UPDATE: Tower cites competition for Carmel decision

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Tower Financial Corp. is putting off its planned launch of a bank in Carmel because the Indianapolis market is becoming too crowded, a Tower spokeswoman said today. “We’ve seen many banks coming to town,” Michelle Gray told IBJ.

Fort Wayne-based Tower had announced last October that it planned to enter the Indianapolis market by opening a community bank with $13.5 million to $15 million in capitalization in Carmel. The bank was scheduled to open during the first quarter. Four employees hired to launch the bank have been hired by Symphony Bank in Indianapolis.

Heightened competition wasn’t the only factor Tower considered, Gray said.

The parent of Tower Bank & Trust Co. needed resources to open a new location in Warsaw in northern Indiana and other possible new locations in the northeastern part of the state.

Also, Gray said, the bank is struggling to make strong profits at a time Detroit automakers are closing plants and shedding workers.

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