First M&F Corporation and Subsidiary
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except share data)
	Three Months Ended March 31
	2006	2005
Interest and fees on loans	17,760	13,445
Interest on loans held for sale	70	117
Taxable investments	1,794	1,301
Tax exempt investments	485	518
Federal funds sold	238	118
Interest bearing bank balances	120	66
Total interest income	20,467	15,565

Interest on deposits	5,847	3,740
Interest on fed funds and repurchase agreements	116	156
Interest on other borrowings	1,752	992
Interest on subordinated debt	241	-
Total interest expense	7,956	4,888

Net interest income	12,511	10,677
Provision for possible loan losses	953	871
Net interest income after loan loss	11,558	9,806

Service charges on deposits	2,263	1,705
Mortgage banking income	231	148
Agency commission income	950	931
Fiduciary and brokerage income	158	120
Other income	682	1,201
Gains (losses) on AFS investments	(1)	-
Total noninterest income	4,283	4,105

Salaries and employee benefits	6,282	5,223
Net occupancy expense	711	599
Equipment expenses	738	626
Software and processing expenses	309	291
Intangible asset amortization	46	14
Other expenses	2,907	2,456
Total noninterest expense	10,993	9,209

Net income before taxes	4,848	4,702
Income taxes	1,572	1,505
Noncontrolling interest in earnings (losses) of
subsidiaries, net of income taxes of $3 and $1	6	(1)
Net income	3,270	3,198

Weighted average shares (basic)	4,496,771	4,499,048
Weighted average shares (diluted)	4,513,070	4,513,072
Basic earnings per share	$0.73	$0.71
Diluted earnings per share	$0.73	$0.71

Return on assets (annualized)	0.94%	1.09%
Return on equity (annualized)	11.05%	11.20%
Efficiency ratio	64.26%	60.94%
Net interest margin (annualized, tax-equivalent)	4.11%	4.13%
Net charge-offs to average loans (annualized)	0.10%	0.34%
Nonaccrual and 90 day accruing loans to total loans	0.40%	0.35%