TRAVERSE CITY — A new bank is on the way to serve the Grand Traverse region after reaching a lease deal for a branch in downtown Traverse City.
GTSB Financial, Inc., the holding company of First State Bank of Michigan, announced Tuesday that it finalized lease negotiations for new office space in the Boardwalk mixed-use building at 232 E. Front St. in downtown Traverse City. The new location will operate under the name Grand Traverse State Bank.
Officials said GTSB Financial and the bank’s leadership will immediately begin working with federal and state regulators to pursue approval for full branch banking operations in Traverse City.
”This is an exciting new chapter in our history,” Gregg Bigger, Executive Chairman & CEO of GTSB Financial, Inc, said in a statement announcing the new lease. “Launching Grand Traverse State Bank extends our legacy of community-focused banking into Traverse City, allowing us to serve small and midsize businesses, families, and entrepreneurs in one of Michigan’s most vibrant markets.”
Bigger said he had “no idea” how long the state and federal regulatory approval process will take, but that the new bank hopes to open in the first quarter of 2026.
GTSB Financial, Inc. is a bank holding company that acquired First State Bank of Michigan in October of 2024. First State Bank of Michigan was founded in 1870 and is headquartered in Decatur in Macomb County. First State Bank of Michigan is the state’s oldest continuously operating financial institution, and has a 5-star rating from the Bauer Financial independent financial rating firm. It employs more than 180 workers at 11 Michigan locations.
”We are proud to build on our 150-year legacy by bringing Grand Traverse State Bank to the community,” said Rob Farr, President & CEO of First State Bank of Michigan. “Traverse City is a natural fit for our relationship-driven banking approach, and we look forward to providing trusted service, innovative products, and deep community engagement.”
Grand Traverse State Bank will occupy Suite 101, a 2,121-square foot space in the ground floor of the Boardwalk Building that was developed and is owned by Socks Construction Co. It’s a 5-story 72,000 square-foot structure on the site of the former Covell Funeral Home downtown, and includes three commercial spaces on the ground floor and short- and long-term rental residential units in the upper floors.
Kevin Endres of Three West Properties, which is handling the commercial sales for the building, said the ground-floor space includes another 2,849-square foot commercial space and a third 2,182-square foot suite. The other two sites are drawing interest from both retail and restaurant operators, he said, and is optimistic that the building will continue to draw more commercial activity to State Street in downtown Traverse City that’s seen a surge in business development in recent years.
”We’ve had some good interest in the other two spaces,” Endres said. “I think we’ll end up seeing State Street as more of a central business loop downtown, rather than just a way to get to Front Street.”