Bremer Bank
Encyclopedia
Bremer Bank is the name of the banks owned by the Bremer Financial Corporation, a bank
holding company
founded by Otto Bremer in 1943. They operate bank branches in Minnesota
, Wisconsin
, and North Dakota
, with a financial capitalization of about $7 billion. With headquarters in St. Paul, Minnesota, the company is completely owned by employees and the Otto Bremer Foundation.
in 1867, son of a banker father. He immigrated to the US in 1886, with his brother Adolf. He was hired as a bookkeeper at the National German American Bank in St. Paul, Minnesota. During the next decades, he was promoted to higher positions, and became a major stockholder in the bank. In 1921, he became Chairman of the new American National Bank, and continued as Chair for 20 years.
During the Great Depression
, from 1929 thru the 1930s, Bremer invested money in many small town banks in the area, often showing up with a satchel of cash to save the local bank from failing. By the mid-30's, he held stock in 55 banks in the area. He had also risked the full capital value of the bank, and had to be rescued by his brother Adolf, who pledged the shares in Schmidt Brewing Company held by him and his wife (Marie Schmidt Bremer, the daughter of brewery founder Jacob Schmidt).
In 1934, Edward Bremer, a banker and nephew of Otto, was kidnapped by the Karpis-Barker gang
in broad daylight, as he was dropping off his daughter at the Summit School in St. Paul. This kidnapping, together with that of brewing heir William Hamm, Jr.
, brought an end to the O'Connor agreement, whereby St. Paul Police Chief John O'Connor allowed such gangsters to use St. Paul as a safe haven, provided they committed no crimes within the city. The Bremer family paid a ransom of $200,000; the Hamm family $1,000,000, and both victims were released unharmed, after about a week.
In 1943, Otto created the Otto Bremer Company as a holding corporation to consolidate his interests in these banks (by this time, he was the major or sole owner of most of them). He also created the Otto Bremer Foundation in 1944, as a charitable organization to grant funds for public purposes in the small towns where there was a Bremer bank. The Foundation was funded from the profits of the Bremer bank holding company. As of 2009, the Foundation donates about $25 million each year. In addition, bank employees are strongly encouraged to volunteer in local town activities. Each year, these employees donate more than 100,000 volunteer hours.
When Otto Bremer died in 1951, he left most of his fortune, and his stock in the Otto Bremer Bank Company to the Otto Bremer Foundation. The Foundation remains the major owner of the Bremer Bank Company, holding about 92% of the stock. The remaining stock is owned by employees or retired employees of the company.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
founded by Otto Bremer in 1943. They operate bank branches in Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
, Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
, and North Dakota
North Dakota
North Dakota is a state located in the Midwestern region of the United States of America, along the Canadian border. The state is bordered by Canada to the north, Minnesota to the east, South Dakota to the south and Montana to the west. North Dakota is the 19th-largest state by area in the U.S....
, with a financial capitalization of about $7 billion. With headquarters in St. Paul, Minnesota, the company is completely owned by employees and the Otto Bremer Foundation.
History
Otto Bremer was born in GermanyGermany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
in 1867, son of a banker father. He immigrated to the US in 1886, with his brother Adolf. He was hired as a bookkeeper at the National German American Bank in St. Paul, Minnesota. During the next decades, he was promoted to higher positions, and became a major stockholder in the bank. In 1921, he became Chairman of the new American National Bank, and continued as Chair for 20 years.
During the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, from 1929 thru the 1930s, Bremer invested money in many small town banks in the area, often showing up with a satchel of cash to save the local bank from failing. By the mid-30's, he held stock in 55 banks in the area. He had also risked the full capital value of the bank, and had to be rescued by his brother Adolf, who pledged the shares in Schmidt Brewing Company held by him and his wife (Marie Schmidt Bremer, the daughter of brewery founder Jacob Schmidt).
In 1934, Edward Bremer, a banker and nephew of Otto, was kidnapped by the Karpis-Barker gang
Alvin Karpis
Alvin Francis Karpis , nicknamed "Creepy" for his sinister smile, was an American criminal known for his alliance with the Barker gang in the 1930s. He was the last "public enemy" to be taken.-Early life:Karpis was born to Lithuanian immigrants in Montreal, Quebec, Canada, and was raised in Topeka,...
in broad daylight, as he was dropping off his daughter at the Summit School in St. Paul. This kidnapping, together with that of brewing heir William Hamm, Jr.
Hamm's Brewery
Hamm's is the name of a former American brewery in Saint Paul, Minnesota. Hamm's breweries were also found in other cities, such as San Francisco.-History:...
, brought an end to the O'Connor agreement, whereby St. Paul Police Chief John O'Connor allowed such gangsters to use St. Paul as a safe haven, provided they committed no crimes within the city. The Bremer family paid a ransom of $200,000; the Hamm family $1,000,000, and both victims were released unharmed, after about a week.
In 1943, Otto created the Otto Bremer Company as a holding corporation to consolidate his interests in these banks (by this time, he was the major or sole owner of most of them). He also created the Otto Bremer Foundation in 1944, as a charitable organization to grant funds for public purposes in the small towns where there was a Bremer bank. The Foundation was funded from the profits of the Bremer bank holding company. As of 2009, the Foundation donates about $25 million each year. In addition, bank employees are strongly encouraged to volunteer in local town activities. Each year, these employees donate more than 100,000 volunteer hours.
When Otto Bremer died in 1951, he left most of his fortune, and his stock in the Otto Bremer Bank Company to the Otto Bremer Foundation. The Foundation remains the major owner of the Bremer Bank Company, holding about 92% of the stock. The remaining stock is owned by employees or retired employees of the company.