KPMG US has resigned as auditor of TierOne
Bank and withdrawn its audit opinion and internal control
assessment of financial statements for the year ending 31 December
2008 to 31 March 2009, holding company TierOne Corporation

US media has reported that KPMG said the
withdrawn financial statements “contain material misstatements and
should not be relied upon by investors”.

TierOne said its audit committee will
investigate the statements made by KPMG and start the search for a
new independent auditor. It will also file a report with the US
Securities and Exchange Commission in line with US regulations.

TierOne Bank is a $2.9m savings bank, which
was founded in 1907 and has 69 offices throughout Nebraska, Iowa
and Kansas.

KPMG’s resignation is effective from 23 April 2010. The firm
declined International Accounting Bulletin requests for