A Grandville bank is changing hands. Isabella Bank of Mount Pleasant will acquire Grand River Commerce, the parent company of Grand River Bank, in a $54.6 million cash and stock deal.

The two banks announced the agreement on Friday. The transaction is expected to close in the fourth quarter of 2026.

A Grandville institution enters a new era

Grand River Bank opened for business in April 2009. It is headquartered in Grandville and operates a second branch in Grand Rapids Township. As of late March, the bank held approximately $511.7 million in assets, $438 million in loans, and $439 million in deposits, according to a joint press release from both banks.

The bank has faced financial turbulence in recent years. Grand River reported losses of $1.5 million in 2022 and $6.4 million in 2023, tied to a national mortgage lending subsidiary launched just as interest rates spiked, according to American Banker. The bank shuttered its Grand River Mortgage Co. in December 2023.

Grand River reported net income of $814,000 for the quarter ending March 31, 2026, and $1.95 million for all of 2025, according to American Banker.

What changes for customers

Both banks said customers and employees will continue operations as usual until the deal closes. Grand River's branches will remain open during the transition.

"We are excited to carry our legacy forward with an organization that shares our culture and long-term vision," Grand River Commerce President and CEO Robert Bilotti said in a statement. "This partnership with Isabella Bank reflects those same principles and delivers a meaningful value to our shareholders, while positioning our customers, employees and communities to benefit from enhanced capabilities and continued relationship-based banking."

Drew Ysseldyke, Grand River Bank President and CEO, is expected to join the combined company as Grand Rapids market president, according to American Banker.

Isabella's first acquisition in nearly two decades

This deal marks Isabella Bank's first acquisition since 2007, when it bought Greenville Community Bank, according to American Banker. Isabella, founded in 1902, operates 31 locations across eight mid-Michigan counties and holds $2.3 billion in assets.

The acquisition brings Isabella into the Grand Rapids market for the first time. The Grand Rapids metropolitan statistical area grew more than 3 percent between 2020 and 2025, reaching a population of 1.18 million, according to U.S. Census Bureau data cited by American Banker.

"We are excited to join forces with Grand River and enter Kent County and the vibrant Grand Rapids market," Isabella Bank Corporation President and CEO Jerome Schwind said in a statement. "This partnership aligns with our disciplined, long-term strategic plan and importantly aligns and builds on shared common values and similar cultures."

The numbers behind the deal

The combined company will operate under the Isabella brand. It will have:

• Approximately $2.8 billion in total assets
• About $2 billion in loans
• Roughly $2.3 billion in deposits
• 33 locations across nine Michigan counties

Isabella expects the deal to add about 10 percent to its 2027 earnings per share, its first full year including Grand River, according to American Banker. The bank also forecasts cost savings of $4.9 million, representing about 35 percent of Grand River's expense base.

Both companies' boards of directors have approved the agreement, according to the joint release. The deal is subject to regulatory approval and shareholder votes before it can close.

"When we formed Grand River Bank, our goal was to create a strong, relationship-driven institution, defined not only by its growth and asset quality but by the values and trust we have earned in the communities we serve," Bilotti said. "We look forward to bringing our Isabella Wealth Services into this new market and delivering even greater value to our existing and new customers, employees and shareholders," Schwind added.

Grand River Bank controls about 1.3 percent of the Grand Rapids region's $32.5 billion in deposits, according to FDIC statistics cited by American Banker. The broader West Michigan banking market holds over $38.3 billion in total deposits, according to Crain's Grand Rapids Business.