First M&F Corporation
Condensed Consolidated Statements of Condition (Unaudited)
(In thousands, except share data)
March 31
December 31
March 31
2005
2004
2004
Cash and due from banks 34,915 40,376 28,328
Interest bearing bank balances 6,305 5,105 5,614
Federal funds sold
8,850
3,550
18,300
Securities available for sale (cost of
$197,819, $172,808, and $189,788) 198,354 175,654 195,925
Loans held for sale 14,362 12,236 12,658
Loans 849,518 832,486 769,082
Allowance for loan losses 11,776 11,619 10,958
Net loans 837,742 820,867 758,124
Bank premises and equipment 27,475 26,497 24,718
Accrued interest receivable 7,498 7,126 7,191
Other real estate 3,428 2,816 1,157
Intangible assets 16,747 16,761 16,805
Other assets 31,623 31,724 27,492
1,187,299 1,142,712 1,096,312
Non-interest bearing deposits 136,133 137,728 115,895
Interest bearing deposits 824,743 739,536 736,094
Total deposits 960,876 877,264 851,989
Federal funds and repurchase agreements 13,762 16,808 17,099
Other borrowings 91,454 128,838 106,217
Accrued interest payable 1,867 1,728 1,375
Other liabilities 6,523 5,605 7,772
Total liabilities 1,074,482 1,030,243 984,452
Noncontrolling interest in subsidiaries 1 1 152
Common stock, 4,498,659, 4,506,159 and 4,562,859
shares issued & outstanding 22,493 22,531 22,814
Additional paid-in capital 29,349 29,587 31,246
Retained earnings 62,187 60,113 55,333
Accumulated other comprehensive income (1,213) 237 2,315
Total equity 112,816 112,468 111,708
1,187,299 1,142,712 1,096,312
First M&F Corporation and Subsidiary
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except share data)
Three Months Ended March 31
2005
2004
Interest and fees on loans 13,445 12,161
Interest on loans held for sale 117 93
Taxable investments 1,301 1,392
Tax exempt investments 518 561
Federal funds sold 118 69
Interest bearing bank balances 66 29
Total interest income 15,565 14,305
Interest on deposits 3,740 2,818
Interest on fed funds and repurchase agreements 156 147
Interest on other borrowings 992 1,071
Total interest expense 4,888 4,036
   
Net interest income 10,677 10,269
Provision for possible loan losses 871 2,460
Net interest income after loan loss 9,806 7,809
Service charges on deposits 1,705 1,821
Mortgage banking income 148 171
Agency commission income 931 865
Fiduciary and brokerage income 120 110
Other income 1,201 940
Gains (losses) on AFS investments
-
70
Total noninterest income 4,105 3,977
Salaries and employee benefits 5,223 4,946
Net occupancy expense 599 572
Equipment expenses 626 653
Software and processing expenses 291 338
Intangible asset amortization 14 32
Other expenses 2,456 2,436
Total noninterest expense 9,209 8,977
   
Net income before taxes 4,702 2,809
Income taxes 1,505 768
Noncontrolling interest in losses of subsidiaries,
net of income taxes of $1 and $333 (1) (560)
Net income 3,198 2,601
Weighted average shares (basic) 4,499,048 4,565,225
Weighted average shares (diluted) 4,513,072 4,584,947
Basic earnings per share $0.71 $0.57
Diluted earnings per share $0.71 $0.57
Return on assets (annualized) 1.09% 0.94%
Return on equity (annualized) 11.20% 9.29%
Efficiency ratio 60.94% 61.47%
Net interest margin (annualized, tax-equivalent) 4.13% 4.24%
Net charge-offs to average loans (annualized) 0.34% 1.25%
Nonaccrual and 90 day accruing loans to total loans 0.35% 1.11%
First M&F Corporation
Financial Highlights
QTD Ended
QTD Ended
QTD Ended
QTD Ended
March 31
December 31
September 30
June 30
2005
2004
2004
2004
Per Common Share (diluted):
Net income 0.71 0.58 0.61 0.60
Cash dividends paid 0.25 0.25 0.25 0.25
Book value 25.08 24.96 24.81 24.26
Closing stock price 34.13 33.85 33.35 31.14
Selected Average Balances: (in thousands)
Assets 1,174,035 1,138,009 1,107,013 1,090,834
Loans held for investment 842,999 838,155 801,387 769,555
Earning assets 1,064,936 1,034,722 1,004,567 988,802
Deposits 931,005 848,667 854,000 848,953
Equity 114,247 113,043 111,441 111,542
Selected Ratios:
Return on average assets (annualized) 1.09% 0.93% 1.00% 1.01%
Return on average equity (annualized) 11.20% 9.34% 9.98% 9.87%
Average equity to average assets 9.73% 9.93% 10.07% 10.23%
Net interest margin (annualized, tax-equivalent) 4.13% 4.25% 4.24% 4.19%
Efficiency ratio 60.94% 65.80% 65.41% 63.25%
Net charge-offs to average loans (annualized) 0.34% 0.94% 0.05% 0.09%
Nonaccrual and 90 day accruing loans to total loans 0.35% 0.47% 0.75% 0.66%
Price to book (x) 1.36 1.36 1.34 1.28
Price to earnings (x) 12.02 14.59 13.45 12.98
Historical Earnings Trends
Net Income
EPS
(in thousands)
(diluted)
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
1Q 2003
 2,654 0.57
First M&F Corporation
Average Balance Sheets/Yields and Costs (tax-equivalent)
(In thousands with yields and costs annualized)
YTD March, 2005
YTD March, 2004
Average
Average
Balance
Yield/Cost
Balance
Yield/Cost
Interest bearing bank balances 9,108 2.90% 10,290 1.13%
Federal funds sold 20,379 2.31% 31,348 0.88%
Taxable investments (amortized cost) 128,116 4.06% 128,433 4.34%
Tax-exempt investments (amortized cost) 51,062 6.47% 53,973 6.64%
Loans held for sale 13,272 3.53% 12,338 3.03%
Loans held for investment 842,999 6.39% 766,377 6.36%
Total earning assets 1,064,936 5.97% 1,002,759 5.85%
Non-earning assets 109,099 101,872
Total average assets 1,174,035 1,104,631
NOW & MMDA 320,961 1.11% 295,986 0.66%
Savings 86,344 1.56% 87,687 1.28%
Certificates of Deposit 387,501 2.59% 351,722 2.33%
Short-term borrowings 16,092 3.87% 18,005 3.26%
Other borrowings 106,251 3.74% 116,096 3.69%
Total interest bearing liabilities 917,149 2.13% 869,496 1.86%
Non-interest bearing deposits 136,200 113,517
Non-interest bearing liabilities 6,439 9,668
Capital 114,247 111,950
Total average liabilities and equity 1,174,035   1,104,631  
Net interest spread 3.84% 3.99%
Effect of non-interest bearing deposits 0.28% 0.22%
Effect of leverage 0.01% 0.03%
Net interest margin, tax-equivalent 4.13% 4.24%
Less tax equivalent adjustment:
Investments 0.11% 0.13%
Loans 0.01% 0.01%
Reported book net interest margin 4.01% 4.10%