I don't know if this will be of help, but for the time frame you reference, it is likely that if your grandfather was Catholic which was the predominate religion in Bay County at that time, he may have attended school and church at St. Joseph, St. Mary, St. James or St. John. These were the early Catholic church movements in Bay County.
The following websites might be of help in finding further information:
Early Catholic church history:http://bay-journal/bay/1he/religion/church-bc-stjoseph.html
Listing of present Catholic churches:http://www.baycityarea.com/default_01_churches-catholic.htm
If your grandfather was a Catholic, the older church communities should have a record of membership with them.