NAB in US acquisition
National Australia Bank (NAB) has expanded its US footprint via an acquisition undertaken by its wholly owned subsidiary, Great Western Bank.
NAB announced today that Great Western Bank had, effective immediately, acquired “certain assets and liabilities of TierOne Bank” from the Federal Deposit Insurance Corporation (FDIC) for a cash payment of approximately US$76 million.
It said the acquisition included all of TierOne’s approximately US$1.9 billion in deposits and US$1.9 billion in loans under agreement, with the FDIC absorbing 80 per cent of credit losses arising from the loan portfolio and related assets.
Commenting on the acquisition, NAB group executive for Asia, New Zealand and the US, Andrew Thorburn, said it was aligned with the bank’s US strategy and was “a financially attractive bolt-on opportunity”.
“It increases Great Western’s distribution and customer base in selected states that together have an agricultural output greater than Australia’s,” he said.
AUTHOR
Mike Taylor
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