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
	2006	2005	2006	2005
Interest and fees on loans	19,823	14,123	37,583	27,568
Interest on loans held for sale	131	149	201	266
Taxable investments	2,216	1,514	4,010	2,815
Tax exempt investments	482	503	967	1,021
Federal funds sold	192	54	430	172
Interest bearing bank balances	128	47	248	113
Total interest income	22,972	16,390	43,439	31,955
Interest on deposits	7,320	4,309	13,167	8,049
Interest on fed funds and repurchase agreements	53	152	169	308
Interest on other borrowings	1,795	994	3,547	1,986
Interest on subordinated debt	504	-	745	-
Total interest expense	9,672	5,455	17,628	10,343
Net interest income	13,300	10,935	25,811	21,612
Provision for possible loan losses	1,004	818	1,957	1,689
Net interest income after loan loss	12,296	10,117	23,854	19,923
Service charges on deposits	2,724	2,214	4,987	3,919
Mortgage banking income	194	238	425	386
Agency commission income	974	1,026	1,924	1,957
Fiduciary and brokerage income	171	117	329	237
Other income	738	420	1,420	1,621
Gains (losses) on AFS investments	(3)	-	(4)	-
Total noninterest income	4,798	4,015	9,081	8,120
Salaries and employee benefits	7,110	5,525	13,391	10,748
Net occupancy expense	847	604	1,558	1,203
Equipment expenses	783	637	1,521	1,263
Software and processing expenses	364	281	673	572
Intangible asset amortization	90	13	135	27
Other expenses	3,146	2,578	6,055	5,034
Total noninterest expense	12,340	9,638	23,333	18,847
Net income before taxes	4,754	4,494	9,602	9,196
Income taxes	1,502	1,446	3,074	2,951
Noncontrolling interest in earnings (losses) of
subsidiaries, net of income taxes of $1, $2, $4 and $1	1	3	7	2
Net income	3,251	3,045	6,521	6,243
Weighted average shares (basic)	9,010,951	8,997,154	9,002,295	8,997,622
Weighted average shares (diluted)	9,062,107	9,022,016	9,044,222	9,024,142
Basic earnings per share	$0.36	$0.34	$0.73	$0.69
Diluted earnings per share	$0.36	$0.34	$0.72	$0.69
Return on assets (annualized)	0.87%	1.02%	0.90%	1.05%
Return on equity (annualized)	10.82%	10.60%	10.93%	10.90%
Efficiency ratio	66.97%	63.12%	65.67%	62.04%
Net interest margin (annualized, tax-equivalent)	4.05%	4.17%	4.08%	4.15%
Net charge-offs to average loans (annualized)	0.13%	0.15%	0.12%	0.24%
Nonaccrual and 90 day accruing loans to total loans	0.30%	0.29%	0.30%	0.29%