Old National Acquires Tower Bank in $107.7M Deal
July 28, 2016 at 4:25 p.m.
By Jordan Fouts-
The transaction is valued at about $107.7 million, based on the shares of Old National common stock that Tower shareholders will receive, according to the announcement. Subject to approval by federal and state regulatory authorities and Tower shareholders, the deal is expected to close in the first quarter of 2014.
Tower Bank, the bank subsidiary of Tower Financial, will be merged into the Bancorp subsidiary Old National Bank.
Customers of Tower Bank, which has a location at 120 N. Buffalo St. in Warsaw, will still see the same team, Tower Financial President and CEO Mike Cahill said Tuesday afternoon. The only changes will be increased technology and the addition of products like agricultural lending, he said, noting that Old National is the 33rd largest agricultural lender in the country.
“Agricultural lending will be one of the new opportunities in Warsaw. It’s a gap we had a hard time filling,” Cahill said. “(Warsaw bank President) John Warren has been begging and pleading with me to deliver that product to your market.”
Warren remarked Tuesday that “this is going to be very good for the Warsaw community.”
Tower board members met in late June to discuss the acquisition, responding to a standing offer Old National President and CEO Bob Jones made Cahill in the eight years they’ve known each other. The board, which Cahill said had decided any potential deal would have to be for cultural and community reasons, greenlit the acquisition after talking with other banks Old National had acquired.
“The board said they are who they say they are, they match up to who we are and who we want to be,” Cahill said.
He also said in Tuesday’s joint announcement that Tower is excited to partner with one of the state’s largest financial institutions, one founded almost 180 years ago which “along with its commitment to our state and our region, and its high level of business ethics, community banking and active community involvement made it the right partner for Tower.”
Jones said in the announcement that his company is “absolutely thrilled” to partner with a bank that will expand Old National’s presence in the Fort Wayne area.
“Tower Bank has a well-earned reputation for excellence, as demonstrated by their recent Best Places to Work in Indiana designation, as well as a history of delivering outstanding client service,” Jones said. “Tower clients will benefit from the additional services provided by working with a larger community bank, while continuing to receive continued excellent local service from the people they are accustomed to working with.”
With nearly $680.9 million in total assets and $523.3 million in trust assets under management, Tower Financial Corp. currently operates six Tower Bank locations in Fort Wayne and one in Warsaw, which hold total deposits of $581.6 million and $438.6 million in loans.
Old National was founded in Evansville in 1834, and currently holds $9.6 billion in assets and operates 176 branches in Indiana, Illinois, Kentucky and Michigan. It ranks among the top 100 banking companies in the country, providing services in retail and commercial banking, wealth management, investments and brokerage, as well as insurance through Old National Insurance.[[In-content Ad]]
The transaction is valued at about $107.7 million, based on the shares of Old National common stock that Tower shareholders will receive, according to the announcement. Subject to approval by federal and state regulatory authorities and Tower shareholders, the deal is expected to close in the first quarter of 2014.
Tower Bank, the bank subsidiary of Tower Financial, will be merged into the Bancorp subsidiary Old National Bank.
Customers of Tower Bank, which has a location at 120 N. Buffalo St. in Warsaw, will still see the same team, Tower Financial President and CEO Mike Cahill said Tuesday afternoon. The only changes will be increased technology and the addition of products like agricultural lending, he said, noting that Old National is the 33rd largest agricultural lender in the country.
“Agricultural lending will be one of the new opportunities in Warsaw. It’s a gap we had a hard time filling,” Cahill said. “(Warsaw bank President) John Warren has been begging and pleading with me to deliver that product to your market.”
Warren remarked Tuesday that “this is going to be very good for the Warsaw community.”
Tower board members met in late June to discuss the acquisition, responding to a standing offer Old National President and CEO Bob Jones made Cahill in the eight years they’ve known each other. The board, which Cahill said had decided any potential deal would have to be for cultural and community reasons, greenlit the acquisition after talking with other banks Old National had acquired.
“The board said they are who they say they are, they match up to who we are and who we want to be,” Cahill said.
He also said in Tuesday’s joint announcement that Tower is excited to partner with one of the state’s largest financial institutions, one founded almost 180 years ago which “along with its commitment to our state and our region, and its high level of business ethics, community banking and active community involvement made it the right partner for Tower.”
Jones said in the announcement that his company is “absolutely thrilled” to partner with a bank that will expand Old National’s presence in the Fort Wayne area.
“Tower Bank has a well-earned reputation for excellence, as demonstrated by their recent Best Places to Work in Indiana designation, as well as a history of delivering outstanding client service,” Jones said. “Tower clients will benefit from the additional services provided by working with a larger community bank, while continuing to receive continued excellent local service from the people they are accustomed to working with.”
With nearly $680.9 million in total assets and $523.3 million in trust assets under management, Tower Financial Corp. currently operates six Tower Bank locations in Fort Wayne and one in Warsaw, which hold total deposits of $581.6 million and $438.6 million in loans.
Old National was founded in Evansville in 1834, and currently holds $9.6 billion in assets and operates 176 branches in Indiana, Illinois, Kentucky and Michigan. It ranks among the top 100 banking companies in the country, providing services in retail and commercial banking, wealth management, investments and brokerage, as well as insurance through Old National Insurance.[[In-content Ad]]
Have a news tip? Email [email protected] or Call/Text 360-922-3092