Dave Vang, professor of finance at the University of St. Thomas Opus College of Business, recently spoke with the Minneapolis/St. Paul Business Journal about how Old National’s acquisition of Bremer Bank will expand its market share, diversify risks, and strengthen its Twin Cities presence.
From the story:
Old National Bancorp (Nasdaq: ONB) CEO Jim Ryan said Bremer Bank’s deposits, loan portfolio and branch footprint made it the perfect fit to be acquired. ...
Ryan added that he has long admired Bremer, and talks of an acquisition accelerated following the end of a yearslong legal dispute over a previous sale attempt of the bank between the bank and its owner Otto Bremer Trust in July. ...
The acquisition was announced Monday morning and is expected to be completed in mid-2025. When complete, the new organization will have $9 billion of Twin Cities deposits – $3.54 billion from Old National and $5.45 billion from Bremer – making it the metro area’s third-largest bank. The acquisition still needs approval from Bremer shareholders, though the boards of both companies already have approved it. ...
Dave Vang, a professor in the department of finance at the University of St. Thomas’ Opus College of Business, said he expects Old National to grow its market share here following the deal.
“They’re going to be a bigger presence, and their portfolio is going to be more diversified than just the Twin Cities, so they will have less risk because they can spread their loan risk over a much wider area,” he said. ...
Bremer has 71 branches throughout Minnesota, North Dakota and Wisconsin, many of which are in rural areas, which Ryan said will allow Old National to expand into more markets where the bank does not have a presence.
