First M&F Corporation
Condensed Consolidated Statements of Condition (Unaudited)
(In thousands, except share data)
	June 30	December 31	June 30
	2005	2004	2004
Cash and due from banks	39,630	40,376	33,464
Interest bearing bank balances	4,515	5,105	4,132
Federal funds sold	11,450	3,550	2,000
Securities available for sale (cost of
$193,899, $172,808, and $189,788)	195,318	175,654	194,608
Loans held for sale	6,631	12,236	10,377
Loans	875,886	832,486	780,327
Allowance for loan losses	12,274	11,619	11,792
Net loans	863,612	820,867	768,535
Bank premises and equipment	28,300	26,497	24,973
Accrued interest receivable	7,991	7,126	7,403
Other real estate	2,643	2,816	2,171
Intangible assets	16,734	16,761	16,789
Other assets	31,028	31,724	29,513
Total assets	1,207,852	1,142,712	1,093,965
Non-interest bearing deposits	135,974	137,728	127,156
Interest bearing deposits	818,373	739,536	723,260
Total deposits	954,347	877,264	850,416
Federal funds and repurchase agreements	14,741	16,808	17,639
Other borrowings	114,120	128,838	105,964
Accrued interest payable	1,944	1,728	1,452
Other liabilities	7,760	5,605	8,270
Total liabilities	1,092,912	1,030,243	983,741
Noncontrolling interest in subsidiaries	1	1	-
Common stock, 4,490,159, 4,506,159 and 4,542,859
shares issued & outstanding	22,451	22,531	22,714
Additional paid-in capital	29,083	29,587	30,668
Retained earnings	64,063	60,113	56,950
Accumulated other comprehensive income	(658)	237	(108)
Total equity	114,939	112,468	110,224
Total liabilities & equity	1,207,852	1,142,712	1,093,965
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
	2005	2004	2005	2004
Interest and fees on loans	14,123	12,044	27,568	24,205
Interest on loans held for sale	149	101	266	194
Taxable investments	1,514	1,366	2,815	2,758
Tax exempt investments	503	559	1,021	1,120
Federal funds sold	54	29	172	98
Interest bearing bank balances	47	23	113	52
Total interest income	16,390	14,122	31,955	28,427
Interest on deposits	4,309	2,858	8,049	5,676
Interest on fed funds and repurchase agreements	152	135	308	282
Interest on other borrowings	994	1,114	1,986	2,185
Total interest expense	5,455	4,107	10,343	8,143
Net interest income	10,935	10,015	21,612	20,284
Provision for possible loan losses	818	999	1,689	3,459
Net interest income after loan loss	10,117	9,016	19,923	16,825
Service charges on deposits	2,214	1,932	3,919	3,753
Mortgage banking income	238	259	386	430
Agency commission income	1,026	932	1,957	1,797
Fiduciary and brokerage income	117	125	237	235
Other income	420	454	1,621	1,394
Gains (losses) on AFS investments	-	(17)	-	53
Total noninterest income	4,015	3,685	8,120	7,662
Salaries and employee benefits	5,525	4,961	10,748	9,907
Net occupancy expense	604	552	1,203	1,124
Equipment expenses	637	635	1,263	1,288
Software and processing expenses	281	309	572	647
Intangible asset amortization	13	17	27	49
Other expenses	2,578	2,416	5,034	4,852
Total noninterest expense	9,638	8,890	18,847	17,867
Net income before taxes	4,494	3,811	9,196	6,620
Income taxes	1,446	1,155	2,951	1,923
Noncontrolling interest in earnings (losses) of
subsidiaries, net of income taxes of $2, $57, $1 and $391	3	(97)	2	(657)
Net income	3,045	2,753	6,243	5,354
Weighted average shares (basic)	4,498,577	4,556,375	4,498,811	4,560,800
Weighted average shares (diluted)	4,511,008	4,570,720	4,512,071	4,577,834
Basic earnings per share	$0.68	$0.60	$1.39	$1.17
Diluted earnings per share	$0.67	$0.60	$1.38	$1.17
Return on assets (annualized)	1.02%	1.01%	1.05%	0.98%
Return on equity (annualized)	10.60%	9.87%	10.90%	9.58%
Efficiency ratio	63.12%	63.25%	62.04%	62.35%
Net interest margin (annualized, tax-equivalent)	4.17%	4.19%	4.15%	4.22%
Net charge-offs to average loans (annualized)	0.15%	0.09%	0.24%	0.67%
Nonaccrual and 90 day accruing loans to total loans	0.29%	0.66%	0.29%	0.66%
First M&F Corporation
Financial Highlights
	QTD Ended	QTD Ended	QTD Ended	QTD Ended
	June 30	March 31	December 31	September 30
	2005	2005	2004	2004
Per Common Share (diluted):
Net income	0.67	0.71	0.58	0.61
Cash dividends paid	0.26	0.25	0.25	0.25
Book value	25.60	25.08	24.96	24.81
Closing stock price	34.23	34.13	33.85	33.35
Loan Portfolio Composition: (in thousands)
Commercial, financial and agricultural	150,280	130,732	128,735	140,766
Non-residential real estate	446,433	431,286	416,176	402,363
Residential real estate	208,730	214,965	211,696	207,249
Home equity loans	25,627	25,832	26,050	25,436
Consumer loans	41,919	43,869	46,678	47,569
Other loans	2,897	2,834	3,151	3,476
Total loans	875,886	849,518	832,486	826,859
Deposit Composition: (in thousands)
Noninterest-bearing deposits	135,974	136,131	137,728	129,613
NOW deposits	210,411	228,440	149,572	150,327
MMDA deposits	133,236	124,984	122,409	123,840
Savings deposits	84,278	87,250	85,342	86,022
Certificates of deposit under $100,000	213,479	209,026	205,795	204,031
Certificates of deposit $100,000 and over	165,975	164,739	166,467	154,551
Brokered certificates of deposit	10,994	10,304	9,951	-
Total deposits	954,347	960,874	877,264	848,384
Nonperforming Assets: (in thousands)
Nonaccrual loans	1,996	2,083	3,302	5,118
Accruing loans past due 90 days or more	583	917	645	1,166
Total nonperforming loans	2,579	3,000	3,947	6,284
Other real estate	2,643	3,428	2,816	2,330
Total nonperforming assets	5,222	6,428	6,763	8,614
Total nonperforming assets to assets ratio	0.43%	0.54%	0.59%	0.76%
Selected Average Balances: (in thousands)
Assets	1,195,352	1,174,035	1,138,009	1,107,013
Loans held for investment	860,900	842,999	838,155	801,387
Earning assets	1,080,740	1,064,936	1,034,722	1,004,567
Deposits	957,768	931,005	848,667	854,000
Equity	114,868	114,247	113,043	111,441
Selected Ratios:
Return on average assets (annualized)	1.02%	1.09%	0.93%	1.00%
Return on average equity (annualized)	10.60%	11.20%	9.34%	9.98%
Average equity to average assets	9.61%	9.73%	9.93%	10.07%
Net interest margin (annualized, tax-equivalent)	4.17%	4.13%	4.25%	4.24%
Efficiency ratio	63.12%	60.94%	65.80%	65.41%
Net charge-offs to average loans (annualized)	0.15%	0.34%	0.94%	0.05%
Nonaccrual and 90 day accruing loans to total loans	0.29%	0.35%	0.47%	0.75%
Price to book (x)	1.34	1.36	1.36	1.34
Price to earnings (x)	12.77	12.02	14.59	13.67
First M&F Corporation
Financial Highlights
Historical Earnings Trends:		EPS
	(in thousands)	(diluted)
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
1Q 2003	2,654	0.57
4Q 2002	2,730	0.59
Revenue Statistics:		Non-interest	Non-interest
	Revenues	Revenues to	Revenues to	Contribution
	Per FTE	Ttl. Revenues	Avg. Assets	Margin
	(thousands)	(percent)	(percent)	(percent)
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%
1Q 2003	32.2	25.26%	1.27%	67.47%
4Q 2002	33.9	26.85%	1.46%	67.79%
Expense Statistics:	Non-interest
	Expense to	Efficiency
	Avg. Assets	Ratio
	(percent)	(percent)
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%
1Q 2003	3.09%	61.45%
4Q 2002	3.35%	61.84%
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 June, 2005		QTD June, 2004
	Average		Average
	Balance	Yield/Cost	Balance	Yield/Cost
Interest bearing bank balances	3,974	4.75%	6,385	1.40%
Federal funds sold	7,625	2.83%	12,724	0.93%
Taxable investments (amortized cost)	146,991	4.12%	133,843	4.08%
Tax-exempt investments (amortized cost)	50,043	6.42%	53,985	6.60%
Loans held for sale	11,207	5.29%	12,310	3.26%
Loans held for investment	860,900	6.57%	769,555	6.27%
Total earning assets	1,080,740	6.18%	988,802	5.86%
Non-earning assets	114,612		102,032
Total average assets	1,195,352		1,090,834
NOW & MMDA	351,114	1.41%	281,508	0.66%
Savings	85,252	1.73%	86,969	1.28%
Certificates of Deposit	385,333	2.81%	358,633	2.36%
Short-term borrowings	14,896	4.10%	15,282	3.55%
Other borrowings	100,026	3.97%	106,464	4.19%
Total interest bearing liabilities	936,621	2.33%	848,856	1.94%
Non-interest bearing deposits	136,068		121,844
Non-interest bearing liabilities	7,795		8,592
Capital	114,868		111,542
Total average liabilities and equity	1,195,352		1,090,834
Net interest spread		3.85%		3.92%
Effect of non-interest bearing deposits		0.30%		0.24%
Effect of leverage		0.02%		0.03%
Net interest margin, tax-equivalent		4.17%		4.19%
Less tax equivalent adjustment:
Investments		0.11%		0.13%
Loans		0.01%		0.01%
Reported book net interest margin		4.05%		4.05%
First M&F Corporation
Average Balance Sheets/Yields and Costs (tax-equivalent)
(In thousands with yields and costs annualized)	YTD June, 2005		YTD June, 2004
	Average		Average
	Balance	Yield/Cost	Balance	Yield/Cost
Interest bearing bank balances	6,527	3.47%	8,337	1.24%
Federal funds sold	13,966	2.46%	22,036	0.89%
Taxable investments (amortized cost)	137,606	4.09%	131,138	4.21%
Tax-exempt investments (amortized cost)	50,550	6.45%	53,979	6.62%
Loans held for sale	12,234	4.34%	12,324	3.14%
Loans held for investment	851,999	6.48%	767,966	6.32%
Total earning assets	1,072,882	6.08%	995,780	5.85%
Non-earning assets	111,870		101,953
Total average assets	1,184,752		1,097,733
NOW & MMDA	336,121	1.27%	288,747	0.66%
Savings	85,795	1.65%	87,328	1.28%
Certificates of Deposit	386,411	2.70%	355,177	2.34%
Short-term borrowings	15,491	3.98%	16,644	3.39%
Other borrowings	103,121	3.85%	111,280	3.93%
Total interest bearing liabilities	926,939	2.23%	859,176	1.90%
Non-interest bearing deposits	136,134		117,680
Non-interest bearing liabilities	7,120		9,131
Capital	114,559		111,746
Total average liabilities and equity	1,184,752		1,097,733
Net interest spread		3.85%		3.95%
Effect of non-interest bearing deposits		0.28%		0.24%
Effect of leverage		0.02%		0.03%
Net interest margin, tax-equivalent		4.15%		4.22%
Less tax equivalent adjustment:
Investments		0.11%		0.14%
Loans		0.01%		0.01%
Reported book net interest margin		4.03%		4.07%