Unassociated Document
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
_______________________
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
_______________________
Date of
Report
(Date of
earliest
event
reported): June 2,
2010
TierOne
Corporation
(Exact
name of registrant as specified in its charter)
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Wisconsin
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000-50015
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04-3638672
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(State
or other
jurisdiction
of
incorporation)
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(Commission
File
Number)
|
(IRS
Employer
Identification
No.)
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1235 “N” Street,
Lincoln, Nebraska 68508
(Address
of principal executive offices, including zip code)
(402)
475-0521
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
_______________________
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
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Item
1.01.
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Entry into a Material
Definitive Agreement.
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Cease
and Desist Orders
On June
2, 2010, TierOne Corporation (the “Company”) consented
to the issuance of an Order to Cease and Desist (the “Company Cease and Desist
Order”) by the Office of Thrift Supervision, the Company’s primary
federal regulator (the “OTS”). The
Company Cease and Desist Order requires the Company to adhere to the enhanced
management oversight restrictions required by the Supervisory Agreement that
TierOne Bank (the “Bank”) entered into
on January 15, 2009, which include, but are not limited to, restrictions on
paying dividends, incurring debt, engaging in transactions with affiliates, and
actions related to management and the board of directors. In
addition, the Company Cease and Desist Order provides that by July 15, 2010, the
Company will submit to the OTS a capital plan covering the period beginning with
the quarter ending June 30, 2010 through the quarter ending December 31, 2011,
which at a minimum needs to address, among other things, the establishment of a
minimum tangible capital ratio commensurate with the Company’s stand alone risk
profile; specific strategies for increasing and maintaining tangible equity
capital; operating strategies to achieve net income levels that will result in
profitability and adequate debt service without reliance on dividends from the
Bank; and specific plans to reduce the risks to the Company from its current
debt servicing requirements.
The
Company Cease and Desist Order became
effective June 3, 2010 and remains in effect until terminated, modified
or suspended by the OTS.
Also on
June 2, 2010, the Bank consented to the issuance of an Order to Cease and Desist
(the “Bank Cease and
Desist Order”) by the OTS, the Bank’s primary federal
regulator. Among other things, the Bank Cease and Desist Order
provides that:
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•
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By
June 30, 2010, the Bank shall develop an individual workout plan for each
adversely classified loan and loan designated special mention of $500,000
or more.
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Effective
immediately, the Bank shall comply with its amended appraisal policy, and
by June 30, 2010 shall submit to the OTS a written plan for compliance
with the appraisal policy that requires a monthly appraisal tracking
report.
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By
June 30, 2010, the Bank shall revise its written policy for identifying,
monitoring, and controlling risks associated with concentration of credit
to ensure that it addresses all corrective actions set forth in the OTS
Report of Examination of the Bank dated October 5,
2009.
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The Bank
Cease and Desist Order became
effective June 3, 2010 and remains in effect until terminated, modified
or suspended by the OTS.
Any
material failure by the Company and the Bank to comply with the provisions of
the Company Cease and Desist Order and/or the Bank Cease and Desist Order could
result in further enforcement actions by the OTS. There can be no
assurance that the Company or the Bank will be able to comply fully with the
orders, or that efforts to comply with the orders will not have adverse effects
on the operations and financial condition of the Company and/or the
Bank.
A copy of
the Company Cease and Desist Order and the Bank Cease and Desist Order are
included as Exhibit 10.1 and Exhibit 10.2, respectively, and are incorporated
herein by reference. The description of the Company Cease and Desist
Order and the Bank Cease and Desist Order set forth above does not purport to be
complete, and is qualified by reference to the full text of the Company Cease
and Desist Order and the Bank Cease and Desist Order, respectively.
Consent
to Conservator or Receiver
On June
2, 2010, the Bank consented to the appointment by the OTS of a conservator or
receiver of the Bank should the OTS determine to make such an
appointment. A copy of the Agreement and Consent to the Appointment
of a Conservator or Receiver is included as Exhibit 10.3 and is incorporated
herein by reference.
Item
9.01. Financial Statements and
Exhibits.
The following exhibits are attached to
this Current Report on Form 8-K:
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10.1 |
Company
Order to Cease and Desist. |
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10.2
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Bank
Order to Cease and Desist.
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10.3 |
Agreement
and Consent to the Appointment of a Conservator or
Receiver. |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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TIERONE
CORPORATION |
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Date: June
3, 2010
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By:
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/s/ James
A. Laphen |
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James
A. Laphen |
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President |
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TIERONE
CORPORATION
Exhibit
Index to Current Report on Form 8-K
Exhibit
Number Description
10.1 Company
Order to Cease and Desist.
10.2 Bank
Order to Cease and Desist.
10.3 Agreement
and Consent to the Appointment of a Conservator or Receiver.