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<\/a><\/a>\nAuto Club Trust was a subsidiary of The Auto Club Group (\u201cACG\u201d) - 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\u2014excluding credit cards\u2014to more than 13 million AAA members and insureds in ACG\u2019s 14 state-territory.\n<\/p>
\nGrasshopper\u2019s 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\u2019s 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.\n<\/p>
\n\u201cWe\u2019re excited to bring our industry-leading digital platform and exceptional service to The Auto Club Group\u2019s members,\u201d said Michael Butler, Grasshopper and Grasshopper Bank\u2019s Chairman and Chief Executive Officer. \u201cBy uniting our digital expertise with AAA\u2019s legacy of trust and reliability, we have a unique opportunity to enhance financial services for current members while attracting new ones.\u201d\n<\/p>
\nGrasshopper 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\u2019s consumer banking division alongside its existing business, startup and commercial-oriented offerings.\n<\/p>
\nMany employees of Auto Club Trust will continue to serve the combined organization. This includes Jai Raju<\/a>, 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.\n<\/p> \nAs 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\u2019s tangible book value.\n<\/p> \nSquire 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<\/i>, served as financial advisor to The Auto Club Group and Auto Club Trust.\n<\/p> \nAbout Grasshopper Bank\n