North Fork Bancorporation to Buy GreenPoint Financial for 3.47 Times Revenue

Weekly Corporate Growth Report, Feb 23, 2004

The Deal: North Fork Bancorporation Inc. has reached an agreement to purchase GreenPoint Financial Corporation in an all-stock transaction. Under the terms of the agreement, each share of GreenPoint Financial will be exchanged for 1.0514 shares of North Fork Bancorporation. Based on recent closing prices, the deal values GreenPoint at about $46 per share, a value lower than GreenPoint's recent trading price of $46.83. The deal still requires approval from regulatory authorities.

Discussion: GreenPoint Financial is the holding company for GreenPoint Bank. The bank, which was founded in 1868, is of the largest thrifts in the United States. The bank operates about 90 branches in the New York City metropolitan area. In addition to traditional banking services, GreenPoint offers insurance products in its market area and issues residential mortgages nationwide through subsidiary GreenPoint Mortgage Funding.

North Fork Bancorporation is the holding company for North Fork Bank, which more than 170 branches in New York and New Jersey. The company also runs a telebanking operation through Superior Savings of New England.

The deal will create the largest regional bank in the New York metro area and the 16th largest bank holding company nationwide. Combined, the two banks will hold $50 billion in assets and $30 billion in deposits.