North Fork to Acquire GreenPoint

The two New York regional banks are roughly the same size.
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Updated from Feb. 16

New York regional bank

North Fork Bancorp

(NFB)

will acquire

GreenPoint Financial

(GPT)

, the state's second-largest savings and loan, for $6.3 billion.

Under terms of the deal, 1.0514 shares of North Fork will be exchanged for each share of GreenPoint stock, valuing GreenPoint at $46 a share, based on Feb. 13 closing prices.

Shares in both companies fell on Tuesday, once investors had a chance to react to Monday's announcement. North Fork lost 30 cents, or 0.7%, to $43.45, while GreenPoint fell $1.58, or 3.4%, to $45.25.

The deal will create the nation's 16th-largest bank holding company with assets of more than $50 billion, according to a release.

The deal comes after GreenPoint in January hired investment bankers to seek out potential buyers, and is the latest in a new round of industry consolidation.

The transaction is expected to add 12% to North Fork's 2005 earnings, the companies said.

"The economics of this transaction are compelling," said North Fork CEO John Adam Kanas. "We are bringing together two very simple and profitable banking strategies under one management team." Kanas will continue in both positions after the acquisition is complete.

On Friday, GreenPoint's shares closed at $46.83. North Fork's ended at $43.75.