Walden Mutual Bank, a sustainable food focused digital bank, raised $24 million in Special Deposit Shares; and received FDIC and State of NH approval for the first new mutual bank charter in 50 years.

In Episode 155 of the Disruptors for Good podcast, we speak with Charley Cummings, President and CEO of Walden Mutual Bank, on creating a sustainable food focused digital bank and helping people grow their savings while supporting local farms and food businesses daring to do things differently.

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The bank will be opening its doors in the coming weeks to anyone interested in supporting a more sustainable and equitable local food ecosystem.

Deposit accounts will be available to all and Walden Mutual has built a lending pipeline of over $50 million.

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“We are already working with people across the entire food ecosystem — from farms to processors, consumer brands, and other businesses developing New England and New York’s sustainable food industry.

This region has always been at the center of the local food movement, and we intend to serve and invest in local innovative leaders.”

/ Christine Bascetta-Gath, Senior Vice President of Lending

Mutual banks — distinct from stock banks — do not have shareholders. Instead, they are owned and governed by their community.

Walden Mutual is the first new mutual to receive approval in 100 years in the state of New Hampshire and 50 in any state.

Using innovative “Special Deposit Shares,” Walden Mutual raised $24 million dollars from over 230 community investors, allowing the bank to be mutually owned while reaching modern capital requirements for new banks.

“Mutual banks accounted for almost 80% of deposits in 1914 New England and served communities well for many decades, but many of them have disappeared recently in favor of more traditional investor ownership.

/ Charley Cummings, President and CEO of Walden Mutual.

“We view the mutual structure as ripe for reinvention in the modern era. When many are clamoring for companies to deliver holistic value to all stakeholders, mutually governed organizations are poised to deliver.”

Traditional banks use depositor’s funds in a variety of ways, including making loans to companies that don’t align with their customer’s values, like industrial farming or fossil fuel development.

In stark contrast, Walden Mutual puts depositors’ money to work in the community by issuing loans to local, sustainable food businesses, farms, and other ventures across the region’s food ecosystem.

About Walden Mutual Bank

Walden Mutual Bank believes anyone can make positive and lasting change in our local food ecosystem.

Headquartered in Concord, NH and working across New England and New York, they are launching digital-first bank accounts for individuals and loans tailored to local food and farm businesses.

They are the first new mutual bank in 50 years nationwide and 100 years in New Hampshire.

Interview Transcript

00:10

Grant: Thank you so much, Charlie, for joining me today. Super excited to talk about your path and your journey into starting a bank. I’m really interested in the banking side of things, especially as it relates to sustainable food and agriculture, which is becoming much more top of mind for a lot of people.

How can we get more regenerative and sustainable farming leaders and get them in front of customers more? Finance plays a big role in that. But first, talk a little about your journey to even start Walden Mutual and get involved in starting a bank because your past has been in food and energy. Let’s talk about that path.

01:15

Charlie: Yeah, I’m happy to and thanks for having me, Grant. So I’ve always been passionate about sustainable energy, agriculture, and waste, and how those intersections affect climate change and other environmental problems.

Earlier in my career, I co-founded and sat on the board of an advocacy organization for the first proposed offshore wind farm in the U.S., off the coast of Cape Cod.

It was a contentious project, even with leading progressives like the Kennedy family opposing it, saying they supported wind energy, just not in their backyard. I found that problematic because the alternative was coal plants in someone else’s backyard.

I spent time with various venture-backed companies in the clean energy space, most recently with a company doing composting and anaerobic digestion in California’s Central Valley.

It’s the most agriculturally productive place on the planet, but it’s on the edge of failure if the water supply is disrupted. The impact of industrial agriculture on surrounding communities is stark.

You can’t walk down the street without the smell of ammonia overwhelming you. That experience contrasted with my experience with the wind project and inspired a quest to reinvigorate a more sustainable local food ecosystem.

In 2013, I started Walden Local, a brand of sustainable local meat in New England and New York. We work with area farms that produce grass-fed beef, pasture-raised pork, chicken, and lamb, and sell them directly to member families. This business revealed gaps in the existing lending infrastructure.

We were often lending to our supply chain partners, which led to the realization of an opportunity on the banking side. The lowest cost of capital comes from federally insured deposits, which made pursuing a bank charter worthwhile.

06:25

Grant: Is it particularly to fund local farmers?

06:38

Charlie: No, it includes production farms and the entire ecosystem—manufacturers, distributors, consumer brands, trade brands, and even peripheral businesses like composting or dog treat companies that upcycle waste streams from farms and fisheries.

07:21

Grant: Are they mostly startups or traditional businesses looking to become more sustainable? Do you turn traditional businesses away or help them change their practices to fit your ethos?

07:47

Charlie: Definitely the latter. We don’t turn people away; instead, we help them grow and move along the spectrum of holistic stakeholder impact analysis. Borrowers take an initial impact assessment at underwriting and annually thereafter, closely derived from the B Corp assessment.

We’re not looking to lend to businesses far outside our ecosystem or actively doing harm, but we’re open to helping those willing to improve.

09:41

Grant: I agree. Most people want to improve their practices, especially when they understand that sustainable methods can be more economically viable. They want their land to remain viable for future generations. Your approach of not turning people away but instead educating them is valuable across all sectors.

10:53

Charlie: Absolutely. This approach applies to businesses throughout the value chain. For example, an old-school manufacturer might benefit from learning about low-hanging fruit changes that can catalyze significant impact. One powerful exercise is writing down a non-financial mission, which can be a significant first step.

12:15

Grant: Let’s touch on the mutual bank structure and its differences from traditional investment or regional banks.

12:35

Charlie: Sure. There are two sides to a bank balance sheet—loans and deposits. Depositors’ money isn’t just sitting in a safe; it’s being used in the world.

Opening a new bank was interesting because where our dollars sleep at night can be impactful. Top banks have invested heavily in fossil fuels since the Paris accords. We wanted a bank that aligns with our values.

The mutual structure ensures our long-term commitment to impact. Unlike stock-owned banks, mutual banks are owned by their depositors, with no pot of gold at the end of the rainbow. Our board of corporators represents the long-term interests of the depositors.

15:55

Grant: Mutual banks and credit unions are both not-for-profit institutions, right?

16:02

Charlie: Credit unions are typically structured as nonprofits. Mutual banks aren’t, which allowed us to start with blended capital and a bigger base. Credit unions also face restrictions on commercial lending, making the mutual structure a better fit for us.

17:24

Grant: You raised the required capital from 230 community investors. Starting a bank seems impossible for normal people, but this model makes it more accessible. How did you achieve that?

18:22

Charlie: Our minimum investment was $5,000, making it accessible. We organized the capital raise akin to how banks were started 100 years ago—people with shared ideals pooling their savings. This built a community around the capital and gave us a strong base to start from.

19:20

Grant: It was the first mutual bank to open in 50 years in the U.S. Why did this structure fall out of favor?

19:35

Charlie: The mutual structure fell out of favor partly due to unclear capital requirements. In the past, you could start a bank with debt, but now you need core capital to backstop the Federal Insurance Fund.

Mutual banks are a hybrid structure that attracts progressive thinking, aligning dollars with values. Only recently have people started thinking holistically about their entire investment portfolio, rather than keeping charity and investments separate.

21:57

Grant: What inspired you to start a bank? How did it come to your attention?

22:29

Charlie: I’ve always been interested in hybrid structures between nonprofits, for-profits, and public sector influence. I got to know folks at Organic Valley, a producer-owned cooperative, and Bob Burke, chair of King Arthur Bakery, which is employee-owned through an ESOP.

I also have friends who set up a purpose-driven trust for their candle company. These structures inspired me to create something with longevity and governance around non-financial impact.

The mutual bank structure felt like a perfect match for the opportunities in the supply chain, understanding that businesses need more than just loans with interest rates.

25:45

Grant: Can you share some examples of businesses that have come through your metaphorical door and received loans?

26:15

Charlie: Sure. One outside our region is Fishwife, a business reinventing the category of tinned seafood. Polka Dog, a dog treat business in Boston, uses underutilized waste streams from farms and fisheries.

LMNOP, a wholesale bakery in Katonah, New York, opened their first retail location with our help. Monadnock Berries, a farm in New Hampshire, diversified from wholesale berries to a wedding venue, brewery, and agritourism business.

29:59

Grant: Your goal isn’t to become a global mega bank but to inspire others to do right by their communities. What are your goals for the next three to five years?

32:11

Charlie: Our aspiration is to inspire a more sustainable, just, and vibrant local food ecosystem. We hope others will follow our model in their regions. We’re not trying to answer for everyone; we’re just doing right by our community. Local, tangible, and specific impact is more meaningful than diffuse general impact. We could expand into energy and waste management, always focusing on localized impact.

34:55

Grant: Absolutely. The innovation impact needs to scale with the business. Local impact is powerful because people can see the results in their community. It’s more meaningful than distant impacts.

37:11

Charlie: As long as our North Star is local, there are many dimensions to grow from. Energy and waste management are areas we could expand into. Localized impact is the most powerful lens to address these issues.

38:05

Grant: Thank you so much, Charlie. Best of luck with the launch and the future. I appreciate your work and vision.

38:20

Charlie: Thanks so much, Grant. I appreciate it. Check us out at waldenmutual.com. We’re opening the doors in the next couple of weeks.

38:28

Grant: I’ll link to everything below.