Neb.'s TierOne Sell 32 Branches To SD Bank

JOSH FUNK

OMAHA, Neb. (AP) — TierOne Bank's owners announced Friday they agreed to sell 32 bank branches and related assets to Great Western Bank.

Great Western said it would pay a net premium of about $39 million for the assets it is acquiring, which include $1.1 billion in deposits, $800 million in loans and $20 million in real estate associated with the branches.

The deal should help TierOne, which is under strict scrutiny from the federal Office of Thrift Supervision, strengthen its balance sheet.

"Completion of the transaction will fortify the bank's capital levels," TierOne CEO Gilbert Lundstrom said. The additional capital will help TierOne address concerns about the quality of certain assets and work through the recession, he said.

TierOne's stock jumped $1.07, or 49.5 percent, after the sale was announced to sell for $3.23 a share Friday afternoon.

Earlier this year, TierOne Corp., the Nebraska-based parent of TierOne Bank, signed an agreement with regulators that restricts certain activities and requires the bank to keep more capital on hand than is typically required for similar thrifts.