TierOne Bank
| Company type | Public |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1907 |
| Defunct | June 2010 |
| Fate | Shut down by Office of Thrift Supervision; FDIC receiver; assets acquired by Great Western Bank |
| Headquarters | Lincoln , United States |
Number of employees | 764 |
TierOne Bank was a financial institution headquartered in Lincoln, Nebraska, established in 1907. It was publicly traded on the Nasdaq under the ticker TONE until its collapse in June 2010. Subsequent investigations by the FBI and SIGTARP led to criminal charges against CEO Gilbert G. Lundstrom and other senior officials connected to the bank's downfall.
History
Originally chartered as Fidelity Savings and Loan Association in 1907, the bank experienced multiple rebrandings before adopting the TierOne Bank name in 2002. It secured a federal charter in 1935, becoming an early savings and loan institution to offer deposit insurance. In April 2002, the bank announced its intention to transition from a mutual organization to a publicly traded company. By October of that year, it debuted on Nasdaq with the symbol TONE. Trading was halted on , followed by removal from the exchange later that month.
Failure
On , the Office of Thrift Supervision shut down TierOne Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. At closure, the bank employed 764 individuals, of whom 550 were retained by Great Western Bank, which also entered into a purchase and assumption agreement with the FDIC. This event represented the largest bank failure in Nebraska’s history.
Charges
In the aftermath, CEO Gilbert G. Lundstrom was indicted on 13 counts related to investor fraud, including conspiracy to commit wire fraud. Prosecutors characterized him as "the architect of an aggressive strategy" whose high-risk real estate investments severely harmed the bank during the 2008 financial crisis. In March 2016, Lundstrom received a prison sentence of 132 months and was ordered to pay $1.2 million in fines (equivalent to about $2 million when adjusted for inflation), along with restitution totaling $3,122,696 to affected parties. He was released from federal imprisonment on .
Post-failure
The FDIC concluded its receivership activities in 2022. That same year, Great Western Bank was acquired and merged into First Interstate BancSystem, thereby broadening First Interstate's regional footprint.
See also
- List of banks acquired or bankrupted during the Great Recession
- List of largest bank failures in the United States