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METROPOLITAN FINANCIAL CONTEMPLATES INCOME TAX ACCOUNTING CHANGE: ONE TIME GAIN OF APPROXIMATELY $74 MILLION ANTICIPATED

 METROPOLITAN FINANCIAL CONTEMPLATES INCOME TAX ACCOUNTING CHANGE:
 ONE TIME GAIN OF APPROXIMATELY $74 MILLION ANTICIPATED
 MINNEAPOLIS, March 19 /PRNewswire/ -- Officials of Metropolitan Financial Corporation (NYSE-MFC) announced today that the company is contemplating the implementation of Statement of Financial Accounting Standard number 109 (SFAS 109), "On Accounting for Income Taxes," in 1992, perhaps as early as the quarter ending March 31. Prospective implementation of SFAS number 109 will result in a one-time net benefit of approximately $74 million. If adopted in the current year, the benefit will be recognized in income and shareholders' equity as of the first of this year.
 The $74 million represents a recognition of the net tax benefits associated with the company's nearly $180 million of net operating loss carryforwards and temporary tax differences. The benefits to be recognized will be net of a valuation allowance of approximately $26 million established to provide for uncertainties which may limit the company's ability to fully realize the future tax benefits.
 Looking to the future, Paul A. Lipetzky, president and chief operating officer for the $4.7 billion regional financial services holding company, noted that the company will amortize the tax asset against future operating income resulting in a more normal relationship between income tax expense and income before taxes. The company expects its effective tax rate to be approximately 40 percent for periods subsequent to adoption of SFAS 109.
 Metropolitan Financial Corporation's full service consumer savings bank, Metropolitan Federal Bank, fsb, Fargo, N.D., operates over 125 offices in 101 communities in the states of North Dakota, Minnesota, Iowa, South Dakota, Wisconsin and Arizona and meets all current and fully phased in regulatory capital requirements. Metropolitan is the Twin Cities' largest originator of residential mortgage loans. The corporation's real estate sales and brokerage subsidiary, Edina Realty, has been rated #1 nationally in customer satisfaction by a leading consumer magazine and serves Minnesota and western Wisconsin.
 Metropolitan Financial Corporation's common and Series A preferred stock trade on the New York Stock Exchange, the common under the symbol MFC. The Series B preferred stock and warrant trade on the NASDAQ System under the symbols MFCNP and MFCNW, respectively.
 -0- 3/19/92
 /CONTACT: Bill Bartkowski of Metropolitan Financial, 612-928-5003/
 (MFC) CO: Metropolitan Financial Corporation ST: Minnesota IN: FIN SU:


KH -- MN010 -- 9816 03/19/92 16:02 EST
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Publication:PR Newswire
Date:Mar 19, 1992
Words:387
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