First M&F Corporation and Subsidiary
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except share data)
	Three Months Ended Dec 31		Twelve Months Ended Dec 31
	2005	2004	2005	2004
Interest and fees on loans	16,354	13,366	59,022	50,053
Interest on loans held for sale	61	64	421	374
Taxable investments	1,503	1,299	5,797	5,439
Tax exempt investments	498	537	2,024	2,212
Federal funds sold	15	13	194	113
Interest bearing bank balances	55	27	214	98
Total interest income	18,486	15,306	67,672	58,289
Interest on deposits	4,986	3,120	17,728	11,736
Interest on fed funds and repurchase agreements	224	200	776	664
Interest on other borrowings	1,501	1,331	4,680	4,650
Total interest expense	6,711	4,651	23,184	17,050
Net interest income	11,775	10,655	44,488	41,239
Provision for possible loan losses	690	1,272	3,146	5,351
Net interest income after loan loss	11,085	9,383	41,342	35,888
Service charges on deposits	2,184	1,815	8,475	7,545
Mortgage banking income	237	172	820	802
Agency commission income	928	948	3,910	3,822
Fiduciary and brokerage income	132	111	484	433
Other income	358	611	2,736	2,521
Gains (losses) on AFS investments	(24)	0	(24)	46
Total noninterest income	3,815	3,657	16,401	15,169
Salaries and employee benefits	6,030	5,421	22,738	20,688
Net occupancy expense	687	605	2,544	2,304
Equipment expenses	654	640	2,552	2,544
Software and processing expenses	289	352	1,144	1,325
Intangible asset amortization	14	14	55	76
Other expenses	2,696	2,610	10,108	10,057
Total noninterest expense	10,370	9,642	39,141	36,994
Net income before taxes	4,530	3,398	18,602	14,063
Income taxes	1,465	919	6,004	4,075
Noncontrolling interest in earnings (losses) of
subsidiaries, net of income taxes of $0, $95, $4 and $468	-	(161)	6	(787)
Net income	3,065	2,640	12,592	10,775
Weighted average shares (basic)	4,492,224	4,515,450	4,495,030	4,542,213
Weighted average shares (diluted)	4,503,222	4,538,713	4,504,601	4,559,108
Basic earnings per share	$0.68	$0.58	$2.80	$2.37
Diluted earnings per share	$0.68	$0.58	$2.79	$2.36
Return on assets (annualized)	0.98%	0.93%	1.04%	0.97%
Return on equity (annualized)	10.45%	9.34%	10.88%	9.62%
Efficiency ratio	65.20%	65.80%	62.96%	63.99%
Net interest margin (annualized, tax-equivalent)	4.26%	4.25%	4.18%	4.23%
Net charge-offs to average loans (annualized)	0.28%	0.94%	0.26%	0.58%
Nonaccrual and 90 day accruing loans to total loans	0.20%	0.47%	0.20%	0.47%
First M&F Corporation
Financial Highlights
	QTD Ended	QTD Ended	QTD Ended	QTD Ended
	December 31	September 30	June 30	March 31
	2005	2005	2005	2005
Per Common Share (diluted):
Net income	0.68	0.73	0.67	0.71
Cash dividends paid	0.26	0.26	0.26	0.25
Book value	26.11	25.86	25.60	25.08
Closing stock price	33.71	35.25	34.23	34.13
Loan Portfolio Composition: (in thousands)
Commercial, financial and agricultural	151,599	164,646	150,280	130,732
Non-residential real estate	509,986	483,341	446,433	431,286
Residential real estate	201,086	205,235	208,730	214,965
Home equity loans	26,080	27,181	25,627	25,832
Consumer loans	41,457	42,090	41,919	43,869
Other loans	2,872	2,790	2,897	2,834
Total loans	933,080	925,283	875,886	849,518
Deposit Composition: (in thousands)
Noninterest-bearing deposits	164,189	147,952	135,974	136,131
NOW deposits	192,792	204,732	210,411	228,440
MMDA deposits	115,509	126,144	133,236	124,984
Savings deposits	82,512	82,341	84,278	87,250
Certificates of deposit under $100,000	224,461	218,247	213,479	209,026
Certificates of deposit $100,000 and over	173,374	159,706	165,975	164,739
Brokered certificates of deposit	20,834	11,027	10,994	10,304
Total deposits	973,671	950,149	954,347	960,874
Nonperforming Assets: (in thousands)
Nonaccrual loans	1,403	1,355	1,996	2,083
Accruing loans past due 90 days or more	510	685	583	917
Total nonperforming loans	1,913	2,040	2,579	3,000
Other real estate	2,544	2,730	2,643	3,428
Total nonperforming assets	4,457	4,770	5,222	6,428
Total nonperforming assets to assets ratio	0.35%	0.38%	0.43%	0.54%
Allowance For Loan Loss Activity: (in thousands)
Beginning balance	12,410	12,274	11,776	11,619
Provision for loan loss	690	767	818	871
Charge-offs	(866)	(815)	(537)	(855)
Recoveries	215	184	217	141
Ending balance	12,449	12,410	12,274	11,776