TierOne Corporation Reports Financial Results for First Quarter 2008

LINCOLN, Neb.--(Business Wire)--
TierOne Corporation (NASDAQ: TONE) ("Company"), the holding
company for TierOne Bank ("Bank"), announced today it had recorded a
$42.1 million, or $2.49 per diluted share, non-cash goodwill
impairment charge to the Company's first quarter 2008 earnings. The
charge, which was required under generally accepted accounting
principles, has no impact on the Company's liquidity, cash flows or
regulatory capital and is in response to the on-going volatility in
the financial industry and the overall impact this volatility has had
on market prices of most banking stocks.

In preparation for sale of all the nonperforming loans previously
originated by Florida-based TransLand Financial Services
("TransLand"), the Bank recorded a $14.5 million provision for loan
losses, wrote down the fair value of the remaining nonperforming
TransLand portfolio and is working with an investment banking firm
that specializes in the sale of mortgage and consumer loan and REO
portfolios who is marketing these TransLand loans. The $14.5 million
provision was part of a $39.9 million provision for loan losses
recorded during the three months ended March 31, 2008.

As a result of these charges, the Company recorded a net loss of
$60.9 million, or $3.60 per diluted share, for the three months ended
March 31, 2008. This compares to net income of $9.4 million, or $0.55
per diluted share, for the same period one year ago.

"Today's financial and credit environment is one of the most
challenging our country has experienced in decades," said Gilbert G.
Lundstrom, chairman and chief executive officer. "We have taken a
number of steps to address the challenging issues facing TierOne. We
remain focused on our fundamental core operations, combined with our
financially solid capital position, to lead us through this
unprecedented period of market disruption."

Synopsis of First Quarter 2008 Performance

Net Interest Income

For the three months ended March 31, 2008, net interest income
totaled $23.1 million, a decrease of 26.0 percent, compared to $31.2
million for the same period in 2007. The quarter-over-quarter decrease
resulted primarily from declines in interest income generated by net
loans receivable due to the declining interest rate environment and
the Bank's increased level of nonperforming loans.

Average interest rate spread and net interest margin were 2.47
percent and 2.85 percent, respectively, for the three months ended
March 31, 2008 compared to 3.50 percent and 3.93 percent,
respectively, for the same period one year ago. The decline in average
interest rate spread and net interest margin primarily resulted from
declines in yields earned on loans receivable and higher levels of
nonperforming loans.

Noninterest Income

Noninterest income for the three months ended March 31, 2008
increased 17.6 percent to $8.2 million compared to $7.0 million earned
during the comparable period one year ago. The period-over-period
increase was attributable primarily to a $681,000 gain associated with
VISA Inc.'s initial public offering and a $626,000 increase in the
gain on sale of loans held for sale.

Noninterest Expense

For the three months ended March 31, 2008, total noninterest
expense was $64.6 million, an increase of $43.1 million, compared to
$21.5 million for the three months ended March 31, 2007. The increase
in noninterest expense was primarily the result of a one-time $42.1
million non-cash write-off of goodwill.

In 2004, the Company recorded goodwill and other intangible assets
following its acquisition of United Nebraska Financial Co. Under
applicable accounting rules, goodwill is an asset which must be
supported by the Company's market value. Under these same rules, the
Company is also required to periodically assess goodwill in
relationship to its market capitalization and shareholders' equity.

The Company performed a goodwill impairment test as of March 31,
2008 due to adverse changes in the business climate. As a result of a
decline in the market value of the Company's common stock, the Company
determined that the entire goodwill amount was impaired, and recorded
a $42.1 million goodwill impairment charge to write-off goodwill at
March 31, 2008. Since the write-off of goodwill is a non-cash
accounting charge, it had no impact on the Company's liquidity or cash
flows. In addition, the charge did not impact the Company's regulatory
capital.

Asset Quality

Deterioration in the nation's economic conditions, which began in
the latter half of 2007 and has continued into the first quarter of
2008, has negatively impacted the Bank's asset quality. Total
nonperforming loans at March 31, 2008 were $127.1 million, or 4.40
percent of net loans, compared to $128.5 million, or 4.32 percent of
net loans, at December 31, 2007. The decrease in first quarter 2008
nonperforming loans was primarily the result of an $8.1 million
decline in nonperforming residential construction loans partially
offset by a $5.4 million increase in nonperforming land development
loans. The Bank's $127.1 million of nonperforming loans at March 31,
2008 consisted of $49.6 million of residential construction loans,
$44.1 million of land development loans, $19.2 million of commercial
construction loans and $14.2 million of other loans.

After charge-offs, nonperforming residential construction loans
totaled $49.6 million at March 31, 2008; a decline of $8.1 million, or
14.0 percent, compared to $57.7 million at December 31, 2007. Included
within the $49.6 million of nonperforming residential construction
loans at March 31, 2008 were $13.2 million of TransLand-related loans
which were reclassified as held for sale at March 31, 2008.

Total nonperforming land development loans increased $5.4 million,
or 13.8 percent, to $44.1 million at March 31, 2008 compared to $38.7
million at December 31, 2007. The nonperforming land development loans
consisted of five residential properties in the Las Vegas, Nevada area
totaling $38.5 million, six residential properties in Nebraska
amounting to $2.8 million and one residential land development
property each in Minnesota and Illinois totaling $1.5 million and $1.2
million, respectively.

At March 31, 2008, nonperforming commercial construction loans
totaled $19.2 million; the same level as reported at December 31,
2007. The $19.2 million in nonperforming commercial construction loans
relates to one upscale, 113-unit condominium project located within a
suburban area of Las Vegas, Nevada. The multi-phase project, with
units in various stages of construction including the substantially
completed 33-unit first phase, was funded by the Bank and three other
financial institutions with total committed loans by all institutions
of $84.8 million. Many of the units were under contract for purchase
prior to the commencement of the construction project. Following the
builder's voluntary bankruptcy, a court-appointed trustee working in
conjunction with the four financial institutions has identified a
local builder and sales agent to complete the project and sell the
remaining units.

The Company's allowance for loan losses was $78.5 million at March
31, 2008, inclusive of provision for loan losses and offsetting net
charge-offs, compared to $66.5 million at December 31, 2007. The
allowance for loan losses as a percentage of net loans increased to
2.72 percent at March 31, 2008 compared to 2.24 percent at year-end
2007. Provisions for loan losses recorded during the three months
ended March 31, 2008 totaled $39.9 million compared to $1.5 million
for the three months ended March 31, 2007. The first quarter 2008
provision for loan losses was primarily related to Las Vegas, Nevada
and TransLand-related loans.

Charged-off loans, net of recoveries, for the three months ended
March 31, 2008 were $28.5 million compared to $691,000 for the same
period one year ago. The quarter-over-quarter net increase was
primarily attributable to charging off $23.0 million of
TransLand-related loans during the three months ended March 31, 2008.

The Bank maintains a corporate policy of not participating in
subprime residential real estate lending or negative amortizing
mortgage products. The Office of Thrift Supervision ("OTS"), the
Bank's federal regulatory agency, defines subprime loans as loans to
borrowers displaying one or more credit risk characteristics including
lending to a borrower with a credit bureau risk score ("FICO") of 660
or below. Furthermore, the Bank has not participated in collateralized
loan obligations, collateralized debt obligations, structured
investment vehicles or asset-backed commercial paper.

The Bank has taken a series of additional steps to realign certain
credit administration functions, including the addition of personnel
with extensive background and expertise in credit analysis.
Furthermore, the Bank has tightened credit policies and limited
exposure in selected business lines and geographic markets.

Consolidated Statements of Financial Condition

Total assets at March 31, 2008 were $3.4 billion, a decrease of
4.6 percent, compared to $3.5 billion at December 31, 2007. The
decline in total assets during the first three months of 2008 was
primarily the result of an $89.6 million decrease in net loans
receivable, the write-off of $42.1 million of goodwill and an $18.0
million reduction in cash and cash equivalents.

Total liabilities declined 3.2 percent to $3.1 billion at March
31, 2008, compared to $3.2 billion at year-end 2007. Decreases of
$74.8 million in total deposits and $21.3 million in FHLBank advances
and other borrowings contributed to the decline in first quarter 2008
total liabilities.

Stockholders' equity declined $60.4 million to $285.2 million at
March 31, 2008 compared to $345.6 million at December 31, 2007. The
2008 year-to-date decrease in stockholders' equity resulted primarily
from a $62.3 million decline in retained earnings primarily related to
the write-off of $42.1 million in goodwill.

During the three months ended March 31, 2008, the Company did not
repurchase any of its common stock. On March 20, 2008, the Company's
Board of Directors announced it had authorized a buyback of up to ten
percent, or 1,797,592 shares, of its common stock to be repurchased on
the open market from time to time as conditions warrant.

The Company paid an $0.08 per share quarterly cash dividend on
March 31, 2008 to shareholders of record at March 14, 2008.

During the three months ended March 31, 2008, the Bank's levels of
tangible, core and risk-based capital continue to exceed all federally
mandated capital requirements. Since becoming a public company in
2002, the Bank has consistently been recognized as "well capitalized"
by the federal government; the highest rating awarded to federally
insured financial institutions.

Other Developments

On March 20, 2008, the Company terminated its merger agreement
with CapitalSource Inc. Pursuant to the terms of the agreement, which
was initially executed on May 17, 2007, the Company had the right to
terminate the merger agreement if the proposed merger was not
completed by February 17, 2008. No termination fee was payable by the
Company as a result of its termination of the merger agreement.

Corporate Profile

TierOne Corporation is the parent company of TierOne Bank, a $3.4
billion federally chartered savings bank and the largest
publicly-traded financial institution headquartered in Nebraska.
Founded in 1907, TierOne Bank offers customers a wide variety of
full-service consumer, commercial and agricultural banking products
and services through a network of 69 banking offices located in
Nebraska, Iowa and Kansas and nine loan production offices located in
Arizona, Colorado, Florida, Minnesota, Nevada and North Carolina.

Statements contained in this news release which are not historical
facts may be forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause
actual results to differ materially from those currently anticipated
due to a number of factors. Factors which could result in material
variations include, but are not limited to, changes in interest rates
or other competitive factors which could affect net interest margins,
net interest income and noninterest income; changes in demand for
loans, deposits and other financial services in the Company's market
area; changes in asset quality and general economic conditions;
unanticipated issues associated with the execution of the Company's
strategic plan, including issues associated with a more diversified
loan portfolio; unanticipated issues associated with increases in the
levels of losses, customer bankruptcies, claims and assessments;
unanticipated issues that may arise relative to loan loss provisions
and charge-offs in connection with the Company's loan portfolio and
the resolution of the TransLand matter, as well as other factors
discussed in documents filed by the Company with the Securities and
Exchange Commission from time to time. These factors should be
considered in evaluating the forward-looking statements and undue
reliance should not be placed on such statements. The Company
undertakes no obligation to update these forward-looking statements to
reflect events or circumstances that occur after the date on which
such statements were made.

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TierOne Corporation and Subsidiaries
Consolidated Statements of Financial Condition
March 31, 2008 (Unaudited) and December 31, 2007

March 31, December 31,
(Dollars in thousands, except per share data) 2008 2007
----------------------------------------------------------------------

ASSETS

Cash and due from banks $ 86,437 $ 79,561
Federal funds sold 137,000 161,900
----------------------------------------------------------------------

Total cash and cash equivalents 223,437 241,461
----------------------------------------------------------------------

Investment securities:

Held to maturity, at cost which
approximates fair value 64 70
Available for sale, at fair value 118,431 130,481
Mortgage-backed securities, available for
sale, at fair value 5,621 6,689

Loans receivable:
Net loans (includes loans held for sale of
$38,693 and $9,348 at March 31, 2008 and
December 31, 2007, respectively) 2,886,512 2,976,129
Allowance for loan losses (78,507) (66,540)
----------------------------------------------------------------------

Net loans after allowance for loan losses 2,808,005 2,909,589
----------------------------------------------------------------------

FHLBank Topeka stock, at cost 66,599 65,837
Premises and equipment, net 37,422 38,028
Accrued interest receivable 18,373 21,248
Goodwill - 42,101
Other intangible assets, net 6,353 6,744
Mortgage servicing rights (lower of cost or
market), net 15,461 14,530
Other assets 76,817 60,988
----------------------------------------------------------------------

Total assets $3,376,583 $3,537,766
----------------------------------------------------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits $2,355,739 $2,430,544
FHLBank Topeka advances and other
borrowings 667,993 689,288
Advance payments from borrowers for taxes,
insurance and other escrow funds 32,657 30,205
Accrued interest payable 5,556 6,269
Accrued expenses and other liabilities 29,470 35,870
----------------------------------------------------------------------

Total liabilities 3,091,415 3,192,176
----------------------------------------------------------------------

Stockholders' equity:

Preferred stock, $0.01 par value.
10,000,000 shares authorized; none issued - -
Common stock, $0.01 par value. 60,000,000
shares authorized; 18,059,946 and
18,058,946 shares issued at March 31, 2008
and December 31, 2007, respectively 226 226
Additional paid-in capital 367,534 366,042
Retained earnings, substantially restricted 32,354 94,630
Treasury stock, at cost; 4,515,129 and
4,516,129 shares at
March 31, 2008 and December 31, 2007,
respectively (104,985) (105,008)
Unallocated common stock held by Employee
Stock
Ownership Plan (9,783) (10,159)
Accumulated other comprehensive loss, net (178) (141)
----------------------------------------------------------------------

Total stockholders' equity 285,168 345,590

----------------------------------------------------------------------

Total liabilities and stockholders'
equity $3,376,583 $3,537,766
----------------------------------------------------------------------
*T

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TierOne Corporation and Subsidiaries
Consolidated Statements of Operations (Unaudited)

For the Three
Months Ended
March 31,
------------------

(Dollars in thousands, except per share data) 2008 2007
----------------------------------------------------------------------

Interest income:
Loans receivable $ 47,563 $56,065
Investment securities 2,169 2,429
Other interest-earning assets 1,509 171
----------------------------------------------------------------------

Total interest income 51,241 58,665
----------------------------------------------------------------------

Interest expense:
Deposits 20,719 17,896
FHLBank Topeka advances and other borrowings 7,433 9,574
----------------------------------------------------------------------

Total interest expense 28,152 27,470
----------------------------------------------------------------------

Net interest income 23,089 31,195

Provision for loan losses 39,940 1,468
----------------------------------------------------------------------

Net interest income (loss) after provision
for loan losses (16,851) 29,727
----------------------------------------------------------------------

Noninterest income:
Fees and service charges 5,530 5,501
Debit card fees 945 761
Loss from real estate operations, net (107) (134)
Net gain (loss) on sales of:
Loans held for sale 1,254 628
Real estate owned (18) (5)
Other operating income 635 253
----------------------------------------------------------------------

Total noninterest income 8,239 7,004
----------------------------------------------------------------------

Noninterest expense:
Salaries and employee benefits 13,198 13,118
Goodwill impairment 42,101 -
Occupancy, net 2,376 2,413
Data processing 657 621
Advertising 1,113 1,002
Other operating expense 5,151 4,345
----------------------------------------------------------------------

Total noninterest expense 64,596 21,499
----------------------------------------------------------------------

Income (loss) before income taxes (73,208) 15,232

Income tax expense (benefit) (12,279) 5,854
----------------------------------------------------------------------

Net income (loss) $(60,929) $ 9,378
----------------------------------------------------------------------

Net income (loss) per common share, basic $ (3.60) $ 0.56
----------------------------------------------------------------------

Net income (loss) per common share, diluted $ (3.60) $ 0.55
----------------------------------------------------------------------

Dividends declared per common share $ 0.08 $ 0.07
----------------------------------------------------------------------

Average common shares outstanding, basic (000's) 16,919 16,601
----------------------------------------------------------------------

Average common shares outstanding, diluted (000's) 16,919 17,161
----------------------------------------------------------------------
*T

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TierOne Corporation and Subsidiaries
Average Balances, Net Interest Income, Yields Earned and Cost of Funds

Three Months Ended March 31,
-------------------------------
2008
-------------------------------
Average Average
(Dollars in thousands) Balance Interest Yield/Rate
----------------------------------------------------------------------
Interest-earning assets:
Federal funds sold 187,694 1,509 3.22%
Investment securities (1) 192,941 2,100 4.35
Mortgage-backed securities (1) 6,284 69 4.39
Loans receivable (2) 2,857,916 47,563 6.66
----------------------------------------------------------------------

Total interest-earning assets 3,244,835 51,241 6.32%

Noninterest-earning assets 248,501
----------------------------------------------------------------------

Total assets 3,493,336
----------------------------------------------------------------------

Interest-bearing liabilities:
Interest-bearing checking accounts 327,792 809 0.99%
Savings accounts 205,156 1,327 2.59
Money market accounts 355,416 1,946 2.19
Time deposits 1,373,363 16,637 4.85
----------------------------------------------------------------------

Total interest-bearing deposits 2,261,727 20,719 3.66
FHLBank Topeka advances and
other borrowings 662,236 7,433 4.49
----------------------------------------------------------------------

Total interest-bearing liabilities 2,923,963 28,152 3.85%

Noninterest-bearing accounts 142,996

Other liabilities 79,973
----------------------------------------------------------------------

Total liabilities 3,146,932

Stockholders' equity 346,404
----------------------------------------------------------------------

Total liabilities and stockholders'
equity 3,493,336
----------------------------------------------------------------------

Net interest-earning assets 320,872

Net interest income; average interest
rate spread 23,089 2.47%

Net interest margin (3) 2.85%

Average interest-earning assets to
average interest-bearing liabilities 110.97%
----------------------------------------------------------------------

Three Months Ended March 31,
--------------------------------
2007
------------------------------
Average Average
(Dollars in thousands) Balance Interest Yield/Rate
----------------------------------------------------------------------
Interest-earning assets:
Federal funds sold 13,090 171 5.23%
Investment securities (1) 173,340 2,306 5.32
Mortgage-backed securities (1) 11,578 123 4.25
Loans receivable (2) 2,980,236 56,065 7.52
----------------------------------------------------------------------

Total interest-earning assets 3,178,244 58,665 7.38%

Noninterest-earning assets 210,954
----------------------------------------------------------------------

Total assets 3,389,198
----------------------------------------------------------------------

Interest-bearing liabilities:
Interest-bearing checking accounts 344,974 972 1.13%
Savings accounts 45,731 54 0.47
Money market accounts 401,736 3,027 3.01
Time deposits 1,147,523 13,843 4.83
----------------------------------------------------------------------

Total interest-bearing deposits 1,939,964 17,896 3.69
FHLBank Topeka advances and
other borrowings 892,093 9,574 4.29
----------------------------------------------------------------------

Total interest-bearing liabilities 2,832,057 27,470 3.88%

Noninterest-bearing accounts 132,173

Other liabilities 67,300
----------------------------------------------------------------------

Total liabilities 3,031,530

Stockholders' equity 357,668
---------------------------------------------------------------------

Total liabilities and stockholders'
equity 3,389,198
----------------------------------------------------------------------

Net interest-earning assets 346,187

Net interest income; average interest
rate spread 31,195 3.50%

Net interest margin (3) 3.93%

Average interest-earning assets to
average interest-bearing liabilities 112.22%
----------------------------------------------------------------------
*T

(1) Includes securities available for sale and held to maturity.
Investment securities also includes FHLBank Topeka stock.

(2) Includes nonperforming loans during the respective periods.
Calculated net of unamortized premiums, discounts and deferred fees,
loans in process and allowance for loan losses.

(3) Equals net interest income (annualized) divided by average
interest-earning assets.

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----------------------------------------------------------------------

TierOne Corporation and Subsidiaries
Loan Portfolio Composition

The following table shows the composition of our loan portfolio by
type of loan at the dates indicated.

March 31, 2008 December 31, 2007
------------------- -------------------
(Dollars in thousands) Amount % Amount %
----------------------------------------------------------------------
Real estate loans:
One-to-four family
residential (1) $ 316,680 9.87% $ 314,623 9.41%
Second mortgage residential 90,218 2.81 95,477 2.86
Multi-family residential 151,452 4.72 106,678 3.19
Commercial real estate 335,294 10.45 370,910 11.10
Land and land development
(1) 458,551 14.30 473,346 14.16
Residential construction (1) 444,209 13.85 513,560 15.36
Commercial construction 501,886 15.65 540,797 16.18
Agriculture 91,334 2.85 91,068 2.72
----------------------------------------------------------------------
Total real estate loans 2,389,624 74.50 2,506,459 74.98
----------------------------------------------------------------------
Business 253,217 7.89 252,712 7.56
----------------------------------------------------------------------
Agriculture - operating 93,808 2.93 100,365 3.00
----------------------------------------------------------------------
Warehouse mortgage lines of
credit 86,404 2.69 86,081 2.58
----------------------------------------------------------------------
Consumer loans:
Home equity 68,121 2.13 72,517 2.17
Home equity lines of credit 119,097 3.71 120,465 3.60
Home improvement 43,344 1.35 46,045 1.38
Automobile 83,265 2.60 87,079 2.60
Other 70,641 2.20 71,141 2.13
----------------------------------------------------------------------
Total consumer loans 384,468 11.99 397,247 11.88
----------------------------------------------------------------------
Total loans 3,207,521 100.00% 3,342,864 100.00%
----------------------------------------------------------------------
Unamortized premiums,
discounts and deferred loan
fees 9,584 9,451
Loans in process (2) (330,593) (376,186)
----------------------------------------------------------------------
Net loans 2,886,512 2,976,129

Allowance for loan losses (78,507) (66,540)
----------------------------------------------------------------------
Net loans after
allowance for loan
losses 2,808,005 2,909,589
----------------------------------------------------------------------

(1) Includes loans held for
sale $ 38,693 $ 9,348
----------------------------------------------------------------------
(2) Loans in process represents the undisbursed portion of
construction and land development loans.
----------------------------------------------------------------------
*T

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TierOne Corporation and Subsidiaries
Allowance for Loan Loss Activity

At or for the
Three Months Ended
March 31,
--------------------
(Dollars in thousands) 2008 2007
----------------------------------------------------------------------

Allowance for loan losses at beginning of period $ 66,540 $33,129
Charge-offs (28,767) (874)
Recoveries on loans previously charged-off 306 183
Change in reserve for unfunded loan commitments 488 -
Provision for loan losses 39,940 1,468
----------------------------------------------------------------------

Allowance for loan losses at end of period $ 78,507 $33,906
----------------------------------------------------------------------

Allowance for loan losses as a percentage of net
loans 2.72% 1.11%

Allowance for loan losses as a percentage of
nonperforming loans 61.75% 84.16%

Ratio of net charge-offs during the year as a
percentage of average loans outstanding during
the year 3.98% 0.09%
----------------------------------------------------------------------
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TierOne Corporation and Subsidiaries
Selected Financial and Other Data

March 31, December 31,
(Dollars in thousands) 2008 2007
----------------------------------------------------------------------
Selected Financial and Other Data:

Total assets $3,376,583 $3,537,766
Cash and cash equivalents 223,437 241,461
Investment securities:
Held to maturity, at cost which
approximates fair value 64 70
Available for sale, at fair value 118,431 130,481
Mortgage-backed securities, available for
sale, at fair value 5,621 6,689

Loans receivable:
Loans held for sale 38,693 9,348
Total loans receivable 3,168,828 3,333,516
Unamortized premiums, discounts and
deferred loan fees 9,584 9,451
Loans in process (330,593) (376,186)
----------------------------------------------------------------------
Net loans 2,886,512 2,976,129

Allowance for loan losses (78,507) (66,540)
----------------------------------------------------------------------

Net loans after allowance for loan
losses 2,808,005 2,909,589
----------------------------------------------------------------------
Deposits 2,355,739 2,430,544
FHLBank Topeka advances and other borrowings 667,993 689,288
Stockholders' equity 285,168 345,590

Nonperforming loans 127,131 128,490
Nonperforming assets 139,921 134,895
Allowance for loan losses 78,507 66,540
Nonperforming loans as a percentage of net
loans 4.40% 4.32%
Nonperforming assets as a percentage of total
assets 4.14% 3.81%
Allowance for loan losses as a percentage of
nonperforming loans 61.75% 51.79%
Allowance for loan losses as a percentage of
net loans 2.72% 2.24%

Three Months Ended
March 31,
------------------------

Selected Operating Ratios: 2008 2007
----------------------------------------------------------------------
Average yield on interest-earning assets 6.32% 7.38%
Average rate on interest-bearing liabilities 3.85% 3.88%
Average interest rate spread 2.47% 3.50%
Net interest margin 2.85% 3.93%
Average interest-earning assets to average
interest-bearing liabilities 110.97% 112.22%
Net interest income (loss) after provision
for loan losses to noninterest expense -26.09% 138.27%
Total noninterest expense to average assets 7.40% 2.54%
Efficiency ratio (1) 204.95% 55.17%
Return on average assets -6.98% 1.11%
Return on average equity -70.36% 10.49%
Average equity to average assets 9.92% 10.55%
Return on tangible equity (2) -81.08% 12.08%
*T

(1) Efficiency ratio is calculated as total noninterest expense,
less amortization expense of intangible assets, as a percentage of the
sum of net interest income and noninterest income.

(2) Return on tangible equity is calculated as annualized net
income as a percentage of average stockholders' equity adjusted for
goodwill and other intangible assets.

TierOne Corporation
Edward J. Swotek, 402-473-6250
Senior Vice President
Investor Relations Department
investorrelations@tieronecorp.com

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