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Commercial banks

North Fork Bancorporation Inc. Acquires First Nationwide Bank Branches and Extebank Assets

Strategic Insights

— 1 min read

North Fork Bancorporation Inc., a commercial bank headquartered on Long Island, has agreed to purchase 10 Long Island branches of First Nationwide Bank with total deposits of approximately $590 million for $37.5 million in cash. This acquisition is part of North Fork's strategy to expand its presence on Long Island and is expected to be immediately accretive to earnings. The deal, announced on September 29, 1995, also involves the proposed acquisition of the domestic business of Extebank, a commercial bank with total assets and deposits of $442 million and $396 million, respectively.

Key Takeaways:

  • North Fork Bancorporation Inc. has agreed to purchase 10 Long Island branches of First Nationwide Bank with total deposits of approximately $590 million for $37.5 million in cash.
  • The acquisition is expected to be immediately accretive to earnings and will add approximately 50,000 customers to North Fork's customer base.
  • The deal also involves the proposed acquisition of the domestic business of Extebank, a commercial bank with total assets and deposits of $442 million and $396 million, respectively.
  • North Fork plans to expand its presence on Long Island through these acquisitions and will have a branch network of 67 locations upon completion.
  • The parent company of North Fork Bank, North Fork Bancorporation Inc., has total assets of $2.9 billion, deposits of $2.4 billion, and stockholders' equity of $285.9 million.

Statistics:

  • Total deposits acquired from First Nationwide Bank: approximately $590 million
  • Cash payment for First Nationwide Bank branches: $37.5 million
  • Total assets of Extebank: $442 million
  • Total deposits of Extebank: $396 million
  • North Fork's branch network after acquisitions: 67 branches
  • Total assets of North Fork Bancorporation Inc.: $2.9 billion
  • Total deposits of North Fork Bancorporation Inc.: $2.4 billion
  • Stockholders' equity of North Fork Bancorporation Inc.: $285.9 million
  • Number of customers acquired from First Nationwide Bank: approximately 50,000

Sources:

  • North Fork Bancorporation Inc.
  • Business Wire, September 29, 1995, "North Fork Bancorporation Inc. (NFB) Announces Acquisition of Ten (10) Long Island Branches of First Nationwide Bank"

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