GTSB Financial Inc., the holding company of the proposed Grand Traverse State Bank, has finalized least negotiations for 2,300 square feet of office space in the new Boardwalk building at 232 East State Street in Traverse City.

Gregg Bigger, executive chairman and CEO of GTSB, says the bank expects to take possession of first-floor space in the five-story, mixed-use building by January. The space is currently being built out for the bank.

GTSB also applied on Friday for approval from state and federal regulators to operate Grand Traverse State Bank as a full-service branch of First State Bank of Michigan in Decatur. Bigger changed the name of that bank from the First State Bank of Decatur after GTSB acquired it in 2024.

“Launching Grand Traverse State Bank extends our legacy of community-based banking into Traverse City, allowing us to serve small and midsize businesses, families and entrepreneurs in one of Michigan’s most vibrant markets,” he said.

Bigger announced the formation of Grand Traverse State Bank in 2023 but said getting it off the ground was delayed because of several failed lease negotiations at other potential sites. The bank’s opening date depends on the timing of regulatory approvals, he said.