- 1 -

FEDERAL RESERVE SYSTEM 

North Fork Bancorporation, Inc. 

Melville, New York 

Order Approving the Acquisition of a Bank Holding Company 

North Fork Bancorporation (“North Fork”), a bank holding company 

within the meaning of the Bank Holding Company Act (“BHC Act”), has 

requested the Board’s approval under section 3 of the BHC Act to acquire 

GreenPoint Financial Corp. (“GreenPoint”) and its subsidiary bank, GreenPoint 

Bank, both in New York, New York.1 North Fork also has requested the Board’s 

approval under sections 4(c)(8) and 4(j) of the BHC Act and section 225.28(b)(12) 

of the Board’s Regulation Y to acquire a nonbanking subsidiary of GreenPoint and 

thereby engage in permissible community development activities.2 

Notice of the proposal, affording interested persons an opportunity to 

submit comments, has been published (69 Federal Register 21,833 (2004)). The 

time for filing comments has expired, and the Board has considered the proposal 

and all comments in light of the factors set forth in sections 3 and 4 of the BHC 

Act. 

North Fork, with total consolidated assets of approximately 

$25.6 billion, operates insured depository institutions3

 in New York, Connecticut, 

and New Jersey that control deposits totaling approximately $18 billion, which 

represents less than 1 percent of total deposits in insured depository institutions in 

1 12 U.S.C. § 1842. 

2 12 U.S.C. §§ 1843(c)(8) and 1843(j); 12 C.F.R. 225.28(b)(12). 

3 In this context, the term “insured depository institution” includes insured 

commercial banks, savings associations, and savings banks. 
- 2 -

the United States.4 North Fork is the seventh largest depository organization in 

New York, controlling deposits of $14 billion, which represents approximately 

2.4 percent of total deposits in depository institutions in the state (“state 

deposits”).5 GreenPoint, with total consolidated assets of approximately 

$23.8 billion, is the eighth largest insured depository organization in New York, 

controlling deposits of $12.6 billion, which represents approximately 2.2 percent of 

state deposits. 

On consummation of the proposal, North Fork, with total consolidated 

assets of $54.1 billion,6

 would control deposits of approximately $31.6 billion, 

which represents less than 1 percent of total deposits in insured depository 

institutions nationwide. North Fork would become the fifth largest depository 

organization in New York, controlling deposits in the state of $26.6 billion, which 

represents approximately 4.5 percent of state deposits. 

Competitive Considerations 

Section 3 of the BHC Act prohibits the Board from approving a 

proposal that would result in a monopoly or would be in furtherance of any attempt 

to monopolize the business of banking in any relevant banking market. The 

BHC Act also prohibits the Board from approving a proposed bank acquisition that 

would substantially lessen competition in any relevant banking market, unless the 

4 Asset and national deposit data are as of March 31, 2004, and have been adjusted 

to account for the merger of The Trust Company of New Jersey, Jersey City, 

New Jersey (“TCNJ”), into North Fork’s lead subsidiary bank, North Fork Bank, 

Mattituck, New York (“North Fork Bank”), on May 15, 2004. 

5 Statewide deposit and ranking data are as of June 30, 2003. 

6 This amount includes approximately $5.4 billion in one-time balance sheet 

adjustments. 
- 3 -

Board finds that the anticompetitive effects of the proposal clearly are outweighed 

in the public interest by the probable effect of the proposal in meeting the 

convenience and needs of the community to be served.7 

North Fork and GreenPoint compete directly in the Metropolitan 

New York/New Jersey banking market (“New York banking market”).8 The Board 

has reviewed carefully the competitive effects of the proposal in this banking 

market in light of all the facts of record. In particular, the Board has considered 

the number of competitors that would remain in the market, the relative shares of 

total deposits in depository institutions in the market (“market deposits”) 

controlled by North Fork and GreenPoint, the concentration level of market 

deposits and the increase in this level as measured by the Herfindahl-Hirschman 

Index (“HHI”) under the Department of Justice Merger Guidelines (“DOJ 

Guidelines”),9

 and other characteristics of the market. 

7 12 U.S.C. § 1842(c)(1). 

8 The New York banking market is defined as the counties of Bronx, Dutchess, 

Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, 

Suffolk, Sullivan, Ulster, and Westchester in New York; the counties of Bergen, 

Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, 

Somerset, Sussex, Union, and Warren and portions of Mercer County in New 

Jersey; Pike County in Pennsylvania; and Fairfield County and portions of 

Litchfield and New Haven Counties in Connecticut. 

9 Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a market is 

considered unconcentrated if the post-merger HHI is below 1000. The Department 

of Justice has informed the Board that a bank merger or acquisition generally will 

not be challenged (in the absence of other factors indicating anticompetitive 

effects) unless the post-merger HHI is at least 1800 and the merger increases the 

HHI by more than 200 points. The Department of Justice has stated that the higher 

than normal HHI thresholds for screening bank mergers for anticompetitive effects 

implicitly recognize the competitive effects of limited-purpose lenders and other 

nondepository financial institutions. 
- 4 -

Consummation of the proposal would be consistent with Board 

precedent and the DOJ Guidelines in the New York banking market. On 

consummation of the proposal, North Fork would become the fifth largest 

depository organization in this market, controlling $30 billion in deposits, which 

represents approximately 4.7 percent of market deposits.10 The HHI would 

increase by only 11 points to 982, the market would remain unconcentrated, and 

numerous competitors would remain in the market. 

The Department of Justice also has conducted a review of the 

competitive effects of the proposal and has advised the Board that consummation 

of the proposal would not have a significantly adverse effect on competition in the 

New York banking market or any other relevant banking market. The appropriate 

banking agencies have been afforded an opportunity to comment and have not 

objected to the proposal. 

Based on all the facts of record, the Board concludes that 

consummation of the proposal would not have a significantly adverse effect on 

competition or on the concentration of banking resources in any relevant banking 

market and that competitive considerations are consistent with approval. 

10 Market share data are as of June 30, 2003, adjusted to include North Fork’s 

acquisition of TCNJ, and are based on calculations in which the deposits of thrift 

institutions are included at 50 percent. The Board previously has indicated that 

thrift institutions have become, or have the potential to become, significant 

competitors of commercial banks. See, e.g., Midwest Financial Group, 75 Federal 

Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve 

Bulletin 743 (1984). Thus, the Board regularly has included thrift deposits in the 

market share calculation on a 50 percent weighted basis. See, e.g., First Hawaiian, 

Inc., 77 Federal Reserve Bulletin 52 (1991). 
- 5 -

Financial, Managerial, and Supervisory Considerations 

Section 3 of the BHC Act requires the Board to consider the 

financial and managerial resources and future prospects of the companies and 

banks involved in the proposal and certain other supervisory factors. The Board 

has carefully considered these factors in light of all the facts of record, including 

reports of examination, other confidential supervisory information received from 

the primary federal supervisors for the subsidiary depository institutions of North 

Fork and GreenPoint, information provided by North Fork, and public comment on 

the proposal. In addition, the Board has consulted with the Federal Deposit 

Insurance Corporation (“FDIC”), the primary federal supervisor of North Fork’s 

subsidiary banks, concerning the proposal. 

North Fork is well capitalized and will remain so on consummation of 

the proposal. Moreover, the proposal is structured as a share exchange and 

involves no acquisition debt. 

The Board also has considered the managerial resources and the 

examination records of North Fork, GreenPoint, and GreenPoint Bank, including 

their risk management systems and other policies; North Fork’s record of 

integrating past merger proposals; and the proposed management after 

consummation, including management of each of its current and proposed 

subsidiaries.11 Based on all the facts of record, the Board has concluded that 

11 A commenter criticized North Fork’s management of its mortgage operations by 

referencing an administrative action brought by the New York Attorney General’s 

Office (“NYAG’s Office”) against North Fork that involved escrow fees 

improperly charged to 30 accounts. The NYAG’s Office confirmed that this 

matter was resolved in May 2003, when North Fork corrected the alleged errors, 

reimbursed the escrow fees it charged the customers involved, and paid a small 

fine. 
- 6 -

considerations relating to the financial and managerial resources and future 

prospects of North Fork, GreenPoint, and GreenPoint Bank are consistent with 

approval, as are the other supervisory factors under the BHC Act.12 

Convenience and Needs Considerations 

In acting on a proposal under section 3 of the BHC Act, the Board is 

required to consider the effects of the proposal on the convenience and needs of the 

communities to be served and to take into account the records of the relevant 

insured depository institutions under the Community Reinvestment Act (“CRA”).13 

The CRA requires the federal financial supervisory agencies to encourage financial 

institutions to help meet the credit needs of local communities in which they 

operate, consistent with their safe and sound operation, and requires the 

12 The commenter also expressed concern that GreenPoint Bank’s subsidiary, 

GreenPoint Mortgage Funding, Inc. (“GPMF”), might be outsourcing certain backoffice services to vendors in foreign countries and questioned whether customers’ 

financial information was being properly safeguarded. Many U.S. financial 

institutions use service providers to perform various functions, such as data 

processing. The use of service providers, whether domestic or foreign-based, is a 

common business practice and is not prohibited by federal banking laws. The 

Board expects U.S. financial institutions to manage effectively the risks associated 

with their outsourcing arrangements and to comply with all applicable legal and 

regulatory requirements, regardless of whether these arrangements are with 

domestic or foreign firms. U.S. financial institutions have various obligations 

under federal law to protect the privacy and security of information about their 

customers, including information transferred or transmitted to a foreign-based 

service provider. In supervising financial institutions with outsourcing 

arrangements, the federal financial supervisory agencies focus on the ability and 

obligation of the financial institutions to maintain controls over the privacy and 

security practices of their service providers that have custody or access to customer 

information. The Board has consulted with the FDIC and reviewed information 

submitted by North Fork and GreenPoint about the banks’ controls over service 

providers. 

13 12 U.S.C. § 2901 et seq. 
- 7 -

appropriate federal financial supervisory agency to take into account an 

institution’s record of meeting the credit needs of its entire community, including 

low- and moderate-income (“LMI”) neighborhoods, in evaluating bank 

expansionary proposals. 

The Board has considered carefully the convenience and needs factor 

and the CRA performance records of the subsidiary banks of North Fork and 

GreenPoint in light of all the facts of record, including public comment on the 

proposal. A commenter opposing the proposal asserted, based on data reported 

under the Home Mortgage Disclosure Act (“HMDA”),14 that North Fork and 

GreenPoint engage in discriminatory treatment of African-American and Hispanic 

individuals in their home mortgage lending operations. The commenter also 

contended that the banks do not make their products and services available in 

low-income and predominantly minority areas, particularly in the Bronx, and 

instead provide financial support to “fringe banking” businesses, such as check 

cashers and pawn shops, in those areas. In addition, the commenter expressed 

concern about potential branch closures resulting from this proposal.15 

A. CRA Performance Evaluations 

As provided in the CRA, the Board has evaluated the convenience and 

needs factor in light of the evaluations by the appropriate federal supervisors of the 

14 12 U.S.C. § 2801 et seq. 

15 The commenter also expressed concern about possible job losses resulting from 

this proposal. The effect of a proposed acquisition on employment in a community 

is not among the factors included in the BHC Act, and the convenience and needs 

factor has been interpreted consistently by the federal banking agencies, the courts, 

and the Congress to relate to the effect of a proposal on the availability and quality 

of banking services in the community. See Wells Fargo & Company, 82 Federal 

Reserve Bulletin 445, 457 (1996). 
- 8 -

CRA performance records of the relevant insured depository institutions. An 

institution’s most recent CRA performance evaluation is a particularly important 

consideration in the applications process because it represents a detailed, on-site 

evaluation of the institution’s overall record of performance under the CRA by its 

appropriate federal supervisor.16 

North Fork Bank received an “outstanding” rating at its most recent 

CRA evaluation by the FDIC, as of August 19, 2002.17 GreenPoint Bank also 

received an “outstanding” rating at its most recent CRA performance evaluation by 

the FDIC, as of January 28, 2002. North Fork has indicated that GreenPoint Bank 

would be merged into North Fork Bank after consummation of the proposal.18 

North Fork stated that it would identify the best products and services currently 

offered by both institutions and endeavor to make them available to all customers. 

B. CRA Performance of North Fork Bank 

North Fork Bank’s most recent CRA evaluation characterized its 

overall record of home mortgage and small business lending as excellent and 

praised the bank’s level of community development lending. Examiners noted 

favorably the use of several flexible lending products designed to address 

16 See Interagency Questions and Answers Regarding Community Reinvestment, 

66 Federal Register 36,620 and 36,639 (2001). 

17 North Fork’s other subsidiary depository institution, Superior Savings of New 

England, National Association, Branford, Connecticut (“Superior”), received a 

“satisfactory” CRA performance rating from the Office of the Comptroller of the 

Currency (“OCC”), as of September 30, 2002. The OCC has designated Superior 

as a wholesale bank. As of March 31, 2004, Superior reported assets of 

$462 million, representing approximately 2.1 percent of North Fork’s total assets. 

18 The FDIC has approved the Bank Merger Act (12 U.S.C. § 1828(c)) application 

related to this transaction. 
- 9 -

affordable housing needs of LMI individuals and commended the bank’s level of 

qualified investments. In addition, examiners commended North Fork Bank’s 

community development services and the distribution of the bank’s branches. 

North Fork Bank also received an “outstanding” rating under the 

lending test at its most recent CRA performance evaluation.19 Examiners 

commended North Fork Bank for its responsiveness to the assessment areas’ credit 

needs and excellent level of lending activity. 

Examiners also commended North Fork Bank for the excellent overall 

geographic distribution of its lending and good distribution of its home mortgage 

loans to borrowers throughout the assessment areas and noted North Fork’s use of 

Modification, Extension, and Consolidation Agreements (“MECAs”) in addition to 

HMDA-reportable loans.20 Examiners found that North Fork Bank’s home 

purchase lending in LMI census tracts exceeded the percentage of owner-occupied 

housing units and the aggregate lending data. For example, examiners noted that 

North Fork Bank made approximately 24 percent of its total home purchase loan 

originations during the assessment period to borrowers in LMI census tracts, which 

was more than double the percentage of owner-occupied housing units in LMI 

19 The evaluation period for the lending test was January 1, 2000, through June 30, 

2002; the evaluation period for the investment test and service test was October 1, 

1999, through June 30, 2002. 

20 A MECA is an agreement under which a lender and a borrower agree to modify 

the terms of an existing loan by, for example, extending the final repayment date. 

MECAs do not involve lending additional money and are not reported under 

HMDA, but achieve the same results as a loan purchase or loan refinancing and 

may be considered in evaluating an institution’s CRA performance. 

See Interagency Questions and Answers Regarding Community Reinvestment, 

66 Federal Register at 36,632 (2001). 
- 10 -

census tracts in the bank’s assessment areas.21 Examiners also noted that 

approximately 29 percent of North Fork Bank’s 2000 home purchase loans were 

made to borrowers in LMI census tracts, compared with the approximately 

16 percent originated by the lenders in the aggregate (“aggregate lenders”).

22 

Examiners commended North Fork Bank for developing flexible 

lending products and programs, such as the North Fork Subsidy Program, which 

provides borrowers who meet certain income guidelines and purchase homes in 

predominantly minority communities with closing-cost grants of up to $3,000; and 

the North Fork Bank Affordable Housing Program, which combines low 

21 The commenter asserted that North Fork Bank failed to originate adequate 

numbers of mortgage loans in LMI areas of Brooklyn, the Bronx, and Manhattan. 

Although the Board has recognized that banks help serve the banking needs of 

communities by making a variety of products and services available, the CRA does 

not require an institution to participate in any specific loan programs or provide 

any specific types of products or services in its assessment area. Examiners noted 

that data from the 2000 Census show that a majority of the housing units in the 

bank’s assessment areas are renter-occupied. In light of these demographic data, 

examiners praised North Fork Bank’s lending in LMI communities and noted 

North Fork’s leadership in responding to the credit needs of economically 

disadvantaged areas, in part through the bank’s multifamily lending activities. 

Examiners found that during the evaluation period, North Fork Bank originated or 

purchased 265 multifamily loans (including MECAs) on properties in LMI census 

tracts, totaling approximately $345 million, which represented approximately 

47 percent of the number and 41 percent of the dollar amount of North Fork 

Bank’s total multifamily lending activities in its assessment areas during the 

evaluation period. Examiners stated that the majority of the bank’s LMI 

multifamily loans were originated in the counties of Kings (Brooklyn), Bronx, and 

New York (Manhattan). Examiners also determined, after a sampling of the rent 

rolls for these properties, that all the bank’s LMI multifamily loans involve 

affordable housing and meet the definition of community development lending. 

22 The lending data of the lenders in the aggregate represent the cumulative 

lending for all financial institutions that have reported HMDA data in a particular 

area. 
- 11 -

down-payment requirements, below market interest rates, and reduced loan costs 

for applicants with total household income of $65,000 or less. In addition, 

examiners reported that North Fork Bank participated in several governmentsponsored programs that offered flexible underwriting for home mortgages through 

secondary market providers, such as Fannie Mae, and worked with the State of 

New York Mortgage Association to offer loan programs focused on first-time 

homebuyers or LMI borrowers. North Fork also provides loan products with 

special terms to promote cooperative housing opportunities for LMI borrowers. 

Examiners characterized North Fork Bank’s willingness to serve the 

credit needs of small- and medium-sized businesses as impressive particularly 

given the size of the bank. During the evaluation period, North Fork Bank 

originated more than 15,000 small loans to businesses in its assessment areas,23 

totaling more than $1.4 billion.24 Examiners reported that the bank exhibited 

23 Small loans to business are loans that are originated in amounts of $1 million or 

less and are either secured by nonfarm, nonresidential properties or are classified 

as commercial and industrial loans. 

24 The commenter expressed concern that some of North Fork’s small business 

lending financed retail check cashers or other nontraditional providers of financial 

services. According to information provided by North Fork, North Fork Bank has 

depository and lending relationships with entities engaged in retail check-cashing 

and money-transmittal activities. North Fork takes steps to ensure that such 

companies are appropriately licensed and supervised and that their principals meet 

background requirements. North Fork stated that it has no role in the 

implementation of the policies or procedures of its retail check-cashing customers 

and that it has refused to lend to, or terminated relationships with, nontraditional 

product providers that North Fork believed were engaged in questionable practices. 

The Board notes that North Fork Bank owns a check-cashing affiliate, CBMC, 

Inc., that it acquired as part of a prior bank merger. This affiliate is licensed and 

supervised by the New York State Banking Department (“NYSBD”) and examined 

by the FDIC. The Board has consulted with the FDIC and the NYSBD regarding 

their most recent reviews of the company’s activities. 
- 12 -

excellent geographic distribution of small loans to businesses in its assessment 

areas compared with the aggregate lenders.25 North Fork stated that North Fork 

Bank made almost $800 million in small loans to businesses in 2002, including 

280 small loans to businesses totaling more than $21 million in the Bronx, which 

made North Fork Bank the fourth largest small business lender in the Bronx in that 

year.26 North Fork also stated that, in 2003, North Fork Bank substantially 

increased the number of small loans to businesses and loans to small businesses in 

the Bronx. 

Examiners commended North Fork Bank for its leadership in making 

community development loans and in responding to the credit needs of 

economically disadvantaged areas, individuals, and small businesses. During the 

evaluation period, North Fork Bank originated more than 30 community 

development loans totaling more than $83 million in its assessment areas. These 

loans included $4 million in credit for a retail development in an 

LMI neighborhood in Bronx County, a $14 million loan for renovations and a 

permanent mortgage for an industrial warehouse in an LMI area in the Hunts Point 

section of Bronx County, more than $5 million in credit to fund the rehabilitation 

of a 48-unit apartment building in an LMI neighborhood in Harlem, and loans to 

improve healthcare facilities for low-income individuals and families. In 2003, 

25 Examiners noted that, in 2000, North Fork Bank originated 25 percent of its 

small loans to businesses in LMI census tracts, comparing favorably with the 

aggregate lenders, which originated approximately 17 percent of their small loans 

to businesses in LMI census tracts. During the evaluation period, North Fork Bank 

also originated 24 percent of its small loans to businesses in LMI census tracts, 

which compared favorably to the fact that approximately 21 percent of the 

businesses were in LMI census tracts. 

26 The commenter asserted that North Fork Bank’s level of small business lending 

in the Bronx was inadequate. 
- 13 -

North Fork Bank originated 23 new community development loans totaling more 

than $76 million. 

North Fork Bank received an “outstanding” rating under the 

investment test at its most recent CRA performance evaluation. Examiners 

commended North Fork Bank for its excellent commitment to the community 

development organizations in its assessment areas and noted the bank’s leadership 

in investing in innovative and complex qualified investments. During the 

evaluation period, North Fork Bank made 100 community development 

investments totaling more than $34 million in its assessment areas. North Fork 

Bank’s total community development investments in its assessment areas, 

including grants, totaled more than $66 million. These investments included a 

$5 million investment in multifamily housing revenue bonds issued by the New 

York City Housing Development Corporation, a $15 million investment in an 

industrial revenue bond supporting the creation of a 147-unit rental facility for 

low-income senior citizens in Central Islip, and a $2.3 million investment through 

the CRA Fund in securities financing the mortgage of a Section 8 housing project 

in the Bronx.27 Since the evaluation period, North Fork Bank’s level of qualified 

community development investments has increased to $89.5 million. 

North Fork Bank also received an “outstanding” rating under the 

service test. Examiners reported that North Fork Bank offered an excellent level of 

support to its community and commended North Fork Bank for offering 

community development services not provided by other area financial institutions, 

27 The Section 8 program provides rent subsidies directly to landlords on behalf of 

very low-income families, the elderly, and the disabled. The program is 

administered by local public housing agencies using funds from the Department of 

Housing and Urban Development. 
- 14 -

such as the bank’s financial literacy programs. Examiners stated that North Fork 

Bank offered a full range of banking services at its branches and that its branches 

and delivery systems provided access to financial products and services for 

consumers of different income levels and in LMI geographies, noting that 

North Fork Bank had increased the accessibility of its products and services.28 

In addition, examiners reported that the bank’s distribution of 28 branches and 

49 automated teller machines (“ATMs”) among LMI census tracts was reasonable. 

They also noted that 42 additional branches were adjacent to LMI census tracts, 

increasing the combined percentage of branches in or nearby LMI census tracts 

from approximately 17 percent to 42 percent of the bank’s total number of 

branches. 

C. CRA Performance of GreenPoint Bank 

As previously noted, GreenPoint Bank received an overall 

“outstanding” rating for CRA performance from the FDIC, as of January 28, 

2002.29 GreenPoint Bank also received an “outstanding” rating under the lending 

test.30 Examiners commended GreenPoint Bank for its excellent responsiveness 

28 The commenter expressed concerns about North Fork Bank’s branch 

distribution in LMI and minority areas in Bronx County. North Fork has 

five branches and six free-standing ATMs in LMI and predominantly minority 

census tracts in the Bronx. 

29 The evaluation period was January 1, 1999, through December 30, 2001; the 

community development activities were considered from May 24, 1999, through 

January 28, 2002. 

30 In evaluating GreenPoint Bank’s record of performance under the CRA, 

examiners considered home mortgage loans by GPMF, the bank’s subsidiary 

mortgage lender. The commenter expressed concern that GPMF engaged in 

subprime lending, but provided no evidence that it had originated or purchased 

“predatory” loans or otherwise engaged in abusive lending practices. North Fork 

stated that neither North Fork nor GreenPoint offers subprime mortgage products. 
- 15 -

to the credit needs of the assessment area and its excellent level of lending activity. 

They noted that GreenPoint Bank ranks among the top 1 percent of all HMDA 

lenders that reported loans in LMI census tracts in its assessment area. In addition, 

examiners commended GreenPoint Bank for its innovative and flexible mortgage 

loan products and for its high level of community development loans, which 

totaled almost $100 million during the assessment period. 

GreenPoint Bank received a “high satisfactory” under the investment 

test and examiners reported that GreenPoint Bank had a significant level of 

qualified community development investments and grants. During the evaluation 

period, the bank made new qualified investments and grants totaling almost 

$12 million. GreenPoint Bank also added $25 million in funding to the bank’s 

charitable foundation, which provides college tuition scholarships and grants to 

organizations that provide affordable housing, health, senior citizen, and other 

community development services. Examiners reported that GreenPoint Bank’s 

investments and grants reflected a good responsiveness to the community’s 

economic needs, often through the use of innovative or complex investment 

vehicles. 

GreenPoint Bank also received a “high satisfactory” rating under the 

service test. Examiners characterized GreenPoint Bank’s branch distribution 

among LMI census tracts as reasonable, reporting that more than 21 percent of the 

bank’s 74 branches were in LMI areas. The commenter expressed concern that 

GreenPoint Bank’s lack of branches in the Bronx limited its ability to provide basic 

banking services to the area’s LMI individuals. Examiners reported, however, that 

GreenPoint Bank provided meaningful community development investments, 

loans, and services in the Bronx even though it did not maintain a branch there. 
- 16 -

GreenPoint Bank has opened three branches in the Bronx since its 2002 CRA 

performance evaluation. 

Examiners reported that GreenPoint Bank continued to be innovative 

and proactive in responding to its communities’ needs and opportunities for 

community development services. In addition, examiners noted that the bank 

offered many home ownership seminars, mortgage fairs, and home-buying 

counseling sessions, and noted its participation in various community development 

services, such as Habitat for Humanity. 

D. HMDA Data and Fair Lending Record 

The Board also has carefully considered the lending records of 

North Fork and GreenPoint in light of comments on the HMDA data reported 

by their subsidiaries.31 The commenter alleged that 2002 HMDA data indicated 

that North Fork Bank disproportionately denied home mortgage loan applications 

from African Americans and Hispanics as compared with applications from 

nonminorities in the New York City Metropolitan Statistical Area (“MSA”), and 

that GreenPoint disproportionately denied home mortgage loan applications from 

African Americans and Hispanics relative to applications from nonminorities in 

certain other markets where it operates. 

The 2002 HMDA data indicate that North Fork’s percentage of total 

HMDA-reportable loan originations, which include home purchase, refinance, 

home improvement, and multifamily loans, to borrowers in predominantly 

31 The Board analyzed HMDA data from 2001 through 2003 for North Fork and 

GreenPoint and HMDA data for 2001 and 2002 for the aggregate lenders in the 

New York City and Nassau-Suffolk MSAs. The 2003 HMDA data are 

preliminary, and 2003 data for the aggregate lenders are not yet available. 
- 17 -

minority census tracts32 generally was comparable with or lagged the percentage 

for the aggregate lenders in the areas reviewed. However, North Fork Bank’s 

percentage of home purchase loans, a subcategory of its total HMDA-reportable 

lending, to borrowers in predominantly minority census tracts exceeded the 

percentage for the aggregate lenders. North Fork’s denial disparity ratios33 for 

African-American and Hispanic applicants for total HMDA-reportable loans 

generally were comparable with or higher than those ratios for the aggregate 

lenders in the areas reviewed. However, a significant volume of North Fork 

Bank’s HMDA-reportable multifamily loans and MECAs, which are not reported 

under HMDA, were for properties in predominantly minority census tracts.34 

North Fork Bank also has purchased a number of home mortgage loans to minority 

individuals and for properties in predominantly minority census tracts.35 

32 For purposes of this HMDA analysis, a predominantly minority census tract 

means a census tract with a minority population of 80 percent or more. 

33 The denial disparity ratio equals the denial rate of a particular racial category 

(e.g., African Americans) divided by the denial rate for whites. 

34 As noted above, a MECA loan does not involve lending additional money and 

is not reported under HMDA, but achieves the same results as a loan purchase or 

loan refinancing. In 2002, North Fork Bank originated 175 total multifamily 

loans and MECAs, including 65 in predominantly minority census tracts totaling 

$143.4 million. In addition, almost all the multifamily loans and MECAs 

originated by the bank from 2001 to 2003 were in Bronx, Kings, and New York 

Counties, the three counties with the highest percentage of minority residents in 

the bank’s assessment areas. 

35 In 2002, North Fork Bank purchased 330 HMDA-reportable loans in its 

New York City MSA assessment area. More than 125 of these loans were to 

African-American borrowers. The commenter criticized North Fork Bank’s 

practice of purchasing rather than originating a substantial number of home 

mortgage loans to LMI and minority borrowers. The commenter argued that 

North Fork Bank should not receive CRA credit for loan purchases and urged 
- 18 -

The 2001 and 2002 HMDA data indicate that GreenPoint’s percentage 

of total HMDA-reportable loan originations to borrowers in minority census tracts 

in its assessment area generally exceeded or was comparable with the percentage 

for the aggregate lenders. In addition, the bank’s denial disparity ratios for 

African-American and Hispanic applicants for HMDA-reportable loans in the 

markets reviewed generally were comparable with or lower than those ratios for 

the aggregate lenders. 

Although the HMDA data may reflect certain disparities in the rates 

of loan applications, originations, and denials among members of different racial 

groups and persons at different income levels in certain local areas, the HMDA 

data generally do not indicate that North Fork or GreenPoint is excluding any race 

or income segment of the population or geographic areas on a prohibited basis. 

The Board nevertheless is concerned when HMDA data for an institution indicate 

disparities in lending and believes that all banks are obligated to ensure that their 

lending practices are based on criteria that ensure not only safe and sound lending, 

but also equal access to credit by creditworthy applicants regardless of their race or 

income level. The Board recognizes, however, that HMDA data alone provide an 

incomplete measure of an institution's lending in its community because these data 

cover only a few categories of housing-related lending. HMDA data, moreover, 

provide only limited information about the covered loans.36 HMDA data, 

North Fork to increase its loan originations to LMI and minority borrowers. The 

federal regulatory agencies’ regulations implementing the CRA do not differentiate 

between loan originations and purchases for purposes of evaluating an institution’s 

CRA lending performance because both involve funding the purchase of housing. 

See, e.g., 12 C.F.R. 228.22. 

36 The data, for example, do not account for the possibility that an institution’s 

outreach efforts may attract a larger proportion of marginally qualified applicants 
- 19 -

therefore, have limitations that make them an inadequate basis, absent other 

information, for concluding that an institution has not assisted adequately in 

meeting its community's credit needs or has engaged in illegal lending 

discrimination. 

Because of the limitations of HMDA data, the Board has considered 

these data carefully in light of other information, including examination reports 

that provide on-site evaluations of compliance by the subsidiary depository 

institutions of North Fork and GreenPoint with fair lending laws. The Board has 

reviewed carefully the examination data and findings of the NYSBD and FDIC. 

Examiners noted no fair-lending-law issues or concerns in the CRA performance 

evaluations of the depository institutions controlled by North Fork or GreenPoint. 

The record also indicates that North Fork has taken steps to ensure 

compliance with fair lending laws. North Fork has instituted corporate-wide 

policies and procedures to help ensure compliance with all fair lending and other 

consumer protection laws and regulations. Both North Fork’s and GreenPoint’s 

compliance programs include regular internal reviews and audits of HMDA data 

to ensure that all prospective loan applicants are treated fairly regardless of race, 

ethnicity, gender, or age. North Fork has stated that its policies and programs 

will generally apply to the combined organization, but that it would seek to 

integrate best business practices from GreenPoint, especially those pertaining 

to its mortgage lending activities. 

than other institutions attract and do not provide a basis for an independent 

assessment of whether an applicant who was denied credit was, in fact, 

creditworthy. Credit history problems and excessive debt levels relative to 

income (reasons most frequently cited for a credit denial) are not available 

from HMDA data. 
- 20 -

The Board also has considered the HMDA data in light of the 

programs described above, such as the banks’ use of MECAs in their multifamily 

lending operations, and the overall performance record of the subsidiary banks of 

North Fork and GreenPoint under the CRA. These established efforts demonstrate 

that the banks are active in helping to meet the credit needs of their entire 

communities. 

E. Branch Closings 

The commenter expressed concern about the effect of potential branch 

closings that might result from this proposal. The Board has considered these 

comments in light of all the facts of record. North Fork has represented that it is 

in the process of determining whether it will close branches in markets where 

there is overlap and that it will close or consolidate any branches in accordance 

with North Fork’s Branch Closing Policy and Procedures. Under these policies, 

North Fork must review a number of factors before closing or consolidating a 

branch, including an assessment of the branch, a profile of the community where 

the branch is located, and the effect of the proposed action on customers. In 

addition, examiners reviewed North Fork Bank’s branch closing policy as part 

of its most recent CRA evaluation and found that it complied with federal law. 

The Board also has considered that federal banking law provides a 

specific mechanism for addressing branch closings.37 Federal law requires an 

37 Section 42 of the Federal Deposit Insurance Act (12 U.S.C. § 1831r-1), as 

implemented by the Joint Policy Statement Regarding Branch Closings 

(64 Federal Register 34,844 (1999)), requires that a bank provide the public with at 

least 30 days’ notice and the appropriate federal supervisory agency and customers 

of the branch with at least 90 days’ notice before the date of the proposed branch 

closing. The bank also is required to provide reasons and other supporting data for 

the closure, consistent with the institution’s written policy for branch closings. 
- 21 -

insured depository institution to provide notice to the public and to the appropriate 

federal supervisory agency before closing a branch. In addition, the Board notes 

that the FDIC, as the appropriate federal supervisor of North Fork Bank, will 

continue to review its branch closing record in the course of conducting CRA 

performance evaluations. 

F. Conclusion on Convenience and Needs Factor 

The Board has carefully considered all the facts of record, including 

reports of examination of the CRA records of the institutions involved, information 

provided by North Fork, public comments on the proposal, and confidential 

supervisory information. The Board notes that the proposal would expand the 

availability of banking products and services to the customers of North Fork and 

GreenPoint, drawing on North Fork’s focus on commercial lending and 

GreenPoint’s focus on mortgage lending. Based on a review of the entire record, 

and for the reasons discussed above, the Board concludes that considerations 

relating to the convenience and needs factor, including the CRA performance 

records of the relevant depository institutions, are consistent with approval. 

Nonbanking Activities 

North Fork also has filed a notice under sections 4(c)(8) and 4(j) of 

the BHC Act to acquire GreenPoint Community Development Corp., also in 

New York (“CDC”), which engages in community development activities. The 

Board has determined by regulation that this activity is permissible for bank 

holding companies under the Board’s Regulation Y.38 

To approve the notice, the Board must determine that the acquisition 

of GreenPoint’s nonbanking subsidiary and the performance of the proposed 

38 See 12 C.F.R. 225.28(b)(12). 
- 22 -

activities by North Fork “can reasonably be expected to produce benefits to the 

public . . . that outweigh possible adverse effects, such as undue concentration of 

resources, decreased or unfair competition, conflicts of interests, or unsound 

banking practices.”39 As part of its evaluation of these factors, the Board has 

considered the financial and managerial resources of North Fork and its 

subsidiaries and the company to be acquired, and the effect of the proposed 

transaction on those resources. For the reasons noted above, and based on all the 

facts of record, the Board concludes that financial and managerial considerations 

are consistent with approval of the notice. 

The Board also has considered the competitive effects of North Fork’s 

proposed acquisition of CDC in light of all the facts of record. North Fork and 

GreenPoint both engage in community development activities. The market for this 

activity is local in scope and unconcentrated, and there are no significant barriers 

to entry. The record also indicates that there are numerous providers of these 

services in the New York City area. Accordingly, the Board concludes that 

North Fork’s acquisition of CDC would not have a significantly adverse effect 

on competition in any relevant market. 

In addition, the Board has reviewed the public benefits of the 

proposed acquisition of CDC. North Fork’s proposal to continue CDC’s 

community development activities would benefit the communities served by 

North Fork and GreenPoint by providing investments in corporations or projects 

designed to promote community welfare, such as economic rehabilitation and 

development of low-income areas by providing housing, services, or jobs for 

residents. 

39 See 12 U.S.C. § 1843(j)(2)(A). 
- 23 -

Based on all the facts of record, the Board has determined that 

consummation of the proposal can reasonably be expected to produce public 

benefits that would outweigh any likely adverse effects under the standard of 

section 4(j) of the BHC Act. 

Conclusion 

Based on the foregoing and all the facts of record, the Board has 

determined that the application and notice should be, and hereby are, approved. In 

reaching its conclusion, the Board has considered all the facts of record in light of 

the factors that it is required to consider under the BHC Act and other applicable 

statutes.40 The Board’s approval is specifically conditioned on compliance by 

40 The commenter also requested that the Board hold a public meeting or hearing 

on the proposal. Section 3(b) of the BHC Act does not require the Board to hold a 

public hearing on an application unless the appropriate supervisory authority for 

the bank to be acquired makes a timely written recommendation of denial of the 

application. The Board has not received such a recommendation from the 

appropriate supervisory authorities. Under its regulations, the Board also may, in 

its discretion, hold a public meeting or hearing on an application to acquire a bank 

if a meeting or hearing is necessary or appropriate to clarify factual issues related to 

the application and to provide an opportunity for testimony. 12 C.F.R. 225.16(e). 

Section 4 of the BHC Act and the Board’s regulations provide for a hearing on a 

notice to acquire nonbanking companies if there are disputed issues of material fact 

that cannot be resolved in some other manner. 12 C.F.R. 225.25(a)(2). The Board 

has considered carefully the commenter’s requests in light of all the facts of record. 

In the Board’s view, the commenter has had ample opportunity to submit its views 

and has submitted written comments that have been considered carefully by the 

Board in acting on the proposal. The commenter’s request fails to demonstrate why 

written comments do not present the evidence adequately and fails to identify 

disputed issues of fact that are material to the Board’s decision that would be 

clarified by a public meeting or hearing. For these reasons, and based on all the 

facts of record, the Board has determined that a public meeting or hearing is not 

required or warranted in this case. Accordingly, the request for a public meeting 

or hearing on the proposal is denied. 
- 24 -

North Fork with the conditions imposed in this order and the commitments made to 

the Board in connection with the application and notice. The Board’s approval of 

the nonbanking aspects of the proposal also is subject to all the conditions set forth 

in Regulation Y, including those in sections 225.7 and 225.25(c) (12 C.F.R. 225.7 

and 225.25(c)), and to the Board’s authority to require such modification or 

termination of the activities of a bank holding company or any of its subsidiaries as 

the Board finds necessary to ensure compliance with and to prevent evasion of the 

provisions of the BHC Act and the Board’s regulations and orders issued 

thereunder. For purposes of these actions, the commitments and conditions noted 

above are deemed to be conditions imposed in writing by the Board in connection 

with its findings and decision and, as such, may be enforced in proceedings under 

applicable law. 

The acquisition of GreenPoint Bank may not be consummated before 

the fifteenth calendar day after the effective date of this order, and the proposal 

may not be consummated later than three months after the effective date of this 

order, unless such period is extended for good cause by the Board or the Federal 

Reserve Bank of New York, acting pursuant to delegated authority. 

By order of the Board of Governors,41 effective July 20, 2004. 

(signed) 

Robert deV. Frierson 

Deputy Secretary of the Board 

41 Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and 

Governors Gramlich, Bies, Olson, Bernanke, and Kohn.