TierOne of Nebraska Records Another Loss

TierOne Corp. in Lincoln, Neb., said it lost money for the second consecutive year but remains well capitalized.

The $3.3 billion-asset company said late Monday that it lost $3.8 million in the fourth quarter as it continued to build its reserves. It had lost $18.4 million a year earlier.

For the full year, TierOne lost $75.2 million. It had lost $12.4 million loss in 2007.

Its fourth-quarter provision for loan losses fell 72%, to $10.8 million. TierOne cited aggressive reserving in late 2007 and early last year. It also said its loan default rate has fallen.

Nonperforming loans rose 10.6% last year, to $142.2 million at yearend, or 5.11% of total loans. The company said nearly three-quarters of the problem loans were in high-growth states — Arizona, Colorado, Florida, Minnesota, Nevada, and North Carolina — where it previously had loan production offices. Those offices were all closed last year.

TierOne also said 88% of the nonperformers are in land and development and construction loans for both residential and commercial real estate.

Last month the Office of Thrift Supervision ordered the company's TierOne Bank to have a core capital ratio of 8.5% and a total risk-based capital ratio of 11%. The company said the unit had a core capital ratio of 8.9% and a total risk-based capital ratio of 11.6% at yearend.

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