Green Point Savings Bank, New York, will cross the river and begin originating home loans with a new mortgage subsidiary in New Jersey.

Green Point went public in January 1994, which provided it with capital, and the lender decided to deploy some of it by forming the unit.

"We are expanding into New Jersey because the demographics are similar to the best core markets we do well with in other areas of New York," said Richard Humphrey, senior vice president.

The move into New Jersey was discussed for some time as a way to expand lending and stay with a business at which Green Point is successful, Mr. Humphrey said.

He acknowledged the tight lending market due to increasing interest rates, but said the increase in originations is not a risky move for Green Point.

"It's not a huge investment," Mr. Humphrey said. "We're starting up an office and starting operations on our own, not acquiring anyone."

Green Point does not have any immediate plans to expand into other areas, but will evaluate other possibilities.

GP Financial Corp., parent of Green Point Savings Bank, said its net income rose 17.7% last year, to $112.9 million, or $2.38 per share. The figures are pro forma because the company was not public for the full year.

The 1993 results included a pretax charge of $20 million because of a special provision for loan losses when it transferred mortgage loans to held-for-sale status.

Income for the fourth quarter was $27.3 million, or 58 cents per share, down 2.8%.

Thomas S. Johnson, chief executive of New York-based GP, attributed the decline in the fourth quarter to interest-rate pressures and an increase in noninterest expense related to the expansion.

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