Indiana’s Old National Bancorp to acquire Bremer Bank

Evansville, Ind.-based Old National Bancorp is acquiring St. Paul, Minn.-based Bremer Financial for $1.4 billion..As of Sept. 30, Bremer Financial Corp. had $16.2 billion in assets, $11.5 billion in loans and $13.2 billion in deposits. The $54 billion Old National is expected to grow to more than $70 billion in assets, becoming the third-largest bank in the Twin Cities. .The deal includes 48 branches in Minnesota; 14 in North Dakota; and eight in Wisconsin. The merger is expected to close in the middle of 2025. .Old National Chair and CEO Jim Ryan said both companies have strong deposit franchises, diversified loan portfolios and are committed to investing in communities. "This partnership represents an outstanding fit between two highly compatible, relationship- and community-focused banks," Ryan said..The merger was announced approximately three weeks after a report that Bremer Financial Corp. was for sale. Bremer Financial's largest shareholder, Otto Bremer Trust, recently took part in a years-long court battle following the 2019 decision by Otto Bremer Trust trustees Daniel Reardon, Charlotte Johnson and Brian Lipschultz to sell the trust's share in the company to a group of hedge fund managers with the reported goal of forcing out some board members and sparking a full sale of the bank. In July, the three trustees and Bremer Financial Corp. reached an undisclosed settlement. .Bremer President and CEO Jeanne Crain said when Otto Bremer Trust expressed interest in selling the 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." .Otto Bremer Trust is expected to hold an 11 percent ownership stake in Old National, and a trustee will join the Old National board of directors. .Old National entered the Twin Cities market in 2017 by acquiring $2.1 billion Anchor Bancorp of St. Paul. Soon after, Old National closed on its acquisition of Chaska, Minn.-based Klein Financial. .Citi was financial adviser to Old National, while Cleveland-based Squire Patton Boggs LLP provided legal counsel. J.P. Morgan was financial adviser for Bremer, and New York City-based Wachtell, Lipton, Rosen & Katz was legal counsel. For Otto Bremer Trust, New York City-based Keefe, Bruyette & Woods was financial adviser, while New York-based Sullivan & Cromwell was legal counsel.