Having almost $680.9m in total assets, and about $523.m in trust assets under management, TOFC manages its wholly owned subsidiary Tower Bank & Trust Company (Tower Bank).
Currently, Tower Bank manages six full-service banking centers in Fort Wayne and one in Warsaw, with total deposits of $581.6m and $438.6m in loans.
Post-transaction, the acquirer, which has $9.6bn in assets and 176 offices, will emerge as the third largest deposit holder in Indiana.
Old National Bancorp president & CEO Bob Jones said that the transaction will boost its presence in the Fort Wayne market, while helping to solidify its standing as Indiana’s bank.
"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," Jones added.
For each share of Tower Financial common stock, its shareholders will receive 1.20 shares of Old National Bancorp common stock and $6.75 in cash, based on the terms of the transaction.
The transaction, which has already been unanimously approved by the boards of both companies, is likely to conclude during the first quarter of 2014, although it still requires federal and state regulatory authorities.
Old National was advised by Sandler O’Neill + Partners, and the law firm Krieg DeVault, while Tower was counseled by Keefe, Bruyette & Woods and Barrett & McNagy.
