TierOne Bank
A former Nebraska regional bank that failed in 2010 after aggressive real-estate expansion and losses during the financial crisis.
Last updated August 26, 2026
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Overview
TierOne Bank was a Nebraska-based regional banking institution headquartered in Lincoln. Its history began in 1907, when it was established as Fidelity Savings and Loan Association. The institution later changed names as its business and corporate structure evolved, eventually adopting the TierOne Bank name in 2002. In 1935 it received a federal charter, becoming one of the early savings and loan associations to receive both a federal charter and federal deposit insurance. For much of its later history, TierOne operated as a community and regional bank serving customers in Nebraska and surrounding markets. Its activities included deposit-taking, retail banking, commercial banking, and real-estate-related lending. The bank’s expansion strategy placed substantial emphasis on real estate and on markets viewed as carrying greater risk. That exposure became increasingly damaging during the 2008 financial crisis, when falling property values, credit deterioration, and wider instability in financial markets weakened the institution. TierOne announced in April 2002 that it intended to convert from a mutual bank into a publicly traded company. Its shares began trading on Nasdaq in October 2002 under the ticker symbol TONE. Trading was suspended on May 7, 2010, and the shares were delisted later that month as the bank’s financial condition deteriorated. On June 4, 2010, the Office of Thrift Supervision closed TierOne Bank and appointed the Federal Deposit Insurance Corporation as receiver. The closure was the largest bank failure in Nebraska’s history. At the time of failure, TierOne had 764 employees. Great Western Bank entered into a purchase-and-assumption agreement with the FDIC and retained 550 of those employees, taking over portions of the failed institution’s operations and assets. The failure also led to an extended criminal investigation involving the Federal Bureau of Investigation and the Special Inspector General for the Troubled Asset Relief Program. Former chief executive Gilbert G. Lundstrom and other executives and auditors faced allegations connected with the bank’s collapse and disclosures to investors. Prosecutors characterized Lundstrom as the principal designer of an aggressive portfolio-expansion strategy and argued that the bank’s concentration in riskier real-estate markets contributed materially to its failure. In 2016, Lundstrom was sentenced to 132 months in prison after being convicted on charges related to deception of investors, including conspiracy to commit wire fraud. The FDIC receivership was ultimately terminated in 2022. Great Western Bank was itself acquired by First Interstate BancSystem in 2022 and merged into that organization.
History
TierOne Bank traced its origins to Fidelity Savings and Loan Association, established in 1907 in Nebraska. The institution passed through multiple names and structural changes before becoming TierOne Bank in 2002. In 1935 it received a federal charter, an important institutional milestone because it was among the early savings and loan associations to receive both federal chartering and deposit insurance. The bank’s later identity was shaped by its transition from a mutual organization to a publicly held company. In April 2002, management announced plans to convert the mutual bank into a public company. The conversion was followed by a Nasdaq listing in October 2002 under the symbol TONE. This provided access to public equity markets but also subjected the institution to the disclosure and market pressures associated with being a listed financial company. TierOne operated as a regional and community-oriented bank based in Lincoln, Nebraska. Its business included deposits, consumer banking, commercial lending, and real-estate finance. During its expansion, the institution pursued an aggressive strategy intended to enlarge its loan and investment portfolio. The strategy increased the bank’s exposure to real estate and to markets considered more speculative or risky. The deterioration of the United States real-estate and credit markets during the 2008 financial crisis exposed weaknesses in that approach. Losses and credit problems damaged TierOne’s financial position, while concerns about the bank’s condition undermined the viability of its public listing. Nasdaq suspended trading in the shares on May 7, 2010, and delisted them later that month. On June 4, 2010, the Office of Thrift Supervision closed TierOne and appointed the FDIC as receiver. The event was described as the largest bank failure in Nebraska history. Great Western Bank signed a purchase-and-assumption agreement with the FDIC. Of the 764 people employed by TierOne at the time of closure, 550 were retained by Great Western, helping preserve employment and continuity for portions of the bank’s customer and branch operations. The collapse generated criminal and regulatory scrutiny. The FBI and the Special Inspector General for the Troubled Asset Relief Program investigated conduct involving TierOne executives and auditors. Chief executive Gilbert G. Lundstrom faced 13 criminal charges connected with alleged deception of investors, including conspiracy to commit wire fraud. Prosecutors portrayed him as the architect of a strategy that expanded the institution’s exposure to higher-risk real estate and argued that the resulting losses helped decimate the bank during the crisis. Lundstrom was sentenced in March 2016 to 132 months in prison. The FDIC receivership was terminated in 2022. Great Western Bank, which had participated in the resolution of TierOne, was acquired by First Interstate BancSystem in the same year and merged into that company.
- 2022
FDIC receivership terminated
[1]The formal FDIC receivership for TierOne Bank ended.
- 2016
Lundstrom sentenced in criminal case
[1]Former CEO Gilbert G. Lundstrom received a 132-month federal sentence for conduct related to investor deception and the bank’s collapse.
- 2010
Trading suspended and shares delisted
[1]Trading was suspended on May 7, and the shares were delisted later in the month.
- 2010
Bank closed by the Office of Thrift Supervision
[1]Regulators closed TierOne on June 4 and appointed the FDIC as receiver. Great Western Bank assumed selected operations under an FDIC agreement.
- 2002
Conversion to a public company announced
[1]TierOne announced plans to convert from a mutual bank into a publicly traded company.
- 2002
Nasdaq listing
[1]TierOne began trading on Nasdaq under the ticker TONE.
- 1935
Federal charter and deposit insurance
[1]The institution received a federal charter and became one of the early savings and loan associations to receive federal deposit insurance.
- 1907
Institution founded as Fidelity Savings and Loan Association
[1]The predecessor institution of TierOne Bank was established in Nebraska as Fidelity Savings and Loan Association.
Products and positioning
A Nebraska-centered community and regional bank offering deposit services and lending, with a substantial exposure to commercial and real-estate finance before its 2010 failure.
Retail banking
Retail banking and deposits
TierOne served community and regional customers through deposit-taking and retail banking activities. The available reference material identifies the institution as a bank but does not provide a complete historical catalog of account products, branch formats, or consumer features.
Commercial banking
Commercial lending
Commercial lending formed part of TierOne’s regional banking activities. The bank expanded its portfolio during the 2000s, including lending connected with real estate and other higher-risk markets. Specific loan products and underwriting terms are not established by the supplied sources.
Real-estate lending
Real-estate finance
Real-estate-related lending and portfolio exposure became central to TierOne’s expansion strategy. The concentration in riskier real-estate markets left the bank vulnerable when property and credit conditions deteriorated during the financial crisis.
Controversies
2016
Criminal conviction and sentencing of Gilbert G. Lundstrom
Former CEO Gilbert G. Lundstrom faced 13 criminal charges, including conspiracy to commit wire fraud, in connection with alleged investor deception. He was sentenced to 132 months in federal prison in March 2016.
2010
Investigation into executive and auditor conduct
Following TierOne’s failure, the FBI and the Special Inspector General for the Troubled Asset Relief Program investigated conduct involving bank executives and auditors. The case concerned alleged deception of investors and actions associated with the institution’s collapse.
Brand decisions
2010
Regulatory closure and FDIC resolutionOtherBackground
Losses and real-estate exposure weakened TierOne during the financial crisis, making continued independent operation untenable.
Action taken
The Office of Thrift Supervision closed the bank on June 4, 2010, and appointed the FDIC as receiver. Great Western Bank entered into a purchase-and-assumption agreement.
Aftermath
TierOne ceased operating as an independent bank, while Great Western retained 550 of the 764 employees employed at the time of failure.
2002
Convert from a mutual bank to a public companyStrategyBackground
TierOne sought to change its ownership and corporate structure as it developed into a larger regional banking institution.
Action taken
Management announced the conversion in April 2002, followed by a Nasdaq listing in October under ticker TONE.
Aftermath
The listing gave TierOne a public-market presence until trading was suspended and the shares were delisted in 2010.
Sources1 sources
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