Southern Indiana Business Report
EVANSVILLE – Old National Bancorp (NASDAQ: ONB) and Bremer Financial Corporation jointly announced Monday that they entered into a definitive merger agreement. Founded in 1943, BFC is the bank holding company for Bremer Bank.
After the partnership is completed, Old National, which is based in Evansville, will become the third-largest bank in the Twin Cities. In addition, the partnership expands Old National’s reach into several other markets throughout Minnesota, North Dakota and Wisconsin. Once combined, the new organization would have over $70 billion in assets (based on Sept. 30, 2024 asset figures), a significantly larger footprint, and offer additional banking capabilities and enhanced resources to serve customers
As of Sept. 30, 2024, Bremer had $16.2 billion in total assets, $11.5 billion in total loans, and $13.2 billion in deposits, according to a press release from ONB.
“This partnership represents an outstanding fit between two highly compatible, relationship- and community-focused banks,” said Old National Chairman and CEO Jim Ryan. “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. I am incredibly confident that, through this partnership, Bremer and Old National will be even better together.”
“For more than 80 years, we’ve been honored to carry out the legacy of our founder, Otto Bremer,” said Jeanne Crain, president and CEO of 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. With Old National, we have confidence we found a great fit.”
The Otto Bremer Trust
The Otto Bremer Trust is a private charitable trust based in St. Paul, Minnesota. It currently holds a majority ownership stake in Bremer. Established in 1944, the Trust works to combine finance and philanthropy in service of the community. Since its inception, the Trust has made more than $1.1 billion in grants and program-related investments to more than 4,200 organizations.
Upon closing of this transaction, the Trust will have an approximate 11% ownership stake in Old National and a trustee of the Otto Bremer Trust will join the Old National Board of Directors.
“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,” commented The Otto Bremer Trust. “This partnership expands the scope of what can be accomplished for and within our communities – civically, socially and economically.”
Agreement details
Under the terms of the definitive merger agreement, each outstanding share of Bremer common stock will be converted into the right to receive 4.182 shares of Old National common stock plus $26.22 in cash, valuing the transaction at approximately $1,401 million, or $116.76 per share, based on Old National’s closing stock price on Nov. 22, 2024. The definitive merger agreement has been unanimously approved by the board of directors of Bremer and Old National. The transaction is subject to customary closing conditions and regulatory approvals, including the approval of Bremer shareholders. The transaction is anticipated to close in the middle of 2025.
The partnership transaction includes 70 total banking centers in Minnesota, North Dakota and Wisconsin.
As the sixth largest commercial bank headquartered in the Midwest, Old National serves clients primarily in the Midwest and Southeast. With approximately $54 billion of assets and $31 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Old National operates 289 branches in Indiana, Illinois, Kentucky, Michigan, Minnesota, Tennessee and Wisconsin.