First M&F Corporation
Condensed Consolidated Statements of Condition (Unaudited)
(In thousands, except share data)
	September 30	December 31	September 30
	2004	2003	2003
Cash and due from banks	28,843	39,849	29,836
Interest bearing bank balances	5,798	2,554	3,201
Federal funds sold	-	950	-
Securities available for sale (cost of
$185,281, $181,375, and $191,414)	189,192	187,577	198,476
Loans	839,644	781,321	776,667
Allowance for loan losses	12,320	10,891	11,009
Net loans	827,324	770,430	765,658
Bank premises and equipment	25,795	24,214	22,681
Accrued interest receivable	7,063	7,330	7,137
Other real estate	2,330	802	1,004
Intangible assets	16,775	16,837	16,850
Other assets	31,219	27,755	27,160
	1,134,339	1,078,298	1,072,003
Non-interest bearing deposits	129,613	123,191	111,777
Interest bearing deposits	718,771	697,035	696,874
Total deposits	848,384	820,226	808,651
Federal funds and repurchase agreements	20,746	15,205	26,448
Other borrowings	144,097	122,033	116,154
Accrued interest payable	1,636	1,379	1,469
Other liabilities	7,289	7,732	7,994
Total liabilities	1,022,152	966,575	960,716
Noncontrolling joint venture interest	47	1,045	926
Common stock, 4,519,859, 4,565,038 and
4,586,964 shares issued & outstanding	22,599	22,825	22,935
Additional paid-in capital	30,019	31,624	32,320
Retained earnings	58,600	53,873	52,200
Accumulated other comprehensive income	922	2,356	2,906
Total equity	112,140	110,678	110,361
	1,134,339	1,078,298	1,072,003
First M&F Corporation and Subsidiary
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except share data)
	Three Months Ended September 30		Nine Months Ended September 30
	2004	2003	2004	2003
Interest and fees on loans	12,575	12,246	36,909	35,758
Taxable investments	1,382	1,551	4,140	5,262
Tax exempt investments	555	600	1,675	1,791
Federal funds sold	2	5	100	188
Interest bearing bank balances	19	14	71	93
Total interest income	14,533	14,416	42,895	43,092
Interest on deposits	2,942	3,034	8,617	10,581
Interest on short-term borrowings	182	154	464	456
Interest on other borrowings	1,134	889	3,319	2,415
Total interest expense	4,258	4,077	12,400	13,452
Net interest income	10,275	10,339	30,495	29,640
Provision for possible loan losses	620	960	4,079	2,842
Net interest income after loan loss	9,655	9,379	26,416	26,798
Service charges on deposits	1,977	1,898	5,730	5,551
Mortgage banking income	224	479	719	951
Agency commission income	1,077	946	2,874	2,726
Fiduciary and brokerage income	87	92	322	212
Other income	515	393	1,909	1,383
Gains (losses) on AFS investments	(7)	1	46	(19)
Total noninterest income	3,873	3,809	11,600	10,804
Salaries and employee benefits	5,360	4,957	15,267	13,891
Net occupancy expense	575	540	1,699	1,590
Equipment and data processing expenses	942	889	2,877	2,810
Intangible asset amortization	13	34	62	102
Noncontrolling joint venture interest expense	49	78	(999)	270
Other expenses	2,594	2,716	7,447	7,488
Total noninterest expense	9,533	9,214	26,353	26,151
Net income before taxes	3,995	3,974	11,663	11,451
Income taxes	1,214	1,183	3,528	3,368
Net income	2,781	2,791	8,135	8,083
Weighted average shares (basic)	4,532,207	4,595,546	4,551,200	4,620,317
Weighted average shares (diluted)	4,542,462	4,622,831	4,565,957	4,643,854
Basic earnings per share	$0.62	$0.61	$1.79	$1.75
Diluted earnings per share	$0.61	$0.60	$1.78	$1.74
Return on assets (annualized)	1.00%	1.05%	0.99%	1.02%
Return on equity (annualized)	9.98%	10.06%	9.72%	9.71%
Efficiency ratio	65.74%	63.41%	61.06%	62.89%
Net interest margin (annualized, tax-equivalent)	4.24%	4.47%	4.22%	4.28%
Net charge-offs to average loans (annualized)	0.05%	0.20%	0.45%	0.39%
Nonaccrual and 90 day accruing loans to total loans	0.75%	0.81%	0.75%	0.81%
First M&F Corporation
Financial Highlights
	QTD Ended	QTD Ended	QTD Ended	QTD Ended
	September 30	June 30	March 31	December 31
	2004	2004	2004	2003
Per Common Share (diluted):
Net income	0.61	0.60	0.57	0.61
Cash dividends paid	0.25	0.25	0.25	0.25
Book value	24.81	24.26	24.48	24.24
Closing stock price	33.35	31.14	33.51	37.90
Selected Average Balances: (in thousands)
Assets	1,107,013	1,090,834	1,104,631	1,074,285
Loans	810,659	779,171	776,637	780,360
Earning assets	1,002,936	986,108	1,000,681	971,833
Deposits	854,000	848,953	848,912	815,859
Equity	111,441	111,542	111,950	110,707
Selected Ratios:
Return on average assets (annualized)	1.00%	1.01%	0.94%	1.05%
Return on average equity (annualized)	9.98%	9.87%	9.29%	10.15%
Average equity to average assets	10.07%	10.23%	10.13%	10.31%
Net interest margin (annualized, tax-equivalent)	4.24%	4.19%	4.24%	4.44%
Efficiency ratio	65.74%	62.16%	55.36%	62.52%
Net charge-offs to average loans (annualized)	0.05%	0.08%	1.23%	0.55%
Nonaccrual and 90 day accruing loans to total loans	0.75%	0.66%	1.11%	0.77%
Price to book (x)	1.34	1.28	1.37	1.56
Price to earnings (x)	13.45	12.98	14.70	15.53
	Historical Earnings Trends
	Net Income	EPS
	(in thousands)	(diluted)
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
3Q 2002	2,867	0.62
First M&F Corporation
Average Balance Sheets/Yields and Costs (tax-equivalent)
(In thousands with yields and costs annualized)	YTD September, 2004		YTD September, 2003
	Average		Average
	Balance	Yield/Cost	Balance	Yield/Cost
Interest bearing bank balances	6,528	1.46%	9,019	1.37%
Federal funds sold	14,649	0.91%	21,822	1.15%
Taxable investments (amortized cost)	132,554	4.16%	159,436	4.40%
Tax-exempt investments (amortized cost)	53,965	6.60%	54,802	6.95%
Loans held for investment	788,902	6.25%	713,207	6.70%
Total earning assets	996,598	5.88%	958,286	6.15%
Non-earning assets	104,251		99,490
Total average assets	1,100,849		1,057,776
NOW & MMDA	285,791	0.67%	301,609	1.04%
Savings	87,043	1.31%	91,147	1.67%
Certificates of Deposit	356,555	2.36%	344,773	2.74%
Short-term borrowings	18,778	3.29%	18,738	3.24%
Other borrowings	110,947	3.99%	76,941	4.18%
Total interest bearing liabilities	859,114	1.92%	833,208	2.15%
Non-interest bearing deposits	121,246		104,415
Non-interest bearing liabilities	8,845		9,177
Capital	111,644		110,976
Total average liabilities and equity	1,100,849		1,057,776
Net interest spread		3.96%		4.00%
Effect of non-interest bearing deposits		0.24%		0.24%
Effect of leverage		0.02%		0.04%
Net interest margin, tax-equivalent		4.22%		4.28%
Less tax equivalent adjustment:
Investments		0.13%		0.15%
Loans		0.01%		0.01%
Reported book net interest margin		4.08%		4.12%