Grand Traverse State Bank Opens New Downtown Traverse City Branch

Michigan's oldest continuously operating state bank charter has a Traverse City address. Grand Traverse State Bank opened Tuesday at 232 E. State Street, occupying 2,300 square feet on the ground floor of the five-story Boardwalk building, adjacent to the Park Place Hotel.

The branch operates under GTSB Financial, Inc., the Traverse City-based holding company that acquired First State Bank of Michigan in October 2024. That institution traces its state-chartered roots to 1870, holds a 5-star rating from independent financial evaluator Bauer Financial, and operates at 11 locations across Michigan.

Gregg Bigger, Executive Chairman and CEO of GTSB Financial, called the opening a "proud and exciting milestone" and said the bank would pursue "relationship-driven banking" with local businesses, families, and entrepreneurs. A Michigan native and Old Mission Peninsula resident, Bigger served in the U.S. Marine Corps and later founded two community banks in Santa Barbara, California before returning to build GTSB. He raised $19.7 million in private capital after acquiring the 1870 charter to fund the venture.

Rob Farr, President and CEO of both Grand Traverse State Bank and First State Bank of Michigan, is also an Old Mission Peninsula resident. Farr founded Bank of Birmingham and served as Chairman and CEO of MI Bank before relocating to Traverse City five years ago. The bank has stated its primary focus will be small and midsize business lending, with a technology platform capable of returning loan decisions to applicants in as little as 24 hours.

Kelly Kuhns joined as VP of Branch and Business Banking, and Kelly Schramski as VP of Commercial Lending. Loan production operations launched before Tuesday's branch opening. The majority of GTSB's investors are based in the Grand Traverse region.

GTSB Financial also operates Bank313, a Detroit-based digital community lender launched last fall, and has indicated further Michigan expansion is planned.