Old National to buy Bremer Financial for $1.4B

(MPRnews) – Old National and Bremer Financial announced Monday morning a $1.4 billion merger agreement that will make Old National the third-largest bank in the Twin Cities and expand its banking footprint throughout Minnesota, North Dakota and Wisconsin.

Old National will acquire Bremer, which has $16.2 billion in total assets, $11.5 billion in total loans, and $13.2 billion in deposits as of September.

Once combined, the new organization will have over $70 billion in total assets. It will also expand Old National’s reach with 70 more banking centers throughout the three northern Midwest states: 48 branches in Minnesota, 14 branches in North Dakota and eight branches in Wisconsin, according to a press release from Old National.

“For more than 80 years, we’ve been honored to carry out the legacy of our founder Otto Bremer. During this time, we’ve proudly served communities throughout Minnesota, North Dakota and Wisconsin,” said Jeanne Crain, president and CEO of Bremer, in a statement. “When our majority shareholder, Otto Bremer Trust (OBT), reaffirmed their interest in transferring ownership of Bremer, the Bremer Financial Corporation Board and OBT trustees worked collaboratively to identify an acquirer with a commitment to customers and connection to community similar to our own.”

Crain said in the release that the transition from Bremer to Old National will take several months, but service to customers will continue through branches, online or through mobile apps.

“This partnership represents an outstanding fit between two highly compatible, relationship- and community-focused banks,” said Old National Chairman and CEO Jim Ryan in a statement Monday.

The news of the merger follows a legal settlement between Bremer and it’s largest owner, the St. Paul-based philanthropy trust Otto Bremer Trust. According to the Pioneer Press, the five-year legal dispute regarding the trust selling the bank ended in July, with three trustees behind the trust placed back on the board of Bremer Financial, giving them voting rights in the future of the bank. Most other terms regarding the settlement were not disclosed.

The trust, founded in 1944, has granted over $1 billion to communities and organizations throughout Minnesota, Montana, North Dakota and Wisconsin.

In a statement released Monday, the trustees said the agreement “will not affect the work of the Otto Bremer Trust.”

“Our trustees remain committed to the Otto Bremer Trust’s mission of investing in people, places, and opportunities in our region, and we will continue to invest in our communities through grants and program-related investments.”