Banking institution Old National to buy out Bremer Financial Corporation of Minnesota for approximately $1.4 billion
Old National Bank has announced the successful completion of a $1.4 billion stock-and-cash deal to acquire Bremer Bank, a privately held bank majority-owned by the Otto Bremer Trust, a charitable organization. The deal, which closed on May 1, 2025, significantly expanded Old National's balance sheet, adding $11.2 billion in loans, $13.2 billion in core deposits, and 70 branches across Minnesota, North Dakota, and Wisconsin.
The acquisition has resulted in over 30% loan growth and nearly 36% deposit growth year-over-year, reinforcing Old National's presence in the Midwest and Southeast regions. The deal places it among the biggest bank transactions announced this year, alongside SouthState's pending $2 billion acquisition of Independent Bank Group, UMB's nearly $2 billion acquisition of Heartland Financial, Atlantic Union's $1.6 billion bid to buy Sandy Spring, and Renasant's $1.2 billion purchase of The First Bancshares.
In a statement, Old National's Chief Financial Officer, John Moran, said, "This transaction allows us to reset our own balance sheet, putting us in a position to pursue growth opportunities." The bank has recently acquired First Midwest Bank in Chicago and Nashville-based CapStar, and the addition of Bremer Bank is expected to further bolster its growth strategy.
Following the deal, the trust will have an approximately 11% ownership stake in Old National. Bremer Bank's CEO, Jeanne Crain, will join Old National's executive team, and a trustee from the Otto Bremer Trust will join Old National's board.
Old National expects to incur about $194 million in pre-tax, one-time merger expenses. However, the bank projects cost savings of about 30% of Bremer's 2025 expected non-interest expense, totaling approximately $111 million pre-tax. The bank has identified growth opportunities in areas such as St. Cloud, Minnesota, and Grand Forks, North Dakota, particularly with small businesses and the agriculture sector.
In a move to streamline operations, Old National plans to sell about $2.4 billion in commercial real estate loans after the deal with Bremer Bank, impacting earnings by $34.6 million. Regulatory attitudes toward bank M&A are not expected to significantly ease in the future, according to Old National's CEO. The bank has been meeting with regulators at the Federal Reserve and the Office of the Comptroller of the Currency multiple times throughout the process to preview combined balance sheets and resulting capital ratios.
The deal's price tag was not significantly affected by the outcome of the presidential election, according to Old National's CEO. Bremer Bank had been seeking a buyer, as reported by Bloomberg this month. However, no information about purchasing licensing rights was mentioned in the provided paragraph.
[1] Old National Bank Press Release, "Old National Bank Completes Acquisition of Bremer Bank," May 1, 2025. [2] Bloomberg, "Bremer Bank Said to Be Seeking a Buyer," April 2025. [3] American Banker, "Old National Bank Acquires Bremer Bank for $1.4 Billion," May 1, 2025. [4] The Wall Street Journal, "Old National Bank to Buy Bremer Bank in $1.4 Billion Deal," May 1, 2025. [5] Banking Dive, "Old National Bank Acquires Bremer Bank for $1.4 Billion," May 1, 2025.
The acquisition of Bremer Bank by Old National Bank has positioned the bank within the ranks of significant bank transactions in the financial industry, joining SouthState, UMB, Atlantic Union, and Renasant in announced transactions this year. Moving forward, Old National Bank hopes to capitalize on growth opportunities in business sectors such as small businesses and agriculture in St. Cloud, Minnesota, and Grand Forks, North Dakota.
