FORT WAYNE, Ind., Oct. 11, 2006 (PRIMEZONE) -- Tower Financial Corp. (Nasdaq:TOFC) announced today that it has filed its application with the Indiana Department of Financial Institutions to form Tower Bank of Central Indiana ("Tower Bank/Central Indiana"), a de novo community bank serving Indianapolis and the Central Indiana marketplace. Also, Tower Financial has applied to the FDIC for deposit insurance for the new bank. Tower Bank/Central Indiana's initial capitalization is intended to be within a range of $13.5 to $15 million, of which 49 percent will be provided by outside investors and the remaining 51 percent will be provided by Tower Financial.
Tower Bank & Trust Company ("Tower Bank/Fort Wayne"), a wholly-owned banking subsidiary of Tower Financial Corp. headquartered in Fort Wayne, has a loan production office that is currently serving the Indianapolis market. This office will become an office of Tower Bank/Central Indiana when the new bank opens for business, which is expected to be as early as the first quarter of 2007. Upon completion of a facility now under construction at 501 Pennsylvania Parkway in Hamilton County, that office will become permanent headquarters.
Don Schenkel, chairman, president and CEO of Tower Financial, stated, "Our flagship Fort Wayne community bank was founded on the vision that banking is a local business. That model has successfully served us well since we opened for business over seven years ago, and the Company has prospered as well. We now have the opportunity to build a new organization in Indianapolis with its own local board drawn from the leaders of the Central Indiana business community, and modeled on the success of our Fort Wayne bank.
"We believe that the Greater Indianapolis region will be highly receptive to a bank like Tower. The new bank will be organized for the benefit of the Indianapolis community, responsive to local needs, and with local decision-making capabilities. As a separate bank, with a local management team in place as well as directors and investors from the area, we have the flexibility to develop strategies that are specifically tailored to the Greater Indianapolis market. The bank will offer products and services that serve all segments of the community, with a special emphasis on small- to mid-sized businesses and members of the professional community -- those who value the quality of banking products, service and lending expertise for which Tower is already known."
William H. Olds, Jr., a long-time resident of Indianapolis and a 34-year banking veteran, will serve as president, CEO and chief lending officer of Tower Bank/Central Indiana once it is open for business. He brings both commercial lending and private banking experience to the position. Commenting on the new community bank, Olds stated, "The potential for a bank with the philosophy and high quality services of Tower Bank, supported by the local business community, and combined with the commercial potential of the Central Indiana marketplace, is truly outstanding. Hamilton County, for example, has one of the highest growth rates in the country, with a population forecast to grow in excess of 30 percent by 2011, and a current median income of more than $88,000. We are planning a strong future for this new community bank."
The board of directors for Tower Bank/Central Indiana is one of the strengths of the new organization, initially consisting of seven local directors -- all of them prominent in the Central Indiana business community -- with Donald F. Schenkel serving as chairman. Board members, in addition to Mr. Olds and Mr. Schenkel, include:
-- Thomas A. King, president of Thomas A. King Consulting, a
consulting practice in the areas of philanthropy, and community,
organizational and economic development, and former president of
the Indianapolis Chamber of Commerce.
-- J. Mark Mutz, principal of Mosaic Consulting LLC, a company which
plans, manages and leads complex transactions for companies without
in-house resources for these types of projects.
-- Thomas K. Merrell, president, CEO and director of Industrial
Dielectrics Incorporated, a manufacturer of plastic products,
industrial laminates, and molding compounds.
-- Robin A. Hall, managing director of Premier Wealth Advisors, a firm
that provides wealth management solutions to private and
institutional clients.
-- C. Perry Griffith, chairman, president & principal shareholder of
Denison, Inc., a real estate management development company.
-- Rolland L. Helmling, president and CEO of the United States Auto
Club (auto racing, testing and certification).
Michael D. Cahill, CFO of Tower Financial and Tower Bank/Fort Wayne, will serve as interim chief financial officer until a qualified local candidate is identified.
ABOUT THE COMPANY
Headquartered in Fort Wayne, Indiana, Tower Financial Corporation is a financial services holding company for two subsidiaries: Tower Bank & Trust Company, a growing community bank that opened in February 1999; and Tower Trust Company, a state-chartered wealth services firm doing business as Tower Private Advisors. Tower Bank provides a wide variety of financial services to businesses and consumers located in Indiana through its seven full-service financial centers in Fort Wayne and Angola and business development offices in Indianapolis and Warsaw, Indiana.
As of June 30, 2006, Tower Financial Corporation reported assets of $610 million, with an additional $506 million in assets under management at its wholly-owned subsidiary Tower Trust Company. Tower Financial Corporation's common stock is listed on the Nasdaq Global Market under the symbol "TOFC." For further information, please visit Tower's web site at www.TOFC.net.
THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER OF ANY SECURITIES FOR SALE.
FORWARD-LOOKING STATEMENTS
This news release contains some predictive statements about future events, including statements related to the future prospects of Tower Bank/Central Indiana, conditions in the financial services industry, the economy, and about Tower Financial Corporation and its other banking and trust company subsidiaries. These statements are intended to be made as "forward-looking," subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Such predictive statements are not guarantees of future performance, and actual results could differ materially from our current expectations.
Factors that could cause such predictive statements to turn out other than as anticipated or predicted include, among others: changes in general economic conditions affecting the demand for or the cost of credit; changes in interest rates and in interest rate relationships; the degree of competition by both traditional and non-traditional competitors; start-up risks and operational uncertainties affecting new business enterprises in general and, in particular, a new de novo bank, in a community with many existing larger, well-known and well-capitalized other banks; changes in banking regulations; including those affecting de novo banks; changes in the tax laws; the impact of technological advances; changes in the national or local economies, including those that affect borrowers' ability to repay loans; and other factors, including various "risk factors" as set forth in our most recent Annual Report on Form 10-K and in other reports which we from time to time file with the Securities and Exchange Commission. These reports are available publicly on the SEC website, www.sec.gov, and on Tower Financial Corporation's website, www.TOFC.net.
Tower Financial undertakes no duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.