<PAGE>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                            ----------------------

                                   FORM 10-Q

          / X / Quarterly Report Pursuant to Section 13 or 15(d) of the
                       Securities Exchange Act of 1934
                            ----------------------

                             For the Quarter Ended
                                 June 30, 1997

                                       OR

          /   / Transition Report Pursuant to Section 13 or 15(d) of the
                      Securities Exchange Act of 1934


                                    0-22516
                                    -------
                Securities and Exchange Commission File Number

                           GreenPoint Financial Corp.
                           --------------------------
             (Exact name of registrant as specified in its charter)


           Delaware                                  06-1379001
           --------                                  ----------
(State or other jurisdiction of        (I.R.S. employer identification number)
 incorporation or organization)

  90 Park Avenue, New York, New York                   10016
  ----------------------------------                   -----
(Address of principal executive offices)            (Zip Code)

        (212) 834-1711                             Not Applicable
        --------------                             --------------
(Registrant's telephone number,       (Former name, former address and former
   including area code)              fiscal year if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.

                     X YES                             NO
                    ---                            ---

    As of August 8, 1997 there were 43,312,976 shares of common stock 
outstanding.


<PAGE>


                           GreenPoint Financial Corp.

                                   FORM 10-Q

                             FOR THE QUARTER ENDED
                                 June 30, 1997

                                     INDEX

PART I--FINANCIAL INFORMATION                                            PAGE
                                                                         ----

Item 1--Financial Statements

  Consolidated Statements of Financial Condition (unaudited) 
  as of June 30, 1997 and December 31, 1996......................           3

  Consolidated Statements of Income (unaudited) for the quarters 
  and six month periods ended June 30, 1997 and 1996.............           4

  Consolidated Statements of Changes in Stockholders' Equity 
  (unaudited) for the six month periods ended June 30, 1997 
  and 1996.......................................................           5

  Consolidated Statements of Cash Flows (unaudited) for the six 
  month periods ended June 30, 1997 and 1996.....................           6

  Notes to the Unaudited Consolidated Financial Statements.......           7

Item 2--Management's Discussion and Analysis of Financial 
        Condition and Results of Operations......................          11

PART II--OTHER INFORMATION

Item 1--Legal Proceedings........................................          25

Item 4--Submission of Matters to a Vote of Security Holders......          25

Item 6--Exhibits and Reports on Form 8-K.........................          26


<PAGE>
                   GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                         JUNE 30,             DECEMBER 31,
                                                           1997                   1996
                                                       -------------          -------------
                                                       (IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<S>                                                    <C>                    <C>
  ASSETS
Cash and due from banks...........................     $    89,550             $     81,914
Money market investments..........................         729,349                  494,060
Loans receivable held for sale....................           4,600                    4,829
Securities available for sale.....................       3,124,585                4,355,432
Securities held to maturity (fair value of 
  $3,929 and $4,016 respectively).................           3,892                    3,978
Trading assets....................................              29                       --
Loans receivable held for investment:
  Mortgage loans..................................       8,266,156                7,423,993
  Other loans.....................................          21,567                   23,490
  Deferred loan fees and unearned discount........         (41,023)                 (48,216)
  Allowance for possible loan losses..............        (107,000)                (105,000)
                                                       -------------           -------------
    Loans receivable held for investment, net.....       8,139,700                7,294,267
                                                       -------------           -------------
Other interest-earning assets.....................         111,036                       --
Accrued interest receivable, net..................          89,137                   89,460
Banking premises and equipment, net...............         122,535                  128,207
Deferred income taxes, net........................          78,439                   80,202
Other real estate owned, net......................          23,968                   28,566
Goodwill..........................................         600,337                  623,600
Other assets......................................         182,889                  141,070
                                                       -------------           -------------
    Total assets..................................     $13,300,046              $13,325,585
                                                       -------------           -------------
  LIABILITIES AND STOCKHOLDER'S EQUITY                 -------------           -------------
Liabilities:
Deposits:
  N.O.W. and checking.............................     $   534,019              $   524,181
  Savings and club................................       1,846,345                1,901,682
  Variable rate savings...........................       1,758,079                1,853,683
  Money market....................................         507,269                  561,331
  Term certificates of deposit....................       6,531,210                6,611,389
                                                       -------------            -------------
    Total deposits................................      11,176,922               11,452,266
                                                       -------------            -------------
Mortgagors' escrow................................          78,240                   66,929
Securities sold under agreements to repurchase....         236,256                   89,500
Guaranteed preferred beneficial interest in 
  Company's junior subordinated debentures........         199,717                       --
Accrued income taxes payable......................          33,607                   45,081
Other liabilities.................................         200,559                  208,383
                                                       -------------            -------------
    Total liabilities.............................      11,925,301               11,862,159
                                                       -------------            -------------
Commitments and Contingencies
Preferred shares of subsidiary....................           3,629                    3,623
Stockholders' equity:
  Preferred stock ($0.01 par value; 50,000,000 
    shares authorized; none issued)...............              --                       --
  Common stock ($0.01 par value; 220,000,000 
    shares authorized; 55,130,582 and 55,115,582 
    shares issued, respectively)..................             551                      551
  Additional paid-in capital......................         821,521                  810,170
  Unallocated Employee Stock Ownership Plan 
    (ESOP) shares.................................        (117,256)                (119,573)
  Unearned stock plans shares.....................          (7,882)                  (8,317)
  Retained earnings...............................       1,089,952                1,037,993
  Net unrealized loss on securities available 
    for sale, net.................................         (22,552)                 (23,324)
  Treasury stock, at cost (10,086,197 and 
    7,871,400 shares, respectively)...............        (393,218)                (237,697)
                                                       -------------            -------------
    Total stockholders' equity....................       1,371,116                1,459,803
                                                       -------------            -------------
    Total liabilities and stockholders' equity....     $13,300,046              $13,325,585
                                                       -------------            -------------
                                                       -------------            -------------
</TABLE>
(See the accompanying notes to the unaudited consolidated financial 
statements)
                                       3

<PAGE>
                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)
<TABLE>
<CAPTION>
                                                                       QUARTER ENDED          SIX MONTHS ENDED
                                                                          JUNE 30,                JUNE 30,
                                                                   ----------------------  ----------------------
                                                                      1997        1996        1997        1996
                                                                   ----------  ----------  ----------  ----------
                                                                      (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<S>                                                                <C>         <C>         <C>         <C>
Interest income:
  Mortgages......................................................    $177,564    $144,566    $346,436    $285,915
  Money market investments.......................................       7,598      21,356      11,941      44,746
  Securities.....................................................      53,931      79,872     117,049     165,583
  Trading assets.................................................          32          --          71          --
  Other interest-earning assets..................................       1,658          --       3,069          --
  Other loans....................................................         564         684       1,126       1,341
                                                                   ----------  ----------  ----------  ----------
    Total interest income........................................     241,347     246,478     479,692     497,585
                                                                   ----------  ----------  ----------  ----------

Interest expense:
  Deposits.......................................................     117,336     133,096     233,982     276,175
  Trading liabilities............................................          73          --          73          --
  Short-term and other borrowing.................................       2,181       1,153       3,444       1,604
  Long-term debt.................................................       1,423          --       1,423          --
                                                                   ----------  ----------  ----------  ----------
    Total interest expense.......................................     121,013     134,249     238,922     277,779
                                                                   ----------  ----------  ----------  ----------
Net interest income..............................................     120,334     112,229     240,770     219,806
Provision for possible loan losses...............................      (4,444)     (3,701)     (9,461)     (7,347)
Net interest income after provision for possible loan losses.....     115,890     108,528     231,309     212,459
Non-interest income:
  Income from fees and commissions:
  Mortgage loan operations fee income............................       3,444       2,979       6,982       7,542
  Mortgage servicing fees........................................       1,787       2,122       3,612       4,382
  Banking services fees and commissions..........................       5,745       3,998      10,610       8,059
  Other income...................................................         423       2,637         915       2,966
  Net gain on securities.........................................         211          81         472         354
  Net (loss) gain on sales of loans..............................        (160)      2,761        (197)      2,780
  Net gain on sale of assets.....................................          --          --       2,416          --
  Gain on sale of branches.......................................          --       8,876       5,850       8,876
                                                                   ----------  ----------  ----------  ----------
    Total non-interest income....................................      11,450      23,454      30,660      34,959
                                                                   ----------  ----------  ----------  ----------
Non-interest expense:
  Salaries and benefits..........................................      22,621      20,516      45,314      43,077
  Employee Stock Ownership and stock plans expense...............       4,711       4,699       9,521       8,942
  Net expense of premises and equipment..........................      12,297      11,890      24,397      23,588
  Advertising....................................................       2,238       2,208       4,478       4,199
  Federal deposit insurance premiums.............................         726       1,725       1,500       3,435
  Charitable and educational foundation..........................       2,373       1,419       4,358       2,412
  Other administrative expenses..................................      10,416      12,997      22,867      26,070
  Other real estate owned operating (income) expense, net........        (955)        165      (1,417)         50
  Goodwill amortization..........................................      11,620      11,630      23,263      23,258
  Restructuring charge...........................................       2,500          --       2,500          --
                                                                   ----------  ----------  ----------  ----------
    Total non-interest expense...................................      68,547      67,249     136,781     135,031
                                                                   ----------  ----------  ----------  ----------
Income before income taxes.......................................      58,793      64,733     125,188     112,387
Income taxes.....................................................      23,664      27,578      50,388      47,880
                                                                   ----------  ----------  ----------  ----------
Net income.......................................................    $ 35,129    $ 37,155    $ 74,800    $ 64,507
                                                                   ----------  ----------  ----------  ----------
                                                                   ----------  ----------  ----------  ----------
Earnings per share...............................................    $   0.86    $   0.83    $   1.80    $   1.43
                                                                   ----------  ----------  ----------  ----------
                                                                   ----------  ----------  ----------  ----------
Net income (excluding non-recurring items)*......................    $ 36,622    $ 32,060    $ 71,354    $ 59,412
                                                                   ----------  ----------  ----------  ----------
                                                                   ----------  ----------  ----------  ----------
Earnings per share (excluding non-recurring items)*..............    $   0.89    $   0.72    $   1.72    $   1.32
                                                                   ----------  ----------  ----------  ----------
                                                                   ----------  ----------  ----------  ----------
</TABLE>
*   Non-recurring items include branch sales, asset sales and restructuring
    charge.
(See the accompanying notes to the unaudited consolidated financial 
statements) 
                                       4
<PAGE>
                   GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
            CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                  (Unaudited)
                                (In thousands)
 
<TABLE>
<CAPTION>
                                                                                             SIX MONTHS ENDED
                                                                                                 JUNE 30,
                                                                                        --------------------------
<S>                                                                                     <C>           <C>
                                                                                            1997          1996
                                                                                        ------------  ------------
Common stock
Balance at beginning of period........................................................  $        551  $        550
Issuance of common stock to stock plans...............................................            --             1
                                                                                        ------------  ------------
Balance at end of period..............................................................           551           551
                                                                                        ------------  ------------
Additional paid-in capital
Balance at beginning of period........................................................       810,170       801,382
Issuance of common stock to stock plans...............................................           832         3,693
Amortization of ESOP shares committed to be released..................................         5,680         2,387
Amortization of stock plans shares during the period..................................           257           257
Tax benefit for vested stock plans shares.............................................         4,582            --
                                                                                        ------------  ------------
Balance at end of period..............................................................       821,521       807,719
                                                                                        ------------  ------------
Unallocated ESOP shares
Balance at beginning of period........................................................      (119,573)     (123,987)
Amortization of ESOP shares committed to be released..................................         2,317         3,617
                                                                                        ------------  ------------
Balance at end of period..............................................................      (117,256)     (120,370)
                                                                                        ------------  ------------
Unearned stock plans shares
Balance at beginning of period........................................................        (8,317)       (9,838)
Issuance of common stock to stock plans...............................................          (832)       (3,694)
Amortization of stock plans shares during the period..................................         1,267         2,681
                                                                                        ------------  ------------
Balance at end of period..............................................................        (7,882)      (10,851)
                                                                                        ------------  ------------
Retained earnings
Balance at beginning of period........................................................     1,037,993       942,137
Net income for the period.............................................................        74,800        64,507
Dividends declared....................................................................       (19,814)      (17,619)
Exercise of stock options from treasury stock.........................................        (3,027)       (1,400)
                                                                                        ------------  ------------
Balance at end of period..............................................................     1,089,952       987,625
                                                                                        ------------  ------------
Net unrealized (loss) gain on securities available for sale, net
Balance at beginning of period........................................................       (23,324)       14,862
Net unrealized gain (loss) on securities available for sale...........................           772       (67,297)
                                                                                        ------------  ------------
Balance at end of period..............................................................       (22,552)      (52,435)
                                                                                        ------------  ------------
Treasury stock, at cost
Balance at beginning of period........................................................      (237,697)      (73,789)
Exercise of stock options from treasury stock.........................................         7,820         3,264
Purchase of treasury stock............................................................      (163,341)      (75,460)
                                                                                        ------------  ------------
Balance at end of period..............................................................      (393,218)     (145,985)
                                                                                        ------------  ------------
Total stockholders' equity............................................................  $  1,371,116  $  1,466,254
                                                                                        ------------  ------------
                                                                                        ------------  ------------
</TABLE>

  (See accompanying notes to the unaudited consolidated financial statements)

                                       5
<PAGE>
                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                                                             SIX MONTHS ENDED
                                                                                                 JUNE 30,
                                                                                          -----------------------
                                                                                             1997        1996
                                                                                          ----------  -----------
                                                                                              (IN THOUSANDS)
<S>                                                                                       <C>         <C>
Cash flows from operating activities:
Net income..............................................................................  $   74,800  $    64,507
Adjustments to reconcile net income to net cash provided by operating activities:
  Provision for possible loan losses....................................................       9,461        7,347
  Depreciation and amortization of premises and equipment...............................       8,323        8,570
  Goodwill amortization.................................................................      23,263       23,258
  Accretion of discount on securities, net of premium amortization......................      (5,167)     (42,653)
  ESOP and stock plans expense..........................................................       9,521        8,942
  Gain on securities transactions.......................................................        (472)        (354)
  Net change in loans held for sale.....................................................         229      153,342
  Net gain on sales of other real estate owned..........................................      (4,360)      (3,243)
  Net gain on sale of branches..........................................................      (5,850)      (8,876)
  Deferred income taxes.................................................................         490        8,889
  Increase in trading related assets....................................................         (29)          --
  Decrease in other assets..............................................................      11,198       21,582
  (Decrease) increase in other liabilities..............................................      (9,672)      12,667
  Other, net............................................................................     (13,552)       2,119
                                                                                          ----------  -----------
    Net cash provided by operating activities...........................................      98,183      256,097
                                                                                          ----------  -----------
Cash flows from investing activities:
  Loan originations, net of principal repayments........................................    (853,148)    (371,383)
  Proceeds from sales of other real estate owned........................................       9,688        7,595
  Purchases of securities available for sale............................................    (564,649)  (4,365,166)
  Purchase of securities held to maturity...............................................        (100)          --
  Proceeds from maturities of securities available for sale.............................     720,000    3,188,263
  Proceeds from sales of securities available for sale..................................     807,758    1,185,042
  Principal repayments on securities....................................................     133,091      129,397
  Investment in corporate officer life insurance policy.................................    (101,794)          --
  Purchases of premises and equipment...................................................      (5,532)     (14,658)
                                                                                          ----------  -----------
    Net cash provided by (used in)investing activities..................................     145,314     (240,910)
                                                                                          ----------  -----------
Cash flows from financing activities:
  Net withdrawals from depositors' accounts.............................................    (144,713)    (435,490)
  Cash paid on transfer of deposit liabilities..........................................    (124,781)    (143,443)
  Payments for cash dividends...........................................................     (19,814)     (17,619)
  Exercise of stock options.............................................................       4,793        1,864
  Purchase of treasury stock............................................................    (163,341)     (75,460)
  Securities sold under agreements to repurchase........................................     236,256      284,850
  Guaranteed preferred beneficial interest in Company's junior subordinated debentures..     199,717           --
  Other, net............................................................................      11,311        8,548
                                                                                          ----------  -----------
    Net cash used in financing activities...............................................        (572)    (376,750)
                                                                                          ----------  -----------
  Net increase (decrease) in cash and cash equivalents..................................     242,925     (361,563)
                                                                                          ----------  -----------
  Cash and cash equivalents at beginning of period......................................     575,974    1,704,379
                                                                                          ----------  -----------
  Cash and cash equivalents at end of period............................................  $  818,899  $ 1,342,816
                                                                                          ----------  -----------
                                                                                          ----------  -----------
Non-cash investing and financing activities:
  Additions to other real estate owned, net.............................................  $   13,265  $     1,338
                                                                                          ----------  -----------
                                                                                          ----------  -----------
  Loans to facilitate sales of other real estate........................................  $   11,907  $     8,552
                                                                                          ----------  -----------
                                                                                          ----------  -----------
  Unsettled trades......................................................................  $  142,507  $        --
                                                                                          ----------  -----------
                                                                                          ----------  -----------
Supplemental disclosure of cash flow information:
  Cash paid for income taxes............................................................  $   53,575  $    16,255
                                                                                          ----------  -----------
                                                                                          ----------  -----------
  Interest paid.........................................................................  $  236,088  $   283,694
                                                                                          ----------  -----------
                                                                                          ----------  -----------
</TABLE>
  (See accompanying notes to the unaudited consolidated financial statements)

                                       6

<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
            NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

The unaudited consolidated financial statements of GreenPoint Financial Corp. 
and Subsidiaries ("GreenPoint" or the "Company") are prepared in accordance 
with generally accepted accounting principles for interim financial 
information. In the opinion of management, all adjustments (consisting only 
of normal recurring accruals) necessary for a fair presentation of the 
Company's interim financial condition as of the dates indicated and the 
results of operations for the periods presented have been included. The 
results of operations for the interim periods shown are not necessarily 
indicative of results that may be expected for the entire year.

The unaudited consolidated interim financial statements presented herein 
should be read in conjunction with the consolidated financial statements and 
notes thereto included in the Company's Annual Report to shareholders for the 
period ended December 31, 1996.

2. STOCK INCENTIVE PLAN

During the six months ended June 30, 1997, GreenPoint granted 15,000 shares 
of the Company's common stock to an executive officer pursuant to plans 
approved by the Company's shareholders in 1994. These shares vest ratably 
over four years on the anniversary dates of the award. The market price at the
grant date was $55.50.

For the six months ended June 30, 1997, the Company granted options to 
purchase 619,500 shares of the Company's common stock to certain officers, at 
an average exercise price of $55.16. These awards vest ratably over three 
years on the anniversary dates of the awards.

3. NON-EMPLOYEE DIRECTORS STOCK OPTION GRANTS

During the six months ended June 30, 1997, the Company granted options to 
purchase 26,000 shares of the Company's common stock to non-employee 
directors, at an average exercise price of $57.75. These awards vest after 
one year on the anniversary date of the awards.

4. COMMON STOCK REPURCHASE PROGRAM

Under the 1997 5% stock repurchase program, the Company repurchased shares of 
GreenPoint common stock at a cost of $146.2 million. The repurchase was 
completed on June 23, 1997. During the quarter, GreenPoint sold $200 million 
of Guaranteed Preferred Beneficial Interest in Company's Junior Subordinated 
Debentures ("Capital Securities"), the proceeds of which may be used to 
repurchase up to $200 million of common stock, over an unspecified period of 
time, subject to management's evaluation of market conditions and capital 
needs.

                                       7

<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
      NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

5. SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY

Securities held at June 30, 1997 are summarized as follows:

<TABLE>
<CAPTION>
                                                                                 GROSS         GROSS
                                                                AMORTIZED     UNREALIZED     UNREALIZED      FAIR
                                                                   COST          GAINS         LOSSES       VALUE
                                                               ------------  -------------  ------------  ----------
<S>                                                            <C>           <C>            <C>           <C>
                                                                                  (IN THOUSANDS)
Securities Available for Sale
U.S. Government and Federal Agency Obligations:
U.S. Treasury notes/bills....................................  $  1,100,784    $     --     $   (15,690)  $1,085,094
Agency discount notes........................................        59,741           9              --       59,750
Commercial paper.............................................       105,131          --             (18)     105,113
Mortgage-backed securities...................................     1,417,048          --         (22,458)   1,394,590
Collateralized mortgage obligations..........................        69,006          --             (93)      68,913
Trust certificates collateralized by GNMA securities.........       383,145          --          (2,048)     381,097
Other........................................................        30,016          12              --       30,028
                                                               ------------       -----    ------------   ----------
    Total securities available for sale......................  $  3,164,871    $     21     $   (40,307)  $3,124,585
                                                               ------------       -----    ------------   ---------
                                                               ------------       -----    ------------   ---------
Securities Held to Maturity
Tax exempt municipals........................................  $        626    $     37    $         --   $     663
Other........................................................         3,266          --              --       3,266
                                                               ------------       -----    ------------   ---------
    Total securities held to maturity........................  $      3,892    $     37    $         --   $   3,929
                                                               ------------       -----    ------------   ---------
                                                               ------------       -----    ------------   ---------

</TABLE>

Securities held at December 31, 1996 are summarized as follows:

<TABLE>
<CAPTION>
                                                                                 GROSS         GROSS
                                                                AMORTIZED     UNREALIZED     UNREALIZED
                                                                   COST          GAINS         LOSSES     FAIR VALUE
                                                               ------------   ----------   ------------   ----------
<S>                                                            <C>             <C>         <C>            <C>
                                                                                  (IN THOUSANDS)
Securities Available for Sale
U.S. Government and Federal Agency Obligations:
U.S. Treasury notes/bills....................................  $  1,944,272    $    316     $   (16,178)  $1,928,410
Agency discount notes/Asset backed securities................        66,358           3             (40)      66,321
Mortgage-backed securities...................................     1,880,991          --         (23,091)   1,857,900
Collateralized mortgage obligations..........................        32,432          --              (3)      32,429
Trust certificates collateralized by GNMA securities.........       409,859          --          (3,332)     406,527
Other........................................................        63,852         255            (262)      63,845
                                                               ------------        -----    ------------  ----------
    Total securities available for sale......................  $  4,397,764    $    574     $   (42,906)  $4,355,432
                                                               ------------        -----    ------------  ----------
                                                               ------------        -----    ------------  ----------
Securities Held to Maturity
Tax exempt municipals........................................  $        640    $      38    $         --  $      678
Other........................................................         3,338           --              --       3,338
                                                               ------------        -----    ------------  ----------
    Total securities held to maturity........................  $      3,978    $      38    $         --  $    4,016
                                                               ------------        -----    ------------  ----------
                                                               ------------        -----    ------------  ----------
</TABLE>

    Estimated fair values for securities are based on published market or 
    securities dealers' estimated prices.

    During the quarter ended June 30, 1997, the Company sold 
    available-for-sale securities aggregating $628.7 million, resulting in 
    gross realized gains of $0.8 million and gross realized losses of $0.6 
    million.

    The average maturities of the securities available for sale and held to 
    maturity at June 30, 1997 are approximately 9.0 years and 12.5 years, 
    respectively. Mortgage-backed securities, almost all of which have 
    contractual maturities of more than 10 years, are subject to scheduled and
    non-scheduled principal payments which shorten the average life to an 
    estimated 5.2 years. The estimated average life for all securities 
    available for sale is approximately 4.3 years.

                                       8

<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
      NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

6. PURCHASE ACQUISITION OF MORTGAGE SERVICING OPERATIONS

On April 30, 1997, the Company purchased the Columbus, GA mortgage servicing 
operations of Citizens Financial Group, for a net purchase price of 
approximately $4 million. The purchase of the Georgia facility gives the 
Company a more efficient platform for servicing its national mortgage 
portfolio.

7. EARNINGS PER SHARE IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS

In February 1997, FASB issued Statement of Financial Accounting Standards No. 
128, ("SFAS 128") "Earnings per Share". SFAS 128 establishes standards for 
computing and presenting earnings per share and applies to entities with 
publicly held common stock or potential common stock. SFAS 128 simplifies the 
standards for computing earnings per share previously found in APB Opinion 
No. 15, "Earnings per Share", and makes them comparable to international EPS 
standards. It replaces the presentation of primary EPS with a presentation of 
basic EPS. It also requires dual presentation of basic and diluted EPS on the 
face of the income statement for all entities with complex capital structures.

The statement is effective for financial statements issued for periods ending 
after December 15, 1997, including interim periods, earlier application is 
not permitted. This statement requires restatement of all prior-period EPS 
data presented. The Company does not believe that implementation of SFAS 128 
will have a material effect on the financial statements of the Company.

8. RESTRUCTURING CHARGE

In the second quarter of 1997, the Company recorded a pre-tax restructuring 
charge of $2.5 million pertaining to the transfer of mortgage servicing from 
New York to Georgia. The charge includes costs such as employee severance 
benefits, and write-downs of software and fixed assets.

9. GUARANTEED PREFERRED BENEFICIAL INTEREST IN COMPANY'S JUNIOR SUBORDINATED 
DEBENTURES

On June 3, 1997 the Company's newly formed subsidiary, GreenPoint Capital 
Trust I, issued $200 million of 9.10% Capital Securities with a maturity date 
of June 1, 2027, with an effective annual yield of 9.16%. The proceeds from 
the offering will be used for general corporate purposes including the 
repurchase of stock and financing growth. The Capital Securities were sold in 
a private placement to qualified institutional buyers. During the second 
quarter, the Company incurred $1.4 million of interest expense associated 
with GreenPoint Capital Trust I.

                                       9

<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
      NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

10. SUBSEQUENT EVENT--MEDIUM-TERM BANK NOTE PROGRAM

On July 3, 1997, the Company published an Offering Circular under Regulation 
D authorizing it to issue, from time to time, up to $3 billion of Senior and 
Subordinated Bank Notes ("Notes") with maturities ranging from 7 days to 30 
years (the "Medium-Term Note Program" or "Program"). Notes issued under the 
Program can be offered only to accredited investors within the meaning of 
Rule 501(a) of Regulation D. Additionally, on July 10, 1997, the Company 
issued the first tranche under the Program of 6.70% Senior Bank Notes in a 
principal amount of $200 million maturing on July 15, 2002. The proceeds of 
the Notes will be used by the Company for general corporate and banking 
purposes in the ordinary course of its business.




                                       10
<PAGE>
                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                   Management's Discussion and Analysis of
                 Financial Condition and Results of Operations


<TABLE>
<CAPTION>
                                                                                  QUARTER ENDED                        
                                                    ----------------------------------------------------------------   
                                                     JUN. 30,     MAR. 31,     DEC. 31,     SEPT. 30,     JUN. 30,    
                                                       1997         1997         1996         1996          1996      
                                                    -----------  -----------  -----------  -----------   -----------   
<S>                                                 <C>          <C>          <C>          <C>           <C>          
Performance Ratios (Annualized):                  
Core cash earnings return on average assets(8)....     1.61%(1)     1.55%(2)     1.43%(1)      1.42%        1.36%(2)  
Core cash earnings return on average equity(8)....    15.13 (1)    14.02 (2)    13.25 (1)     13.55        13.04 (2)  
Return on average assets..........................     1.07         1.05 (2)     1.02          1.00         0.90 (2)  
Return on average equity..........................    10.04         9.51 (2)     9.46          9.51         8.64 (2)  
Net interest margin...............................     3.99         3.97         3.82          3.61         3.45       
Net interest spread during period.................     3.67         3.64         3.52          3.34         3.20       
Operating expense to average assets (4)...........     1.69         1.73         1.61          1.58         1.56       
Efficiency ratio (5)..............................    42.0         43.4  (2)    42.7          43.6         43.7  (2)  
Average interest-earning assets to average
  interest- bearing liabilities...................     1.08 x       1.08 x       1.07 x        1.07 x       1.06 x     
Regulatory Capital Ratios:
Company:
 Leverage capital (6).............................     7.95%        6.90%        6.78%         6.38%        6.43%
 Risk-based capital (6):
  Tier 1..........................................    16.37        15.33        15.47         15.72        16.62 
  Total...........................................    17.62        16.58        16.72         16.90        17.87 
Bank:
 Leverage capital (6).............................     6.66         6.20         6.64          6.26         6.31 
 Risk-based capital (6):
    Tier 1........................................    13.92        13.76        15.15         15.42        16.35 
    Total.........................................    15.17        15.01        16.40         16.67        17.60 

Per Share Data:
 Core cash earnings(8)*...........................  $  1.29 (1)  $  1.21 (2)  $  1.13 (1)  $   1.13     $   1.09 (2)
 Common book value**..............................  $ 34.27      $ 34.57      $ 34.77      $  33.89     $  33.65
 Tangible common book value**.....................  $ 19.27      $ 19.81      $ 19.92      $  18.72     $  18.80

*  Average shares used in calculation.............   40,930,000   42,235,000   42,069,000   43,138,000   44,664,000
** Period-end shares used in calculation..........   40,007,000   41,452,000   41,984,000   41,849,000   43,573,000
   Total shares issued and outstanding............   45,044,000   46,888,000   47,481,000   47,656,000   49,924,000

Asset Quality Ratios:
 Non-performing loans to total loans..............     4.35%        4.45%        4.78%         5.21%        5.77%
 Non-performing assets to total assets............     2.89         2.84         2.89          2.91         2.86 

Allowance for possible loan losses to:
 Non-performing loans.............................    29.69        30.32        29.48         29.05        28.07
 Total loans......................................     1.29         1.35         1.41          1.51         1.63

Earnings to combined fixed charges and
  preferred stock dividends (7):
   Excluding interest on deposits.................    23.09 x      55.92 x      44.04 x       48.12 x      59.91 x    
   Including interest on deposits.................     1.49 x       1.56 x       1.46 x        1.43 x       1.48 x    
</TABLE>





















<TABLE>
<CAPTION>
                                                      SIX MONTHS ENDED    
                                                    ----------------------
                                                     JUN. 30,    JUN. 30, 
                                                       1997        1996   
                                                    ----------   ---------
<S>                                                   <C>          <C>
Performance Ratios (Annualized):
Core cash earnings return on average assets(8)....    1.58%(3)     1.27%(2)
Core cash earnings return on average equity(8)....   14.56 (3)    12.06 (2)
Return on average assets..........................    1.06 (2)     0.82 (2)
Return on average equity..........................    9.77 (2)     7.82 (2)
Net interest margin...............................    3.98         3.33   
Net interest spread during period.................    3.65         3.07   
Operating expense to average assets (4)...........    1.71         1.55   
Efficiency ratio (5)..............................   42.7  (2)    45.4  (2)
Average interest-earning assets to average                                
  interest- bearing liabilities...................    1.08 x       1.06 x 
Regulatory Capital Ratios:                                                
Company:                                                                  
 Leverage capital (6).............................                        
 Risk-based capital (6):                                                  
  Tier 1..........................................                        
  Total...........................................                        
Bank:                                                                     
 Leverage capital (6).............................                        
 Risk-based capital (6):                                                  
    Tier 1........................................                        
    Total.........................................                        
Per Share Data:                                                           
 Core cash earnings(8)*...........................                        
 Common book value**..............................                        
 Tangible common book value**.....................                        
*  Average shares used in calculation.............                        
** Period-end shares used in calculation..........                        
   Total shares issued and outstanding............                        
Asset Quality Ratios:                                                     
 Non-performing loans to total loans..............                        
 Non-performing assets to total assets............                        
Allowance for possible loan losses to:                                    
 Non-performing loans.............................                        
 Total loans......................................                        
Earnings to combined fixed charges and                                    
  preferred stock dividends (7):                                          
   Excluding interest on deposits.................   33.34 x      56.92 x 
   Including interest on deposits.................    1.53 x       1.40 x 

</TABLE>
------------------------
(1) Excludes restructuring charge (recovery).
(2) Excludes branch and asset sales.
(3) Excludes branch sales, asset sales and restructuring charge (recovery).
(4) Excludes goodwill expense, OREO (income) expense and restructuring 
    charge (recovery).
(5) The efficiency ratio is calculated by dividing the Company's operating 
    expense excluding goodwill expense, OREO (income) expense and restructuring 
    charge (recovery) by the sum of net interest income and non-interest 
    income.
(6) These ratios are calculated using regulatory guidelines which exclude the 
    impact on stockholders' equity resulting from the adoption of Statement of 
    Financial Accounting Standards No. 115, "Accounting for Certain Investments 
    in Debt and Equity Securities" ("SFAS 115").
(7) For purposes of computing the ratio of earnings to combined fixed charges 
    and preferred stock dividend requirements, earnings represent net income 
    plus applicable income taxes, fixed charges and preferred stock dividend 
    requirements of a consolidated subsidiary. Fixed charges, excluding interest
    expense on deposits, represent interest expense on long-term debt and 
    one-third (the portion deemed to be representative of the interest factor) 
    of rents. Fixed charges, including interest expense on deposits, represent 
    interest expense on long-term debt, and one-third (the portion deemed to be
    representative of the interest factor) of rents and interest expense on 
    deposits.
(8) Core cash earnings is net income, net of non-recurring items, adding back 
    goodwill amortization and Employee Stock Ownership and stock plans expense.

                                      11
<PAGE>

                 GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                   Management's Discussion and Analysis of
         Financial Condition and Results of Operations-- (Continued)


1. GENERAL
 
The Bank has historically operated as a traditional consumer-oriented 
institution serving the markets in which its branches are located. 
Management's objective has been to become a major niche loan originator in 
the national residential mortgage market and to become a major consumer 
banking force within the attractive, rapidly consolidating New York 
metropolitan consumer banking market.

GreenPoint regularly explores opportunities for acquisitions of and holds 
discussions with financial institutions and related businesses, and also 
regularly explores opportunities for acquisitions of liabilities and assets 
of financial institutions and other financial services providers. The Company 
routinely analyzes its lines of business and from time to time may increase, 
decrease or terminate one or more of its activities.

2. OPERATING RESULTS

The second quarter's results include the following:
 
-    The Company's loan originations totaled $713 million, up 32% over the
     second quarter of 1996, and up 11% over the first quarter of 1997. The
     percentage of new loans originated outside of New York increased to 65%, 
     and ARMs as a percentage of total originations increased to 39%.
 
-    Asset quality remains stable as the ratio of non-performing loans to total
     loans declined 142 basis points to 4.35%, a 25% decrease from June 30, 1996
     and 10 basis points lower than the first quarter.
 
-    Net interest margin rose to 3.99%, 54 basis points over the second quarter
     of 1996, and 2 basis points over the first quarter of 1997.
 
Net income for the quarter ended June 30, 1997 was $35.1 million, or $0.86 
per share, a 4% per share increase over the $0.83 per share ($37.2 million) 
for the comparable 1996 period. The 1997 quarter's results include a pre-tax 
restructuring charge of $2.5 million pertaining to the transfer of mortgage 
servicing from New York to Georgia. The 1996 quarter's results include a $8.9 
million pre-tax non-recurring gain on branch sales. Accordingly, core 
earnings, which exclude non-recurring items were $0.89 per share, up 24% over 
the second quarter of 1996, and up 9% over the first quarter of 1997.

                                      12

<PAGE>

                 GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                   Management's Discussion and Analysis of
          Financial Condition and Results of Operations--(Continued)
 
NET INTEREST INCOME
 
Net interest income increased by $8.1 million, or 7%, in the second quarter 
of 1997, versus the comparable period in 1996. The increase was due to an 
improvement in the net interest margin offset partially by a $1.1 billion 
decline in total average assets and liabilities. Compared to the first 
quarter of 1997, net interest income was flat. Net interest margin rose to 
3.99%, 54 basis points over the second quarter of 1996, and 2 basis points 
over the first quarter of 1997. Net interest income and net interest margin 
in the second quarter of 1997 were reduced by the effect of the Company's 
stock repurchase activity and the issuance of $200 million of Capital 
Securities at an effective annual yield of 9.16%.
 
Interest income decreased by $5.1 million, or 2.1%, to $241.3 million in the 
second quarter of 1997, and by $17.9 million, or 3.6%, to $479.7 million in 
the first six months of 1997, from $246.5 million and $497.6 million, 
respectively for the 1996 periods. The primary reason for the decrease was a 
decline in the average balances of securities and money market investments, 
which was partially offset by the rise in average mortgage loans.
 
Interest income on money market investments decreased by $13.8 million, or 
64.4%, to $7.6 million in the second quarter of 1997, and by $32.8 million, 
or 73.3%, to $11.9 million in the first six months of 1997, from $21.4 
million and $44.7 million respectively for the comparable 1996 periods. The 
decrease was due to declines in the average money market investment balance 
of $1.1 billion and $1.2 billion, for the three months and six months ended 
June 30, 1997 respectively, from $1.6 billion and $1.7 billion for the 
comparable 1996 periods.
 
Interest income on securities declined by $25.9 million, or 32.5%, to $53.9 
million in the second quarter of 1997, and by $48.5 million, or 29.3%, to 
$117.0 million in the first six months of 1997 from $79.9 million and $165.6 
million respectively for the comparable 1996 periods. The decrease was due to 
declines in the average securities balance of $1.7 billion and $1.6 billion, 
for the three months and six months ended June 30, 1997 respectively, from 
$5.3 billion and $5.5 billion for the comparable 1996 periods.
 
Interest income on mortgages increased by $33.0 million, or 22.8%, to $177.6 
million, in the second quarter of 1997, and by $60.5 million, or 21.1%, to 
$346.4 million in the first six months of 1997 from $144.6 million and $285.9 
million respectively for the comparable 1996 periods. The increase reflects 
the growth in the Company's loan portfolio to average balances of $8.0 
billion and $7.8 billion, for the three months and six months ended June 30, 
1997 respectively, from $6.2 billion in each of the comparable 1996 periods.
 
Interest expense decreased by $13.2 million, or 9.9%, to $121.0 million in 
the second quarter of 1997, and by $38.9 million, or 14.0%, to $238.9 million 
in the first six months of 1997, from $134.2 million and $277.8 million 
respectively for the comparable 1996 periods. The decrease reflects a $1.1 
billion and $1.3 billion decline in average interest-bearing liabilities and 
a 7 basis point and 16 basis point decrease in the average cost of funds, 
respectively, from the comparable 1996 periods.


                                      13

<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                    Management's Discussion and Analysis of
          Financial Condition and Results of Operations--(Continued)
 
Interest expense on time deposits decreased by $11.9 million, or 12.4%, to 
$84.1 million in the second quarter of 1997, and by $33.8 million, or 16.8%, 
to $167.2 million for the first six months of 1997, from $96.0 million and 
$201.1 million for the comparable 1996 periods. The primary reason for the 
decline was the decrease in average time deposits of $0.8 billion in the 
second quarter of 1997, and of $1.0 billion in the first six months of 1997, 
resulting from a net deposit outflow between the periods. The average cost of 
time deposits decreased by 9 basis points and 22 basis points from the 
comparable 1996 periods.
 
Interest expense on savings accounts, which include money market and variable 
rate savings, decreased by $3.8 million, or 10.7%, to $31.5 million in the 
second quarter of 1997, and by $8.1 million, or 11.4%, to $63.4 million in 
the first six months of 1997, from $35.3 million and $71.5 million for the 
comparable 1996 periods. The decline in interest expense reflects a decrease 
in the average balance of $417.6 million and $406.5 million in the second 
quarter of 1997 and first six months of 1997 respectively, versus the 
comparable periods in 1996.


                                      14

<PAGE>

                 GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                   Management's Discussion and Analysis of
          Financial Condition and Results of Operations--(Continued)
 
Average Balance Sheets and Interest Yield/Cost
The following table sets forth certain information relating to the Company's 
average statements of financial condition (unaudited) and statements of 
income (unaudited) for the quarters ended June 30, 1997 and 1996, and 
reflects the average yield on assets and average cost of liabilities for the 
periods indicated. Such annualized yields and costs are derived by dividing 
income or expense by the average balance of assets or liabilities, 
respectively, for the periods shown. Average balances are derived from 
average daily balances. Average balances and yields include non-accrual 
loans. The yields and costs include fees which are considered adjustments to 
yields. Interest and yields are presented on a taxable equivalent yield basis.
 
<TABLE>
<CAPTION>
                                                                               QUARTER ENDED
                                                      ---------------------------------------------------------------
                                                              JUNE 30, 1997                    JUNE 30, 1996
                                                      ------------------------------   ------------------------------
                                                                             AVERAGE                          AVERAGE
                                                        AVERAGE              YIELD/      AVERAGE              YIELD/
                                                        BALANCE    INTEREST   COST       BALANCE    INTEREST   COST
                                                      -----------  --------  -------   -----------  --------  -------
<S>                                                   <C>          <C>       <C>       <C>          <C>       <C>
                                                                          (DOLLARS IN THOUSANDS)
Assets:
Interest-earning assets:
  Mortgage loans (1)................................  $ 7,973,607  $177,564    8.91%   $ 6,240,179  $144,566   9.27%
  Other loans (1)...................................       26,027       564    8.67         32,192       684   8.50
  Money market investments (2)......................      546,735     7,604    5.58      1,604,158    21,356   5.35
  Securities (3)....................................    3,559,060    54,834    6.17      5,269,745    81,399   6.21
  Trading assets....................................        1,950        32    6.58        --          --      --
  Other interest-earning assets.....................      111,217     2,582    9.31        --          --      --
                                                      -----------  --------            -----------  --------
      Total interest-earning assets.................   12,218,596   243,180    7.96     13,146,274   248,005   7.56
                                                                   --------                         --------
Non-interest earning assets (4).....................      902,462                        1,049,272
                                                      -----------                      -----------
      Total assets..................................  $13,121,058                      $14,195,546
                                                      -----------                      -----------
                                                      -----------                      -----------
Liabilities & Stockholders' Equity:
Interest-bearing liabilities:
  Savings...........................................  $ 1,863,335    12,297    2.65%   $ 2,001,434    13,866   2.79%
  NOW...............................................      334,034     1,421    1.71        334,452     1,522   1.83
  Money market and variable rate savings............    2,297,411    19,263    3.36      2,576,936    21,464   3.35
  Term certificates of deposit......................    6,470,908    84,097    5.21      7,288,174    96,003   5.30
  Mortgagors' escrow................................       93,638       258    1.11         81,111       241   1.20
  Trading liabilities...............................        4,911        73    5.96        --          --      --
  Repurchase agreements.............................      194,194     2,181    4.50         89,244     1,153   5.20
  Guaranteed preferred beneficial interest in
    Company's junior subordinated debentures........       62,134     1,423    9.16        --          --      --
                                                      -----------  --------            -----------  --------
      Total interest-bearing liabilities............   11,320,565   121,013    4.29     12,371,351   134,249   4.36
                                                                   --------                         --------
Other liabilities (5)...............................      396,710                          339,959
                                                      -----------                      -----------
      Total liabilities.............................   11,717,275                       12,711,310
Preferred shares of subsidiary......................        3,626                          --
Stockholders' equity................................    1,400,157                        1,484,236
                                                      -----------                      -----------
      Total liabilities & stockholders' equity......  $13,121,058                      $14,195,546
                                                      -----------                      -----------
                                                      -----------                      -----------
Net interest income/interest rate spread (6)........               $122,167    3.67%                $113,756   3.20%
                                                                   --------  -------                --------  -------
                                                                   --------  -------                --------  -------
Net interest-earning assets/net interest margin
  (7)...............................................  $   898,031              3.99%   $   774,923             3.45%
                                                      -----------            -------   -----------            -------
                                                      -----------            -------   -----------            -------
Ratio of interest-earning assets to interest-bearing
  liabilities.......................................                           1.08x                           1.06x
                                                                             -------                          -------
                                                                             -------                          -------
</TABLE>
 
------------------------
(1) In computing the average balances and average yield on loans, non-accruing
    loans and loans held for sale have been included.
(2) Includes overnight federal funds sold and securities purchased under resale 
    agreements.
(3) Securities available for sale are reported at average amortized cost.
(4) Includes goodwill, banking premises and equipment-net, net deferred tax
    assets, accrued interest receivable, and other miscellaneous non-interest-
    earning assets.
(5) Includes accrued interest payable, accounts payable, official checks drawn 
    against the Bank, accrued expenses, and other miscellaneous 
    non-interest-bearing obligations of the Company.
(6) Net interest rate spread represents the difference between the average yield
    on interest-earning assets and the average cost of interest-bearing
    liabilities.
(7) Net interest margin represents net interest income on a tax equivalent 
    basis before the provision for possible loan losses divided by average 
    interest-earning assets.


                                      15

<PAGE>
                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                    Management's Discussion and Analysis of
          Financial Condition and Results of Operations--(Continued)
 
Average Balance Sheets and Interest Yield/Cost 
The following table sets forth certain information relating to the Company's 
average statements of financial condition (unaudited) and statements of income 
(unaudited) for the six months ended June 30, 1997 and 1996, and reflects the 
average yield on assets and average cost of liabilities for the periods 
indicated. Such annualized yields and costs are derived by dividing income or 
expense by the average balance of assets or liabilities, respectively, for the 
periods shown. Average balances are derived from average daily balances. Average
balances and yields include non-accrual loans. The yields and costs include fees
which are considered adjustments to yields. Interest and yields are presented 
on a taxable equivalent yield basis.

<TABLE>
<CAPTION>
                                                                             SIX MONTHS ENDED
                                                      ---------------------------------------------------------------
                                                              JUNE 30, 1997                    JUNE 30, 1996
                                                      ------------------------------   ------------------------------
                                                                             AVERAGE                          AVERAGE
                                                        AVERAGE              YIELD/      AVERAGE              YIELD/
                                                        BALANCE    INTEREST   COST       BALANCE    INTEREST   COST
                                                      -----------  --------  -------   -----------  --------  -------
<S>                                                   <C>          <C>       <C>       <C>          <C>       <C>
                                                                          (DOLLARS IN THOUSANDS)
Assets:
Interest-earning assets:
  Mortgage loans (1)................................  $ 7,770,651  $346,436    8.92%   $ 6,199,401  $285,915   9.22%
  Other loans (1)...................................       26,916     1,126    8.37         33,942     1,341   7.90
  Money market investments (2)......................      438,103    11,954    5.50      1,664,304    44,746   5.41
  Securities (3)....................................    3,894,855   119,273    6.15      5,482,540   168,041   6.16
  Trading assets....................................        2,207        71    6.49        --          --      --
  Other interest-earning assets.....................      107,376     4,886    9.18        --          --      --
                                                      -----------  --------            -----------  --------
      Total interest-earning assets.................   12,240,108   483,746    7.91     13,380,187   500,043   7.49
                                                                   --------                         --------
Non-interest earning assets (4).....................      913,046                        1,051,508
                                                      -----------                      -----------
      Total assets..................................  $13,153,154                      $14,431,695
                                                      -----------                      -----------
                                                      -----------                      -----------
Liabilities & Stockholders' Equity:
Interest-bearing liabilities:
  Savings...........................................  $ 1,869,911    24,535    2.65%   $ 2,008,635    27,852   2.79%
  NOW...............................................      334,690     2,830    1.71        336,177     3,070   1.84
  Money market and variable rate savings............    2,333,399    38,886    3.36      2,601,140    43,691   3.38
  Term certificates of deposit......................    6,489,221   167,222    5.20      7,462,874   201,058   5.42
  Mortgagors' escrow................................       89,724       509    1.14         78,984       504   1.28
  Trading liabilities...............................        2,469        73    5.96        --          --      --
  Repurchase agreements.............................      169,396     3,444    4.10         87,270     1,604   3.70
  Guaranteed preferred beneficial interest in
    Company's junior subordinated debentures........       31,067     1,423    9.16        --          --      --
                                                      -----------  --------            -----------  --------
      Total interest-bearing liabilities............   11,319,877   238,922    4.26     12,575,080   277,779   4.42
                                                                   --------                         --------
Other liabilities (5)...............................      399,474                          337,395
                                                      -----------                      -----------
      Total liabilities.............................   11,719,351                       12,912,475
Preferred shares of subsidiary......................        3,625                          --
Stockholders' equity................................    1,430,178                        1,519,220
                                                      -----------                      -----------
      Total liabilities & stockholders' equity......  $13,153,154                      $14,431,695
                                                      -----------                      -----------
                                                      -----------                      -----------
Net interest income/interest rate spread (6)........               $244,824    3.65%                $222,264   3.07%
                                                                   --------  -------                --------  -------
                                                                   --------  -------                --------  -------
Net interest-earning assets/net interest margin
  (7)...............................................  $   920,231              3.98%   $   805,107             3.33%
                                                      -----------            -------   -----------            -------
                                                      -----------            -------   -----------            -------
Ratio of interest-earning assets to interest-bearing
  liabilities.......................................                           1.08x                           1.06x
                                                                             -------                          -------
                                                                             -------                          -------
</TABLE>
------------------------
(1) In computing the average balances and average yield on loans, non-accruing
    loans and loans held for sale have been included.
(2) Includes overnight federal funds sold and securities purchased under resale 
    agreements.
(3) Securities available for sale are reported at average amortized cost.
(4) Includes goodwill, banking premises and equipment-net, net deferred tax
    assets, accrued interest receivable, and other miscellaneous non-interest-
    earning assets.
(5) Includes accrued interest payable, accounts payable, official checks drawn 
    against the Bank, accrued expenses, and other miscellaneous 
    non-interest-bearing obligations of the Company.
(6) Net interest rate spread represents the difference between the average 
    yield on interest-earning assets and the average cost of interest-bearing
    liabilities.
(7) Net interest margin represents net interest income on a tax equivalent basis
    before the provision for possible loan losses divided by average 
    interest-earning assets.
 
                                       16

<PAGE>

                                       
                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                    Management's Discussion and Analysis of 
          Financial Condition and Results of Operations-- (Continued)
 
RATE/VOLUME ANALYSIS
 
    The following table presents the effects of changes in interest rates and
changes in volume of interest-earning assets and interest-bearing liabilities on
the Company's interest income on a tax equivalent basis and interest expense
during the periods indicated. Information is provided in each category on
changes (i) attributable to changes in volume (changes in volume multiplied by
prior rate), (ii) changes attributable to changes in rate (changes in rate
multiplied by prior volume), and (iii) the net change. The changes attributable
to the combined impact of volume and rate have been allocated proportionately to
volume and rate.

<TABLE>
<CAPTION>
                                                            QUARTER ENDED JUNE 30, 1997        SIX MONTHS ENDED JUNE 30, 1997
                                                                    COMPARED TO                        COMPARED TO
                                                            QUARTER ENDED JUNE 30, 1996       SIX MONTHS ENDED JUNE 30, 1996
                                                                INCREASE/(DECREASE)                INCREASE/(DECREASE)
                                                           -----------------------------    ------------------------------
                                                                 DUE TO                         DUE TO
                                                           -----------------                ----------------
                                                            AVERAGE    AVERAGE      NET      AVERAGE    AVERAGE      NET
                                                            VOLUME      RATE      CHANGE     VOLUME      RATE      CHANGE
                                                           ---------  ---------  ---------  ---------  ---------  ---------
                                                                                    (IN THOUSANDS)
<S>                                                        <C>        <C>        <C>        <C>        <C>        <C>
Interest-earning assets:
  Mortgage loans (1).....................................  $  38,793  $  (5,795) $  32,998  $  70,331  $  (9,810) $  60,521
  Other loans (1)........................................       (134)        14       (120)      (290)        75       (215)
  Money market investments (2)...........................    (14,667)       915    (13,752)   (33,448)       656    (32,792)
  Securities.............................................    (25,843)      (722)   (26,565)   (47,558)    (1,210)   (48,768)
  Trading assets.........................................         32         --         32         71         --         71
  Other interest-earning assets..........................      2,582         --      2,582      4,886         --      4,886
                                                           ---------  ---------  ---------  ---------  ---------  ---------
    Total interest-earning assets........................        763     (5,588)    (4,825)    (6,008)   (10,289)   (16,297)
                                                           ---------  ---------  ---------  ---------  ---------  ---------
Interest-bearing liabilities:
  Savings................................................       (931)      (638)    (1,569)    (1,866)    (1,451)    (3,317)
  NOW....................................................         (2)       (99)      (101)       (14)      (226)      (240)
  Money market and variable rate savings.................     (2,343)       142     (2,201)    (4,464)      (341)    (4,805)
  Term certificates of deposit...........................    (10,500)    (1,406)   (11,906)   (25,241)    (8,595)   (33,836)
  Mortgagors' escrow.....................................         36        (19)        17         65        (60)         5
  Trading liabilities....................................         73         --         73         73         --         73
  Repurchase agreements..................................      1,198       (170)     1,028      1,655        185      1,840
  Guaranteed preferred beneficial interest in
   Company's junior subordinated debentures..............      1,423         --      1,423      1,423         --      1,423
                                                           ---------  ---------  ---------  ---------  ---------  ---------
    Total interest-bearing liabilities...................    (11,046)    (2,190)   (13,236)   (28,369)   (10,488)   (38,857)
                                                           ---------  ---------  ---------  ---------  ---------  ---------
Net change in net interest income........................  $  11,809  $  (3,398) $   8,411  $  22,361  $     199  $  22,560
                                                           ---------  ---------  ---------  ---------  ---------  ---------
                                                           ---------  ---------  ---------  ---------  ---------  ---------
</TABLE>
 
------------------ 
(1) In computing the volume and rate components of net interest income for
    loans, non-accrual loans and loans held for sale have been included.
 
(2) Includes overnight federal funds and securities purchased under resale
    agreements.
 
                                      17
<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                    Management's Discussion and Analysis of 
          Financial Condition and Results of Operations-- (Continued)


PROVISION FOR POSSIBLE LOAN LOSSES

     The provision for possible loan losses increased by $0.7 million, or 
20.0%, to $4.4 million for the second quarter of 1997, and increased by $2.1 
million, or 28.8%, to $9.5 million, from $3.7 million and $7.3 million for 
the comparable 1996 periods. The provision exceeded net charge-offs by $1.0 
million for the second quarter of 1997 and by $2.0 million for the first six 
months of 1997, to reflect the effect of loan portfolio growth.

NON-INTEREST INCOME

     Non-interest income decreased by $12.0 million, or 51.2%, to $11.5 
million in the second quarter of 1997, and by $4.3 million, or 12.3%, to 
$30.7 million in the first six months of 1997, from $23.5 million and $35.0 
million, respectively for the comparable 1996 periods. The second quarter 
decrease results primarily from an $8.9 million non-recurring gain on branch 
sales in the second quarter of 1996. For the first six months, the decrease 
relates to a $5.9 million non-recurring gain on branch sales in the first six 
months of 1997 versus $8.9 million in the first six months of 1996.

NON-INTEREST EXPENSE

     Non-interest expense increased by $1.3 million, or 1.9%, to $68.5 
million in the second quarter of 1997, and by $1.8 million, or 1.3%, to 
$136.8 million in the first six months as compared to $67.2 million and 
$135.0 million for the comparable 1996 periods. The second quarter 1997 
results include a pre-tax restructuring charge of $2.5 million relating to 
the transfer of mortgage servicing from New York to Georgia. Excluding the 
non-recurring restructuring charge, non-interest expense decreased by $1.2 
million, or 1.8%, for the second quarter of 1997 and decreased by $0.8 
million, or 0.6%, in the first six months of 1997 as compared to the 
comparable 1996 periods.

    FDIC premiums decreased by $1.0 million in the second quarter of 1997 and 
$1.9 million in the first six months of 1997 due to the reduction in 
assessment rates and the recapitalization of the Savings Association 
Insurance Fund in 1996. Other administrative expense decreased by $2.6 
million in the second quarter of 1997 and $3.2 million in the first six 
months of 1997. Other real estate (ORE) expense decreased by $1.1 million in 
the second quarter and $1.5 million in the first six months of 1997 compared 
with the comparable periods in 1996. The decreases were partially offset by 
an increase in salaries and benefits of $2.1 million in the second quarter of 
1997 and $2.2 million in the first six months of 1997 and an increase in 
charitable foundation expense of $1.0 million in the second quarter of 1997 
and $1.9 million in the first six months of 1997 compared with the comparable 
1996 periods.

                                      18

<PAGE>


                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                    Management's Discussion and Analysis of 
          Financial Condition and Results of Operations-- (Continued)


INCOME TAX EXPENSE

Income tax expense decreased by $3.9 million, or 14.2%, to $23.7 million in 
the second quarter of 1997, and increased by $2.5 million, or 5.2%, to $50.4 
million in the first six months of 1997 from $27.6 million and $47.9 million 
for the comparable periods of 1996. The decrease in the second quarter of 
1997 compared with 1996 is primarily due to a $5.9 million, or 9.2%, decrease 
in income before income taxes. Additionally, income tax expense was further 
reduced by the decrease in the effective tax rate from 42.60% in the 1996 
period to 40.25% in the 1997 period. The increase in the first six months of 
1997 compared with 1996 is primarily due to the $12.8 million increase, or 
11.4%, in income before income taxes partially offset by the decrease in the 
effective tax rate from 42.60% in 1996 to 40.25% in the 1997 period.

3. FINANCIAL CONDITION

Total assets remained flat at June 30, 1997 compared with December 31, 1996. 
Total loans held for investment, net, rose $845.4 million to $8.14 billion at 
June 30, 1997, from $7.29 billion at December 31, 1996. Securities available 
for sale decreased $1.23 billion, to $3.12 billion at June 30, 1997, from 
$4.36 billion at December 31, 1996, primarily as a result of the usage of 
proceeds from the maturities and sales of securities to fund loan 
originations.

GreenPoint's operating results include significant amortization of goodwill 
and employee stock compensation plans expense. These non-cash expenditures, 
unlike all other expenses reported by the Company, result in net increases in 
GreenPoint's tangible capital and related core cash earnings. Additional core 
cash earnings enable the Company to pursue increases in shareholder value 
through growth of earning assets, increases of cash dividends, and additional 
repurchases of the Company's stock.

<TABLE>
<CAPTION>
                                                                       QUARTER ENDED                  SIX MONTHS ENDED
                                                           -------------------------------------     ------------------------
                                                            JUNE 30,     MARCH 31,      JUNE 30,       JUNE 30,      JUNE 30,
                                                              1997          1997          1996           1997          1996
                                                            --------     ---------      --------      ---------     ---------
                                                                        (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<S>                                                         <C>          <C>             <C>          <C>            <C>
Net income................................................  $  35,129    $  39,671       $  37,155    $   74,800     $  64,507
Non-recurring items, net of tax (1).......................      1,493       (4,939)         (5,095)       (3,446)       (5,095)
                                                            ---------    ---------       ---------    ----------     ---------
  Core net income.........................................     36,622       34,732          32,060        71,354        59,412

Add back:
  Goodwill expense........................................     11,620       11,643          11,630        23,263        23,258
  Employee stock plans expense............................      4,711        4,810           4,699         9,521         8,942
                                                            ---------    ---------       ---------    ----------     ---------
  Core cash earnings......................................  $  52,953    $  51,185       $  48,389    $  104,138     $  91,612
                                                            ---------    ---------       ---------    ----------     ---------
                                                            ---------    ---------       ---------    ----------     ---------
  Core cash earnings per share (2)........................  $    1.29    $    1.21       $    1.08    $     2.50     $    2.03
                                                            ---------    ---------       ---------    ----------     ---------
                                                            ---------    ---------       ---------    ----------     ---------
</TABLE>
 
------------------ 
(1) Non-recurring items include branch sales, asset sales and restructuring
    charge.
 
(2) Based on the weighted average shares used to calculate earnings per share.

                                      19

<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                    Management's Discussion and Analysis of 
          Financial Condition and Results of Operations-- (Continued)



    INTEREST RATE SENSITIVITY GAP ANALYSIS

     The table below depicts the Company's interest rate sensitivity as of 
     June 30, 1997. Allocations of assets and liabilities, including non 
     interest-bearing sources of funds, to specific periods are based upon 
     management's assessment of contractual or anticipated repricing 
     characteristics, adjusted periodically to reflect actual experience. 
     Those gaps are then adjusted for the net effect of off-balance sheet 
     financial instruments such as interest rate swaps. 

<TABLE>
<CAPTION>
                                                                         REPRICING PERIODS 
                                            ---------------------------------------------------------------------------------
                                                            MORE THAN      MORE THAN   MORE THAN 
                                            THREE MONTHS   THREE MONTHS    SIX MONTHS   ONE YEAR      MORE THAN 
                                              OR LESS     TO SIX MONTHS   TO ONE YEAR  THREE YEARS    THREE YEARS  TOTAL
                                            ------------  -------------   -----------  -----------    ----------- -------
                                                                              (IN MILLIONS)
<S>                                         <C>            <C>            <C>          <C>            <C>          <C>
Total loans, net..........................   $   1,133      $   761       $   1,256    $   1,453      $   3,541    $   8,144
Money market investments (1)..............         729           --              --           --             --          729
Securities held to maturity...............          --           --              --           --              4            4
Securities available for sale.............         633          354             104          824          1,210        3,125
Trading assets............................          --           --              --           --             --           --
Other interest-earning assets.............         111           --              --           --             --          111
                                                 ------       ------      ----------      ------    -----------    ---------
  Total interest-earning assets...........        2,606        1,115           1,360       2,277          4,755       12,113
                                                 ------       ------      ----------      ------     ----------    ---------
Cash and due from banks...................           90           --              --          --             --           90
Goodwill..................................           11           11              21          84            473          600
Other non-interest-earning assets.........          497           --              --          --             --          497
                                                 ------       ------      ----------      ------     ----------    ---------
  Total assets............................    $   3,204      $ 1,126       $   1,381   $   2,361      $   5,228    $  13,300
                                                 ------       ------      ----------      ------     ----------    ---------
                                                 ------       ------      ----------      ------     ----------    ---------

Term certificates.........................    $   1,384      $ 1,195       $   1,891   $   1,774      $     287    $   6,531
Core deposits.............................          255          255             511       1,800          1,825        4,646
Guaranteed preferred beneficial interest
  in Company's junior subordinated
  debentures..............................           --           --              --          --            200          200
                                                 ------       ------      ----------      ------     ----------    ---------
  Total interest-bearing liabilities......        1,639        1,450           2,402       3,574          2,312       11,377
                                                 ------       ------      ----------      ------     ----------    ---------
Other liabilities.........................          548           --              --          --             --          548
Preferred shares of subsidiary............           --           --              --          --              4            4
Stockholders' equity......................           --           --              --          --          1,371        1,371
                                                 ------       ------      ----------      ------     ----------    ---------
  Total liabilities and stockholders'
    equity................................    $   2,187      $   1,450     $   2,402   $   3,574      $   3,687    $  13,300
                                                 ------         ------    ----------      ------     ----------    ---------
                                                 ------         ------    ----------      ------     ----------    ---------
Off balance sheet financial instrument....    $     400             --            --   $    (300)     $    (100)          --
                                                 ------         ------    ----------      ------     ----------    ---------
                                                 ------         ------    ----------      ------     ----------    ---------
Interest rate sensitivity gap.............    $   1,417      $    (324)    $  (1,021)  $  (1,513)     $   1,441

Cumulative gap............................    $   1,417      $   1,093     $      72   $  (1,441)


Interest rate sensitivity gap as a
  percentage of total assets..............        10.65%         (2.44)%       (7.68)%    (11.37)%       10.84%

Cumulative gap as a percentage of total
  assets..................................        10.65%          8.21%         0.53%     (10.84)%
</TABLE>
 
 
------------------ 
(1) Consists of overnight federal funds sold and securities purchased under 
    agreements to resell.
                                      20
<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                    Management's Discussion and Analysis of 
           Financial Condition and Results of Operations-- (Continued)


INTEREST RATE RISK MANAGEMENT

     Interest rate risk is defined as the sensitivity of the Company's 
current and future earnings to changes in the level of market interest rates. 
It arises in the ordinary course of the Company's business, as the repricing 
characteristics of its mortgage loans do not match those of its deposit 
liabilities. The resulting interest rate risk is managed by adjustments to 
the Company's investment portfolio and through the use of off balance sheet 
instruments such as interest rate swaps and options.

     Management responsibility for interest rate risk resides with the Asset 
and Liability Management Committee ("ALCO"). The committee is comprised of 
the Chairman and Chief Executive Officer, the Vice Chairman and the Company's 
senior business-unit and financial executives. Interest rate risk management 
strategies are formulated and monitored by ALCO within policies and limits 
approved by the Board of Directors. These policies and limits set forth the 
maximum risk which the Board of Directors deems prudent, govern permissible 
investment securities and off balance sheet instruments and identify 
acceptable counter parties to securities and off balance sheet transactions.

     ALCO risk management strategies allow for the assumption of interest 
rate risk within the Board approved limits. The strategies are formulated 
based upon ALCO's assessments of likely market developments and trends in the 
Company's mortgage and consumer banking businesses. Strategies are developed 
with the aim of enhancing the Company's net income and capital, while 
ensuring the risks to income and capital from adverse movements in interest 
rates are acceptable.

     In assessing various interest rate risk strategies, ALCO makes use of a 
variety of risk measures. One such measure is the consolidated gap analysis 
reported above as of June 30, 1997. Assets and liabilities are allocated to 
the various maturities in accordance with the earlier of their contractual 
maturity or repricing dates. For mortgage loans and mortgage-backed 
securities, estimates of scheduled amortization plus prepayments are used, 
rather than contractual maturity. For assets and liabilities with indefinite 
repricing schedules, notably core deposits, the gap analysis reflects ALCO's 
judgements of likely repricing behavior.

     As indicated in the gap analysis, the twelve-month cumulative gap, 
representing the total net assets and liabilities that are projected to 
reprice over the next twelve months, was asset sensitive $72.0 million at 
June 30, 1997. An asset sensitive interest rate gap would tend to increase 
earnings over a period of rising interest rates, where declining rates would 
decrease earnings. The cumulative one-year sensitivity gap was positive 0.53% 
of total assets at June 30, 1997, compared to negative 0.08% at December 31, 
1996.

     The use of interest rate instruments such as interest rate swaps are 
integrated into the Company's interest rate risk management. The notional 
amounts of these instruments are not reflected in the Company's balance 
sheet. However, these instruments are included in the interest rate 
sensitivity table for purposes of analyzing interest rate risk.

                                      21

<PAGE>


                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                     Management's Discussion and Analysis of 
            Financial Condition and Results of Operations-- (Continued)


     The Company has entered into interest rate swaps, with a total notional 
amount of $400 million, to reduce the Company's overall interest rate risk 
arising from its origination of fixed rate mortgages. These instruments are 
considered derivative financial instruments held for purposes other than 
trading and the effects of these instruments are reported as an adjustment to 
mortgage loan income. The unrealized gains or losses on these instruments are 
not recorded on the balance sheet, since they are used as a hedge against 
held-to-maturity loans. For the quarter ended June 30, 1997, the interest 
rate swaps had a negative $1.1 million impact on mortgage loan income. The 
interest rate swaps require the Company to pay a weighted average fixed rate 
of 6.37% and receive three month LIBOR. As of June 30, 1997, the weighted 
average LIBOR rate that the Company will receive is 5.80%. All agreements 
will expire by the second quarter of 2002. As of the quarter ended June 30, 
1997 the interest rate swaps had a gross positive market value of $0.7 
million. The Company has a policy to enter into mutual collateral agreements 
with each counter party, which requires either party to submit U.S. 
Government or U.S. Government Agency collateral when the market value of the 
instrument reaches a predetermined threshold.
 
NON-PERFORMING ASSETS
 
     The Company's asset quality remained stable during the six months ended 
June 30, 1997, as non-performing assets decreased by 0.1%. The ratio of 
non-performing loans to total loans fell to 4.35% at June 30, 1997 from 4.78% 
at December 31, 1996 while the ratio of non-performing assets to total assets 
at June 30, 1997 remained at 2.89% .
 
Non-performing assets, net of related specific reserves, were as follows:

<TABLE>
<CAPTION>
                                                                       JUNE 30,       DECEMBER 31,
                                                                        1997             1996
                                                                     ----------   ------------
                                                                          (IN THOUSANDS)
<S>                                                                  <C>          <C>
Mortgage loans secured by:
  Residential one-to-four family...................................  $  276,132   $  271,192
  Residential multi-family.........................................      47,173       48,270
  Commercial property..............................................      36,185       36,515
  Other loans......................................................         879          170
                                                                     ----------  ------------
Total non-performing loans (1).....................................     360,369      356,147
                                                                     ----------  ------------
Total other real estate owned, net.................................      23,968       28,566
                                                                     ----------  ------------
  Total non-performing assets......................................  $  384,337   $  384,713
                                                                     ----------  ------------
                                                                     ----------  ------------
</TABLE>
 
 
------------------ 
(1) Includes $25.7 million and $31.6 million of non-accrual mortgage loans under
    90 days past due at June 30, 1997 and December 31, 1996, respectively.

                                      22

<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                    Management's Discussion and Analysis of
          Financial Condition and Results of Operations--(Continued)
 
Allowance for Possible Loan Losses
 
    The following is a summary of the provision and allowance for possible loan
losses:
 
<TABLE>
<CAPTION>
                                                             Quarter Ended            Six Months Ended
                                                                June 30,                  June 30,
                                                        -----------------------     --------------------
                                                           1997           1996        1997        1996 
                                                        ----------     ---------    --------    --------
                                                                           (In thousands)
<S>                                                     <C>            <C>          <C>         <C>
Balance beginning of period...........................   $106,000      $105,000     $105,000    $105,500
Provision charged to income...........................      4,444         3,701        9,461       7,347
Charge-offs...........................................     (3,562)       (4,043)      (7,715)     (8,632)
Recoveries............................................        118           342          254         785
                                                         --------      --------     --------    --------
Balance end of period.................................   $107,000      $105,000     $107,000    $105,000
                                                         --------      --------     --------    --------
                                                         --------      --------     --------    --------
</TABLE>
 
Capital Ratios
 
The Company's ratio of period-end stockholders' equity to ending total assets 
at June 30, 1997 was 10.31% compared to 10.95% at December 31, 1996.
 
The Company and the Bank are subject to various regulatory capital 
requirements administered by the Federal and state banking agencies. The 
Board of Governors of the Federal Reserve System establishes minimum capital 
requirements for the consolidated bank holding company, as well as for the 
Bank.
 
Under capital adequacy guidelines and the regulatory framework for prompt 
corrective action, the Bank must meet specific capital guidelines that 
involve quantitative measures of its assets, liabilities, and certain off 
balance sheet items as calculated under regulatory accounting practices. 
These guidelines require minimum ratios of risk-based capital to risk 
adjusted assets of 4% for Tier 1 capital and 8% for total capital. The 
Federal Reserve Board also has guidelines for a leverage ratio that is 
designed to complement the risk-based capital ratios in determining the 
overall capital adequacy of banks and bank holding companies. A minimum 
leverage ratio of Tier 1 capital to average total assets of 3% is required 
for banks and bank holding companies, with an additional 100 to 200 basis 
points required for all but the highest rated institutions. Management 
believes, as of June 30, 1997, that the Company and the Bank meet all capital 
adequacy requirements to which it is subject.

                                 23

<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
                    Management's Discussion and Analysis of
          Financial Condition and Results of Operations--(Continued)
 
As of June 30, 1997, the most recent notification from the FDIC categorized 
the Bank as well capitalized under the regulatory framework for prompt 
corrective action. To be categorized as well capitalized, the Bank must 
maintain minimum Tier 1 capital, total capital and leverage ratios of 6%, 10% 
and 5%, respectively. There have been no conditions or events since that 
notification that management believes have changed the Company's or Bank's 
category.
 
<TABLE>
<CAPTION>

                                                                                                REQUIRED FOR CAPITAL
                                                                              ACTUAL             ADEQUACY PURPOSES
                                                                       --------------------    ----------------------
(IN MILLIONS)                                                           AMOUNT      RATIO       AMOUNT         RATIO
---------------------------------------------------------------------  ---------  ---------    ---------     --------
<S>                                                                    <C>        <C>          <C>           <C>

As of June 30, 1997

Total Capital
  (to Risk Weighted Assets):
  Company............................................................  $ 1,072.8      17.62%   $   487.0        8.00%
  Bank...............................................................      906.3      15.17%       478.0        8.00%
Tier 1 Capital
  (to Risk Weighted Assets):
  Company............................................................  $   996.7      16.37%   $   243.5        4.00%
  Bank...............................................................      831.6      13.92%       239.0        4.00%
Tier 1 Capital
  (to Average Assets):
  Company............................................................  $   996.7       7.95%   $   501.7        4.00%
  Bank...............................................................      831.6       6.66%       499.2        4.00%
</TABLE>
 
<TABLE>
<CAPTION>

                                                                                                REQUIRED FOR CAPITAL
                                                                            ACTUAL               ADEQUACY PURPOSES
                                                                       ------------------      ---------------------
<S>                                                                    <C>        <C>          <C>        <C>
(IN MILLIONS)                                                            AMOUNT     RATIO        AMOUNT     RATIO
---------------------------------------------------------------------  ---------  ---------    ---------  ----------
As of December 31, 1996

Total Capital
  (to Risk Weighted Assets):
  Company............................................................  $   932.8      16.72%   $   446.2        8.00%
  Bank...............................................................      914.2      16.40%       445.8        8.00%
Tier 1 Capital (to Risk Weighted Assets):
  Company............................................................  $   863.1      15.47%   $   223.1        4.00%
  Bank...............................................................      844.5      15.15%       222.9        4.00%
Tier 1 Capital (to Average Assets):
  Company............................................................  $   863.1       6.78%   $   509.0        4.00%
  Bank...............................................................      844.5       6.64%       508.4        4.00%
</TABLE>

                                 24

<PAGE>
 
                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
 
PART II--OTHER INFORMATION
 
Item 1--Legal Proceedings
 
With the exception of the matters set forth below, the Company is not 
involved in any pending legal proceedings other than routine legal 
proceedings occurring in the ordinary course of business which, in the 
aggregate, involve amounts which are believed by management to be immaterial 
to the consolidated financial statements of the Company. The Bank has been 
named as a defendant in fifteen unrelated legal complaints which assert that 
infant plaintiffs sustained personal injuries from the ingestion of lead 
based paint, chips or dust. Additionally there are eleven other instances of 
threatened litigation. The complaints are in various early stages of 
discovery. Outside counsel has advised the Bank that because discovery on 
these claims has only recently begun, counsel is not yet in a position to 
express an opinion as to the Bank's liability or to quantify the Bank's 
potential exposure, if any, in dollar terms at this time. The Company 
currently believes that such liability exposure, if any, would not be 
material to the Bank's financial condition.
 
The Bank is a defendant in a recently filed purported class action lawsuit 
titled Joseph Sabbatino and Jean Sabbatino, and all others similarly 
situated, v. GreenPoint Savings Bank, CV-97 -1838, United States District 
Court, Eastern District of New York, in which plaintiffs allege that the Bank 
collected monthly mortgage escrow reserves in excess of the amounts it is 
entitled to collect under applicable law and the mortgage contract. 
Plaintiffs seek, among other things, treble damages and injunctive relief 
under breach of contract theories and alleged violation of the Federal 
Racketeer Influenced and Corrupt Organization Act ("RICO"), and a judgment 
based upon alleged breach of contract, breach of fiduciary duty and 
intentional and/or negligent misrepresentation. The Bank has filed an answer 
denying all of the Plaintiff's claims, believes its mortgage loan servicing 
practices with respect to escrow deposits comply in all material respects 
with applicable requirements, and intends to defend vigorously this action. 
While the ultimate outcome of this lawsuit, whether by judgment or a 
satisfactory settlement, cannot be predicted, management does not believe 
that the outcome of this litigation is likely to have a material adverse 
effect on the consolidated financial condition of the Company.
 
Item 4--Submission of Matters to a Vote of Security Holders
 
At the Company's annual meeting of shareholders held on May 2, 1997, the 
following matters were voted upon with the results of the voting on such 
matters indicated:
 
1. Election of the following five directors of the Company to three-year
terms:


                                                 FOR        WITHHELD
                                             ------------  -----------

       Edward C. Bessey..................    44,362,727      267,331
       William M. Jackson................    44,362,350      267,708
       Charles B. McQuade................    44,361,076      268,982
       Alvin N. Puryear..................    44,361,791      268,267
       Robert P. Quinn...................    44,360,639      269,419

                                       25

<PAGE>

                  GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
 
The following sets forth the names of Directors continuing in office after 
the annual meeting:
 
             Bernard S. Berman                 Edward C. Schmults
             Dan F. Huebner                    Wilfred O. Uhl
             Thomas S. Johnson                 Robert F. Vizza
             Susan J. Kropf                    Jules Zimmerman
             Robert M. McLane


    2. Approval of an amendment to the Company's Amended and Restated 1994 
       Stock Incentive Plan to increase the number of authorized shares under
       the Plan from 3,500,000 to 5,500,000.

                 For:                                    39,013,963
                 Against:                                 5,348,357
                 Abstain:                                   267,738

     3. Ratification of the appointment of Price Waterhouse LLP as the 
        Company's independent accountants for the year ending December 31, 1997.


                 For:                                    44,240,115
                 Against:                                   193,733
                 Abstain:                                   196,210

Item 6--Exhibits and Reports on Form 8-K

    (a) Exhibits
 
         Exhibit
         Number
      -----------
          11.1           Statement Regarding Computation of Per Share Earnings
 
          12.1           Ratios of Earnings to Fixed Charges
 
          27.1           Financial Data Schedule

                                   26

<PAGE>

                 GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES

    (b) Reports on Form 8-K

        No current reports on Form 8-K were filed by the Company with the 
        Securities and Exchange Commission during the quarter ended June 30, 
        1997.

                                  27

<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                                GreenPoint Financial Corp.
 
                                By: /s/ Thomas S. Johnson
                                    ------------------------------------
                                    Thomas S. Johnson
                                    Chairman of the Board, President
                                    and Chief Executive Officer
 


                                By: /s/ Charles P. Richardson
                                    -----------------------------------------
                                    Charles P. Richardson
                                    Executive Vice President and
                                    Chief Financial Officer




Dated August 8, 1997

                                  28