North Fork Bancorporation announces acquisition discussions with Great Neck Bancorp

Business Wire, Jan 6, 1995

MATTITUCK, N.Y.--(BUSINESS WIRE)--Jan. 6, 1995--North Fork Bancorporation Inc. (NYSE:NFB) announced Friday that it is in discussions with Great Neck Bancorp. with respect to a possible acquisition of the Bank of Great Neck, Great Neck, Long Island.

Under the terms being discussed, Great Neck stockholders would receive stock in a new entity that would be formed to hold certain of Great Neck's performing and non-performing loans. The aggregate carrying value of these loans is approximately $13.3 million, net of reserves. Pursuant to the merger of Great Neck with a subsidiary of North Fork, Great Neck stockholders would receive an amount in cash, determined pursuant to a formula, which is currently expected to result in a price of approximately $7 per share, or $7 million in cash. North Fork, which currently is conducting due diligence procedures, stated that there can be no assurances as to whether or when a definitive agreement would be reached. Great Neck has total assets of approximately $125 million, and deposits of $107 million, as of Sept. 30, 1994.

"The proposed acquisition meets with our strategy to expand our geographic base in the Long Island marketplace," stated John Adam Kanas, chairman, president and chief executive officer.

North Fork Bancorporation Inc. with total assets of $2.9 billion, deposits of $2.3 billion and shareholders' equity of $254 million, is the holding company for North Fork Bank, a 46 branch commercial bank operating in Suffolk, Nassau, Queens, Westchester and Rockland Counties.

CONTACT: North Fork Bancorporation, Mattituck

Daniel M. Healy, 516/298-5000