Iron Bancshares, Inc. Announces Completion of $4.5 Million Private Placement of Subordinated Notes

Performance Trust Capital Partners acted as sole placement agent

News provided by

Performance Trust Capital Partners, LLC

May 18, 2020, 09:00 ET

SALISBURY, Conn., May 18, 2020 /PRNewswire/ -- Iron Bancshares, Inc. (the "Company"), the holding company for National Iron Bank (the "Bank"), today announced the completion of a private placement of $4.5 million aggregate principal amount of fixed-to-floating rate subordinated notes (the "Notes") to various accredited investors (collectively the "Offering"). The Notes have been structured to qualify as Tier 2 capital under bank regulatory guidelines, and the proceeds from the sale of the Notes will be utilized for general corporate purposes, including, but not limited to, funding organic and future strategic growth initiatives, broadening balance sheet flexibility, supporting regulatory capital ratios, and retiring senior debt held at the Company.

The Notes will initially bear interest at 5.50% per annum, from and including the original issue date of the subordinated notes to but excluding May 15, 2025, payable semi-annually in arrears. From May 15, 2025 through May 15, 2030, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 516 basis points, payable quarterly in arrears. Beginning on May 15, 2025 through maturity, the Notes may be redeemed, at the Company's option, on any scheduled interest payment date. Any redemption will be at a redemption price equal to 100% of the principal amount of Notes being redeemed, plus accrued and unpaid interest. The Notes will mature on May 15, 2030.

Steven T. Cornell, Executive Vice President, Secretary & Treasurer of Iron Bancshares, Inc. and President and Chief Executive Officer of National Iron Bank stated, "We are pleased to announce the successful completion of our subordinated debt offering on attractive terms. The portion of this new capital that we downstream to our Bank is leverageable, Tier 1 capital, which will be important to supporting the growth that we strategically envision for our organization and will enable us to remain the heartbeat of the communities we serve. Through the issuance of these notes, we have cost-effectively increased our capital levels without diluting our current shareholders."

Performance Trust Capital Partners served as financial advisor to the Company and acted as sole placement agent in the Offering. Cranmore, FitzGerald & Meaney served as the Company's legal counsel in the Offering.

About the Company and the Bank

Iron Bancshares, Inc., a bank holding company established in 1997, is the 100% owner of National Iron Bank. National Iron Bank, established in 1847, strives to be the market's most trusted and sought after bank, helping consumers and businesses achieve their evolving financial goals while providing the highest level of customer service. With a comprehensive network of branches and ATMs, no one covers the northwest corner like National Iron Bank. With offices in Cornwall Bridge, Norfolk, Salisbury and Washington Depot and a loan office in Litchfield, we have a long standing history and are to meet our customers' needs today and into the future. National Iron Bank offers a suite of products and services like a MasterCard® Debit Card that earns rewards, Bank by Phone, online and mobile banking, a comprehensive network of branches throughout the northwest corner, and access to a national network of free ATMs.

Forward-Looking Statements

Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, which are based on various assumptions (some of which are beyond the Company's control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of these terms. Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, changes in the financial and securities markets, including changes with respect to the market value of our financial assets, and the availability of and costs associated with sources of liquidity and the disruption to financial markets and economic activities associated with the coronavirus pandemic. The Company undertakes no obligation to update or carry forward-looking statements, whether as a result of new information, future events or otherwise.

Company Contact:
Steven T. Cornell
Executive Vice President, Secretary & Treasurer of Iron Bancshares, Inc. and President and Chief Executive Officer of National Iron Bank
(860) 435-2581

SOURCE Performance Trust Capital Partners, LLC