Great Lakes Bancorp Announces 2007 First Quarter Results and Share Repurchase Plan

BUFFALO, N.Y., May 8  /PRNewswire-FirstCall/ -- Great Lakes Bancorp, Inc. (NYSE:GLK), the bank holding company of Greater Buffalo Savings Bank, today announced its first quarter results and Board of Director authorization for the Company to repurchase up to 5% of its outstanding common stock over the next six months.

The Company reported a net loss of $593 thousand or $0.05 per share for the current quarter ended March 31, 2007, compared to a net loss of $81 thousand or $0.02 per share for the first quarter of 2006.  Per share amounts reflect a significant increase in outstanding shares resulting from the merger with Bay View Capital Corporation on May 1, 2006.  The 2007 results reflect increases in net interest income and noninterest income, offset by higher operating costs associated with the Bank's branch development and personnel additions to its lending, support functions and senior management team.

Andrew W. Dorn, Jr., President and Chief Executive Officer, was pleased to cite positive first quarter developments.  "The Board's approval of a stock buyback program reflects a strong vote of confidence in our business strategy and senior management team.  We strongly believe that the purchase of our own stock is our best investment alternative at the present time."

"We're also very excited about hiring Peter Babiarz as our new Chief Credit Officer during the quarter to round out our senior management team. Peter brings a wealth of experience in the commercial lending arena to our organization and will play a key role in maintaining credit quality as we continue to grow our loan portfolios.  Completion of our retail branch network later in the year is on target, our new mortgage banking initiatives in Buffalo and Long Island are likewise progressing well, and operating costs for the quarter were in line with expectations."

Net interest income increased by $321 thousand, or 9.3%, to $3.8 million for the current quarter compared to the first quarter of 2006.  This increase reflects significant growth in the Bank's loan portfolios as average loan balances increased by $98.4 million, or 23.0%, to $525.4 million.  The positive impact of lending growth was offset in part by higher funding costs. While average interest-bearing liabilities were down by $3.4 million comparing the two quarters, the average rates paid on those liabilities increased significantly from 3.58% to 4.16%.  Net interest margins were 1.99% for the current quarter compared to 1.92% for the first quarter of 2006.

Provisions for loan losses of $267 thousand for the current quarter were up by $27 thousand from $240 thousand for the first quarter of 2006. Noninterest income for the current quarter was up $259 thousand, or 62.4%, to $674 thousand from the first quarter of 2006, reflecting increases across all categories.

Noninterest expenses increased by $1.2 million, or 31.5%, to $5.2 million for the current quarter compared to the first quarter of 2006.  Expenses increased across all categories with employee and occupancy costs representing the largest increases as the Bank focused on completing its retail branch network and made significant additions to its workforce.

At March 31, 2007, the Company had total assets of $904.8 million compared to $884.4 million at the end of 2006.  The Company was required to adopt a new accounting standard in the quarter pertaining to income tax contingencies which resulted in an increase in deferred tax assets of $13.1 million associated with the Bay View acquisition and a corresponding decrease in related goodwill.

Mr. Dorn was upbeat about the Bank's future earnings prospects. "While the current interest rate environment continues to challenge our industry, our focus on growing the loan portfolios and increasing sources of low-cost funding will undoubtedly produce positive future results. Development of our branch network is nearing completion and we're looking forward to stabilizing our expense base and reaping the benefits of our investment."

Earnings Conference Call

Andrew W. Dorn, Jr., President and CEO, and Michael J. Rogers, Executive Vice President and CFO, will host a conference call on May 10, 2007 at 4:30 p.m. eastern time to discuss these earnings results.  The Company's executives will answer questions concerning business developments and financial results. Some of the responses to these questions may contain information that has not been previously disclosed.  Interested parties may access the conference call by calling [phone].  Participants are asked to call in a few minutes prior to the call to allow time for registration.  Internet access to the call is also available (listen only) by clicking "Webcasts & Presentations" on the Company's website at http://www.greatlakesbancorp.com/.  A replay of the call will be available through July 10, 2007 by calling [phone] and entering the pin number, 8769189.  The archived webcast will also be available on the Company's website at the address above for an extended period of time.

Annual Meeting of Shareholders

As previously announced, the Company will hold its 2007 annual meeting of shareholders on May 15, 2007 at 10:00 a.m. local time at its Main Office at 2421 Main Street, Buffalo, New York.

About Great Lakes Bancorp

Great Lakes Bancorp, Inc. is the bank holding company for Greater Buffalo Savings Bank, a Buffalo-based, full-service community bank that serves residents and businesses located throughout Western New York. The Bank has 15 full-service offices in operation with two additional offices currently under construction.  More information about Greater Buffalo Savings Bank can be found on the Internet at http://www.gbsb.com/.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward- looking statements are based on current plans and expectations, which are subject to a number of risk factors and uncertainties that could cause future results to differ materially from historical performance or future expectations.

These differences may be the result of various factors, including changes in general, national or regional economic conditions, changes in loan default and charge-off rates, reductions in deposit levels necessitating increased borrowing to fund loans and investments, changes in interest rates, changes in levels of income and expense in noninterest income and expense related activities, competition, and other risk factors.

For further information on these risk factors and uncertainties, please see Great Lakes Bancorp's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2006. Great Lakes Bancorp undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or other changes.

  GREAT LAKES BANCORP, INC.
  Summary of Quarterly Financial Data

                                    2007
                                    First         Year ended      Fourth
                                   Quarter       December 31,    Quarter

  SELECTED INCOME STATEMENT DATA
  (Dollar amounts in thousands)

  Interest income                 $11,112          42,729        10,840
  Interest expense                  7,340          27,594         7,049
      Net interest income           3,772          15,135         3,791
  Provision for loan losses           267           1,030           443
      Net interest income after
       provision for loan losses    3,505          14,105         3,348

  Noninterest income:
    Service charges on deposit
     accounts                         176             654           174
    Other fees and service charges    159             535           156
    Earnings on bank-owned life
     insurance                        121             469           121
    Loan fee income                   120             338            91
    Gain on sale of mortgage loans     62              16            16
    Other operating income             36             174            42

      Total noninterest income        674           2,186           600

  Noninterest expense:
    Salaries and employee benefits  3,042          10,687         3,067
    Occupancy, equipment and
     furnishings                      732           2,472           690
    Data processing and operations    268             962           272
    Professional services             204             726           269
    Advertising                       134             705           113
    Printing, postage and supplies    109             441           109
    Other operating expenses          672           2,122           637

      Total noninterest expense     5,161          18,115         5,157

      Income (loss) before
       income taxes                  (982)         (1,824)       (1,209)
  Income tax provision (benefit)     (389)           (928)         (456)

      Net income (loss)             $(593)           (896)         (753)

  SELECTED OPERATING DATA

  Net income (loss) per share -
   Basic and diluted               $(0.05)          (0.10)        (0.07)

  Net income (loss) (annualized):
    Return on average assets        (0.27)%         (0.10)        (0.34)
    Return on average equity        (1.77)%         (0.88)        (2.19)
  Efficiency ratio                  114.3 %         103.0         115.7

  FTE personnel - end of period       245             239           239
  Number of branches - end of period   15              14            14
  Stock price (NYSE:GLK)(1):
    High                           $14.69           20.98         16.63
    Low                            $11.90           13.82         13.82
    Close                          $12.00           14.04         14.04


                                     2006
                                    Third          Second         First
                                   Quarter         Quarter       Quarter

  SELECTED INCOME STATEMENT DATA
  (Dollar amounts in thousands)

  Interest income                  11,137          10,957         9,795
  Interest expense                  7,141           7,060         6,344
      Net interest income           3,996           3,897         3,451
  Provision for loan losses            29             318           240
      Net interest income after
       provision for loan losses    3,967           3,579         3,211

  Noninterest income:
    Service charges on deposit
     accounts                         184             161           135
    Other fees and service charges    137             131           111
    Earnings on bank-owned life
     insurance                        117             116           115
    Loan fee income                    88             135            24
    Gain on sale of mortgage loans      -               -             -
    Other operating income             58              44            30

      Total noninterest income        584             587           415

  Noninterest expense:
    Salaries and employee benefits  2,716           2,596         2,308
    Occupancy, equipment and
     furnishings                      630             595           557
    Data processing and operations    240             229           221
    Professional services             167             154           136
    Advertising                       202             198           192
    Printing, postage and supplies    123              99           110
    Other operating expenses          544             539           402

      Total noninterest expense     4,622           4,410         3,926

      Income (loss) before
       income taxes                   (71)           (244)         (300)
  Income tax provision (benefit)      (62)           (191)         (219)

      Net income (loss)                (9)            (53)          (81)

  SELECTED OPERATING DATA

  Net income (loss) per share -
   Basic and diluted                 0.00           (0.01)        (0.02)

  Net income (loss) (annualized):
    Return on average assets         0.00           (0.02)        (0.04)
    Return on average equity        (0.03)          (0.21)        (0.94)
  Efficiency ratio                   99.5            96.9          99.9

  FTE personnel - end of period       234             233           204
  Number of branches - end of period   14              12            10
  Stock price (NYSE:GLK)(1):
    High                            17.45           20.98         17.86
    Low                             14.05           16.89         16.74
    Close                           16.07           17.48         17.45

  (1)  Stock price data prior to the May 1, 2006 merger is that of Bay View
       Capital Corporation.



  GREAT LAKES BANCORP, INC.
  Summary of Quarterly Financial Data (continued)

                     2007                             2006
                   March 31,  December 31, September 30, June 30, March 31,

  SELECTED BALANCE
   SHEET DATA
  (Dollar amounts
   in thousands)

  Cash:
    Cash and cash
     equivalents     $15,549      14,026      13,305      83,246     37,655
    Restricted cash    3,851       3,923       3,900      17,970          -
      Total cash      19,400      17,949      17,205     101,216     37,655

  Investment securities:
    Available for
     sale            226,808     233,853     242,360     247,783    257,312
    Held-to-maturity  15,989      15,997      16,004      16,011     16,018
      Total investment
       securities    242,797     249,850     258,364     263,794    273,330

  Loans:
    Real estate loans:
      Residential    253,626     253,709     247,135     241,530    231,838
      Home equity     53,337      53,676      53,235      50,671     50,550
      Commercial      89,706      78,666      69,878      70,773     65,628
      Construction    30,066      25,481      23,543      11,077      8,649
    Commercial and
     industrial       62,530      55,055      53,791      52,671     41,358
    Automobile
     loans            46,151      43,719      43,284      43,249     40,270
    Other consumer
     loans               765         659         769         554        521
      Total loans    536,181     510,965     491,635     470,525    438,814
    Allowance for
     loan losses      (3,950)     (3,781)     (3,375)     (3,370)    (3,074)
    Deferred loan
     costs, net        6,707       6,744       6,761       6,688      6,542
      Total loans,
       net           538,938     513,928     495,021     473,843    442,282

  Net deferred
   tax asset          56,221      43,106      42,160      43,475      3,138
  Goodwill                19      12,832      12,271      11,721          -
  Total assets       904,829     884,412     869,341     942,175    798,467
  Total interest-
   earning assets    796,321     778,617     766,067     841,861    755,549

  Deposits:
    Noninterest-bearing
     checking         28,522      37,145      29,022      29,194     25,535
    Interest-bearing
     checking         47,788      45,139      43,443      40,908     42,288
    Savings and
     money market    217,668     214,454     230,037     259,480    272,351
      Total core
       deposits      293,978     296,738     302,502     329,582    340,174
    Certificates
     of deposit      342,903     337,918     354,018     323,448    306,345
      Total deposits 636,881     634,656     656,520     653,030    646,519

  Short-term
   borrowings         25,787      17,900       9,539          12     20,501
  Long-term
   borrowings         96,372      86,372      56,372     124,872     94,372
  Total interest-
   bearing
   liabilities       730,518     701,783     693,409     748,720    735,857
  Net interest-
   earning assets     65,803      76,834      72,658      93,141     19,692
  Shareholders'
   equity            135,623     135,510     136,208     133,827     33,655
  Tangible
   shareholders'
   equity (1)        135,604     122,678     123,937     122,106     33,655
  Securities
   available
   for sale - fair
   value adjustment
   included in
   shareholders'
   equity            $(1,789)     (2,437)     (2,432)     (4,863)    (4,524)
  Common shares
   outstanding    10,921,796  10,921,796  10,915,274  10,913,535  4,300,436

  (1)  Excludes goodwill recognized in connection with the Bay View merger.



  GREAT LAKES BANCORP, INC.
  Summary of Quarterly Financial Data (continued)

                      2007                           2006
                    March 31, December 31, September 30, June 30, March 31,

  CAPITAL RATIOS

  Tier 1 risk-
   based capital         18.78%   20.23      21.55       18.87       11.80
  Total risk
   based capital         19.57%   21.03      22.30       19.52       12.52
  Tier 1 (core) capital  11.28%   11.65      11.60       11.86        6.39
  Equity to assets       14.99%   15.32      15.67       14.20        4.21
  Tangible shareholders'
   equity to tangible
   assets(1)             14.99%   14.08      14.46       13.12        4.21

  Shareholders'
   equity per share     $12.42    12.41      12.48       12.26        7.83
  Tangible shareholders'
   equity per share(1)  $12.42    11.23      11.35       11.19        7.83

  ASSET QUALITY DATA
  (Dollar amounts in
   thousands)

  Nonaccrual loans      $3,688    3,548      1,186       1,113         753
  Accruing loans
   past due 90
   days or more              -        -          -         560         201
      Total non-
       performing
       loans             3,688    3,548      1,186       1,673         954
  Foreclosed assets         77       91         82         583         121
      Total non-
       performing
       assets           $3,765    3,639      1,268       2,256       1,075

  Provision for
   loan losses            $267      443         29         318         240
  Net loan charge-offs    $(98)     (37)       (24)        (22)        (76)
  Net charge-offs
   to average loans       0.08%    0.03       0.02        0.02        0.07
  Total non-performing
   loans to total loans   0.68%    0.69       0.24        0.35        0.21
  Total non-performing
   assets to total
   assets                 0.42%    0.41       0.15        0.24        0.13

  Allowance for loan
   losses to total loans  0.73%    0.73       0.68        0.71        0.69
  Allowance for loan
   losses to non-
   performing loans     107.11%  106.58     284.62      201.42      322.38

  (1)  Excludes goodwill recognized in connection with the Bay View merger.



  GREAT LAKES BANCORP, INC.
  Summary of Quarterly Financial Data (continued)



                                    2007
                                    First      Year ended      Fourth
                                   Quarter     December 31,    Quarter

  SELECTED AVERAGE BALANCES
  (Dollar amounts in thousands)

  Taxable securities               $235,525      250,579       243,864
  Tax-exempt securities              15,140       15,161        15,148
  Commercial loans:
    Commercial real estate          105,208       79,213        91,778
    Commercial and industrial        57,977       47,591        54,367
  Consumer loans:
    Residential mortgages           256,711      242,611       254,557
    Home equity                      53,196       51,994        54,263
    Automobile                       44,731       41,870        43,223
    Other                               825          627           852
  Loans                             525,386      470,597       505,882
  Total interest-earning assets     783,788      778,578       770,806
  Allowance for loan losses          (3,896)      (3,215)       (3,418)
  Noninterest-earning assets        108,797       82,095       105,386
  Total assets                      888,689      857,458       872,774

  Interest-bearing liabilities:
    Interest-bearing checking        42,840       42,207        42,105
    Savings                          88,408      110,356        91,926
    Money market                    127,352      134,001       137,413
    Certificates of deposit         339,162      329,184       344,353
    Borrowings                      118,010       99,444        76,722
      Total interest-bearing
       liabilities                  715,772      715,192       692,519

  Noninterest-bearing checking       27,032       28,708        33,478
  Total liabilities                 752,928      755,246       736,434
  Shareholders' equity              135,761      102,212       136,340
  Net earning assets                $68,016       63,386        78,287
  Weighted average common shares
   outstanding - basic
   and diluted                   10,921,796    8,741,737    10,921,583

  Average loans to average deposits    84.1%        73.0          77.9
  Average loans to average assets      59.1%        54.9          58.0

  SELECTED AVERAGE YIELDS/RATES

  Total investment securities          5.04%        4.97          5.01
  Loans                                6.15%        5.90          5.96
  Total interest-earning assets        5.78%        5.52          5.61
  Interest-bearing checking            1.22%        1.38          1.19
  Savings                              2.18%        2.27          2.22
  Money market                         3.91%        3.89          3.91
  Certificates of deposit              4.71%        4.34          4.60
  Borrowings                           5.40%        5.04          5.48
  Total interest-bearing liabilities   4.16%        3.86          4.04
  Net interest rate spread             1.62%        1.66          1.57
  Contribution of interest-free funds  0.37%        0.32          0.42
  Net interest rate margin             1.99%        1.98          1.99


                                      2006
                                     Third       Second         First
                                    Quarter      Quarter       Quarter

  SELECTED AVERAGE BALANCES
  (Dollar amounts in thousands)

  Taxable securities                252,513      261,667       244,255
  Tax-exempt securities              15,157       15,165        15,174
  Commercial loans:
    Commercial real estate           85,811       76,566        62,300
    Commercial and industrial        53,361       43,384        39,020
  Consumer loans:
    Residential mortgages           246,749      238,862       229,961
    Home equity                      53,131       50,850        49,668
    Automobile                       43,285       41,820        39,093
    Other                               604          555           492
  Loans                             489,694      458,721       427,017
  Total interest-earning assets     793,263      807,686       742,082
  Allowance for loan losses          (3,319)      (3,151)       (2,965)
  Noninterest-earning assets        102,631       75,217        44,245
  Total assets                      892,575      879,752       783,362

  Interest-bearing liabilities:
    Interest-bearing checking        40,916       42,924        42,905
    Savings                          98,476      113,834       137,822
    Money market                    141,166      140,278       116,844
    Certificates of deposit         349,826      319,300       302,571
    Borrowings                       80,222      122,468       119,041
      Total interest-bearing
       liabilities                  710,606      738,804       719,183

  Noninterest-bearing checking       30,606       25,411        25,226
  Total liabilities                 757,589      778,915       748,150
  Shareholders' equity              134,986      100,837        35,212
  Net earning assets                 82,657       68,882        22,899
  Weighted average common shares
   outstanding - basic
   and diluted                   10,914,896    8,733,392     4,300,436

  Average loans to average deposits    74.1         71.5          68.3
  Average loans to average assets      54.9         52.1          54.5

  SELECTED AVERAGE YIELDS/RATES

  Total investment securities          4.98         4.98          4.90
  Loans                                5.99         5.86          5.75
  Total interest-earning assets        5.60         5.47          5.39
  Interest-bearing checking            1.28         1.48          1.57
  Savings                              2.24         2.28          2.31
  Money market                         3.92         3.92          3.76
  Certificates of deposit              4.46         4.25          4.01
  Borrowings                           5.58         4.92          4.50
  Total interest-bearing liabilities   3.99         3.83          3.58
  Net interest rate spread             1.61         1.64          1.81
  Contribution of interest-free funds  0.42         0.33          0.11
  Net interest rate margin             2.03         1.97          1.92


DATASOURCE: Great Lakes Bancorp, Inc.



CONTACT:  Andrew W. Dorn, Jr., President and Chief Executive Officer,

[phone], or Michael J. Rogers, Executive Vice President and Chief

Financial Officer, [phone], both of Great Lakes Bancorp, Inc. 



Web site:  http://www.greatlakesbancorp.com/ 

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