First M&F Corporation and Subsidiary
Consolidated Statements of Income
(In thousands, except share data)
	Three Months Ended December 31		Year Ended December 31
	2003	2002	2003	2002
Interest and fees on loans	12,829	12,153	48,587	49,015
Taxable investments	1,391	2,168	6,653	9,998
Tax exempt investments	587	618	2,378	2,573
Federal funds sold	4	34	192	163
Interest bearing bank balances	15	26	108	124
Total interest income	14,826	14,999	57,918	61,873
Interest on deposits	2,818	4,287	13,399	19,799
Interest on short-term borrowings	152	174	608	695
Interest on other borrowings	1,435	828	3,850	3,208
Total interest expense	4,405	5,289	17,857	23,702
Net interest income	10,421	9,710	40,061	38,171
Provision for possible loan losses	960	1,011	3,802	4,495
Net interest income after loan loss	9,461	8,699	36,259	33,676
Service charges on deposits	2,015	1,982	7,683	7,514
Mortgage banking income	209	286	1,160	1,073
Agency commission income	775	810	3,471	3,263
Other fee income	242	192	951	741
Other income	286	431	1,085	1,467
Gains (losses) on AFS investments	26	8	7	30
Total noninterest income	3,553	3,709	14,357	14,088
Salaries and employee benefits	4,582	4,449	18,473	17,809
Net occupancy expense	539	532	2,129	2,010
Equipment and data processing expenses	991	881	3,696	3,579
Intangible asset amortization	13	33	115	122
Other expenses	2,845	2,647	10,708	9,874
Total noninterest expense	8,970	8,542	35,121	33,394
Net income before taxes	4,044	3,866	15,495	14,370
Income taxes	1,235	1,136	4,603	4,135
Net income	2,809	2,730	10,892	10,235
Weighted average shares (basic)	4,571,542	4,603,444	4,608,023	4,611,926
Weighted average shares (diluted)	4,605,718	4,603,444	4,634,404	4,611,926
Basic earnings per share	$0.61	$0.59	$2.36	$2.22
Diluted earnings per share	$0.61	$0.59	$2.35	$2.22