Bremer Bank to Change Hands in $1.4B Deal
After decades of private ownership, St. Paul-based Bremer Bank is set to become part a publicly traded bank.
On Monday morning, Bremer Financial Corp.–Bremer’s holding company–announced that it’s reached a deal to be acquired by Indiana-based Old National Bank for $1.4 billion.
The combined bank would create the third-largest bank in the Twin Cities, the banks said in a joint press release.
As of September, Bremer had $16.2 billion in total assets. The combined bank would have over $70 billion in assets.
“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,” said Old National Chairman and CEO Jim Ryan in the release.
The deal announced Monday marks the end of a yearslong acrimonious saga over the future of the St. Paul bank. Otto Bremer Trust, which owns Bremer Financial, first floated plans to sell the bank back in 2019. Not long after, Bremer Financial board members sued the trust, arguing that trustees were acting in a “disloyal scheme” to enrich themselves through the sale. The trustees went on to file their own counterclaim that same year.
This July, trustees and Bremer Financial finally reached a settlement to end litigation, ultimately opening the door for the acquisition deal.
In a separate statement on Monday, the Otto Bremer Trust said that the acquisition “will not affect” its work.
“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,” the statement read.
The trust, which is currently the majority owner of Bremer, would still retain an 11% ownership stake after the transaction closes. The deal is slated to close in the middle of 2025.
