First M&F Corporation
Condensed Consolidated Statements of Condition
(In thousands, except share data)
	March 31	December 31	March 31
	2004	2003	2003
	Unaudited	Audited	Unaudited
Cash and due from banks	28,328	39,849	27,223
Interest bearing bank balances	5,614	2,554	13,938
Federal funds sold	18,300	950	33,350
Securities available for sale (cost of
$189,788, $181,375, and $220,235)	195,925	187,577	229,076
Loans	781,740	781,321	700,200
Allowance for loan losses	10,958	10,891	10,393
Net loans	770,782	770,430	689,807
Bank premises and equipment	24,718	24,214	21,405
Accrued interest receivable	7,191	7,330	7,176
Other real estate	1,157	802	1,490
Intangible assets	16,805	16,837	16,918
Other assets	27,557	27,755	21,798
	1,096,377	1,078,298	1,062,181
Non-interest bearing deposits	115,895	123,191	103,999
Interest bearing deposits	736,094	697,035	755,706
Total deposits	851,989	820,226	859,705
Federal funds and repurchase agreements	17,099	15,205	16,940
Other borrowings	106,217	122,033	65,583
Accrued interest payable	1,375	1,379	1,816
Other liabilities	7,837	7,732	7,040
Total liabilities	984,517	966,575	951,084
Noncontrolling joint venture interest	152	1,045	752
Common stock, 4,562,859, 4,565,038 and
4,641,137 shares issued & outstanding	22,814	22,825	23,206
Additional paid-in capital	31,246	31,624	34,038
Retained earnings	55,333	53,873	49,080
Accumulated other comprehensive income	2,315	2,356	4,021
Total equity	111,708	110,678	110,345
	1,096,377	1,078,298	1,062,181
First M&F Corporation and Subsidiary
Condensed Consolidated Statements of Income
(In thousands, except share data)
	Three Months Ended March 31
	2004	2003
Interest and fees on loans	12,226	11,709
Taxable investments	1,392	1,933
Tax exempt investments	561	596
Federal funds sold	69	106
Interest bearing bank balances	29	42
Total interest income	14,277	14,386
Interest on deposits	2,818	3,927
Interest on short-term borrowings	147	167
Interest on other borrowings	1,071	768
Total interest expense	4,036	4,862
Net interest income	10,241	9,524
Provision for possible loan losses	2,460	920
Net interest income after loan loss	7,781	8,604
Service charges on deposits	1,821	1,760
Mortgage banking income	200	172
Agency commission income	860	837
Fiduciary and brokerage income	110	45
Other income	941	563
Gains (losses) on AFS investments	70	(1)
Total noninterest income	4,002	3,376
Salaries and employee benefits	4,946	4,320
Net occupancy expense	572	518
Equipment and data processing expenses	991	970
Intangible asset amortization	32	34
Noncontrolling joint venture interest expense	(893)	96
Other expenses	2,432	2,318
Total noninterest expense	8,080	8,256
Net income before taxes	3,703	3,724
Income taxes	1,102	1,070
Net income	2,601	2,654
Weighted average shares (basic)	4,565,225	4,626,110
Weighted average shares (diluted)	4,584,746	4,638,842
Basic earnings per share	$0.57	$0.57
Diluted earnings per share	$0.57	$0.57
Return on assets (annualized)	0.94%	1.00%
Return on equity (annualized)	9.29%	9.63%
Efficiency ratio	55.34%	62.17%
Net interest margin (annualized, tax-equivalent)	4.24%	4.12%
Net charge-offs to average loans (annualized)	1.23%	0.46%
Nonaccrual and 90 day accruing loans to total loans	1.11%	0.78%
First M&F Corporation
Financial Highlights
	QTD Ended	QTD Ended	QTD Ended	QTD Ended
	March 31	December 31	September 30	June 30
	2004	2003	2003	2003
Per Common Share (diluted):
Net income	0.57	0.61	0.60	0.57
Cash dividends paid	0.25	0.25	0.25	0.25
Book value	24.48	24.24	24.06	24.02
Closing stock price	33.51	37.90	35.65	32.71
Selected Average Balances: (in thousands)
Assets	1,104,631	1,074,285	1,061,855	1,054,605
Loans	778,715	783,509	760,505	706,319
Earning assets	1,009,058	981,399	973,817	967,460
Deposits	848,912	815,859	822,661	855,070
Equity	111,950	110,707	111,010	111,661
Selected Ratios:
Return on average assets (annualized)	0.94%	1.05%	1.05%	1.00%
Return on average equity (annualized)	9.29%	10.15%	10.06%	9.45%
Average equity to average assets	10.13%	10.31%	10.45%	10.59%
Net interest margin (annualized, tax-equivalent)	4.24%	4.44%	4.47%	4.26%
Efficiency ratio	55.34%	62.52%	63.41%	63.02%
Net charge-offs to average loans (annualized)	1.23%	0.55%	0.20%	0.53%
Nonaccrual and 90 day accruing loans to total loans	1.11%	0.77%	0.81%	0.61%
Price to book (x)	1.37	1.56	1.48	1.36
Price to earnings (x)	14.70	15.53	14.85	14.35
	Historical Earnings Trends
	Net Income	EPS
	(in thousands)	(diluted)
1Q 2004	2,601	0.57
4Q 2003	2,809	0.61
3Q 2003	2,791	0.60
2Q 2003	2,638	0.57
1Q 2003	2,654	0.57
4Q 2002	2,730	0.59
3Q 2002	2,867	0.62
2Q 2002	2,329	0.51
1Q 2002	2,309	0.50
First M&F Corporation
Average Balance Sheets/Yields and Costs (tax-equivalent)
(In thousands with yields and costs annualized)	YTD March, 2004		YTD March, 2003
	Average		Average
	Balance	Yield/Cost	Balance	Yield/Cost
Interest bearing bank balances	10,290	1.13%	13,680	1.23%
Federal funds sold	31,348	0.88%	38,257	1.11%
Taxable investments (amortized cost)	128,433	4.34%	172,054	4.49%
Tax-exempt investments (amortized cost)	53,973	6.64%	53,778	7.07%
Loans held for investment	776,637	6.31%	683,674	6.87%
Total earning assets	1,000,681	5.85%	961,443	6.14%
Non-earning assets	103,950		95,371
Total average assets	1,104,631		1,056,814
NOW, MMDA & Savings	383,673	0.81%	402,132	1.43%
Certificates of Deposit	351,722	2.33%	347,653	2.87%
Short-term borrowings	18,005	3.26%	20,953	3.19%
Other borrowings	116,096	3.69%	68,341	4.49%
Total interest bearing liabilities	869,496	1.86%	839,079	2.32%
Non-interest bearing deposits	113,517		98,598
Non-interest bearing liabilities	9,668		8,889
Capital	111,950		110,248
Total average liabilities and equity	1,104,631		1,056,814
Net interest spread		3.99%		3.83%
Effect of non-interest bearing deposits		0.21%		0.24%
Effect of leverage		0.03%		0.05%
Net interest margin, tax-equivalent		4.24%		4.12%
Less tax equivalent adjustment:
Investments		0.14%		0.15%
Loans		0.01%		0.01%
Reported book net interest margin		4.09%		3.96%