TierOne Bank
| Nasdaq: TONE | |
| Founded | 1907 in Lincoln, Nebraska |
| Defunct | June 4, 2010 |
| Fate | Failed, held in receivership by the FDIC; assets acquired by Great Western Bank |
| Successor | Great Western Bank |
| Headquarters | , |
Area served | Nebraska, Iowa, Kansas |
| Website | http://www.tieronebank.com/ (defunct) |
TierOne Bank was a bank based in Lincoln, Nebraska. It traded on the Nasdaq stock exchange until its failure in June 2010. Following an investigation by the FBI and SIGTARP, charges were filed against multiple TierOne executives. The CEO, Gilbert G. Lundstrom, and several other executives and auditors faced charges related to the failure.
History
[edit]TierOne Bank was founded as "Fidelity Savings and Loan Association" in 1907, and underwent several name changes before finally changing its name to TierOne Bank in 2002.[1] In October 2002, TierOne was listed on the Nasdaq with the stock symbol TONE.[2] Trading of the shares was suspended on May 7, 2010, and the stock was delisted the same month.[3]
Failure
[edit]On June 4, 2010, the Office of Thrift Supervision closed TierOne and appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver.[4][5] Of the 764 TierOne employees at the time of failure, 550 were retained by the Great Western Bank.[6] It was the largest bank failure in Nebraska's history.[7]
Charges
[edit]After the failure, the CEO Gilbert G. Lundstrom faced 13 criminal charges related to his deception of investors, including conspiracy to commit wire fraud. The prosecution claimed that Lundstrom was "the architect of an aggressive strategy to expand the bank's portfolio" and "Lundstrom's bet on real estate in riskier areas decimated the bank" during the 2008 financial crisis. In March 2016, Lundstrom was sentenced to 132 months in prison, and was ordered to pay a fine of $1.2 million, equivalent to $1.57 million in 2024. $3,122,696 in restitution was also ordered across all defendants.[8][9]
Post-failure
[edit]The FDIC's receivership was terminated in 2022. Great Western Bank was purchased by, and merged into First Interstate BancSystem in 2022.[10]
See also
[edit]- List of banks acquired or bankrupted during the Great Recession
- List of largest bank failures in the United States
References
[edit]- ^ "About Us". TierOne Bank. Archived from the original on March 29, 2006. Retrieved October 28, 2025.
- ^ "TierOne Corporation [TONE] Celebrates Listing on The NASDAQ Stock Market" (Press release). October 2, 2002. Archived from the original on June 12, 2007.
- ^ "Delisting of Securities of TierOne Corporation From The NASDAQ Stock Market" (Press release). New York: NASDAQ. May 17, 2010. Retrieved October 28, 2025.
- ^ Olberding, Matt (May 31, 2020). "TierOne 10 years later: Looking back at Nebraska's biggest bank collapse". Retrieved October 27, 2025.
- ^ Barr, David (June 4, 2010). "Great Western Bank, Sioux Falls, South Dakota, Assumes All of the Deposits of TierOne Bank, Lincoln, Nebraska" (Press release). Federal Deposit Insurance Corporation. Retrieved October 27, 2025.
This article incorporates text from this source, which is in the public domain.
- ^ "TierOne Bank becomes Great Western Bank". The Hebron Journal-Register. June 23, 2010. Retrieved October 28, 2025.
- ^ "TîerOne closing is Neb.'s largest failure". North Western Financial Review. Vol. 195, no. 13. July 1, 2010. pp. 12, 20. ISSN 1042-1254.
- ^ "Former CEO of $3 Billion TierOne Bank Convicted for Orchestrating Scheme to Hide More than $100 Million in Losses from Shareholders and Regulators". United States Department of Justice (Press release). November 6, 2015. Archived from the original on August 1, 2025. This article incorporates text from this source, which is in the public domain.
- ^ Rapoport, Michael (January 9, 2013). "Two Auditors Charged Over Bank Failure". Wall Street Journal. ISSN 0099-9660. Archived from the original on June 13, 2021. Retrieved October 27, 2025.
- ^ "Former Great Western Bank branches open today as First Interstate Bank". Des Moines Business Record. May 23, 2022. Retrieved June 8, 2022.