Astoria Financial Corp. is moving swiftly to consolidate back-office computer systems and administrative functions now that its acquisition of Greater New York Savings Bank is official.
Lake Success, N.Y.-based Astoria will convert Greater New York's systems to its own this weekend, 13 days after closing its $354.6 million purchase of the $2.5 billion-asset Brooklyn thrift. The combined institution has $9.8 billion of assets and $6.2 billion of deposits.
The quick consolidation comes two weeks after a federal judge in Brooklyn blocked attempts by a group of Greater New York shareholders to halt the acquisition.
Last month U.S. District Judge Charles P. Sifton denied those shareholders' request for a preliminary injunction against the sale until their lawsuit against Greater New York could be resolved.
The shareholders, who are seeking class-action status, contend that Greater New York's proxy statement in June supplied inadequate information, including the identity of a second bidder and the size of its offer.
The judge's ruling was seen as a major victory for Astoria. "We believed all along that the suit did not have any merit," said Peter J. Cunningham, Astoria's vice president of communications.
But attorneys for the shareholders, who are continuing to pursue their case, said they believe they can ultimately win compensation. "At the end of the day, we think we're going to be successful," said Jules Brody, a partner at Stull, Stull & Brody.
Astoria bid successfully in March. Its offer was $19 in cash or half a share of Astoria Financial stock for each share of Greater New York. Shareholders have until Oct. 17 to decide whether to take cash or stock.
North Fork Bancorp. of Melville, N.Y., was the second bidder, offering $18.57 a share, according to testimony.
North Fork will be a shareholder of the new Astoria because it owned 82% of Greater New York's preferred stock, according to court documents.
The shareholders' lawsuit, filed in July, did not slow the merger, Mr. Cunningham said.
Greater New York's 16 branches in Brooklyn have already been renamed Astoria Federal Savings and Loan.
Astoria Financial now has 61 branches spread across Queens, Brooklyn, and western Long Island and in northern New York State.
Astoria has no branch closings planned in connection with the acquisition. Indeed, the thrift opened two branches this week in Brooklyn. These openings had been planned by Greater New York before the acquisition.
