To date, the board of directors of Grand River Bank have provided 30 percent of the equity raised to open the new community bank, an investment amounting to more than $5 million. The bank has also received subscription agreements exceeding 85 percent of its $15 million minimum goal. The bank received Federal Deposit Insurance Corp. approval March 12.
The board of Grand River Bank sent out letters March 6 inviting investors to buy shares of its stock. Its offering price is $10 per share, and the minimum purchase is 250 shares. The offering is open until April 30, but the board reserves the right to close earlier once it exceeds its minimum capitalization, Grand River Bank President and CEO David Blossey wrote in the letter.
Bob Dalton, the bank’s Commerce Street Capital consultant, said Grand River Bank sent the invitation to 13,800 active prospects in the organizing group’s data base and to 36,000 households in its market service area with annual incomes of $150,000 or more. All in all, the bank mailed 44,000 letters of invitation to potential investors, he said.
Grand River Bank will be a commercially oriented bank. In its business plan and in its application with the FDIC, the organizers projected that 69 percent of its business will be commercially oriented, with the balance tied to consumer and retail products.