Great Western Bank has agreed to assume all of the deposits of TierOne Bank from Federal Deposit Insurance Corporation (FDIC). TierOne Bank was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver.
According to FDIC, the 69 branches of TierOne Bank will re-open during normal business hours beginning June 5, 2010, 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.
As of March 31, 2010, TierOne Bank had approximately $2.8bn in total assets and and $2.2bn in total deposits. Great Western Bank will pay the FDIC a premium of 1.5% 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 have entered into a loss-share transaction on $1.9bn of TierOne Bank’s assets. Great Western Bank will share in the losses on the asset pools covered under the loss-share agreement.