Old National Bancorp sought to bolster its footprint in the Twin Cities and expand its footprint into other Midwestern markets by acquiring Bremer Financial Corp. (BFC), the bank holding company for Bremer Bank.
Upon completion of the definitive merger agreement between the two institutions, Old National will become the third-largest bank in the Twin Cities with more than $70 billion in total assets, according to a joint press release announcing the deal.
As of Sept. 30, Bremer held $16.2 billion in total assets, $11.5 billion in total loans, and $13.2 billion in deposits. The bank also operates 70 locations in Minnesota, North Dakota and Wisconsin.
“This partnership represents an outstanding fit between two highly compatible, relationship- and community-focused banks,” Old National Chair and CEO Jim Ryan said in the release. “When you look at what has made Bremer Bank a leading institution since 1943, what you quickly find are the same strategic priorities and cultural principles that have guided Old National’s success for 190 years: a strong deposit franchise, a diversified loan portfolio accentuated by exceptional credit quality, and a passion for investing in and strengthening communities.”
Old National also will assume an 11 percent ownership stake in the Otto Bremer Trust, a private charitable trust based in St. Paul, Minn. The trust currently holds a majority ownership stake in Bremer. One of its trustees will join the Old National Board of Directors.
“For more than 80 years, we’ve been honored to carry out the legacy of our founder, Otto Bremer,” Bremer President and CEO Jeanne Crain said. “When our majority shareholder, the Otto Bremer Trust, reaffirmed its interest in selling Bremer Bank, we appreciated the opportunity to identify a partner through a collaborative process to ensure the best possible outcome for our customers, employees, and our communities. With Old National, we have confidence we found a great fit.”
The trust works to combine finance and philanthropy in service of the community. Since its inception in 1944, it has made more than $1.1 billion in grants and program-related investments to more than 4,200 organizations.
“All of us at the Otto Bremer Trust are excited that the Bremer Bank legacy of investing in people, places and opportunities continues with one of the most community-minded banks in the nation,” the trust said in a statement. “This partnership expands the scope of what can be accomplished for and within our communities – civically, socially and economically.”
The agreement was unanimously approved by both companies’ boards of directors and the transaction is expected to close in mid-2025, subject to customary closing conditions and regulatory approvals, including approval from Bremer’s shareholders.