May 29—Walden Mutual has become the first bank of its kind to be chartered in New Hampshire in a century, but is still working to raise its goal of $25 million in capital.

The bank has already started making loans using seed money and through partnerships with other banks, said CEO Charley Cummings. The bank received its conditional charter from the New Hampshire Banking Department earlier this month as it continues to raise capital and seek final FDIC approval. It is also the first new mutual bank in the country since 1973.

The initial application was filed on Sept. 1. The bank is expected to officially open in late summer pending final approval.

Cummings said the process has been slowed because a mutual bank is somewhat of a novel concept with regulators having never seen an application for one.

"I give the New Hampshire Banking Department a ton of credit," he said. "They have been incredibly helpful and supportive of the idea that the mutual form of banking is one where it's (being revived) and sort of uniquely aligned around our business model."

Anyone can deposit money into the bank, but lending will be focused on commercial food and agriculture operations across New England and New York. Walden Mutual will not offer consumer lending, such as mortgages and personal loans. Commercial lending will focus on farms, distributors, consumer branded food products and other like-minded businesses.

The loans will support land purchases, equipment, refinancing, organic transitions, working capital and more. The bank will live by the motto: "Grow your Change."

Cummings, who founded Massachusetts-based Walden Local, which delivers grass-fed beef and other locally raised products, saw the demand grow during the COVID-19 pandemic as supply chains for national brands broke down. He has since stepped down as CEO but remains chairman.

Walden Mutual Bank, headquartered at 66 N. Main St. in Concord, will mostly serve customers online.

About 7,500 people are on a waitlist for consumer depositors and a lending pipeline "in excess of $25 million" in potential loans.

Cummings would not disclose how much has been loaned for nearly a half dozen businesses so far. The bank started with about $3.3 million in seed money.

"We want to build the business so we are in the position to really hit the ground running when we open the doors to depositors," he said.

One query came from a farm looking to buy more land to expand in order to grow and sell more specialty heritage grain. The bank was able to connect the farm with a wholesale bakery also looking for a loan to open a shop.

Cummings said connections like that happen all the time.

Mutual banks are similar to credit unions but can offer insurance through the FDIC. Cummings said one of the reasons for choosing the mutual bank model is to raise investment capital, whereas a credit union needs to be started with grants.

"We're looking for depositors, both consumers and businesses, who are trying to have a positive impact on the world around them," Cummings said. "One of our core beliefs here is the belief that anyone can make positive and latest changes to our local food ecosystem and you can do that very easily by choosing to place your deposit dollars with us."

The bank employs seven full-time employees and is looking to hire two more.