Carmel pull-out stings Tower Financial’s profit

Fort Wayne-based Tower Financial Corp. said today that second-quarter profit tumbled to $217,000 from $912,000 a year earlier because of costs to build loan loss reserves and a decision to retreat from plans to start a bank in the Indianapolis area.

Tower announced in October that it would enter the Indianapolis market by opening a community bank in Carmel. Then, on June 25 the parent of Tower Bank & Trust Co. said it would put off the plans indefinitely because Indianapolis had become crowded with competition, and because resources were needed to focus on the Fort Wayne area.

Yet another reason cited was that the bank was struggling to make strong profits at a time Detroit automakers are closing plants and shedding workers.