TierOne to sell deposits, assets of some branches

TierOne to sell deposits, some loans and other assets of 32 branches to Great Western Bank

• On 9:29 am EDT, Friday September 4, 2009

LINCOLN, Neb. (AP) -- TierOne Corp. said Friday that it will sell deposits, certain loans and other assets of 32 branch offices to Great Western Bank.

Most of the branches included in the deal were part of TierOne's 2004 acquisition of United Nebraska Bank. The rest of the branches are from other facilities the company built or acquired.

The transaction includes about $1.1 billion in deposits, the transfer or sale of approximately $800 million in loans, $20 million in real estate and other assets and the balance in cash or securities minus a $55 million deposit premium paid.

TierOne, holding company for TierOne Bank, said the move will help boost its capital.

"This additional capital will strengthen our ability to continue to address selected asset quality issues and improve our capacity to manage through this challenging economic period," CEO Gilbert Lundstrom said in a statement.

The sale may close by the end of the year. Once it is complete, TierOne will have 37 banking offices in Nebraska, Iowa and Kansas and about $2 billion in assets -- approximately the same asset size prior to its United Nebraska Bank acquisition.