Isabella Bank in Mt. Pleasant, Mich., has agreed to buy Grand River Commerce in Grandville, Mich.
The $2.3 billion-asset Isabella said in a press release that it will pay $54.6 million in cash and stock for the $511.7 million-asset Grand River. The deal, which is expected to close in the fourth quarter, priced Grand River at 123% of its tangible book value.
Grand River has $438.9 million in deposits and $437.9 million in loans.
“This partnership aligns with our disciplined, long-term strategic plan and, importantly, aligns and builds on shared common values and similar cultures,” Jerome Schwind, Isabella’s president and CEO, said in the release. “We look forward to bringing our Isabella Wealth Services to this new market and delivering even greater value to our existing and new customers, employees, and shareholders.”
The deal should be 10.4% accretive to Isabella’s 2027 earnings per share. It should take less than two years for Isabella to earn back an estimated 4% dilution to its tangible book value.
Isabella plans to cut 35% of Grand River’s annual noninterest expense, or $4.9 million. It expects to incur about $7.7 million in merger-related expenses.
Drew Ysseldyke, Grand River’s president and CEO, will become a market president at Isabella.
Piper Sandler and Luse Gorman advised Isabella. Brean Capital and Hunton Andrews Kurth advised Grand River.