Grasshopper Bank to Acquire Auto Club Trust, Enhancing Banking Services for AAA Members

Date: October 9, 2024
Grasshopper Bancorp, the parent company of Grasshopper Bank, has announced a definitive merger agreement to acquire Auto Club Trust, a subsidiary of The Auto Club Group (ACG). This strategic move positions Grasshopper Bank as the exclusive banking partner for depository and selected lending services to AAA members across ACG’s 14-state territory, pending regulatory approvals.
The merger, which received unanimous approval from both companies’ boards of directors, is anticipated to finalize in the first half of 2025, subject to customary closing conditions.
Michael Butler, Chairman and CEO of Grasshopper and Grasshopper Bank, expressed enthusiasm about the acquisition, stating, “We are excited to integrate Grasshopper Bank’s award-winning digital banking experience into Auto Club Trust’s marketing strategy. This partnership will allow us to broaden the consumer and business products available to this community over time.”
Auto Club Trust, a federally chartered savings bank, boasts total assets of approximately $495 million. ACG stands as the second-largest AAA club in North America.
This merger will synergize Grasshopper Bank’s advanced digital platform with Auto Club Trust’s established banking capabilities. “This transaction enables ACG to continue offering banking products to our members while leveraging Grasshopper’s technological strengths and resources to expand our financial services,” said Joseph J. Richardson, President and CEO of The Auto Club Group.
Grasshopper Bank has consistently invested in technology that enhances the security and mobility of customer funds, aligning with the organization’s commitment to customer-centric values. Christopher Mastrangelo, Chief Compliance Officer at Grasshopper Bank, previously remarked, “We have built strong client relationships by prioritizing security and exceptional service.”
Earlier this year, Grasshopper Bank partnered with Pocketbook to provide small- to medium-sized business customers with white-labeled, FDIC-insured commercial checking accounts, further enhancing its suite of financial services.