HS:
Will it be difficult for you to now have a boss?
AW:
I got to know John Kanas well enough over the last three years, from observing him to actually meeting with him, and from having lunches and dinners. In other words, we got to a point of comfort. In 1978, when Kanas became CEO of North Fork Bank, there were only 12 branches on the eastern end of Long Island. So when you look at what he did with that bank from 1978 to 2004, expanding to 32 branches in Manhattan and to becoming a major New York powerhouse bank, it’s a pretty remarkable story. Kanas was a schoolteacher in Greenport in 1970 and worked for the bank to qualify for its tuition program, in order to get his master’s degree and continue teaching. Instead, he fell in love with the banking business. Kanas is well-known on the East End of Long Island, and still lives on the 60-acre farm in East Moriches where his grandparents grew potatoes.
Alan and Karin take the cake.
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HS:
How would you define the difference between a merger and a sale?
AW:
People say, ‘Congratulations, you sold the bank.’ I take umbrage with the word ‘sold’ because ‘sold’ is when somebody writes you a check, you take a walk, and that’s the end. It’s not yours anymore, you have nothing to do with it. Our family is still going to be one of the largest shareholders of this surviving institution, and I am going to be on the board of directors and a senior executive of the holding company. It’s a merger, not a sale, in the purest sense. But again, it depends on where you ‘sit.’ If you sit in my chair, there’s a quantum difference between a merger and a sale. It’s a merger of shared values.
"Trustcompany was attractive because of the purity of our brand..."
HS:
So, then it’s a match made in banking heaven?
AW:
There’s a similar connection, a good chemistry. Many elements had to come together for the banks to merge and have synergy. It was like a courtship.
HS:
In a sense, everybody brings something to the table?
AW:
Each institution brings its own strength. In essence, this transaction connects NFB to the continental United States. Prior to this merger, the bank was in Manhattan and Long Island—two little islands that aren’t connected to the rest of the country. GreenPoint brings a million New York City customer households, because it is a large and successful bank, itself. The Trustcompany’s story is a unique one, because even though we didn’t get as big as North Fork, which gained its size primarily through acquisition, the Trustcompany grew through organic growth. Trustcompany was attractive because of the purity of our brand and the loyalty of our customer base.
HS:
What clinched the deal?
AW:
To give up a position as Chairman and CEO, and to become a Number Three to someone else, you need to have a tremendous amount of respect for those you are working with and for. You need to feel comfortable enough to know that you are going to learn from them and not be frustrated. It was easy to do in this instance, because John Kanas is a superstar when it comes to banking, and that’s why Wall Street loves him. Now I’ll have an opportunity to participate in running one of the largest and best banks in America.
HS:
My money’s on you Alan.
"Now I’ll have an opportunity to participate in running one of the largest and best banks in America."
