Medica, a nonprofit health insurer, has selected Famers State Bank of Hartland in Albert Lea to deposit $250,000 of its reserves, according to a press release. The money will be used by Farmers State Bank to fund loans to local farmers, small businesses and individuals in the Freeborn County area.

Medica has selected more than 80 banks throughout the state of Minnesota in which to deposit a portion of its reserves. Banks were selected for the deposits based on the local economic needs of the communities they serve.

Medica’s deposit will help Farmers State Bank fund loans that continue to drive the local economy in areas such as business commercial, agriculture, home mortgage and personal consumer, the release stated.

“Farmers State Bank is a community bank in every sense of the word. Our bank charter originated right here in Freeborn County, but our employees and shareholders call this area home as well,” said Brandon Brackey, business deposit officer. “We are proud to be community owned, community focused. Farmers State Bank foresees a bright future for Freeborn County and community banking.”

“This is exactly the kind of impact we envisioned when we developed our approach to banking locally,” said John Naylor, Medica’s president and CEO. “Our goal is to give community banks more resources to support families and small businesses in our communities.”

Under the local banking program, Medica will deposit more than $20 million of its reserves in local community banks throughout the state. Medica is supported in this effort by the Independent Community Bankers of Minnesota.