TierOne Corp. of Lincoln, Neb., announced late Sunday that its independent auditors had resigned and had warned TierOne that some of its past financial statements are inaccurate.

The $2.8 billion-asset company said KPMG LLC orally submitted its resignation effective April 23, and withdrew its audit opinion and internal control assessment relating to TierOne's yearend 2008 financial statements and first-quarter 2009 statements.

KPMG has told the company that those financial statements contain "material misstatements and should not be relied upon by investors," according to a press release. TierOne's audit committee is reviewing the information and plans to begin a search for a new auditor.

TierOne still has not filed its completed annual report with the Securities and Exchange Commission. Regulators ordered TierOne to boost its loan-loss provision for the second quarter of 2009. The company has not filed an amended second-quarter report, which has delayed subsequent reports, TierOne said.

TierOne faces Nasdaq delisting for failing to meet SEC disclosure requirements.

The company also is under a regulatory order from the Office of Thrift Supervision, which rejected its recapitalization plan. The OTS gave TierOne's thrift until April 30 to enter into a binding merger agreement, and until May 31 to seal the deal or raise enough capital to reach adequately capitalized levels. TierOne has said that it may not meet the OTS deadlines.

The same day the enforcement action was announced, TierOne Chairman and Chief Executive Michael J. Falbo, resigned, along with its vice chairman, Gilbert G. Lundstrom, and board members James E. McClurg and James W. Strand.

The resignations "followed ongoing discussions with the OTS regarding the terms" of the enforcement action, TierOne said in the filing.

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