** Brokerage Stephens says Associated Bank ASB.N and Old National Bancorp ONB.O are two Midwest banks that might be interested in Bremer Financial, as both lenders have branches in the Minneapolis market

** Canadian lender Bank of Montreal BMO.TO is another logical buyer given its presence in Minneapolis - Stephens

** Bloomberg News on Friday reported that Saint Paul, Minnesota-based Bremer Financial is exploring a potential sale

** Privately held Bremer had $16 bln in assets as of June 30

** Stephens sees less interest from super regional banks given Bremer's size

** Dealmaking has been picking up in recent months among banks with less than $50 bln in assets as they look to better compete against biggest rivals

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))