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Great Western Bank, Sioux Falls, South Dakota, Assumes All of the Deposits of TierOne Bank, Lincoln, Nebraska

FOR IMMEDIATE RELEASE
June 4, 2010
Media Contact:
David Barr
Office Phone: (202) 898-6992
Cell Phone: (703) 622-4790
Email: dbarr@fdic.gov

TierOne Bank, Lincoln, Nebraska, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Great Western Bank, Sioux Falls, South Dakota, to assume all of the deposits of TierOne Bank.

The 69 branches of TierOne Bank will reopen during normal business hours beginning Saturday as branches of Great Western Bank. Depositors of TierOne Bank will automatically become depositors of Great Western Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of TierOne Bank should continue to use their existing branch until they receive notice from Great Western Bank that it has completed systems changes to allow other Great Western Bank branches to process their accounts as well.

This evening and over the weekend, depositors of TierOne Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2010, TierOne Bank had approximately $2.8 billion in total assets and $2.2 billion in total deposits. Great Western Bank will pay the FDIC a premium of 1.5 percent to assume all of the deposits of TierOne Bank. In addition to assuming all of the deposits of the failed bank, Great Western Bank agreed to purchase essentially all of the assets.

The FDIC and Great Western Bank entered into a loss-share transaction on $1.9 billion of TierOne Bank's assets. Great Western Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-830-4732. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/TierOnebankne.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $297.8 million. Great Western Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. TierOne Bank is the 81st FDIC-insured institution to fail in the nation this year, and the first in Nebraska. The last FDIC-insured institution closed in the state was Sherman County Bank, Loup City, on February 13, 2009.

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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,932 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-132-2010




Last Updated 12/6/2012 communications@fdic.gov