Old National Bancorps pending acquisition of Tower Financial Corp. raises several questions for customers and shareholders. Here are answers to some of them:
Q. Can I still write checks on my Tower Bank account?
A. Yes, your account is still active. Towers checks, ATMs and branch locations are all the same. Nothing will change until early next year, when the sale is expected to close.
Q. Will my favorite tellers and loan officers still work in my branch?
A. Yes. Old Nationals CEO has promised that Tower employees who work with the public will be asked to stay on. But that doesnt mean all Tower workers will still have jobs after the acquisition is completed. Some back-office jobs are expected to be lost as the two operations look for ways to increase efficiency.
Q. Will Tower Bank change its name? When?
A. Yes. Tower Bank branches will become Old National branches. The change is expected to happen sometime between April 1 and June 30.
Q. Is this sale a done deal?
A. Not unless it wins approval of both the owners of the majority of Tower shares and of banking regulators.
Q. Will I, as a shareholder, get to vote on this?
A. Yes. You will receive a proxy that asks you to vote on the deal.
Q. What if Old Nationals stock price plunges before the deal closes? Do Towers shareholders suffer the loss?
A. That depends on how far the stock falls. The sales agreement includes a clause that forces Old National to increase the amount of stock it pays for each Tower share if the price of Old Nationals stock falls below a certain amount.