Fitch Affirms North Fork Bancorporation's Ratings.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 16, 2003 Upon the announcement of the merger of North Fork North Fork, river, c.100 mi (160 km) long, rising in the Ozarks, S Mo., and flowing S, into N Ark., to the White River. Near its mouth is Norfolk Dam (completed 1944), which impounds Norfolk Lake and has a power plant. Bancorporation, Inc. (NFB NFB National Federation of the Blind NFB National Film Board of Canada NFB Negative Feedback NFB No Fuse Breaker NFB Normal for Bridgewater (music album) ) and The Trust Company of New Jersey (TCNJ TCNJ The College of New Jersey ), Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. all ratings and maintains its Ratings Outlook at Stable for NFB and its subsidiaries. A complete roster of ratings for NFB and its subsidiaries is included below. NFB announced today an agreement to acquire the northern New Jersey-based TCNJ, with approximately $4.3bln in assets. The combination, which is expected to close in 2Q04, will extend NFB's presence into the demographically appealing northern New Jersey market. The acquisition will be a stock for stock transaction with a total deal value of $726mln (2.58x tangible book value and 20x's trailing twelve month earnings). The deal is expected to be accretive to earnings and to the company's tangible equity. A substantial level of TCNJ's funding and assets consist of higher cost certificate of deposits and lower margined real estate based loans and securities, which could slightly pressure NFB's margins over the near term. That said, the acquisition provides NFB with an extended constituency, in a market that the company has earmarked for expansion and is consistent with their stated strategy. The affirmation recognizes NFB's solid financial condition and performance. Moreover, NFB's ratings are supported by the company's strong performance, sound asset quality and solid levels of liquidity. Integration risk is always a concern, however, Fitch recognizes that NFB has a successful track record of integrating acquired banks, without any notable problems. Fitch will continue to monitor the integration progress. North Fork Bancorporation, Inc. -- Short-term 'F1'; -- Long-term 'A'; -- Sub-Debt 'A-'; -- Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. 'A-'; -- Individual 'B'; -- Support '5'; -- Rating Outlook Stable. North Fork Bank North Fork Bank was an American bank headquartered in Melville, New York purchased by Capital One at the end of 2006 for $14.6 billion U.S. dollars. It was only the second bank bought by Capital One, and was the larger of two acquisitions comprising Capital One's 2005-06 expansion -- Short-term 'F1'; -- Short-term deposit 'F1'; -- Long-term 'A'; -- Long-term deposit 'A+'; -- Individual 'B'; -- Support '5'; -- Rating Outlook Stable. North Fork Capital Trust I -- Preferred Stock 'A-' -- Rating Outlook Stable North Fork Capital Trust II -- Preferred Stock 'A-' -- Rating Outlook Stable |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion