Old National Bancorp's significant move to acquire Bremer Bank is set to reshape the banking landscape. This merger will bring about a substantial increase in market presence and asset value. The addition of 70 Bremer banking centres across three states is a game-changer for Old National.

Uniting for a Brighter Banking Future

Expanding Market Reach

The merger between Old National Bancorp and Bremer Financial is set to create a banking institution with over bn in assets. By integrating 70 banking centres from Bremer across Minnesota, North Dakota, and Wisconsin, Old National is poised to expand its market reach like never before. This move not only enhances its geographical footprint but also positions it as a major player in these regions. It allows Old National to serve a wider customer base and offer a more comprehensive range of banking services.

Old National chairman and CEO Jim Ryan emphasizes the outstanding fit between the two banks. "This partnership represents an outstanding fit between two highly compatible, relationship- and community-focused banks." This focus on community and relationships is likely to resonate with customers and help Old National build stronger connections in the newly expanded areas.

Post-Merger Ownership and Board Representation

The Otto Bremer Trust, a private charitable trust and majority stakeholder in Bremer, will retain an approximate 11% ownership in Old National post-merger. A Trustee from the Otto Bremer Trust is set to join Old National's Board of Directors. This ensures a seamless transition and a continued commitment to the communities served by both banks. It also highlights the importance of maintaining stakeholder interests and ensuring a smooth integration process.

Bremer president and CEO Jeanne Crain expresses gratitude for the opportunity to identify a partner. "For more than 80 years, we’ve been honored to carry out the legacy of our founder, Otto Bremer. 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."

Completion and Regulatory Considerations

The deal is expected to be completed in mid-2025, contingent on regulatory approvals and Bremer shareholders' consent. This ensures that all necessary legal and regulatory requirements are met before the merger becomes final. It also demonstrates the importance of regulatory compliance in such large-scale transactions.

Citi, Squire Patton Boggs, J.P. Morgan, Wachtell, Lipton, Rosen & Katz, Keefe, Bruyette & Woods, and Sullivan & Cromwell LLP have been appointed as financial and legal advisors for the respective parties involved in the transaction. Their expertise will play a crucial role in navigating the complex regulatory and legal landscapes and ensuring a successful completion of the merger.