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GREAT LAKES REPORTS $2.1 MILLION FIRST-QUARTER PROFIT

 GREAT LAKES REPORTS $2.1 MILLION FIRST-QUARTER PROFIT
 ANN ARBOR, Mich., April 23 /PRNewswire/ -- Great Lakes Bancorp


(NASDAQ-NMS: GLBC) earned $2.1 million, or 30 cents per share, in the quarter ended March 31, nearly the same as earnings for the full year in 1991.
 "Comparisons with last year need to be viewed in terms of what lies ahead," commented Robert J. Delonis, Great Lakes Bancorp's president and chief executive officer. "A year ago, we earned $3.6 million in the first quarter. But the economy was declining, and we experienced losses in the second and fourth quarters. Now, an improving economy, along with steps Great Lakes has taken to reduce expenses, tackle problem loans, and build a more profitable franchise, leads us to expect a better year overall.
 "Core earnings remain strong; gains from asset sales were minimal. Residential mortgage lending, not including all the refinancing activity, nearly tripled to $100 million.
 "Our net interest margin improved to 3.02 percent compared with 2.53 percent a year ago. So net interest income of $21 million was unchanged from a year ago despite a reduction in assets of more than $500 million. Asset shrinkage is building a more efficient franchise. This has been accomplished through the sale of less-profitable branches, and the reduction of wholesale assets and portfolios with assets that are typically more risky, particularly in an uncertain economic climate."
 The year-ago quarter benefited from a $720,000 extraordinary gain from the early extinguishment of debt. The quarter just ended benefited from a change in generally accepted accounting principles, which added $5 million to Great Lakes' after-tax income. This change allowed thrifts to make an adjustment to their books for provisions made to loan-loss reserves that were previously not book tax-deductible, as they are for banks.
 "This accounting change helped us offset much of the impact of the loan-loss provisions we made this quarter," Delonis said. "We expect to provide less to reserves for possible loan losses in the remaining quarters." The provision to reserves for foreclosures and for possible loan losses was $10.8 million compared with $2.5 million in the quarter a year ago.
 Nonperforming assets, which include nonaccruing loans and repossessed real estate, increased to 3.19 percent of total assets. However, classified assets, which include nonperforming assets as well as other loans with some potential for increased risk, continued to decline. As a percent of tangible capital plus general loan-loss reserves, classified assets declined $11 million to 103 percent at March 31 compared with 114 percent at year-end.
 "The rise in nonperformers was expected as we continued to work with borrowers, or pursued foreclosures and more aggressively reclaimed properties with the intent of remarketing them," Delonis said.
 At March 31, Great Lakes' tangible capital had increased to $103.4 million, or 3.72 percent of tangible assets, compared with 2.96 percent a year ago. Great Lakes also reported core capital of 4.72 percent, and risk-based capital of 9.26 percent, all well in excess of current regulatory minimums. Great Lakes, in agreement with federal regulators, has established a target for tangible capital of 4.00 percent by year-end.
 With $2.8 billion in assets and $1.8 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
 (Dollars in millions, except per-share data)
 THREE MONTHS ENDED
 03/31/92 03/31/91
 EARNINGS DATA
 Net Interest Income $20.6 21.0
 Gain on Sale of Mortgages
 and Securities, Net 0.2 0.7
 Gain on Sale of Branches --- ---
 Provision for Possible REO Losses 2.1 ---
 Provision for Possible Loan Losses 8.7 2.5
 Amortization of Intangibles 0.8 0.9
 Income (Loss) Before Extraordinary Item (2.9) 2.9
 Extraordinary Items:
 Gain on Early Extinguishment of Debt --- 0.7
 Change in Accounting Principle 5.0 ---
 Net Income 2.1 3.6
 PER-SHARE DATA
 Primary Earnings Per Share 0.30 0.66
 Fully Diluted Earnings Per Share 0.30 0.63
 Common Dividends Declared --- ---
 Book Value per Common
 Share at Period End 26.94 28.82
 Tangible Book Value per Common
 Share at Period End 16.60 16.78
 OTHER DATA
 Total Assets 2,829 3,373
 Loans Receivable, Net 2,490 3,061
 Deposits 1,837 1,986
 Stockholders' Equity 152 151
 Tangible Capital 103 98
 The following information is presented in percentages:
 Tangible Capital Ratio 3.7 3.0
 Core Capital Ratio 4.7 4.5
 Risk-based Capital Ratio 9.3 8.9
 Annualized Return on Average Assets 0.30 0.42
 Annualized Return on Average
 Common Equity 4.49 9.33
 Net Interest Income to General and
 Administrative Expenses 135.97 129.13
 Nonperforming Assets to Total
 Assets (1) 3.19 1.09
 Yield on Average Earning Assets 9.23 10.02
 Cost of Funds 6.21 7.51
 Interest Rate Spread 3.02 2.51
 (1) -- Nonaccruing 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 loss reserves.
 -0- 4/23/92
 /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


SM-ML -- DE021 -- 1936 04/23/92 13:23 EDT
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Date:Apr 23, 1992
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