Climate First Bank believes that sticking to its mission will help keep it one of the fastest-growing banks in the US.
Climate First is one of the last banks in the country that remain in the UN-backed Net-Zero Banking Alliance (NZBA) after all the major US banks exited the industry group shortly before the inauguration of President Donald Trump.
The political winds are blowing in the opposite direction, but Climate First is ahead of schedule against its target to reach $10 billion of assets 10 years after it was founded as a de novo in 2021, according to President and CEO Frank Ford.
"We're growing with the mission, and because of the mission, but also not in a way that would be inhibited by any regime change," Ford said in an interview. "We're not dependent upon any tax credits. We're not dependent upon any government subsidy." Ford noted that central Florida may not be the ideal home territory for a mission-based bank "from a marketing or product standpoint."
Nevertheless, the St. Petersburg, Florida-based bank hit $889.4 million in assets at the end of 2024, according to data from S&P Global Market Intelligence. Its parent, Climate First Bancorp Inc., has raised about $100 million of capital so far.
Climate First consists of a fast-growing traditional community bank operation with about $500 million in assets, Ford said, and a digital bank that serves as an "accelerant," including $150 million of solar financing to consumers and businesses.
The bank believes its steadfastness in its commitment to its climate principles and groups like the NZBA helps it stand out and attract like-minded customers. It is dedicated to staying independent so that its mission will not evaporate after a sale to another bank. "We are driving towards an IPO hopefully in 2026 that will give us the access to capital to be perpetual," Ford said.
Lonely being green
The wave of NZBA exits in December 2024 and January 2025 included five large Canadian banks, and Climate First is among just five banks that remain in the group in all of North America.
The assets of the banks that left totaled $20.580 trillion, according to their most recent financial reports and S&P Global Market Intelligence data. Among the US bank departures were Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley. The only US banks listed as NZBA members are Climate First; Amalgamated Financial Corp., which includes the Democratic National Committee as a client; and Areti Bank, which is based in Puerto Rico and does not have Federal Deposit Insurance Corp. insurance, according to its website.
Banks' net-zero initiatives have long attracted skepticism. Banks have encountered criticism over the rigor of their targets, the usefulness of their initial reporting on client emissions, and broad questions about whether environmental, social and governance pledges actually change behavior at large corporations in the first place. Banks themselves emphasized an approach under which they would retain high-emitting clients and balked at findings that the global carbon budget has no room for expanding fossil fuel production.
Banks that have exited the NZBA have maintained commitments to achieving net-zero in their financing by 2050 and interim targets for 2030, although they had already been accused of backsliding.
Ford said "the legacy banks got in for the marketing, and got out for the marketing," and speculated that they will allow their targets to slip.
At the same time, "it doesn't make sense for us to be a community bank and ignore the legacy real economy customers," Ford said. "It's my job to transition the legacy mom-and-pop community bank customers to a more renewable life through financing or products that makes sense for them." The CEO gave an example of providing financing to a gas station to install solar panels or electric vehicle charging stations.
For this reason, Climate First does not feel threatened by arguments that its participation in climate groups might violate antitrust law. It is insulated from the risk of being cut off from government business because it doesn't do things like manage pension funds, Ford said. "It's kind of like, okay, we'll take the free press."
Not selling
Ford was named Climate First's CEO in January, while Kenneth LaRoe, the bank's founder, remains CEO of the holding company.
LaRoe also founded First Green Bancorp Inc., which sold to Seacoast Banking Corp. of Florida in 2018. At First Green Bank, Ford was "wingman" to the executive chairman and "launched Florida's first cannabis banking platform and captured the entirety of the market," the bank said. Climate First also launched a cannabis business.
This time, LaRoe and Ford do not plan to sell, which was part of the rationale behind the leadership change.
"Community banks typically fail because they are unable to manage succession planning," LaRoe said in a news release on the shift. "This leadership transition demonstrates the bank's commitment to perpetuity and ensuring the long-term sustainability of the organization for generations to come," the bank said.
"To our staff, to our customers, to our board, to everybody, shareholders, this is our commitment to be here for the long run versus being a traditional 'build and sell-it' community bank in Florida," Ford said.
