Grasshopper Bank Completes Merger with Auto Club Trust, Expanding to $1.4B

Grasshopper Bank, N.A., a digital bank known for serving fintechs as a sponsor bank, completed its merger with Auto Club Trust, FSB on April 1, 2025. The transaction was structured as a cash-and-stock deal, though specific financial terms were not publicly disclosed. Following the merger, Grasshopper expanded to approximately $1.4 billion in assets.

The combined entity is positioned to enhance both consumer and business banking offerings. As a prominent sponsor bank in the BaaS ecosystem, Grasshopper's growth through this acquisition strengthens its capacity to serve fintech partners at scale. The merger adds Auto Club Trust's federal savings bank charter and customer base to Grasshopper's existing digital-first banking platform.

This deal reflects ongoing consolidation among banks active in the embedded finance and BaaS space.