Great Western Bank (GWB), a wholly owned subsidiary of National Australia Bank Limited (NAB), today announced the acquisition, effective immediately, of certain assets and liabilities of TierOne Bank from the Federal Deposit Insurance Corporation (FDIC) for a cash payment of approximately US$76 million, subject to closing adjustments. The acquisition includes all of TierOne’s approximately US$1.9 billion in deposits and US$1.9 billion in loans. The loss share agreement has a term of ten years for residential mortgages and five years for all other loans. The acquisition is earnings accretive and the GWB loan portfolio remains more than 100% deposit funded following the acquisition.
Andrew Thorburn, NAB Group Executive Asia, New Zealand and the United States said: “This acquisition is aligned with our US strategy and is a financially attractive bolt on opportunity. It increases Great Western’s distribution and customer base in selected states that together have an agricultural output greater than Australia’s.”
The cash payment of US$76 million includes a deposit premium, an asset discount and net assets acquired. GWB has an option to acquire TierOne branches at fair market value (or assume the relevant leases) and to make employment offers to TierOne employees. The TierOne branch network is in the key agricultural states of Nebraska (59 branches), Iowa (9 branches) and Kansas (1 branch).