Grasshopper, a full-service digital bank focused on client-first financial solutions, has announced the successful completion of a $46.6m funding round.
The round was led by Patriot Financial Partners LP, with additional support from Glendon Capital Management. The new investment follows the bank’s recent merger with Auto Club Trust, FSB, which was finalised in April 2025.
Grasshopper provides a comprehensive digital banking platform tailored to the needs of modern businesses and, increasingly, consumers. Its suite includes secure deposit accounts, flexible lending products, and digital financial tools designed to support clients across various growth stages.
The latest capital injection will support further development of Grasshopper’s digital capabilities and expansion of its product offering. The bank aims to build on its existing momentum by investing in technology, broadening its reach, and delivering innovative banking services for both business and retail clients.
Following a significant year of growth in 2024, Grasshopper has continued to scale. By mid-2025, the bank had grown its total assets by 53% to $1.33bn, deposits by 81% to $2.37bn, and total loans to $961.8m — a 49% increase compared with the end of 2024. The combination of organic growth and the Auto Club Trust acquisition has fuelled this performance.
In addition to the funding, Grasshopper has appointed four new members to its board of directors. These include James Fitzgerald, former CFO of Eastern Bankshares and Citizens Financial Group; Brian Graham, co-founder of Klaros Group and former CEO of BancAlliance; Karen Solomon, senior of counsel at Covington & Burling and former acting chief counsel at the Office of the Comptroller of the Currency; and John M. Surgent, CPA, founder of multiple financial education and investment firms.
Grasshopper CEO Mike Butler said, “From the beginning, our vision has been to redefine what digital banking can do for entrepreneurs, modern businesses, and the ecosystem that supports them. With our recent acquisition, we are excited to expand that vision to serve consumers through our affinity banking partnership with The Auto Club Group. The backing from this seasoned group of investors is a powerful vote of confidence in our mission, our strategy and our team.
“We’re incredibly proud of the momentum we’ve built, and we’re just getting started. This capital gives us the opportunity to continue pushing boundaries, broaden our reach, and unlock new possibilities in how we deliver meaningful, future-ready digital banking experiences that meet people where they are and anticipate where they’re headed next.”
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