Class Act: Expanding a Local College through Community Investment Advances
posted on Tuesday, April 12, 2016 in Advances
North Shore Bank is a locally owned and managed, independent community bank that has been serving customers for more than 100 years. With branches in Duluth, Minnesota and Superior, Wisconsin, it offers a full array of personal, business, mortgage and investment services.
The College of St. Scholastica in Duluth, Minnesota is well known in the area for its healthcare and science programs. Nursing has served as the backbone for the small, private liberal arts school with approximately 2,600 undergraduate students until recently, when the college made the decision to expand their physical and occupational therapy programs, as well as add a program for Physician's Assistants. With the additional programs and students, the school needed a new building to house the expansion.
North Shore Bank utilized a FHLB Des Moines Community Investment Advance (CIA) to provide match funding for participation in the community project that added a 45,000 square-foot, off campus facility that will serve as the home for the college's expanded healthcare programs. The Bank was able to hedge its interest rate risk without having to add collateral or use the participation as collateral to secure the advance.
The college intends to expand the enrollment of these programs, helping it maintain its place as a regional leader in the field. For all of the participants who funded the project, including North Shore Bank it was important to support the college and the benefits the project would bring to the community, while also generating a sufficient return for shareholders.
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