Climate First Bank saw incredible growth in its second year and enormous investments in solar energy. The bank bills itself as the world’s first community bank established to combat climate change.
“Committed to its mission and accountability as a leader in values-based banking, Climate First Bank’s impact report measures the bank’s impact on the climate and community,” it states in a recent press release.
“I’m proud to celebrate our second year of business with such great impact and growth,” said Climate First Bank Founder and CEO Ken LaRoe. “As one of the fastest growing start-up banks in the United States, we’re proving that a bank can deliver incredible growth while prioritizing the climate and contributing to true community prosperity.”
LaRoe said he attributes the bank’s epic growth to his “amazing team and customer base” that loves the bank’s goal of protecting the environment.
Aligning finances with values
“Now, more than ever, American consumers are choosing to align their finances with their values. And this has reinforced the notion that Climate First Bank is successful because of our values, not in spite of them,” he said. “We also make sure that sustainability continues to be ingrained into our DNA, by putting our money where our mouth is, literally. Since opening in June 2021, we’ve donated nearly $111,000 to environmental causes through our 1% For the Planet partnership. We offset our carbon footprint each year through a partnership with We Are Neutral. And earlier in July, we officially became a certified B Corp.”
The start-up bank grew its assets by 127% in 2022 and its deposits by 167%. It also closed out its successful capital raise, bringing in $34.8 million.
“During our recent capital raise, we brought in $34.8 million. This will help us immensely as we look to expand our impact by continuing to support projects in solar energy, EV charging infrastructure, green construction, affordable housing, and more,” LaRoe said. “Additionally, this capital will help us to deliver consumer solar finance at scale by supporting continued development at OneEthos. Our fintech affiliate.”
Climate First financed $24 million of renewable energy after launching a proprietary digital solar lending platform in May 2022. The 16.7-megawatts worth of solar systems is expected to save 245,000 metric tons of CO2, an atmospheric pollutant. Or the equivalent of planting four million trees.
It also contributed $71,000 to environmental nonprofits and expanded its staff diversity, with 60% of staff identifying as women and 21% identifying with an underrepresented population. Its management team is 50% women, 31% of whom identify with an underrepresented population. The bank received the Orlando Business Journal’s 2023 Diversity in Business award for its initiatives, including Pride Banking and support of LGBTQ+ nonprofits.
Recent accomplishments
Among its other recent accomplishments, Climate First Bank established:
- OneEthos–A fintech subsidiary under the Climate First Bancorp holding company umbrella. The all-in-one platform allows other banks to adopt Climate First Bank’s sustainable lending, impact banking and reporting solutions.
- B Corp Certification–Throughout 2022, Climate First Bank, OneEthos and Climate First Bancorp worked toward becoming B Corp Certified. On July 6, 2023 they officialy became B Corp Certified. Earning an overall final assessment score of 98.6, exceeding the 80 points required to become a B Corp. The points represent the bank’s high standards of social and environmental performance, accountability, and transparency.
The bank currently serves more than 3,000 customers, including a mix of consumer and commercial loan customers in Florida only, as well as deposit customers across the U.S.
Though it now has several locations, customers can do all banking online, LaRoe said. “For those who prefer an in-person approach, we have three brick and mortar locations: St Petersburg, Mount Dora and Winter Park.”
Looking towards the future
In the coming year, Climate First goals are to continue boosting its brand awareness to reach more potential customers, LaRoe said. “We continue to strive to reduce our impact on the planet and enable others to do that too by offering accessible banking products such as solar lending with no dealer fees,” he said. “Everyone has to bank somewhere, and we want to be the go-to option for consumers and businesses looking to make a positive impact with their finances.”
The bank’s growth and impact in just two short years showcases the country’s hunger for a bank that aligns with their values, LaRoe said. “In May, I reported to our shareholders that we crossed the milestone of $400 million in total assets, a huge achievement for Climate First Bank in less than two years of operation. It’s even more remarkable to see this level of loan and deposit growth during a time when balance sheets are shrinking at other banks.”
For more information on Climate First Bank, check out its 2022 Impact Report.
