8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):05/22/2008

BAYLAKE CORP

(Exact name of registrant as specified in its charter)

Commission File Number:001-16339

WI	39-1268055
(State or other jurisdiction of	(IRS Employer
incorporation)	Identification No.)

217 North Fourth Avenue, P O Box 9, Sturgeon Bay, WI 54235-0009

(Address of principal executive offices, including zip code)

920-743-5551

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

The Board of Directors of Baylake Corp. announced their decision to forego the payment of a cash dividend on the Company's common stock that historically had been declared and paid during the second quarter of the year. A copy of the press release announcing the dividend suspension is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press release of Baylake Corp. dated May 22, 2008.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:  May 22, 2008

BAYLAKE CORP.
By:	/s/ Kevin L. LaLuzerne
	Kevin L. LaLuzerne Treasurer and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release of Baylake Corp. dated May 22, 2008.

EX-99.1

Exhibit 99.1

NEWS RELEASE

For Immediate Release

BAYLAKE CORP. FOREGOES DIVIDEND

Sturgeon Bay, WI – PR Newswire–May 22, 2008 Baylake Corp. (OTC BB: BYLK)

The Board of Directors of Baylake Corp. announced their decision to forego the payment of a cash dividend on the Company's common stock that historically had been declared and paid during the second quarter of the year.

“We believe that retaining earnings and continuing to build a strong capital base is in the best interest of our shareholders at the current time,” said Baylake Corp. President and Chief Executive Officer Robert J. Cera. “Our main priority and efforts continue to be focused upon reducing our unacceptably high level of non-performing assets. As soon as we are reasonably assured that meaningful progress has been made in improving both asset quality and net income, we would expect to once again resume the payment of quarterly dividends.” The Company’s Board of Directors is closely monitoring this situation on a quarterly basis and hopes to reinstate the dividend at the earliest appropriate time.

The Company's ability to pay dividends is subject to various factors including, among other things, sufficient earnings, available capital, board discretion and regulatory compliance (see "Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities," Part II, Item 5 of the Company's Annual Report on Form 10-K for the year ended December 31, 2007). There can be no assurance when or if the Company will resume the payment of quarterly dividends at historical levels or at all.

Baylake Corp., the holding company for Baylake Bank, serves Northeast and Central Wisconsin from 28 community financial centers throughout Brown, Door, Green Lake, Kewaunee, Manitowoc, Outagamie, Waupaca and Waushara Counties.

FORWARD-LOOKING STATEMENTS

This release may contain statements that are "forward-looking" statements within the meaning of the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, such as statements other than historical facts contained or incorporated by reference herein. These forward-looking statements include statements with respect to our financial condition, results of operations, plans, objective, future performance and business, including statements that include the words “believes,” “expects,” "hopes," “anticipates” and similar expressions and references to estimates. Future filings by us with the Securities Exchange Commission, and future statements other than historical facts contained in written material, press releases and oral statements issued by us, or on our behalf, may also constitute forward-looking statements.

All forward-looking statements contained in this release or which may be contained in future statements made for or on our behalf are based upon information available at the time the statement is made and we assume no obligation to update any forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties, and our actual results may differ materially from the results or expectations discussed in such forward-looking statements. Factors that might cause actual results to differ from the results or expectations discussed above include, but are not limited to, the risk factors identified in this release and those set forth under "RISK FACTORS," Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2007.

Contact: Robert J. Cera

(920)-743-5551

Source: Baylake Corp.