National Iron Bank raises $6 million

SALISBURY — In the wake of an April 12 shareholder vote on the planned merger between Salisbury Bank and Trust Co. (SBT) and NBT Bancorp Inc., the president and chief executive officer of the Salisbury-based National Iron Bank reported a recent completion of a $6 million common stock offering.

President and CEO Steven T. Cornell, in making the announcement on Monday, April 24, said the offering  will allow his institution to “fill a void” in the community created by the merger.

“National Iron Bank has experienced historic levels of growth since 2020, and we will use the new capital to continue to serve the needs of customers in the Litchfield County communities,” said Cornell.

Iron Bancshares, Inc., the bank holding company for National Iron Bank, completed the $6 million common stock offering in a private placement to accredited investors in March.

Cornell said in order to position itself for growth, National Iron Bank needs to have enough capital to be able to absorb that growth.

Referring to the capital raised through his bank’s “successful” stock offering, “We are reinvesting it back into the community,” said the National Iron Bank president.

“We plan to continue to support the local community with its credit needs and deposit needs,” and keep those funds local, “not in upstate New York,” said Cornell. “We were established here. It is our home.”

Pending regulatory approval, the Salisbury-NBT transaction is expected to close by the end of June.  Salisbury Bank and NBT Bank have informed customers that the organizations have been planning for a seamless integration.

While insiders at many other banks around the country are selling their stock, Cornell said his bank’s directors and investors were “significant purchasers” of the company’s newly issued stock.  

“Our investors, both new and existing, have strong ties to the local community. We were able to complete this stock offering without the help of a placement agent or other intermediary, which saved the bank a considerable amount of money.”

National Iron Bank was established in 1847 in Falls Village. Known as The Iron Bank at the time, it is New England’s oldest private bank. Today it maintains branch offices in Salisbury, Washington Depot, Norfolk and Cornwall Bridge, as well as loan offices in Litchfield and New Milford.

As of March 31, the bank had assets of $292 million. Cornell said National Iron Bank’s board is committed to “keeping us independent and a strong community bank.”

As part of its strategic plan, the bank is in the process of opening a new branch office in Litchfield, said Cornell, “and maybe a branch in Kent or New Milford. Our focus is on Litchfield County.”