies to launch this novel program. We hope other Minnesota companies will choose to follow Medica's lead."
About Community Bank
Community banks channel their loans to the neighborhoods where their depositors live and work, which helps local businesses and communities thrive. According to the Federal Reserve's "Small Business Credit Survey: Report on Employer Firms," community banks are the small business lender of choice. Community banks comprise 99 percent of all banks, provide more than 60 percent of all small business loans and make more than 80 percent of agricultural loans. Moreover, community bank officers are typically deeply involved in their local communities.