Yes, God is a God of grace, love, and mercy. God is also just. God hates sin. Paul talked about the church dealing with unrepentant sin.
(1 Corinthians 5:11-13 NIV) But now I am writing you that you must not associate with anyone who calls himself a brother but is sexually immoral or greedy, an idolater or a slanderer, a drunkard or a swindler. With such a man do not even eat. {12} What business is it of mine to judge those outside the church? Are you not to judge those inside? {13} God will judge those outside. "Expel the wicked man from among you."