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MCORP REPORTS THIRD QUARTER FINANCIAL RESULTS

 MCORP REPORTS THIRD QUARTER FINANCIAL RESULTS
 DALLAS, Nov. 15 /PRNewswire/ -- MCorp today reported net income of


$458,000 in the third quarter of 1991 and a net loss of $1.4 million for the nine months ended Sept. 30, 1991. Net income of $510,000 was reported in the third quarter of 1990 and net income of $1.8 million for the nine months ended Sept. 30, 1990. MCorp is currently the subject of a voluntary reorganization case under Chapter 11 of the U.S. Bankruptcy Code.
 MCorp's third quarter 1991 income was attributable to income from continuing operations of $.9 million offset by a loss of $.5 million from discontinued operations. The net income from continuing operations resulted primarily from interest income of $6.9 million offset by non- interest expense of $6.2 million. The loss from discontinued operations of $.5 million resulted from an adjustment to the gain on disposal of subsidiaries (as a result of the disposition of MBank El Paso) taken in the second quarter of 1991.
 The net income of $510,000 reported in the third quarter of 1990 was attributable to income from continuing operations of $1.5 million offset by a loss from discontinued operations of $1.0 million.
 On Sept. 11, 1991 MCorp filed a revised plan for reorganization under Chapter 11 of the U.S. Bankruptcy Code and on Sept. 30, 1991 the Houston Bankruptcy Court approved the disclosure statement describing the plan and set Nov. 13, 1991 for confirmation of the plan which has been adjourned until Nov. 15, 1991. Preliminary results of the chapter 11 voting indicate that the equity class containing the Series A and Series B Money Market Preferred stock has voted to reject the plan. If the plan is confirmed by the Houston Bankruptcy Court no distributions will be made under the plan to that class or any equity class junior to it. On Nov. 12, 1991 District Judge Lynn N. Hughes of the U.S. District Court of the Southern District of Texas announced decisions denying the FDIC any vote in any of the three chapter 11 cases.
 MCorp (Pacific Stock Exchange: M.P) is a Texas-based financial services organization.
 MCORP AND SUBSIDIARIES
 Consolidated Statements of Operations
 (dollars in thousands, except per share amounts)
 Periods ended Three months Nine months
 Sept. 30; 1991 1990 1991 1990
 Interest income $ 6,873 $ 7,474 $ 20,793 $ 20,085
 Other income 438 243 2,085 2,438
 Total income 7,311 7,717 22,878 22,523
 Interest expense 219 79 219 220
 Personnel expense 1,973 2,784 5,683 6,400
 Net occupancy expense 41 100 129 439
 Professional fees 3,256 1,684 9,205 6,884
 Expense on assets held
 for sale -- 858 -- 1,247
 Net loss (gain) on sale
 or writedown of
 investments -- -- 12,362 (408)
 Other expense 900 422 959 1,098
 Total expense 6,389 5,927 28,557 15,880
 Income (loss) from
 continuing operations
 before income taxes 922 1,790 (5,679) 6,643
 Provision for
 income taxes -- 325 -- 865
 Income (loss) from
 continuing operations 922 1,465 (5,679) 5,778
 Discontinued operations:
 Loss from operations -- (955) -- (3,993)
 (Loss) gain on
 disposal of
 subsidiaries, net of
 tax (464) -- 4,246 --
 Net income (loss) $ 458 $ 510 $ (1,433) $ 1,785
 Per common share(A):
 Income (loss) from
 continuing
 operations $ 0.02 $ 0.03 $ (0.13) $ 0.13
 Net income (loss) 0.01 0.01 (0.03) 0.04
 (A) -- Under the proposed joint Chapter 11 Plan of Reorganization, common stockholders may not receive a distribution from the bankruptcy estate of MCorp.
 Consolidated Balance Sheets
 (dollars in thousands)
 Sept. 30, Dec. 31,
 1991 1990 1990
 Assets
 Cash and cash
 equivalents $ 41,625 $ 33,056 $ 34,315
 Marketable securities
 (market value of
 $281,677, $278,440 and
 $280,890
 respectively) 276,438 276,161 276,043
 Net assets of
 discontinued
 operations -- 67,525 --
 Assets held for sale:
 Other investments 57,199 79,264 69,700
 Land and other real
 estate owned 18,599 9,363 10,222
 Other 13,381 2,451 14,206
 Other assets 15,297 18,538 13,973
 Total $ 422,539 $ 486,358 $ 418,459
 Liabilities and
 stockholders' deficit
 Liabilities:
 Deferred gain on
 disposition of
 discontinued
 operations $ -- $ 96,334 $ 14,013
 Accounts payable
 and accrued
 liabilities 22,912 14,073 16,591
 Long-term debt 13,205 -- --
 Liabilities deferred
 pursuant to Chapter 11
 reorganization
 proceedings:
 Long-term debt 467,460 467,699 467,460
 Other liabilities 53,877 54,879 53,877
 Total liabilities 557,454 632,985 551,941
 Stockholders' equity deficit:
 Preferred stock; $1.00
 par value; 20,000,000
 shares authorized;
 959,920 shares issued;
 aggregate liquidation
 preference $219,151,
 $207,922 and $212,085
 respectively 960 960 960
 Common stock; $5.00 par
 value; 100,000,000
 shares authorized;
 42,790,257 issued 213,951 213,951 213,951
 Capital surplus 596,957 596,957 596,957
 Retained earnings
 (accumulated deficit) (942,924) (954,636) (941,491)
 Treasury stock, at
 cost; 218,660 shares (3,859) (3,859) (3,859)
 Total stockholders'
 deficit (134,915) (146,627) (133,482)
 Total $ 422,539 $ 486,358 $ 418,459
 Discontinued Operations
 Condensed Statement of Operations (dollars in thousands)
 Periods ended Three months Nine Months
 Sept. 30; 1991 1990 1991 1990
 Interest income $ 6,984 $ 48,193 $ 50,190 $153,046
 Interest expense 4,576 33,376 32,220 108,222
 Net interest income 2,408 14,817 17,970 44,824
 Provision for possible loan
 losses -- 1,264 -- 6,130
 Net interest income after
 provision for possible loan
 losses 2,408 13,553 17,970 38,694
 Non-interest income 952 3,960 5,401 21,233
 Non-interest expense 3,441 18,468 27,669 63,920
 Loss from operations $ (81) $ (955) $ (4,298) $(3,993)
 Condensed Balance Sheets (dollars in thousands)
 Sept. 30, Dec. 31,
 1991 1990 1990
 Assets:
 Cash and due from banks $ 1,980 $ 131,244 $ 141,726
 Investment securities 19,905 421,911 200,402
 Federal funds sold and
 securities purchased under
 repurchase agreements 3,850 337,445 86,350
 Loans net of allowance for
 possible loan losses of
 $.5 million, $90 million and
 $44 million, respectively 34,421 1,116,826 717,337
 Other assets 6,304 170,539 107,751
 Total assets $ 66,460 $ 2,177,965 $ 1,253,566
 Liabilities and stockholder's
 equity:
 Liabilities:
 Deposits $ 63,106 $ 1,923,403 $ 1,161,188
 Short-term debt -- 151,779 38,126
 Long-term debt -- 3,232 3,057
 Other liabilities 498 32,026 9,838
 Total liabilities 63,604 2,110,440 1,212,209
 Stockholder's equity 2,856 67,525 41,357
 Total liabilities and
 stockholder's equity $ 66,460 $ 2,177,965 $ 1,253,566
 -0- 11/15/91
 /CONTACT: W. Mack Goforth of MCorp, 214-939-5892/
 (M.P) CO: MCorp ST: Texas IN: FIN SU: ERN FC -- NY021 -- 1414 11/15/91 09:50 EST
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Date:Nov 15, 1991
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