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GREAT LAKES BANCORP POSTS $2.2 MILLION 1991 PROFIT ON RECORD OPERATING EARNINGS, HIGHER LOSS PROVISION

 GREAT LAKES BANCORP POSTS $2.2 MILLION 1991 PROFIT
 ON RECORD OPERATING EARNINGS, HIGHER LOSS PROVISION
 ANN ARBOR, Mich., Jan. 23 /PRNewswire/ -- Great Lakes Bancorp (NASDAQ-NMS: GLBC) said today it earned $2.2 million in 1991. For 1990, the bank reported a loss of $23 million following a $28 million write- off of intangible assets, primarily goodwill that no longer qualified as capital under changing federal regulations.
 Great Lakes posted record operating earnings in 1991, with net interest income up 18 percent to $87.1 million and fee income up 13 percent to $8.0 million. The bank's net interest margin increased to 3.18 percent for the fourth quarter and 2.82 percent for 1991, compared with 2.18 percent in 1990.
 Higher provisions to general reserves for possible loan losses offset the consistent improvements in operating earnings: provisions totaled $30.3 million in 1991 compared with $23.0 million in 1990.
 "Weakness in the economy, and its impact on our commercial business and commercial real estate portfolios, caused us to make larger provisions in 1991 and in 1990 to protect against possible loan losses," said Robert J. Delonis, Great Lakes Bancorp's president and chief operating officer. "But we expect loan-loss provisions will be substantially less in 1992 than last year.
 "Net income was also adversely influenced by an unusually high effective tax rate of 84 percent, because of the impact of loan-loss provisions and goodwill amortization."
 Classified assets -- which include non-performing assets as well as other loans that the bank believes have some potential for increased risk -- began to decline in the fourth quarter, dropping 13 percent.
 Great Lakes' non-performing assets increased to $73 million from $60 million at Sept. 30. "It's a higher level than Great Lakes is used to," Delonis said. "But we've been taking a much more aggressive stance with problem loans -- directed more resources at identifying problems and pursuing foreclosures -- so that number is bound to increase over the near term. These efforts, involving thorough reviews of our portfolios, represent a concerted attempt to contain the bank's credit risk and put the negative financial aspects behind us.
 "Our goal was to reduce classified assets from 136 percent to no more than 125 percent of the bank's tangible capital and general loan- loss reserves by June," Delonis commented. "We're ahead of that June goal with a ratio of 114 percent at Dec. 31, and we expect further reductions during the year to below 100 percent."
 Great Lakes' assets shrank from $3.4 billion at Dec. 31, 1990, to $2.9 billion at Dec. 31, 1991. This was accomplished through the sale of branches in Traverse City, Grayling, Mich., and Indianapolis; shrinkage of the commercial business portfolio from $297 million to $218 million; shrinkage of the commercial real estate portfolio from $506 million to $451 million; and a decline in the mortgage-backed securities portfolio of approximately $218 million.
 "We have been intentionally shrinking to build a more focused, retail-oriented bank with lower credit risk," Delonis said. "Shedding marginally profitable branches with smaller average deposit bases lets us rechannel those resources into communities where we have prevailing market shares and where people prefer the service provided by a smaller, locally run bank."
 Residential mortgage originations increased to $296 million in 1991, compared with $245 million in 1990. Consumer lending declined to $67 million in 1991, compared with $70 million in 1990.
 Great Lakes' stockholders' equity increased to $149.3 million, or $27.32 per share. Tangible capital increased to $99.6 million, from 2.73 percent of tangible assets at the end of 1990 to 3.51 percent at the end of 1991. The tangible book value per common share is $16.40. In October, Great Lakes signed an agreement with the Office of Thrift Supervision setting goals for further increases in tangible capital: 4 percent by 1993, 4.5 percent by 1994, and 5 percent by 1995.
 With $2.9 billion in assets and $1.9 billion in deposits, Great Lakes Bancorp is Michigan's second-largest savings bank. Great Lakes has branches throughout Michigan, with primary concentrations in the Ann Arbor, Battle Creek, and Saginaw areas. In addition, a division of Great Lakes, Dollar Federal Savings Bank, has a significant presence in Hamilton, Ohio. Great Lakes also operates Great Lakes Mortgage Co., a mortgage banking subsidiary.
 GREAT LAKES BANCORP, A Federal Savings Bank
 FINANCIAL HIGHLIGHTS
 3 MONTHS ENDED
 12/31/91 12/31/90
 (Dollars in Millions, Except
 Per Share Data)
 EARNINGS DATA
 Net Interest Income $22.4 19.6
 Gain on Sale of Mortgages
 and Securities, Net 5.0 3.2
 Gain on Sale of Branches 0.8 --
 Provision for Possible Loan Losses 14.8 18.9
 Amortization of Intangibles 0.8 29.5
 Gain on Early Extinguishment of Debt -- 3.9
 Net Income (0.5) (32.8)
 PER SHARE DATA
 Primary Earnings Per Share (0.25) (7.88)
 Fully Diluted Earnings Per Share (0.25) (7.88)
 Common Dividends Declared -- 0.18
 Book Value per Common Share
 at Period End 27.32 28.53
 Tangible Book Value per Common
 Share at Period End 16.40 15.55
 OTHER DATA
 Total Assets $2,887 3,392
 Loans Receivable, Net 2,574 3,053
 Deposits 1,856 1,987
 Stockholders' Equity 149 146
 Tangible Capital 100 91
 The following information is presented in percentages:
 Tangible Capital Ratio 3.5 2.7
 Core Capital Ratio 5.0 4.3
 Risk-based Capital Ratio 9.8 8.7
 Annualized Return on Average Assets (0.06) (3.65)
 Annualized Return on Average
 Common Equity (3.63) (90.73)
 Net Interest Income to General and
 Administrative Expenses 145.92 130.97
 Non-performing Assets to Total
 Assets (1) 2.54 0.82
 Yield on Average Earning Assets 9.56 10.29
 Cost of Funds 6.45 7.97
 Interest Rate Spread 3.11 2.32
 (1) Non-accruing loans, restructured loans yielding less than the bank's cost of funds, and real estate acquired as a result of foreclosure or deed in lieu thereof, and in-substance foreclosures, stated net of specific loan loss reserves.
 GREAT LAKES BANCORP, A Federal Savings Bank
 FINANCIAL HIGHLIGHTS
 YEAR ENDED
 12/31/91 12/31/90
 (Dollars in Millions, Except
 Per Share Data)
 EARNINGS DATA
 Net Interest Income 87.1 74.0
 Gain on Sale of Mortgages
 and Securities, Net 7.3 10.3
 Gain on Sale of Branches 2.0 0.4
 Provision for Possible Loan Losses 30.3 23.0
 Amortization of Intangibles 3.5 33.7
 Gain on Early Extinguishment of Debt 0.7 3.9
 Net Income 2.2 (23.0)
 PER SHARE DATA
 Primary Earnings Per Share (0.13) (5.72)
 Fully Diluted Earnings Per Share (0.13) (5.72)
 Common Dividends Declared -- 0.74
 Book Value per Common Share
 at Period End 27.32 28.53
 Tangible Book Value per Common
 Share at Period End 16.40 15.55
 OTHER DATA
 Total Assets 2,887 3,392
 Loans Receivable, Net 2,574 3,053
 Deposits 1,856 1,987
 Stockholders' Equity 149 146
 Tangible Capital 100 91
 The following information is presented in percentages:
 Tangible Capital Ratio 3.5 2.7
 Core Capital Ratio 5.0 4.3
 Risk-based Capital Ratio 9.8 8.7
 Annualized Return on Average Assets 0.07 (0.64)
 Annualized Return on Average
 Common Equity (0.45) (16.18)
 Net Interest Income to General and
 Administrative Expenses 139.01 124.49
 Non-performing Assets to Total
 Assets (1) 2.54 0.82
 Yield on Average Earning Assets 9.81 10.30
 Cost of Funds 7.05 8.12
 Interest Rate Spread 2.76 2.18
 (1) Non-accruing loans, restructured loans yielding less than the bank's cost of funds, and real estate acquired as a result of foreclosure or deed in lieu thereof, and in-substance foreclosures, stated net of specific loan loss reserves.
 -0- 1/23/92
 /CONTACT: James S. Patterson, vice president, corporate communications, Great Lakes Bancorp, 313-769-8300, Ext. 4116/
 (GLBC) CO: Great Lakes Bancorp ST: Michigan IN: FIN SU: ERN


SB-JG -- DE015 -- 2857 01/23/92 13:43 EST
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Date:Jan 23, 1992
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