Tower Financial Announces Evansville Bank Merger

Tower Financial Corporation (Nasdaq:TOFC) announced on Feb. 7, that at a special meeting of shareholders, shareholders of the company approved a merger of Tower Bank with and into Evansville-based Old National Bancorp (Nasdaq:ONB).

On Sept. 10, 2013, Old National Bancorp announced an agreement to acquire Tower Financial Corporation, the holding company for Tower Bank & Trust Company headquartered in Fort Wayne.

“Like Old National, Tower’s leadership team and associates are deeply committed to exceptional client service and have a well-earned reputation for community involvement,” stated a press release put out by Old National Bank. “The affiliation with Old National will allow Tower’s loyal client base to continue to bank with a community-focused, Indiana-based financial institution.”

Old National states that the company expects Tower branches to open as Old National banking centers in the spring. The company states that customers will not experience any changes in their banking relationship at the time of the transition. Old National encourages those who bank with Tower to continue using their existing accounts, online services, ATMS and banking centers as they normally would.

According to Old National Bank, “Both Tower and Old National are working closely to ensure that the transition is as seamless as possible. We pledge to maintain the same dedication to the quality, convenience and security that you’ve come to expect and we will strive to enhance your banking experience with new products and services. After the conversion, you’ll also enjoy the convenience of more than170 banking centers and an ATM network across Indiana, Southern Illinois, Kentucky and Southwestern Michigan.”

The merger will include Old National’s acquisition of seven Tower Bank locations – six in Fort Wayne and one in Warsaw. This includes $581.6 million in deposits and $438.6 million in loans. Old National noted it will also receive the addition of “attractive” fee businesses with $523.3 million in trust assets and over 50,000 Health Savings Accounts.

Tower Bank noted that the merger remains subject to the satisfaction of the closing conditions contained in the merger agreement. The Company will file with the Securities and Exchange Commission a Form 8-K setting forth the results of the shareholder vote.

 

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