Exhibit 99.1





|FOR IMMEDIATE RELEASE | Contacts: |  | Financial
Stuart F. Bradt
Controller
651-734-4717
sfbradt@bremer.com               
|--------------------- | --------- |  | -----------------------------------------------------------------------------------
|                      |           |  |                                                                                    
|                      |           |  | Corporate Communications Director
Teresa M. Morrow
651-312-3570
tmmorrow@bremer.com





BREMER REPORTS SECOND QUARTER 2006 EARNINGS

St. Paul, Minn.(July 25, 2006)  Bremer Financial Corporation reported net income of $18.0 million for the three months ended June 30, 2006, an increase of 7.5% from the $16.8 million earned for the same three-month period in 2005. On a year-to-date basis through June 30, 2006, net income was $34.4 million compared to $33.0 million earned in 2005, an increase of 4.3%. Return on average equity for both the second quarter of 2006 and the second quarter of 2005 was 13.0%, while return on average assets increased to 1.11% in the second quarter of 2006 compared to 1.07% in the second quarter of 2005.

Net interest income for the second
quarter of 2006 was $56.5 million, an increase of $1.4 million or 2.5% from the $55.1
million reported for the same period a year ago. Our net interest margin was 3.86% for
the quarters ended June 30, 2006 and June 30, 2005. On a year-to-date basis, our net
interest income increased $3.8 million or 3.5% to $112.3 million in 2006 from $108.5
million in 2005, while our net interest margin was 3.88% for the six-month periods ended
June 30, 2006 and June 30, 2005. Our net interest margin has remained relatively flat as
short-term interest rates have risen during the past year and higher yields on earning
assets have been offset by higher interest costs for deposits and borrowings.

In the face of an increasingly competitive marketplace, our 1,875 employees have remained focused on taking action for their clients and communities, said CEO Stan Dardis. While our financial achievements were strong this quarter, Im particularly proud of the commitment our employees made to help fight hunger in our communities. For the first time ever, Bremer was the corporate sponsor of National Hunger Awareness Week in our markets. Our employees really stepped up to the plate, raising funds and donating volunteer hours to local food shelves. Thanks to their efforts, Bremer raised $66,518 in cash for Second Harvest  earning a $50,000 Otto Bremer Foundation challenge grant and meeting our goal of distributing $1 million in food throughout the foodshelf network. That willingness to take action for our communities is what differentiates Bremer from our competitors.

Noninterest income increased $3.5
million or 17.9% to $22.9 million in the second quarter of 2006 from $19.4 million for
the second quarter of 2005. On a year-to-date basis, noninterest income increased $3.7
million or 9.6% to $41.9 million in 2006 from $38.2 million in 2005. These increases were
largely due to increases in gain on sale of loans and service charges.

Noninterest expense increased $3.0
million or 6.5% to $49.4 million in the second quarter of 2006 from $46.4 million in the
second quarter of 2005. On a year-to-date basis, noninterest expense increased $6.4
million or 7.1% to $96.8 million in 2006 from $90.4 million in 2005. Increases in
personnel costs accounted for approximately 70.0% of the increase in noninterest expense
when comparing the two quarterly periods as well as the year-to-date periods. Exclusive
of personnel costs, total noninterest expense increased $861.0 thousand or 4.7% when
comparing the second quarter of 2006 with the second quarter of 2005.

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Bremer Reports Second Quarter 2006 Earnings

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Nonperforming assets were $19.7
million at June 30, 2006 compared to $14.1 million at December 31, 2005 and $12.4 million
at June 30, 2005. Correspondingly, the ratio of nonperforming assets to total loans,
leases and other real estate owned (OREO) increased to 0.41% at June 30, 2006 from 0.30%
at December 31, 2005 and 0.26% at June 30, 2005.

Net charge-offs in the second
quarter of 2006 were $410.0 thousand compared to net recoveries of $133.0 thousand in the
second quarter of 2005. We recorded a provision for loan losses of $2.5 million in the
second quarter of 2006 compared to $2.4 million in the second quarter of 2005. Our ratio
of reserve for loan losses to total loans and leases was 1.24% at June 30, 2006, 1.20% at
December 31, 2005 and 1.31% at June 30, 2005.

Bremer Financial Corporation is a
privately-held, $6.6 billion regional financial services company jointly owned by its
employees and the Otto Bremer Foundation. Founded in 1943 by Otto Bremer, the company is
headquartered in St. Paul, Minnesota and provides a comprehensive range of banking,
investment, trust and insurance services to over 100 locations in Minnesota, North Dakota
and Wisconsin. Company profits are distributed in the form of charitable grants by the
Otto Bremer Foundation to communities served by Bremer.



Except for historical information contained herein, the statements made in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risk and uncertainties, including statements regarding the intent, belief or current expectations of Bremer Financial Corporation and its management as to Bremers strategic directions, prospects and future results. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including our competitive environment, economic and other conditions in the markets in which we operate, governmental regulation, including policies and enactments of the Federal Reserve Board, and other risks set forth in Item 1A. of Bremers Annual Report on Form 10-K for the year
ended December 31, 2005 filed with the Securities and Exchange Commission, which is incorporated herein by reference.

*   *   *   *   *

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Bremer Reports Second Quarter 2006 Earnings

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BREMER FINANCIAL CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts)

|                                                     |  | Three months ended June 30, |   |           |   | Six months ended June 30,
|---------------------------------------------------- |  | --------------------------- | - | --------- | - | -------------------------
|                                                     |  |                             |   |           |   |                          
|
|                                                     |  |                             |   |           |   |                          
|Operating Results:                                   |  |                             |   |           |   |                          
|Total interest income                                |  |                             | $ | 104,980   |   | $                        
|Total interest expense                               |  |                             |   | 48,486    |   |                          
|                                                     |  |                             |   |           |   |                          
|Net interest income                                  |  |                             |   | 56,494    |   |                          
|Provision for loan losses                            |  |                             |   | 2,530     |   |                          
|                                                     |  |                             |   |           |   |                          
|Net interest income after provision for loan losses  |  |                             |   | 53,964    |   |                          
|Noninterest income                                   |  |                             |   | 22,918    |   |                          
|Noninterest expense                                  |  |                             |   | 49,385    |   |                          
|                                                     |  |                             |   |           |   |                          
|Income before income tax expense                     |  |                             |   | 27,497    |   |                          
|Income tax expense                                   |  |                             |   | 9,460     |   |                          
|                                                     |  |                             |   |           |   |                          
|Net income                                           |  |                             | $ | 18,037    |   | $                        
|                                                     |  |                             |   |           |   |                          
|                                                    
|Net income per share - basic and diluted             |  |                             | $ | 1.50      |   | $                        
|Dividends paid per share                             |  |                             |   | 0.58      |   |                          
|                                                    
|Tax equivalent net interest income                   |  |                             | $ | 59,140    |   | $                        
|Net charge-offs                                      |  |                             |   | 410       |   |                          
|                                                    
|Selected Financial Ratios:                           |  |                            
|Return on average assets                             |  |                             |   | 1.11      | % |                          
|Return on average equity (1)                         |  |                             |   | 13.0      |   |                          
|Average equity to average assets (1)                 |  |                             |   | 8.55      |   |                          
|Net interest margin (2)                              |  |                             |   | 3.86      |   |                          
|Operating efficiency ratio (3)                       |  |                             |   | 60.2      |   |                          
|Net charge-offs to average loans and leases          |  |                             |   | 0.03      |   |                          
|                                                    
|
|                                                     |  |                             |   |           |   |                          
|Balance Sheet Data:                                  |  |                            
|Total assets                                         |  |                             | $ | 6,638,952 |   | $                        
|Securities (4)                                       |  |                             |   | 1,382,101 |   |                          
|Loans and leases (5)                                 |  |                             |   | 4,803,490 |   |                          
|Total deposits                                       |  |                             |   | 4,745,397 |   |                          
|Short-term borrowings                                |  |                             |   | 878,622   |   |                          
|Long-term debt                                       |  |                             |   | 370,642   |   |                          
|Redeemable class A common stock                      |  |                             |   | 44,605    |   |                          
|Shareholders equity                                 |  |                             |   | 512,962   |   |                          
|Per share book value of common stock                 |  |                             |   | 46.46     |   |                          
|                                                    
|Asset Quality:                                       |  |                            
|Reserve for loan losses                              |  |                             | $ | 59,704    |   | $                        
|Nonperforming assets                                 |  |                             |   | 19,733    |   |                          
|Nonperforming assets to total loans, leases and OREO |  |                             |   | 0.41      | % |                          
|Reserve for loan losses to total loans and leases    |  |                             |   | 1.24      |   |                          
|                                                    
|                                                    

|(1) | Calculation
includes shareholders equity and redeemable class A common stock.
|--- | ------------------------------------------------------------------------------

|(2) | Tax-equivalent
basis (TEB).
|--- | ---------------------------

|(3) | Noninterest
expense as a percentage of tax-equivalent net interest income and noninterest income.
|--- | -------------------------------------------------------------------------------------------------

|(4) | Includes
securities held-to-maturity and securities available-for-sale.
|--- | -----------------------------------------------------------------------

|(5) | Net
of unearned discount and includes nonaccrual loans and leases.
|--- | ------------------------------------------------------------------

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Bremer Reports Second Quarter 2006 Earnings

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# BREMER FINANCIAL
CORPORATION AND SUBSIDIARIESSUMMARY BALANCE SHEET AND INCOME
STATEMENT(dollars in thousands)

|                                                    |  | Three months ended June 30, |   | Six months ended June 30,
|--------------------------------------------------- |  | --------------------------- | - | -------------------------
|                                                    |  |                             |  
|
|                                                    |  |                             |   |                          
|
|                                                    |  |                             |   |                          
|Summary Average Balance Sheet:                      |  |                             |   |                          
|Total loans and leases (2)                          |  |                             | $ | 4,735,695                
|Total securities (3)                                |  |                             |   | 1,372,220                
|Total other earning assets                          |  |                             |   | 40,678                   
|                                                    |  |                             |   |                          
|Total interest earning assets (4)                   |  |                             | $ | 6,148,593                
|Total noninterest earning assets                    |  |                             |   | 353,487                  
|                                                    |  |                             |   |                          
|Total assets                                        |  |                             | $ | 6,502,080                
|                                                    |  |                             |   |                          
|Noninterest bearing deposits                        |  |                             | $ | 764,666                  
|Interest bearing deposits                           |  |                             |   | 3,985,563                
|Short-term borrowings                               |  |                             |   | 781,688                  
|Long-term debt                                      |  |                             |   | 332,541                  
|                                                    |  |                             |   |                          
|Total interest bearing liabilities                  |  |                             | $ | 5,099,792                
|Other noninterest bearing liabilities               |  |                             |   | 81,236                   
|Minority interest                                   |  |                             |   | 150                      
|Redeemable class A common stock                     |  |                             |   | 44,499                   
|Shareholders equity                                |  |                             |   | 511,737                  
|                                                    |  |                             |   |                          
|Total liabilities and equity                        |  |                             | $ | 6,502,080                
|                                                    |  |                             |   |                          
|                                                   
|
|                                                    |  |                             |  
|
|                                                    |  |                             |   |                          
|Summary Income Statement:                           |  |                            
|Total interest income                               |  |                             | $ | 104,980                  
|Total interest expense                              |  |                             |   | 48,486                   
|                                                    |  |                             |   |                          
|Net interest income                                 |  |                             |   | 56,494                   
|Provision for loan losses                           |  |                             |   | 2,530                    
|                                                    |  |                             |   |                          
|Net interest income after provision for loan losses |  |                             |   | 53,964                   
|Service charges                                     |  |                             |   | 8,414                    
|Insurance                                           |  |                             |   | 2,391                    
|Investment management and trust fees                |  |                             |   | 2,936                    
|Brokerage                                           |  |                             |   | 1,782                    
|Gain on sale of loans                               |  |                             |   | 4,770                    
|Loss on sale of securities                          |  |                             |   |                         
|Other                                               |  |                             |   | 2,625                    
|                                                    |  |                             |   |                          
|Total noninterest income                            |  |                             |   | 22,918                   
|Salaries and wages                                  |  |                             |   | 23,325                   
|Employee benefits                                   |  |                             |   | 6,999                    
|Occupancy                                           |  |                             |   | 3,225                    
|Furniture and equipment                             |  |                             |   | 2,947                    
|Data processing fees                                |  |                             |   | 2,921                    
|FDIC premiums and examination fees                  |  |                             |   | 493                      
|Amortization of intangibles                         |  |                             |   | 613                      
|Other                                               |  |                             |   | 8,862                    
|                                                    |  |                             |   |                          
|Total noninterest expense                           |  |                             |   | 49,385                   
|                                                    |  |                             |   |                          
|Income before income tax expense                    |  |                             |   | 27,497                   
|Income tax expense                                  |  |                             |   | 9,460                    
|                                                    |  |                             |   |                          
|Net income                                          |  |                             | $ | 18,037                   
|                                                    |  |                             |   |                          
|                                                    | 
|                                                    | 

|(1) | Calculation
is based on interest income including $2,646 and $2,271 for the three months ended June
30, 2006 and June 30, 2005 and $5,271 and $4,471 for the six months          ended June
30, 2006 and June 30, 2005 to adjust to a fully taxable  basis using the federal
statutory rate of 35%.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Net
of unearned discount and includes nonaccrual loans and leases.
|--- | ------------------------------------------------------------------

|(3) | Excluding
net unrealized gain (loss) on securities available-for-sale.
|--- | ----------------------------------------------------------------------

|(4) | Before
deducting the reserve for loan losses.
|--- | ---------------------------------------------

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