| 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 | |
| Condensed Income Statements: (in thousands) | ||||
| Interest income | 18,486 | 17,231 | 16,390 | 15,565 |
| Interest expense | 6,711 | 6,130 | 5,455 | 4,888 |
| Net interest income | 11,775 | 11,101 | 10,935 | 10,677 |
| Provision for loan losses | 690 | 767 | 818 | 871 |
| Noninterest revenues | 3,815 | 4,466 | 4,015 | 4,105 |
| Noninterest expenses | 10,370 | 9,924 | 9,638 | 9,209 |
| Net income before taxes | 4,530 | 4,876 | 4,494 | 4,702 |
| Income taxes | 1,465 | 1,588 | 1,446 | 1,505 |
| Noncontrolling interest | - | 4 | 3 | (1) |
| Net income | 3,065 | 3,284 | 3,045 | 3,198 |
| Tax-equivalent net interest income | 12,089 | 11,421 | 11,254 | 11,005 |
| Selected Average Balances: (in thousands) | ||||
| Assets | 1,251,128 | 1,214,792 | 1,195,352 | 1,174,035 |
| Loans held for investment | 934,368 | 897,511 | 860,900 | 842,999 |
| Earning assets | 1,135,701 | 1,100,461 | 1,080,740 | 1,064,936 |
| Deposits | 958,390 | 949,445 | 957,768 | 931,005 |
| Equity | 117,292 | 116,444 | 114,868 | 114,247 |
| Selected Ratios: | ||||
| Return on average assets (annualized) | 0.98% | 1.08% | 1.02% | 1.09% |
| Return on average equity (annualized) | 10.45% | 11.28% | 10.60% | 11.20% |
| Average equity to average assets | 9.37% | 9.59% | 9.61% | 9.73% |
| Net interest margin (annualized, tax-equivalent) | 4.26% | 4.15% | 4.17% | 4.13% |
| Efficiency ratio | 65.20% | 62.46% | 63.12% | 60.94% |
| Net charge-offs to average loans (annualized) | 0.28% | 0.28% | 0.15% | 0.34% |
| Nonaccrual and 90 day accruing loans to total loans | 0.20% | 0.22% | 0.29% | 0.35% |
| Price to book (x) | 1.29 | 1.36 | 1.34 | 1.36 |
| Price to earnings (x) | 12.39 | 12.07 | 12.77 | 12.02 |
| First M&F Corporation | ||||
| Financial Highlights | ||||
| Historical Earnings Trends: | EPS | |||
| (in thousands) | (diluted) | |||
| 4Q 2005 | 3,065 | 0.68 | ||
| 3Q 2005 | 3,284 | 0.73 | ||
| 2Q 2005 | 3,045 | 0.67 | ||
| 1Q 2005 | 3,198 | 0.71 | ||
| 4Q 2004 | 2,640 | 0.58 | ||
| 3Q 2004 | 2,781 | 0.61 | ||
| 2Q 2004 | 2,753 | 0.60 | ||
| 1Q 2004 | 2,601 | 0.57 | ||
| 4Q 2003 | 2,809 | 0.61 | ||
| 3Q 2003 | 2,791 | 0.60 | ||
| 2Q 2003 | 2,638 | 0.57 | ||
| Revenue Statistics: | Non-interest | Non-interest | ||
| Revenues | Revenues to | Revenues to | Contribution | |
| Per FTE | Ttl. Revenues | Avg. Assets | Margin | |
| (thousands) | (percent) | (percent) | (percent) | |
| 4Q 2005 | 33.3 | 23.99% | 1.22% | 62.09% |
| 3Q 2005 | 33.5 | 28.11% | 1.47% | 62.48% |
| 2Q 2005 | 33.0 | 26.30% | 1.34% | 63.82% |
| 1Q 2005 | 32.7 | 27.17% | 1.40% | 65.43% |
| 4Q 2004 | 32.2 | 24.90% | 1.28% | 63.01% |
| 3Q 2004 | 31.5 | 26.49% | 1.39% | 63.04% |
| 2Q 2004 | 31.3 | 26.22% | 1.35% | 64.70% |
| 1Q 2004 | 33.2 | 27.23% | 1.44% | 66.13% |
| 4Q 2003 | 33.1 | 24.50% | 1.31% | 68.06% |
| 3Q 2003 | 34.0 | 25.96% | 1.42% | 65.88% |
| 2Q 2003 | 32.8 | 25.89% | 1.35% | 66.51% |
| Expense Statistics: | Non-interest | |||
| Expense to | Efficiency | |||
| Avg. Assets | Ratio | |||
| (percent) | (percent) | |||
| 4Q 2005 | 3.32% | 65.20% | ||
| 3Q 2005 | 3.27% | 62.46% | ||
| 2Q 2005 | 3.23% | 63.12% | ||
| 1Q 2005 | 3.14% | 60.94% | ||
| 4Q 2004 | 3.39% | 65.80% | ||
| 3Q 2004 | 3.43% | 65.41% | ||
| 2Q 2004 | 3.26% | 63.25% | ||
| 1Q 2004 | 3.25% | 61.47% | ||
| 4Q 2003 | 3.30% | 61.69% | ||
| 3Q 2003 | 3.44% | 62.88% | ||
| 2Q 2003 | 3.26% | 62.32% | ||
| Contribution Margin: | ||||
| (Tax-equivalent net interest income + noninterest revenues - salaries and benefits) | ||||
| divided by | ||||
| (Tax-equivalent net interest income + noninterest revenues) | ||||
| Efficiency Ratio: | ||||
| Noninterest expense | ||||
| divided by | ||||
| (Tax-equivalent net interest income + noninterest revenues) | ||||
| First M&F Corporation | ||||
| Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||
| (In thousands with yields and costs annualized) | QTD December, 2005 | QTD December, 2004 | ||
| Average | Average | |||
| Balance | Yield/Cost | Balance | Yield/Cost | |
| Interest bearing bank balances | 2,957 | 7.47% | 3,420 | 3.10% |
| Federal funds sold | 1,536 | 3.87% | 1,604 | 3.19% |
| Taxable investments (amortized cost) | 140,641 | 4.27% | 126,789 | 4.10% |
| Tax-exempt investments (amortized cost) | 49,847 | 6.38% | 52,114 | 6.57% |
| Loans held for sale | 6,352 | 3.83% | 12,325 | 2.07% |
| Loans held for investment | 934,368 | 7.01% | 838,155 | 6.39% |
| Total earning assets | 1,135,701 | 6.62% | 1,034,407 | 6.05% |
| Non-earning assets | 115,427 | 103,602 | ||
| Total average assets | 1,251,128 | 1,138,009 | ||
| NOW | 189,590 | 1.48% | 144,176 | 0.59% |
| MMDA | 121,868 | 1.50% | 119,734 | 0.87% |
| Savings | 82,406 | 2.06% | 85,911 | 1.50% |
| Certificates of Deposit | 413,030 | 3.30% | 367,546 | 2.53% |
| Short-term borrowings | 21,838 | 4.11% | 26,977 | 2.98% |
| Other borrowings | 144,510 | 4.15% | 141,383 | 3.77% |
| Total interest bearing liabilities | 973,242 | 2.76% | 885,727 | 2.10% |
| Non-interest bearing deposits | 151,497 | 131,300 | ||
| Non-interest bearing liabilities | 9,097 | 7,939 | ||
| Capital | 117,292 | 113,043 | ||
| Total average liabilities and equity | 1,251,128 | 1,138,009 | ||
| Net interest spread | 3.86% | 3.95% | ||
| Effect of non-interest bearing deposits | 0.38% | 0.27% | ||
| Effect of leverage | 0.02% | 0.03% | ||
| Net interest margin, tax-equivalent | 4.26% | 4.25% | ||
| Less tax equivalent adjustment: | ||||
| Investments | 0.10% | 0.12% | ||
| Loans | 0.01% | 0.01% | ||
| Reported book net interest margin | 4.15% | 4.12% | ||