Isabella Bank Corporation agreed on 12 June to acquire Grand River Commerce, Inc., the parent of Grand River Bank, in a cash-and-stock transaction valued at approximately $54.6 million.
Under the terms, Grand River shareholders will receive approximately $5.72 in cash or about 0.1415 shares of Isabella common stock for each Grand River share, subject to elections, with 65% of Grand River shares to be exchanged for stock and 35% for cash. Isabella, listed on Nasdaq as ISBA, is based in Mt Pleasant, Michigan; Grand River, traded on the OTCQX as GNRV, is headquartered in Grandville, Michigan.
The boards of both companies unanimously approved the agreement. Completion requires regulatory approvals and the approval of Grand River shareholders, and is expected in the fourth quarter of 2026.
ENTRY INTO GRAND RAPIDS
Grand River had total assets of $511.7 million, loans of $437.9 million and deposits of $438.9 million at 31 March 2026, and operates two branches in the Grand Rapids area. The combined company would have about $2.8 billion in assets, $2 billion in loans, $2.3 billion in deposits and 33 locations across nine Michigan counties. The deal takes Isabella into Kent County.
Isabella expects cost savings of about $4.9 million, equivalent to 35% of Grand River's expenses, and for the transaction to add about 10% to its 2027 earnings per share. Grand River's Drew Ysseldyke is to join Isabella as market president. Isabella president and chief executive Jerome Schwind said the partnership aligned with the company's long-term strategic plan and built on shared values and similar cultures.
Piper Sandler & Co. and Luse Gorman, PC are advising Isabella, while Brean Capital, LLC and Hunton Andrews Kurth LLP are advising Grand River.