Great Lakes Signs Pact with OTS
ANN ARBOR, Mich. -- Great Lakes Bancorp said it has signed an agreement with the Office of Thrift Supervision to meet capital and risk-reduction goals.
Great Lakes, which has $3.1 billion in assets and is the second-largest Michigan savings bank, said it agreed to continue omitting dividends and to use that portion of profits to replenish capital.
The thrift also committed to increasing its tangible capital beyond existing regulatory requirements, to 4% of assets by 1993, 4.5% by 1994, and 5% by 1995. Great Lakes' current level, 3.3%, exceeds the 3% minimum that had been required for 1995.
Great Lakes also said it will reduce classified assets by 1993 to less than the sum of tangible capital and loan-loss reserves.
The company reported on Oct. 23 that its net income for the third quarter was $361,000, down from $3.4 million a year earlier.
"Improved operating fundamentals -- widening interest margin and strong net interest income -- have been offset by the lingering weakness in the real estate market," said Robert J. Delonis, president and chief operating officer.