Jeanne Crain, CEO of Bremer Bank, announces her departure as Old National Bank completes its acquisition. Learn about Crain’s legacy, the details of the merger, and what it means for Minnesota’s banking landscape. #OldNationalBank #BremerBank #BankingMerger #JeanneCrain
Summary: Bremer Bank CEO Jeanne Crain will step down in mid-May as Indiana-based Old National Bancorp finalizes its acquisition of the St. Paul-based bank for $1.4 billion. Crain reflects on her 13-year tenure at Bremer, including eight as CEO, expressing gratitude for her time at Minnesota’s second-largest bank. The sale concludes a five-year legal battle stemming from disagreements over the bank’s future and ownership structure.
Bremer Bank CEO to Step Down After Merger with Old National
The winds of change are blowing through the Minnesota banking sector as Jeanne Crain, the long-standing CEO of Bremer Bank, prepares to step down from her leadership role. This significant transition comes as Indiana-based Old National Bancorp finalizes its acquisition of Bremer Financial Corp., the parent company of the St. Paul-based bank. The $1.4 billion deal marks the end of an era for Bremer under its unique ownership structure and concludes a tumultuous five-year legal battle.
Jeanne Crain, a prominent figure in Minnesota’s financial landscape, has dedicated 13 years to Bremer Bank, the last eight of which she served as its President and Chief Executive Officer. Her tenure has been marked by both growth and challenges, including a high-profile legal dispute involving the Otto Bremer Trust, the charity that held a majority stake in the bank.
In a heartfelt post on her LinkedIn profile, Crain reflected on her time at Bremer, stating, “As I reflect on this transition, I’m filled with deep gratitude for the relationships and shared purpose that have defined my time at Bremer. After four decades in the banking industry — and 13 years with Bremer, including the past eight as CEO, this chapter has truly been the most meaningful of my career.”
A spokesperson for Bremer Bank indicated that Crain would not be offering further comments due to the impending sale and existing legal agreements following a civil settlement with the Otto Bremer Trust.
Bremer Bank’s Unique Structure and the Road to Acquisition
Bremer Bank held a distinctive position within the national banking system as the only bank predominantly owned by a charitable trust. This unique structure allowed it to significantly contribute to the Twin Cities community through its philanthropic endeavors while operating as a major financial institution. However, this ownership model also presented certain limitations in the evolving financial services market, particularly concerning acquisitions and raising capital through public markets.
The path to acquisition by Old National Bank was paved with years of controversy and internal disagreements. In 2019, Bremer Financial explored a potential merger with Great Western Bancshares. This move was met with resistance from the trustees of the Otto Bremer Trust, who believed that a complete sale of the bank would yield greater financial returns. Consequently, the trust initiated efforts to sell its stake in the corporation, triggering a protracted five-year legal battle when the bank filed a lawsuit.
The legal saga drew the attention of Minnesota Attorney General Keith Ellison, who launched an investigation and intervened in the dispute. Ellison alleged that three trustees had breached their fiduciary duties. While a Ramsey County District Court judge ultimately removed one trustee, the court largely ruled against the remaining allegations.
The legal complexities finally reached a resolution in July, paving the way for acquisition discussions. In November, Old National Bank and Bremer announced their agreement, a deal poised to create the third-largest bank in Minnesota in terms of deposit market share. The final sale price of $1.4 billion, with 78% of the consideration in the form of Old National stock, fell short of earlier valuations that had estimated Bremer’s worth at approximately $2 billion.
Impact of the Merger and Future Leadership
The acquisition of Bremer Bank by Old National Bank signifies a significant consolidation within the Minnesota banking sector. The combined entity will possess a substantial deposit base and an expanded network of branches, positioning it as a major player in the region.
While Jeanne Crain’s departure marks a change in leadership, the integration process will likely involve the appointment of new executives to oversee the combined operations in Minnesota. Details regarding the specific individuals who will lead the merged entity in the region are expected to be announced as the acquisition nears its finalization next month.
The transition raises questions about the future of Bremer’s philanthropic legacy under the ownership of Old National Bank. While Old National also engages in community support, the unique structure of Bremer as a trust-owned bank fostered a deep integration of charitable giving into its core operations. It remains to be seen how this aspect will evolve under the new ownership.
Table: Key Details of the Bremer Bank – Old National Bank Acquisition
| Feature | Bremer Bank | Old National Bank | Outcome of Merger |
| CEO (Outgoing) | Jeanne Crain | Jim Ryan | Jeanne Crain to step down in mid-May |
| Location | St. Paul, Minnesota | Evansville, Indiana | Combined entity will have a significant Minnesota presence |
| Ownership Structure | Primarily owned by Otto Bremer Trust | Publicly traded (ONB) | Bremer’s trust ownership ends |
| Acquisition Price | $1.4 billion | Acquirer | 78% stock, remainder cash |
| Legal Battle | 5-year dispute with Otto Bremer Trust | Not directly involved | Resolved prior to acquisition announcement |
| Minnesota Market Share | Second-largest bank by deposits | Significant presence | Third-largest bank by deposits in Minnesota |
| Unique Feature | Only US bank primarily owned by a trust | Traditional publicly traded bank | Trust ownership model ceases to exist |
Looking Ahead
The acquisition of Bremer Bank by Old National Bank represents a pivotal moment for both institutions and the broader Minnesota banking landscape. While the departure of CEO Jeanne Crain marks the end of a significant chapter for Bremer, the merger promises to create a stronger, more competitive regional bank. The integration process will be closely watched by customers, employees, and the community as Old National Bank assumes leadership and charts a new course for the combined organization. The legacy of Bremer Bank, particularly its commitment to community giving, will be a key aspect to observe as the merger unfolds.
FAQs about Old National Bank and the Bremer Bank Acquisition:
1. Why is Bremer Bank being acquired by Old National Bank?
Bremer Bank’s unique ownership structure as a trust-owned entity presented challenges in the modern financial services market, limiting its ability to pursue acquisitions or raise capital like publicly traded banks. After a prolonged legal battle concerning its future direction, the acquisition by Old National Bank emerged as a strategic move for both institutions, creating a stronger regional bank with increased scale and resources.
2. What will happen to Bremer Bank customers after the acquisition by Old National Bank?
While specific details regarding the integration of services and branding will be communicated to customers, it is expected that Bremer Bank customers will eventually become customers of Old National Bank. Over time, this may involve changes to branch names, account systems, and available products and services. Old National Bank is likely to work towards a smooth transition for all customers.
3. Who is Jeanne Crain, and why is her departure significant in the context of the Old National Bank acquisition?
Jeanne Crain has been a prominent leader in Minnesota’s banking industry, serving as CEO of Bremer Bank for the past eight years and holding various roles within the institution for 13 years. Her departure coincides with the finalization of the acquisition by Old National Bank,
marking the end of her long tenure at the helm of Minnesota’s second-largest bank. Her leadership has been instrumental in navigating Bremer through both growth and significant challenges, including the recent legal complexities.
4. How will the acquisition of Bremer Bank by Old National Bank impact the banking landscape in Minnesota?
The merger of Bremer Bank and Old National Bank will create the third-largest bank in Minnesota in terms of deposit market share, signifying a notable shift in the state’s banking landscape. This consolidation will lead to a more competitive environment with a larger regional player.
Customers may see changes in the availability of financial products and services as the two banks integrate their offerings. The future of Bremer’s unique philanthropic model under Old National Bank‘s ownership will also be a key point of interest for the Minnesota community.
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