Midwest BankCentre Plans to Acquire Bremen Bank

Midwest BankCentre plans to acquire Bremen Bank & Trust Co. in a move that will grow Midwest BankCentre’s branch network in the region’s northern sector and expand services to local small- and mid-sized businesses. The merger, which bank leaders anticipate completing in mid-summer 2016, is subject to the approvals of state and federal bank regulators as well as Bremen Bank stockholders.

The oldest independent community bank in St. Louis City and County, Bremen Bank was chartered in October 1868, just 18 years after incorporation of its original neighborhood as the town of Bremen and 12 years after Bremen’s 1856 annexation by the City of St. Louis.

After the acquisition, Midwest BankCentre will rank as St. Louis’ second largest privately held local bank based on total deposits and assets. The merger value, which was not disclosed, will be paid 100 percent in cash.

“Our acquisition of the 148-year-old Bremen Bank will magnify the great St. Louis banking legacy we built upon with our acquisition last year of Southern Commercial Bank, founded in 1891, and our own deep roots in the community, dating to 1906,” said Midwest BankCentre Chairman and President James A. “Jim” Watson. “This long, mutual devotion to full investment in the success of our home community will strengthen further as we prepare to bring Bremen Bank team members and customers into our banking family. We can better help everyone rise together by blending our shared legacies and by leveraging the growing costs of risk management and technological investments to serve our customers.”

According to Bremen Bank President and CEO Carl J. Fruend, several factors led the Bremen Bank team to explore becoming part of Midwest Bank Centre. “Changes in the banking environment have made it hard for small local banks to compete,” he noted. “We have long known the team at Midwest BankCentre and share their values and business philosophy. We feel they will take excellent care of our customers. They also have a leadership team in place that will ensure our customers the progressive products, services and technology they need, now and in the future. We anticipate a smooth transition.”

Bremen Bank currently has about $175 million in assets, which will advance Midwest BankCentre’s total assets by 12 percent to exceed $1.8 billion. It also will contribute a substantial commercial-industrial loan portfolio, growing Midwest BankCentre’s current loans by about 9.5 percent.

Bremen Bank customers will gain access to Midwest BankCentre’s greater lending capacity and its substantial cash management, wealth management, mortgage loan and digital banking services. In addition, they’ll be able to access personalized service at 16 additional locations in the City of St. Louis and St. Louis, Jefferson and St. Charles counties, with two more under development to be opened later in 2016. Customers also will be able to use 24,000 ATMs across the nation, surcharge-free, through the MoneyPassTM network.

Bremen Bank’s current locations are north of downtown St. Louis at 3529 N. Broadway, in Hazelwood on the Brown Campus near McDonnell Blvd. and I-270, in St. Charles near I-70 and Highway 94, and in Ellisville on Manchester Road.

The new locations underscore Midwest BankCentre’s commitment to serving customers throughout the St. Louis region, including majority minority and low- and moderate-income (LMI) neighborhoods. “We plan to sustain the strengths of the Bremen Bank team’s community business and consumer lending expertise with our middle market sophistication to sustain and grow our support of local businesses,” Watson added. “We also look forward to offering our customized products and services to low- and moderate-income consumers through our new branch locations.”

Midwest BankCentre is a local leader in the St. Louis Regional Unbanked Task Force and its BANK-On SAVE-Up St. Louis initiative, Operation HOPE, Inc. through the Financial Dignity Center at St. Louis City Hall and the annual Money Smart Week. Midwest BankCentre Senior Vice President and Director of Community Development Alex Fennoy serves as co-chair of the St. Louis Regional Unbanked Task Force and its BANK-On SAVE-Up St. Louis initiative.

Midwest BankCentre provides integrated financial services with expertise in commercial, retail and digital banking; business cash management; mortgage lending; and consumer lending. Since 2001 and for 61 consecutive quarters, Midwest BankCentre has consistently achieved the Bauer Financial 5-Star Superior financial rating.