EX-99.6 15 tm2429075d5_ex99-6.htm EXHIBIT 99.6

 

Exhibit 99.6

 

Bremer Financial Corporation

 

Consolidated Balance Sheet

(dollars in thousands, unaudited)

 

   September 30 
   2024   2023 
Assets          
Cash, cash equivalents, and due from banks  $301,387   $369,679 
Investment securities          
Available-for-sale   1,646,023    1,577,355 
Held-to-maturity   1,965,122    2,137,779 
Loans held for sale   11,375    26,651 
Loans held for investment          
Loans held for investment   11,524,549    11,395,895 
Less allowance for loan losses   (105,797)   (101,117)
Net loans held for investment   11,418,752    11,294,778 
Premises and equipment, net   151,345    140,332 
Goodwill and other intangibles, net   135,983    138,783 
Bank owned life insurance   177,935    173,134 
Other assets   400,957    461,691 
Total assets  $16,208,879   $16,320,182 
Liabilities and Shareholders’ Equity          
Deposits          
Noninterest-bearing  $3,756,503   $4,094,807 
Interest-bearing   9,472,453    8,682,808 
Total deposits   13,228,956    12,777,615 
Short-term borrowings   127,691    744,757 
Long-term debt   1,034,068    1,023,487 
Accrued expenses and other liabilities   302,253    399,545 
Total liabilities   14,692,968    14,945,404 
Redeemable class A common stock, 960,000 shares issued and outstanding   121,273    109,982 
           
Shareholders’ equity          
Common stock(1)          
Class A, no par, 12,000,000 shares authorized; 965,000 shares issued and outstanding   229    57 
Class B, no par, 10,800,000 shares authorized; 10,075,000 shares issued and outstanding   2,390    2,562 
Retained earnings   1,574,294    1,545,102 
Accumulated other comprehensive gain (loss), net of tax   (182,275)   (282,925)
Total shareholders’ equity   1,394,638    1,264,796 
Total liabilities and shareholders’ equity  $16,208,879   $16,320,182 

 

 

 

(1)During 3Q24, a legal settlement was reached resulting in the sale and conversion of 725,000 shares of class B common stock by Otto Bremer Trust. The shares have been converted to class A and are owned by outside hedge funds. The common stock descriptions and balances above reflect the reclassification of 725,000 shares (including paid in capital) from class B to A as a result of the settlement.

 

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Bremer Financial Corporation

 

Consolidated Statement of Income

(dollars in thousands, unaudited)

 

   Three Months ended
September 30,
   Nine Months ended
September 30,
 
   2024   2023   2024   2023 
Interest income                    
Loans, including loans held for sale  $167,493   $154,624   $491,790   $430,088 
Investment securities   27,431    24,491    76,804    72,974 
Other   4,014    4,868    12,148    16,185 
Total interest income   198,938    183,983    580,742    519,247 
Interest expense                    
Deposits   75,552    54,879    215,258    124,678 
Short-term borrowings   4,730    11,660    15,340    39,713 
Long-term debt   13,258    10,908    38,902    18,753 
Other   271    542    1,327    1,094 
Total interest expense   93,811    77,989    270,827    184,238 
Net interest income   105,127    105,994    309,915    335,009 
Provision for credit losses   12,300    2,503    16,682    4,139 
Net interest income after provision for credit losses   92,827    103,491    293,233    330,870 
Noninterest income                    
Service charges   8,103    7,198    23,000    21,143 
Insurance revenue   3,489    2,878    9,632    8,356 
Investment management and trust fees   4,794    4,615    14,498    14,207 
Brokerage revenue   4,401    4,648    13,542    13,866 
Mortgage banking and loan fees   1,365    3,838    7,361    10,204 
Realized gains (losses) on investment securities   (4,374)   196    (5,748)   485 
Other   28,178    4,816    35,795    14,070 
Total noninterest income   45,956    28,189    98,080    82,331 
Noninterest expense                    
Compensation and employee benefits   51,441    51,178    161,408    155,152 
Occupancy and equipment, net   10,802    10,621    33,530    32,644 
Data processing fees   4,767    4,305    15,276    13,499 
FDIC premiums and examination fees   3,998    3,894    13,061    10,664 
Other   17,304    18,518    58,301    59,941 
Total noninterest expense   88,312    88,516    281,576    271,900 
Income before taxes   50,471    43,164    109,737    141,301 
Applicable income taxes   9,649    12,730    18,605    30,490 
Net income  $40,822   $30,434   $91,132   $110,811 

 

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