Old National Bancorp to Acquire Bremer Financial Corporation

By Tamara Parker • Monday, November 25 11:13 • Permanent Link

Old National Bancorp (NASDAQ: ONB) and Bremer Financial Corporation (BFC) have announced a definitive merger agreement. As of September 30, 2024, Bremer had $16.2 billion in total assets, $11.5 billion in total loans, and $13.2 billion in deposits. The new organization resulting from this partnership would have over $70 billion in assets, significantly expanding Old National's presence in the Twin Cities and other midwestern markets.

Upon closing of the transaction, the Otto Bremer 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.

The partnership transaction includes 70 total banking centers in Minnesota, North Dakota, and Wisconsin. 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 November 22, 2024. The transaction is anticipated to close in the middle of 2025.

This partnership will make Old National the third-largest bank in the Twin Cities and expand its reach into several other vibrant markets throughout Minnesota, North Dakota, and Wisconsin. The partnership also includes 70 total banking centers, 48 of which are in Minnesota, 14 in North Dakota, and 8 in Wisconsin.

Old National Bancorp (NASDAQ: ONB) is currently the holding company of Old National Bank, with approximately $54 billion of assets and $31 billion of assets under management. Bremer Financial Corporation is a privately held regional financial services company with $16 billion in assets.

The press release also mentions that Citigroup served as the exclusive financial advisor to Old National, while J.P. Morgan served as the financial advisor for Bremer. Keefe, Bruyette & Woods, a Stifel company, served as the financial advisor for the Otto Bremer Trust. The market has reacted to these announcements by moving the company's shares 7.6% to a price of $23.29. For the full picture, make sure to review Old National Bancorp's 8-K report.

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