EXHIBIT 99

               METROCORP BANCSHARES, INC. AN ALLEGED FRAUD VICTIM

             RECORDS A $5.3 MILLION FACTORING RECEIVABLE CHARGE-OFF

HOUSTON (May 31, 2000) - MetroCorp Bancshares, Inc. (Nasdaq: MCBI) announced
today that Advantage Finance Corporation ("Advantage"), the factoring subsidiary
of MetroBank, N.A., has reportedly been the victim of a fraudulent scheme by a
long-time customer which will require an unusual charge-off against MetroBank's
loan loss reserve during the second quarter of 2000. MetroBank, N.A. is a wholly
owned subsidiary of MetroCorp Bancshares, Inc. ("MetroCorp") and provides loans
to Advantage to finance its factoring business.

Advantage had a long-standing factoring arrangement under which the customer who
allegedly instigated the fraud sold accounts receivable to Advantage at a
customary factor's discount from the face amount due on the accounts. The
customer recently informed Advantage and the Federal Bureau of Investigation
that it fraudulently documented and sold to Advantage fabricated or inflated
accounts receivable. The accounts receivable were purportedly payable by a
company with a long and consistent payment history with Advantage. Falsified
corporate financial records and other documentation were apparently submitted to
Advantage. The customer also admitted to defrauding other financial institutions
and creditors.

Although investigation of the scheme and the potential for recovery of assets is
ongoing, Advantage currently estimates that its maximum exposure for loss from
the fraud is approximately $5.3 million, which represents the net uncollected
balance of the suspect accounts receivable sold by the customer to Advantage.

Based on preliminary estimates of its exposure in the fraud, MetroCorp has
charged-off $5.3 million during the second quarter ending June 30, 2000, against
its existing $8.6 million loan loss reserve. During this same quarter, MetroBank
will restore its loan loss reserve to the pre-existing $8.6 million. The fraud
is expected to have a negative effect on earnings after tax for the second
quarter of 2000 of approximately $.50 per share.

Don J. Wang, Chairman and President of MetroCorp, said, "The $5.3 million
appears to be the maximum potential charge-off in the eventuality that no
recovery is possible, but the facts are still being investigated." Wang
continued, "We are currently evaluating all available remedies, and intend to
aggressively pursue all avenues for restitution.

"This is an unusual event for us," Wang stated, "since we are a conservative
bank. Our overall financial condition remains solid and our depositors' funds
are secure. We must accept that we have been victimized by a fraudulent scheme
and learn from that unfortunate experience. We plan to tackle the issues raised
by this situation head-on and move forward with our sound growth strategy."

MetroCorp Bancshares, Inc. provides a full range of commercial and consumer
banking services through its wholly owned subsidiary, MetroBank, N.A. The
company has 15 full-service banking locations in the greater Houston and Dallas
metropolitan areas. For more information, visit the company's web site at
WWW.METROBANK-NA.COM.

THE STATEMENTS CONTAINED IN THIS RELEASE WHICH ARE NOT HISTORICAL FACTS ARE
FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS
DESCRIBE METROCORP'S LOAN LOSS ESTIMATES, FUTURE PLANS, PROJECTIONS, STRATEGIES
AND EXPECTATIONS, ARE BASED ON ASSUMPTIONS AND INVOLVE A NUMBER OF RISKS AND
UNCERTAINTIES, MANY OF WHICH ARE BEYOND METROCORP'S CONTROL. ACTUAL RESULTS
COULD DIFFER MATERIALLY FROM THOSE PROJECTED DUE TO CHANGES IN INTEREST RATES,
COMPETITION IN THE INDUSTRY, CHANGES IN LOCAL AND NATIONAL ECONOMIC CONDITIONS
AND THE PRELIMINARY LOSS ESTIMATES INCLUDED IN THE RELEASE AND OVERALL LOAN LOSS
RESERVE ESTIMATES. ADDITIONAL INFORMATION CONCERNING SUCH FACTORS WHICH COULD
AFFECT METROCORP BANCSHARES IS CONTAINED IN METROCORP'S FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION.

CONTACT:  RUTH RANSOM
          CHIEF FINANCIAL OFFICER
          713-414-3600