First M&F Corporation and Subsidiary
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except share data)
	Three Months Ended June 30		Six Months Ended June 30
	2007	2006	2007	2006
Interest and fees on loans	22,065	19,823	43,284	37,583
Interest on loans held for sale	136	131	248	201
Taxable investments	2,367	2,216	4,851	4,010
Tax exempt investments	447	482	909	967
Federal funds sold	56	192	68	430
Interest bearing bank balances	54	67	97	125
Total interest income	25,125	22,911	49,457	43,316
Interest on deposits	8,848	7,320	17,519	13,167
Interest on fed funds and repurchase agreements	149	53	337	169
Interest on other borrowings	2,114	1,795	4,084	3,547
Interest on subordinated debt	492	504	988	745
Total interest expense	11,603	9,672	22,928	17,628
Net interest income	13,522	13,239	26,529	25,688
Provision for possible loan losses	630	1,004	1,260	1,957
Net interest income after loan loss	12,892	12,235	25,269	23,731
Service charges on deposits	2,698	2,724	5,197	4,987
Mortgage banking income	358	194	774	425
Agency commission income	1,008	974	2,049	1,924
Fiduciary and brokerage income	150	171	287	329
Other income	647	799	2,111	1,543
Gains (losses) on AFS investments	-	(3)	-	(4)
Total noninterest income	4,861	4,859	10,418	9,204
Salaries and employee benefits	7,303	7,110	14,554	13,391
Net occupancy expense	902	847	1,769	1,558
Equipment expenses	918	783	1,815	1,521
Software and processing expenses	360	364	704	673
Intangible asset amortization	121	89	306	134
Other expenses	2,905	3,146	6,043	6,056
Total noninterest expense	12,509	12,339	25,191	23,333
Net income before taxes	5,244	4,755	10,496	9,602
Income taxes	1,702	1,502	3,393	3,074
Noncontrolling interest in earnings (losses) of
subsidiaries, net of income taxes of $4, $1, $8, and $4	7	1	14	7
Net income	3,535	3,252	7,089	6,521
Weighted average shares (basic)	9,057,948	9,010,951	9,055,302	9,002,295
Weighted average shares (diluted)	9,107,310	9,062,107	9,105,396	9,044,222
Basic earnings per share	$0.39	$0.36	$0.78	$0.73
Diluted earnings per share	$0.39	$0.36	$0.78	$0.72
Return on assets (annualized)	0.92%	0.86%	0.93%	0.91%
Return on equity (annualized)	10.69%	10.78%	10.93%	10.99%
Efficiency ratio	66.92%	67.02%	67.05%	65.69%
Net interest margin (annualized, tax-equivalent)	4.00%	4.05%	3.97%	4.10%
Net charge-offs to average loans (annualized)	0.30%	0.13%	0.21%	0.12%
Nonaccrual and 90 day accruing loans to total loans	0.55%	0.30%	0.55%	0.30%