Grasshopper Bancorp, Inc.  today announced the completion of its previously announced merger of its wholly owned subsidiary, Grasshopper Bank, N.A. (“Grasshopper Bank”), with Auto Club Trust, FSB (“Auto Club Trust”) in a cash and stock transaction.

Auto Club Trust was a subsidiary of The Auto Club Group (“ACG”) - the second largest AAA Club in North America - and its property-casualty insurance affiliate, Auto Club Insurance Association. Effective April 1, 2025, Grasshopper Bank is the exclusive bank powering depository and lending offerings—excluding credit cards—to more than 13 million AAA members and insureds in ACG’s 14 state-territory.

Grasshopper’s acquisition of Auto Club Trust creates a high-performing financial institution with approximately $1.4 billion in assets and represents an expansion of Grasshopper Bank’s consumer and business banking affinity program offerings. As it expands its reach, Grasshopper Bank will continue to strengthen its existing business lines while delivering outstanding service and innovative solutions to its current clients.

“We’re excited to bring our industry-leading digital platform and exceptional service to The Auto Club Group’s members,” said Michael Butler, Grasshopper and Grasshopper Bank’s Chairman and Chief Executive Officer. “By uniting our digital expertise with AAA’s legacy of trust and reliability, we have a unique opportunity to enhance financial services for current members while attracting new ones.”

Grasshopper Bank is a digital bank built to serve the business and innovation economy, with a long history of leveraging technology to provide clients with a frictionless banking experience. Offering digital solutions both directly and through white-label offerings via its embedded finance platform, Grasshopper Bank continues to redefine modern banking. This acquisition firmly establishes Grasshopper Bank’s consumer banking division alongside its existing business, startup and commercial-oriented offerings.

Many employees of Auto Club Trust will continue to serve the combined organization. This includes Jai Raju, who joins the Grasshopper Bank executive team as Head of Data, a newly-created business line that will help Grasshopper Bank better serve its clients by leveraging data, automation and artificial intelligence (AI). Mr. Raju had previously held the role of Chief Information Officer (CIO) & Chief Information Security Officer (CISO) for Auto Club Trust.

As part of the transaction, Grasshopper raised approximately $34 million in new equity and ACG was issued an ownership stake in Grasshopper. Upon closing, the acquisition resulted in 31% accretion to Grasshopper’s tangible book value.

Squire Patton Boggs (US) LLP served as legal advisor and MJC Partners, LLC served as financial advisor to Grasshopper and Grasshopper Bank. Nelson Mullins Riley & Scarborough LLP served as legal advisor and Keefe, Bruyette & Woods, A Stifel Company, served as financial advisor to The Auto Club Group and Auto Club Trust.