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Tier One banks in North Platte and other central Nebraska towns are on the verge of being sold to a South Dakota-based subsidiary of the National Australian Bank. The Australian owned Great Western Bank is expected to buy 32 Tier One bank offices yet this year, if banking regulators approve. Tier One is headquartered in Lincoln and has branch offices in three states -- Nebraska, Iowa and Kansas. Under the plan, Tier One will sell banks in North Platte, McCook, Gothenburg, Lexington, Broken Bow, Callaway, Holdrege, Grand Island, St. Paul, Burwell, Ord, Columbus, O’Neill, Papillion and Omaha – 32 in all. Tier One bought many of those bank offices in 2004, including one in North Platte and seven in Omaha, from United Nebraska Bank. Tier One will keep 37 bank offices, including its presence in Lincoln, where it has a “robust headquarters,” the company said Sept. 4 in announcing the sale. “Tier One Bank will return to its historic community bank footprint and will enhance its capital position,” chairman and CEO Gilbert G. Lundstrom said. Tier One bank managers in North Platte did not return a request for comment Tuesday afternoon, but Leland Poppe, Tier One's regional market president in North Platte told the Bulletin late Tuesday that customer programs would be enhanced and no employee changes are anticipated. The sale could be final in early December, Poppe said. "We're all looking forward to it," he said. "Great Western Bank is a well capitalized bank with a strong emphasis on community banking and agribusiness lending," Poppe said. "North Platte will find the same great bankers with more financial products after the conversion." Poppe said Great Western has a relatively high equity-ratio of 19.04 percent, compared to an all-commercial-bank-average of 10.58 percent, citing data from the Federal Deposit Insurance Corporation. Under the sales agreement, Great Western will assume nearly $1.1 billion in Tier One deposits, $800 million in loans and $20 million in real estate and other assets, less a $55 million deposit premium. Tier One stock rose sharply when the sale was announced. The stock was up 43 percent the first day after the announcement and is now selling for around $3.97 a share. The stock had dipped to a low around $1.50 a share twice during the first seven months of 2009. Great Western Bank has more than 125 locations, prior to the sale.
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- 9/18/2009 11:58:05 AM
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