3rd Q Earnings Release

To our valued shareholders:

We are pleased to present the unaudited consolidated financial statements for Grand River Commerce, Inc. ("Company") and its subsidiary, Grand River Bank ("Bank"), for the nine-month period ended September 30, 2021.

The third quarter of the year produced excellent overall performance, with continued growth in all operational areas. Despite contending with persistent supply chain disruptions, West Michigan's business environment remains generally healthy, as reflected by continued demand for commercial loans and related services. Within the constraints imposed by inventory and capacity considerations, the residential real estate market continues to be active as well, resulting in sustained construction and purchase loan volume. Based upon the Company's year-to-date results, our assessment of the local economy and the strength of our team, we remain optimistic about our full-year performance.

As of September 30, 2021, total assets of the Company stood at $497 million, an increase of approximately $45 million from year-end 2020. Year-to-date loan growth has been impacted by the forgiveness of Paycheck Protection Program (PPP) loans. Approximately $68 million in PPP balances were forgiven over the first nine months of the year, including $49 million of balances outstanding as of December 31, 2020. Excluding PPP, our core loan portfolio has grown nearly $40 million this year. An active participant in round one of PPP, the Bank also participated in round two, generating an additional 209 loans totaling $31.2 million. Excess cash reserves were used to fund loans and invested in available-for-sale securities.

Asset quality at quarter-end remained exceptionally strong, with no charge-offs, negligible delinquency and one well-managednon-performing loan relationship. As has always been our practice, we continue to rigorously monitor our overall portfolio and communicate frequently with our customers. The majority of our commercial customers continue to report high demand for their products and services and are performing well, with many posting record revenue and earnings.

At the outset of the pandemic, and in accordance with regulatory guidelines, we made interest-only or deferred payments available to a number of our customers. Most of the borrowers who took advantage were commercial customers and substantially all have now successfully transitioned back to their contractual payment schedules. The hospitality industry continues to experience some stress, but our exposure to that sector is minimal and largely supported by guarantees from the U.S. Small Business Administration. At quarter-end, our allowance for loan losses stood at 1.34%, compared to 1.49% at year-end (both figures are net of fully guaranteed PPP loans). This decrease is reflective primarily of continued improvement in the economic indicators that factor into the allowance calculation. Those strengthening indicators favorably impacted the calculation, resulting in a lower provision expense despite growth in the portfolio. On a gross basis, the allowance was 1.31% at September 30, 2021. The reduced allowance percentage accounts for approximately $546,000 in net income.

The Company and the Bank reported pre-tax net income of $3,730,000 and $4,391,000, respectively, as of September 30, 2021. Excluding the previously mentioned change in provision expense resulting from improved economic indicators, pre-tax income for the Company is up 43%

compared to the same period last year. Pre-tax/pre-provision Company income is down approximately 5% year over year due to increased non-interest expense.

Net interest income increased $1,717,000, or 21%, year-over-year. Key contributing factors were reduction in interest expense, growth in earning assets and the recognition of PPP-related loan fee income, which, in accordance with accounting standards, is being recognized over the life of the loans. Pervasively low interest rates continue to impact both sides of the balance sheet, resulting in overall reductions in both earning asset yields and the cost of funds.

Non-interest income is essentially equivalent to last year. Record residential mortgage loan production revenue has been offset by decreased commercial banking fees, primarily resulting from lower-than-anticipated income from interest rate swap transactions. While mortgage volume has been very strong in 2021, fluctuating interest rates and a continuing imbalance between buyer demand and homes available for sale may have a dampening effect on both the market and the possible contribution from our mortgage unit in future reporting periods.

Non-interest expense increased $1,922,000, or 27.7%, year-over-year. Approximately $390,000 of the increase is the result of deferred salaries and benefit expenses related to the first round of PPP lending in 2020. As with PPP-related fee income, origination costs are also recognized over the lives of the loans. The year-over-year variance reflects both the lower loan volume and the lower origination cost per loan for round two of PPP activity in 2021. Net of these PPP-related expenses, the year-over-year increase was 22%. The remainder of the increase is attributable to pre-planned expenditures for critical operating systems, technology enhancements and judicious team member additions to support continued growth and profitability.

Maintaining capital ratios that meet or exceed the regulatory definition of well-capitalized continues to be a priority. As has been the case since its inception, the Bank again met those requirements as of September 30, 2021. The Company also holds reserves that can further support the growth of the Bank and the Company and provide a cushion in the event of worsening economic stress.

Our new office, located at 50 Crahen Avenue, N.E. in the Ada/Cascade area, continues to meet our expectations. Opened in January, this impressive new facility, which appears on the cover of this report, allows us to more effectively serve our growing customer population and enhances our visibility in this important market.

Our brand of community banking is relationship-based and personally delivered, and our team members are integral to our success. We're very proud of the forward-thinking,problem-solving orientation of our growing team. We continue to attract the best and brightest financial professionals in West Michigan, individuals who are uniquely committed to meeting the needs of those we serve. Each day, they collectively reinforce our culture of optimism and achievement. We're deeply grateful to our exceptional team members for their unselfish and unrelenting efforts to provide support, reassurance and resources for all who depend upon our Bank to be their trusted financial partner.

Our financial results are always available via the Investor Relations section of our website, www.grandriverbank.com. We encourage you to use this comprehensive resource to track our performance and to gain valuable information about your investment in our Company. We remain

committed to taking full advantage of our many opportunities, pleased with our overall trajectory and confident in our future. Thank you for your investment and your support.

Sincerely,

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