When you think about eco-entrepreneurs, you don't usually think about someone starting a bank — but that is exactly what Kenneth LaRoe, CEO and Founder of First GREEN Bank did in Florida in 2009. First GREEN Bank is "one of the first banks in the United States which has an environmental and social mission." Many of the branches are in LEED certified buildings, but in addition to the usual bank offerings, First GREEN Bank has some unique green lending programs including:
1) Discounted interest rates for commercial and residential projects that meet green building criteria for LEED certification by the U.S. Green Building Council;
2) A Solar Loan program which makes it easier for local homeowners and businesses to make the switch to solar energy;
3) Special financing loans for its employees who want to purchase a hybrid vehicle.
I caught up with Kenneth LaRoe to learn more about the entrepreneurial side of this eco operation:
Kate Harrison: Why did you decide to open a green bank?
Kenneth LaRoe: As a native of Eustis, Florida, I capped a successful career by selling Florida Choice Bank in 2006, and planned to retire with my wife. I set out on a lengthy, soul-searching journey across the U.S. in a mini-motor home. Along the way, I began reading a book my brother gave me: “Let My People Go Surfing,” by Yvon Chouinard, founder of Patagonia, the highly successful outdoor clothing and equipment company. Chouinard’s philosophical approach to business greatly influenced me. I became convinced that business can be holistic: in addition to making a profit, business can have a positive impact on society. Chouinard developed a business model which integrated his principles and professional acumen, and he has been able to experience enduring success — without the ethical compromises that often counter the contributions business leadership could make to our environment and culture.
When I returned from my cross-country journey, I decided to put my new found philosophy to work. I have been a committed environmentalist all of my life. I strongly believe that an efficient, wise use of resources — aka conservation — is a fundamental virtue and an economic necessity. I returned to Eustis with a new passion and a personal quest: How to put my principles to the test in the banking business. I began talking with some of my colleagues and friends and they all enthusiastically decided to help me create a business that would be both profitable and focussed on doing the right thing, believing that those two concepts should not be mutually exclusive.
Harrison: How did you decide what initiatives to introduce (e.g., special loans for employees, your solar loan program, etc.)?
LaRoe: Our objective at First GREEN Bank is that through education and influence, we can help change attitudes. We strive to lead an impactful and successful charge to show people there is a better way to do business, one that is financially, environmentally, and socially responsible.
We decided that employee benefits and initiatives that promote “greener” lifestyles not only coincide with our mission, but they also contribute to a happier, healthier, more aware and engaged workforce.
Carbon footprint reduction is a critical component of the business model for First GREEN Bank. If the bank can do business in a way that reduces the amount of greenhouse gases produced by burning less fossil fuels for electricity and transportation, it not only saves operating costs, it also has less negative environmental impact.
Harrison: What is the hope/main goal of the bank?
LaRoe: My hope is to help turn Central Florida ‘green’ one customer at a time. As “a local bank with a global mission,” we adhere to a values-based business model, which endeavors to do the right thing forthe environment, our people, our community, and our shareholders. I also hope that by spreading the word about First GREEN Bank, other businesses will follow in my footsteps and take on similar green initiatives.
Harrison: How are you advertising?
LaRoe: We promote First GREEN Bank mainly through public relations efforts. We are always on the look-out for opportunities to become leaders in sustainable banking through applying for awards and speaking opportunities. We also have a very active presence on various social media outlets.
In addition to these efforts we utilize paid advertising in several local newspapers and magazines whenever we have something extra special we think the Central Florida community should become aware of.
Harrison: How is the bank doing so far?
LaRoe: We have continued to be successful and grow as a bank since we opened in 2009. Even in the difficult global and national economic climate of the time period during which we opened and have operated, we attained profitability in a remarkably short period (a mere 19 months). First GREEN Bank is also the only bank in Lake County, and one of a select few banks in all of Florida, to receive the coveted 5-star BauerFinancial rating from the nation’s leading independent financial institution rating service.
Kenneth is proving that a bank can be green in every sense of the word! You can read more about First GREEN Banks green business practices here.
