By Ken LaRoe, Climate First Bank
I founded Climate First Bank in 2021 in St. Petersburg. My wife and I had the uncommon idea that we could use traditional financial tools to fight climate change. Flash forward four years and little did we know that ESG would somehow become a four-letter word. With national political attacks on environmentalism, there is really no place for a bank named “Climate First” to hide.
So we have chosen not to.
We continue to believe that climate change is real and remain committed to using capitalism to fight it. But our public commitment has spurred a set of legitimate questions; namely, with a name like “Climate First Bank” aren’t you worried about pushing away potential customers? Wouldn’t it be better to be less “divisive” in your branding?
Simply put, no. We could have named the bank anything. It could have been America First Bank or Make Banking Great Again. But we chose “Climate First Bank” because we believe everyone — federal and state governments, businesses and individuals — needs to put fighting climate change first.
Plus, the Bank of Milquetoast is a losing brand.
Here’s the thing: Despite all of the negativity coming from Washington and all of the institutions backing out of their climate commitments, Climate First Bank has never grown faster and never been stronger financially.
Don’t trust me; trust the numbers. Climate First is the fastest-growing new bank in the United States since 2009. In five years, we have amassed more than $1.5 billion in assets — driven primarily by individuals and business owners financing solar panels on their roofs. To date, we have financed solar panels on more than 8,500 homes and businesses. That’s a major investment in America’s renewable energy infrastructure.
Sadly, the recent tax and spend legislation in Washington sunset federal tax credits for residential solar. This wildly misguided policy forced other solar businesses to trim holdings or even shut their doors completely.
But what did we do? We doubled down. So did consumers. In the month of October alone, we financed more than $60 million in residential solar deals — double what we financed in September.
These investments weren’t limited geographically to just blue states or liberal communities. Individuals across conservative states and rural communities love solar. Not only does it make sense for them financially — saving them money each and every month — but it provides them with energy independence. What could be more conservative than that?
From an economic perspective, climate deniers aren’t just on the wrong side of history when it comes to protecting our planet in years to come, they are on the wrong side of consumers today.
And this is only the beginning. We are planning to grow to $10 billion in assets by 2031.
But what about people who don’t want their bank investing in the fight against climate change? Sure, there are some people who don’t want their bank investing in certain industries — whether that’s gambling, guns, tobacco or, yes, fighting climate change. That’s their choice. And they can put their money where their values are. Capitalism is beautiful that way.
But the reality is, most people don’t know — or don’t care — how their bank invests their money. They just want their money to be safe, accessible and to earn a decent yield.
And this is exactly why I am optimistic about our future growth. I started a bank to fight climate change because I believe capitalism is the best tool to help us solve big, global, public problems. Today, Climate First Bank is profitable while offering an industry-leading yield on checking accounts.
How much does your bank pay on your checking account? And if you don’t know or don’t care how your current bank is investing your money, why wouldn’t you deposit your money with Climate First Bank and earn more?
Put another way, why are you paying your bank for the benefit of generic branding?
Look, call us whatever you would like. We know what we believe and invest in accomplishing our goal: fighting climate change. If you care about fighting climate change and want to earn an industry-leading yield on your deposits, bank with Climate First Bank. If you don’t care what your bank does with your deposits and want to earn an industry-leading yield, bank with Climate First Bank.
It’s a win-win for customers and the planet. And this is what questioners miss and exactly why we are set up for success for years to come, regardless of the name on our sign.
There are a lot of mission-driven organizations and individuals who love to work with a bank that shares their values. There are others who may not agree with us, but respect that we continue to stand up for what we believe – and are excited to make money in the process.
Ken LaRoe is the founder and CEO of Climate First Bancorp. This opinion piece was originally published by the Tampa Bay Times, which is a media partner of The Invading Sea. Banner photo: A financial exchange board (iStock image).
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