Fast-growing Climate First Bank just closed its fifth funding round, and the mission-driven community bank approaches $2 billion in total assets and contemplates an IPO.
“So, Climate First was founded with $44 million initial capitalization — all local friends and family,” CEO Lex Ford told GrowthSpotter. “Subsequently, we’ve done three other friends and family raises: $35 million, $46 million, and $30 million.”
On Tuesday, the bank and fintech platform, OneEthos, announced the closing of a $67 million strategic funding round — the first to include institutional investors. The figure included $30 million from friends and family.
The latest round was led by Wellington Management and Alliance Bernstein and brings the total raised by the Bancorp to $222 million.
“This incredible round is a testament to our hard-working team and mission to combat climate change and save the planet. In the face of weakened environmental protections, we continue to invest in climate solutions and community resilience, creating far greater impact than any one of us could alone,” said Ken LaRoe, Founder and CEO of Climate First Bancorp.
The bank is headquartered in St. Petersburg but operates branches in Winter Park and Mount Dora. “We also have a digital branch that’s nationwide, with about a third of our deposits from nationwide digital folks,” Ford said. “But the largest deposit base is here in the Orlando Metro.”
Before opening the Winter Park branch, Climate First spent over $900,000 on renovations to the building, which included solar panels on the south side and roof, EV-charging stations, and more to optimize the building for peak energy efficiency.
Ford said the bank offers commercial loans with lending limits up to $40 million. Loan categories include healthy food, education, local manufacturing, health and well-being, solar, and affordable housing.
“What’s different about us, from a banking perspective, is we have a traditional community bank that is similar to One Florida … where we’re working with the small business owners around here, but we also have a few national verticals,” Ford said.
The bank has closed over 9,000 consumer solar loans in the last four years. “And about half of that has been in Florida, but the rest of it’s been nationwide,” Ford said.
The rapid growth has fueled speculation that the bank could go public later this year. Ford said the bank is built for “perpetual growth.” In 2021, it released a 10-10-10 plan, outlining the strategy to reach $10 billion in assets by the 10th anniversary and be worth 10X the original investment.
“We budgeted to be about $2.3 billion this year by the end of the year,” he said. “And then we’ll do acquisitions to drive to that $10 billion. There’s a bunch of banks on the I-4 corridor that we would love to buy.”
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