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GREAT LAKES SEES $5-MILLION BENEFIT FROM TAX-ACCOUNTING CHANGE

 GREAT LAKES SEES $5-MILLION BENEFIT FROM TAX-ACCOUNTING CHANGE
 ANN ARBOR, MICH., Feb. 24 /PRNewswire/ -- A recent change in the rules for accounting for income taxes will add approximately $5 million, or $1.10 per share, to Great Lakes Bancorp's (NASDAQ-NMS: GLBC) first- quarter net income and tangible book value.
 The change has the effect of increasing Great Lakes' tangible capital ratio from 3.51 percent, at Dec. 31, to approximately 3.7 percent. At Dec. 31, Great Lakes had $99.6 million of tangible capital.
 Prior to the change, thrifts were not able to deduct on their books provisions made to reserves for possible loan losses, as banks do, until a loss was actually incurred and the loan was charged off. "Great Lakes' effective tax rate last year was 84 percent," commented Robert J. Delonis, Great Lakes Bancorp's president and chief operating officer.
 "This is a one-time occurrence that significantly boosts tangible capital. We effectively catch up with past years in which earnings were reduced by not being able to deduct provisions."
 The change in accounting rules, titled SFAS 109 (Accounting for Income Taxes), was issued by the Financial Accounting Standards Board, the primary group charged with setting national standards of accounting.
 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.
 -0- 2/24/92
 /CONTACT: James S. Patterson of Great Lakes Bancorp, 313-769-8300, Ext. 4116/
 (GLBC) CO: Great Lakes Bancorp ST: Michigan IN: FIN SU:


DH -- DE030 -- 1861 02/24/92 11:30 EST
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Publication:PR Newswire
Date:Feb 24, 1992
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