Attached files
| file | filename |
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| 8-K - TIERONE CORP | v187352_8k.htm |
| EX-10.3 - TIERONE CORP | v187352_ex10-3.htm |
| EX-10.1 - TIERONE CORP | v187352_ex10-1.htm |
Exhibit
10.2
UNITED
STATES OF AMERICA
Before
the
OFFICE
OF THRIFT SUPERVISION
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In
the Matter of
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Order
No.: CN 10-21
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TIERONE
BANK
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Effective
Date: June 3, 2010
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Lincoln,
Nebraska
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OTS
Docket No. 03309
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ORDER TO CEASE AND
DESIST
WHEREAS, TierOne Bank,
Lincoln, Nebraska, OTS Docket No. 03309 (Association), by and through its Board
of Directors (Board), has executed a Stipulation and Consent to Issuance of an
Order to Cease and Desist (Stipulation); and
WHEREAS, the Association, by executing the
Stipulation, has consented and agreed to the issuance of this Order to Cease and
Desist (Order) by the Office of Thrift Supervision (OTS) pursuant to
12 U.S.C. § 1818(b); and
WHEREAS, pursuant to delegated
authority, the OTS Regional Director for the Central Region (Regional Director)
is authorized to issue Orders to Cease and Desist where a savings association
has consented to the issuance of an order.
NOW, THEREFORE, IT IS ORDERED
that:
Cease and
Desist.
1. The
Association and its directors, officers, and employees shall cease and desist
from any action (alone or with others) for or toward, causing, bringing about,
participating in, counseling, or aiding
and abetting the unsafe or unsound practices that resulted in the Association
operating with: (a)
an excessive level of adversely classified and delinquent loans,
(b) an inadequate level of capital for the volume, type and quality
of assets held by the Association, and (c) inadequate earnings to fund growth
and augment capital as described in the OTS Report of Examination of the
Association dated October 5, 2009 (2009 ROE).
TierOne
Bank
Order to
Cease and Desist
Page 1 of
6
2. The
Association and its directors, officers, and employees shall cease and desist
from any action (alone or with others) for or toward, causing, bringing about,
participating in, counseling, or aiding and abetting the violations of law and
regulation cited in the 2009 ROE, including:
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(a)
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12
C.F.R. § 560.160(a) (regarding classification of
assets);
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(b) 12
C.F.R. § 560.160(b) (regarding allowance for loan and lease losses (ALLL) and
valuation allowances);
(c) 12
C.F.R. §§ 564.3(a), 560.170(a), 560.170(b), and 560.170(e) (regarding
appraisals); and
(d) 12
C.F.R. § 560.170(b) (regarding loan administration).
Asset
Quality.
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3.
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(a)
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By
June 30, 2010, the Association shall develop an individual written
specific workout plan for each adversely classified asset and asset
designated as special mention (Criticized Asset) or group of
such Criticized Assets to any one borrower or loan relationship of five
hundred thousand dollars ($ 500,000) or greater (collectively, Asset
Workout Plans).
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(b)
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Within
forty-five (45) days after the end of each quarter, beginning with the
quarter ending June 30, 2010, the Association shall submit a quarterly
written asset status report (Quarterly Asset Report) to the
Board. The Board’s review of the Quarterly Asset Report shall
be documented in the Board meeting minutes. The Quarterly Asset
Report shall include, at a minimum:
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TierOne
Bank
Order to
Cease and Desist
Page 2 of
6
| (i) | the current status of all Asset Workout Plans; |
| (ii) | a comparison of classified assets to Tier 1 (Core) capital plus ALLL; |
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(iii)
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a
comparison of Criticized Assets to Tier 1 (Core) capital plus
ALLL;
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(iv)
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a
comparison of classified assets and Criticized Assets at the current
quarter end with the preceding
quarter;
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(v)
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a
breakdown of Criticized Assets by type and risk
factor;
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(vi)
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a
discussion of the actions taken during the preceding quarter to reduce the
Association’s level of Criticized Assets;
and
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| (vii) | any recommended revisions or updates to the Asset Workout Plans. |
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(c)
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Within
fifty (50) days after the end of each quarter beginning with June 30,
2010, a copy of the Quarterly Asset Report shall be provided to the
Regional Director.
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Appraisals.
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4.
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(a)
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Effective
immediately, the Association shall comply with the amended appraisal
policy approved at the October 27, 2009 Board meeting (Appraisal
Policy).
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(b)
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By
June 30, 2010, the Association shall submit to the Regional Director a
written plan for compliance with the Appraisal Policy that requires a
monthly appraisal tracking report be submitted for Board
review.
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Concentrations of
Credit.
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5.
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(a)
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By
June 30, 2010, the Association shall revise its written policy for
identifying, monitoring, and controlling risks associated with
concentrations of credit (Credit Concentration Policy) to ensure that it
addresses all corrective actions set forth in the 2009 ROE relating to
concentrations of credit. The Credit Concentration Policy shall
comply with all applicable laws, regulations and regulatory guidance and
establish comprehensive concentration limits expressed as a percentage of
Tier 1 (Core) Capital plus ALLL based on the Association’s risk
profile.
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TierOne
Bank
Order to
Cease and Desist
Page 3 of
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(b)
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Immediately
after Board approval of the Association’s revised Credit Concentration
Policy, the Association shall implement and adhere to the Credit
Concentration Policy. A copy of the Credit Concentration Policy
shall be provided to the Regional Director within five (5) days of
adoption by the Board.
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Board Oversight of
Compliance with Order and Supervisory Agreement.
6. Effective immediately, the Board shall monitor and coordinate the Association’s
compliance with the provisions of this Order and the Supervisory Agreement entered into
between the Association and the OTS effective January 15, 2009 (Supervisory
Agreement). The Board shall review and adopt all policies and
procedures required by this Order prior to submission to the OTS and shall
monitor and coordinate
completion of all corrective actions required in the 2009 ROE.
7. Within twenty (20) days after the end of each month, beginning with the month ending May 31, 2010, the Association shall prepare a written compliance progress report for the
Board (Compliance Tracking Report). The Compliance Tracking Report
shall, at a minimum:
(a) separately list each corrective action
required by this Order and the 2009 ROE;
(b) separately list each corrective action
required by the Supervisory Agreement;
(b) identify the required or anticipated
completion date for each corrective action; and
(c) discuss
the current status of each corrective action, including the action(s) taken or to be taken to
comply with each corrective action.
TierOne
Bank
Order to
Cease and Desist
Page 4 of
6
8. Within thirty (30) days after the end of
each month, beginning with month ending May
31, 2010, the Board shall review the Compliance Tracking Report and all
reports required to be prepared by this Order and the Supervisory
Agreement. Following its review, the Board shall adopt a resolution:
(a) certifying that each
director has reviewed the
Compliance Tracking Report and all required reports; and
(b) documenting any corrective actions
adopted by the Board. A copy of the Compliance
Tracking Report and the Board resolution shall be provided to the Regional
Director within five (5) days after the Board meeting.
Effective Date,
Incorporation of Stipulation.
9. This
Order is effective on the Effective Date as shown on the first
page. The Stipulation is made a part hereof and is incorporated
herein by this reference.
Duration.
10. This
Order shall remain in effect until terminated, modified, or suspended, by
written notice of such action by the OTS, acting by and through its authorized
representatives.
Time
Calculations.
11. Calculation
of time limitations for compliance with the terms of this Order run from the
Effective Date and shall be based on calendar days, unless otherwise
noted.
12. The
Regional Director or an OTS authorized representative may extend any of the
deadlines set forth in the provisions of this Order upon written request by the
Association that includes reasons in support for any such
extension. Any OTS extension shall be made in writing.
Submissions and
Notices.
13. All
submissions, including any reports, to the OTS that are required by or
contemplated by this Order shall be submitted within the specified
timeframes.
TierOne
Bank
Order to
Cease and Desist
Page 5 of
6
14. Except
as otherwise provided herein, all submissions, requests, communications,
consents, or other documents relating to this Order shall be in writing and sent
by first class U.S. mail (or by reputable overnight carrier, electronic
facsimile transmission, or hand delivery by messenger) addressed as
follows:
(a) To the OTS:
Regional Director
Office of Thrift
Supervision
One South Wacker Drive, Suite
2000
Chicago,
Illinois 60606
Facsimile: (312) 917-5001
(b) To the
Association:
President
TierOne Bank
1235 “N” Street
Lincoln,
Nebraska 68508-2008
Facsimile: (402) 435-0427
No Violations
Authorized.
15. Nothing
in this Order or the Stipulation shall be construed as allowing the Association,
its Board,
officers, or employees to violate any law, rule, or regulation.
IT
IS SO ORDERED.
OFFICE
OF THRIFT SUPERVISION
By: /s/ Daniel T.
Mckee
Daniel
T. McKee
Regional
Director, Central Region
Date: See
Effective Date on page 1
TierOne
Bank
Order to
Cease and Desist
Page 6 of
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