FIRST M&F CORP/MS - FORM 8-K - EX-99.1

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8-K - FIRST M&F CORP/MS	v229241_8k.htm

Exhibit 99.1


First M&F Corp. Investor Information
CONTACT:	John G. Copeland
	EVP & Chief Financial Officer
	(662) 289-8594

July 20, 2011

FOR IMMEDIATE RELEASE

First M&F Posts Sixth Consecutive Profitable Quarter as Credit Continues to Improve

KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) reported today a net profit for the quarter ended June 30, 2011 of $1.106 million. Net income for the quarter allocated to common shareholders was $.661million, or $.07 basic and diluted earnings per share, compared to the first quarter of 2011 earnings of $.515 million, or $.06 basic and diluted earnings per share and earnings of $.826 million, or $.09 basic and diluted earnings per share for the second quarter of 2010.

Hugh Potts, Jr., Chairman and CEO commented, “The pathway to full recovery continued in the second quarter of 2011 for the sixth consecutive quarter of positive earnings. The progress from 2009 has been substantial and, in many aspects, remarkable. The pace remains less than brisk, yet has brought M&F quite a distance from the trough of the recessionary cycle. The trends are positive and consistent for which we are grateful.”

Net Interest Income

Reported net interest income was improved by 11.54% compared to the second quarter of 2010, with the net interest margin increasing to 3.75% on a tax equivalent basis in the second quarter of 2011 as compared to 3.40% in the second quarter of 2010. The significant contributors to the increase in net interest income year over year was the improvement in spreads, primarily due to lower cost of funds followed by a continuing trend downward in new nonaccrual loans. The net interest margin for the first quarter of 2011 was 3.59% as compared to 3.57% for the fourth quarter of 2010 and 3.60% for the third quarter of 2010. Loan yields fell to 5.85% in the second quarter of 2011 from 6.08% in the second quarter of 2010, with downward pressure on loan pricing more than offsetting yield improvement from fewer new nonaccrual loans. Loan yields fell from the first quarter of 2011 to the second quarter as well. Average loans were $1.050 billion for the second quarter of 2011 as compared to $1.057 billion for the first quarter of 2011 and $1.038 billion during the second quarter of 2010. Loans decreased by $6.7 million in the second quarter of 2011 and fell by $8.9 million in the first quarter. Mr. Potts stated, “Widening margins are a reflection of interest rate conditions and credit improvement somewhat offset by continued sluggish loan demand and growth. Our objective is to outperform the economy…an exciting challenge.”

Deposit costs decreased in the second quarter of 2011 from the first quarter of 2011 and from the second quarter of 2010, in response to the continuing low rate environment. Deposit costs were 1.20% in the second quarter of 2011 as compared to 1.75% in the second quarter of 2010. Deposits grew by $24.4 million during the second quarter of 2011 and have grown $80.7 million since the second quarter of 2010. Management plans to continue to focus on core deposit growth for 2010 to encourage relationship-driven deposits as a stable source of funding.

Loans as a percentage of assets were 64.36% at June 30, 2011 as compared to 66.19% at June 30, 2010 and 66.09% at December 31, 2010. Loans grew by less than 1% since the second quarter of 2010 while deposits grew by 6.00%.

Non-interest Income

Non-interest income, excluding securities transactions and impairment of investments, for the second quarter of 2011 fell by 4.62% compared to the second quarter of 2010, with deposit-related income down 3.62%. Insurance agency commissions were flat quarter over quarter.

A major part of non-interest income is from deposit sources. Although down overall, deposit revenues continue to be supported by debit card fee income, which grew by 18.74% in the second quarter of 2011 compared to the second quarter of 2010, while overdraft fee income fell by 12.96%.

Non-interest Expenses

Non-interest expenses were higher by 7.20% in the second quarter of 2011 as compared to the second quarter of 2010 largely due to higher foreclosed property expenses.

Credit Quality

Annualized net loan charge-offs as a percent of average loans for the second quarter of 2011 were .20% as compared to 2.01% for the same period in 2010. Net charge-offs totaled $.518 million for the quarter versus $5.194 million a year ago and $1.562 million in the first quarter of 2011. Non-accrual and 90-day past due loans as a percent of total loans were 3.20% at the end of the second quarter of 2011 as compared to 3.54% at the end of the 2010 quarter. The allowance for loan losses as a percentage of loans was 1.80% at June 30, 2011 as compared to 1.76% at June 30, 2010. The provision for loan losses fell slightly to $2.280 million in the second quarter of 2011 from $2.380 million in the second quarter of 2010. Mr. Potts commented, “Credit quality as reflected in a lower level of newly occurring credit issues and overall portfolio trends is significantly improving.” Commenting further, Mr. Potts said, “The disposition of non-performing assets continues at a measured pace influenced greatly by the tepid and uncertain economic recovery.”

Balance Sheet

Total assets at June 30, 2011 were $1.623 billion as compared to $1.604 billion at the end of 2010 and $1.568 billion at June 30, 2010. Total loans were $1.045 billion compared to $1.060 billion at the end of 2010 and $1.038 billion at June 30, 2010. Deposits were $1.424 billion compared to $1.375 billion at the end of 2010 and $1.344 billion at June 30, 2010. Total capital was $110.053 million, or $10.20 in book value per common share, at June 30, 2011. Mr. Potts further added, “The M&F team has demonstrated great individual and collective attitudes and dedication resulting in a positive and tenacious approach to dealing with the issues at hand.” In closing Mr. Potts said, “Willingness to deal realistically with these issues with a positive, confident mindset has been both remarkable and gratifying. From the Boardroom to the back room, from our clients’ offices to our lobbies, the M&F family is on task to remove encumbrances to full recovery for our customers, communities and shareholders.”

About First M&F Corporation

First M&F Corp., the parent of M&F Bank, is committed to proceed with its mission of making the mid-south better through the delivery of excellence in financial services to 33 communities in Mississippi, Alabama, Tennessee and Florida.

Caution Concerning Forward-Looking Statements

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in First M&F Corporation's filings with the Securities and Exchange Commission.

First M&F Corporation

Condensed Consolidated Statements of Condition (Unaudited)

(In thousands, except share data)

	June 30		December 31		June 30
	2011		2010		2010
Cash and due from banks	$	41,146	$	45,099	$	34,213
Interest bearing bank balances		103,847		72,103		53,449
Federal funds sold		25,000		25,000		31,000
Securities available for sale (cost of $288,304, $274,421 and $275,867)		293,133		276,929		282,508
Loans held for sale		2,117		6,242		4,484

Loans		1,044,595		1,060,146		1,038,115
Allowance for loan losses		18,805		16,025		18,301
Net loans		1,025,790		1,044,121		1,019,814

Bank premises and equipment		40,564		40,696		41,659
Accrued interest receivable		5,970		6,380		6,572
Other real estate		30,650		31,125		31,231
Other intangible assets		4,799		5,013		5,226
Other assets		50,074		51,256		58,234
Total assets	$	1,623,090	$	1,603,964	$	1,568,390

Non-interest bearing deposits	$	243,626	$	212,199	$	227,825
Interest bearing deposits		1,180,873		1,163,213		1,115,986
Total deposits		1,424,499		1,375,412		1,343,811

Federal funds and repurchase agreements		5,047		33,481		17,045
Other borrowings		45,492		50,416		58,874
Junior subordinated debt		30,928		30,928		30,928
Accrued interest payable		1,306		1,470		1,831
Other liabilities		5,765		5,192		8,194
Total liabilities		1,513,037		1,496,899		1,460,683

Preferred stock, 30,000 shares issued and outstanding		16,962		16,390		28,964
Common stock, 9,131,387, 9,106,803 and 9,069,346 shares issued & outstanding		45,657		45,534		45,347
Additional paid-in capital		31,935		31,883		31,932
Nonvested restricted stock awards		718		784		743
Retained earnings (deficit)		13,224		12,225		(1,529	)
Accumulated other comprehensive income		1,557		249		2,249
Total First M&F Corp equity		110,053		107,065		107,706
Noncontrolling interests in subsidiaries		-		-		1
Total equity		110,053		107,065		107,707
Total liabilities & equity	$	1,623,090	$	1,603,964	$	1,568,390

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
	2011			2010			2011			2010
Interest and fees on loans	$	15,281		$	15,687		$	30,656		$	31,075
Interest on loans held for sale		27			46			68			124
Taxable investments		1,931			2,032			3,702			4,077
Tax exempt investments		302			392			616			822
Federal funds sold		15			24			31			50
Interest bearing bank balances		46			41			98			86
Total interest income		17,602			18,222			35,171			36,234

Interest on deposits		3,523			4,971			7,370			10,161
Interest on fed funds and repurchase agreements		7			15			22			34
Interest on other borrowings		509			846			1,033			1,912
Interest on subordinated debt		292			492			750			988
Total interest expense		4,331			6,324			9,175			13,095

Net interest income		13,271			11,898			25,996			23,139
Provision for possible loan losses		2,280			2,380			4,860			4,660
Net interest income after loan loss		10,991			9,518			21,136			18,479

Service charges on deposits		2,473			2,566			4,931			5,046
Mortgage banking income		323			469			679			812
Agency commission income		936			935			1,828			1,833
Fiduciary and brokerage income		152			144			285			265
Other income		572			558			1,411			1,517
Other-than-temporary impairment on securities, net of $87, $68, $143 and $2 recognized in other comprehensive income		(85	)		(164	)		(381	)		(366	)
Gains on AFS securities		341			708			1,690			1,712
Total noninterest income		4,712			5,216			10,443			10,819

Salaries and employee benefits		7,157			6,893			14,113			13,718
Net occupancy expense		951			977			1,940			1,946
Equipment expenses		451			658			916			1,309
Software and processing expenses		395			417			794			819
FDIC insurance assessments		923			839			1,697			1,685
Foreclosed property expenses		1,468			419			3,821			875
Intangible asset amortization and impairment		107			106			214			213
Other expenses		2,851			3,033			5,619			6,186
Total noninterest expense		14,303			13,342			29,114			26,751

Net income before taxes		1,400			1,392			2,465			2,547
Income tax expense		294			120			409			421
Net income		1,106			1,272			2,056			2,126
Net income attributable to noncontrolling interests		-			-			-			1
Net income attributable to First M&F Corp	$	1,106		$	1,272		$	2,056		$	2,125

Earnings Per Common Share Calculations:
Net income attributable to First M&F Corp	$	1,106		$	1,272		$	2,056		$	2,125
Dividends and accretion on preferred stock		(440	)		(439	)		(872	)		(876	)
Net income applicable to common stock		666			833			1,184			1,249
Earnings attributable to participating securities		5			7			8			10
Net income allocated to common shareholders	$	661		$	826		$	1,176		$	1,239

Weighted average shares (basic)		9,118,267			9,069,346			9,113,706			9,069,346
Weighted average shares (diluted)		9,118,267			9,069,346			9,113,706			9,069,346
Basic earnings per share	$	0.07		$	0.09		$	0.13		$	0.14
Diluted earnings per share	$	0.07		$	0.09		$	0.13		$	0.14

First M&F Corporation

Financial Highlights

	YTD Ended			YTD Ended			YTD Ended			YTD Ended
	June 30			December 31			June 30			December 31
	2011			2010			2010			2009
Performance Ratios:
Return on assets (annualized)		0.26	%		0.25	%		0.26	%		-3.63	%
Return on equity (annualized) (a)		3.83	%		3.74	%		4.06	%		-42.97	%
Return on common equity (annualized) (a)		2.61	%		2.87	%		3.29	%		-53.73	%
Efficiency ratio (c)		78.92	%		78.47	%		77.42	%		89.87	%
Net interest margin (annualized, tax-equivalent)		3.67	%		3.43	%		3.28	%		3.29	%
Net charge-offs to average loans (annualized)		0.40	%		1.65	%		2.00	%		4.50	%
Nonaccrual loans to total loans		3.13	%		3.11	%		3.41	%		4.17	%
90 day accruing loans to total loans		0.07	%		0.09	%		0.17	%		0.23	%

	QTD Ended			QTD Ended			QTD Ended			QTD Ended
	June 30			March 31			December 31			September 30
	2011			2011			2010			2010
Per Common Share (diluted):
Net income	$	0.07		$	0.06		$	0.03		$	1.49
Cash dividends paid		0.01			0.01			0.01			0.01
Book value		10.20			9.98			9.96			10.18
Closing stock price		3.78			4.08			3.74			3.38

Loan Portfolio Composition: (in thousands)
Commercial, financial and agricultural	$	152,063		$	137,620		$	133,226		$	137,824
Non-residential real estate		621,546			642,372			646,731			626,747
Residential real estate		187,932			189,290			195,184			196,299
Home equity loans		38,891			38,622			40,305			40,523
Consumer loans		44,163			43,357			44,700			45,620
Total loans	$	1,044,595		$	1,051,261		$	1,060,146		$	1,047,013

Deposit Composition: (in thousands)
Noninterest-bearing deposits	$	243,626		$	208,457		$	212,199		$	220,556
NOW deposits		397,281			411,898			364,209			307,533
MMDA deposits		174,127			161,959			166,455			162,955
Savings deposits		117,830			116,714			114,769			117,175
Core certificates of deposit under $100,000		255,847			261,087			268,272			267,350
Core certificates of deposit $100,000 and over		217,540			222,617			234,500			228,543
Brokered certificates of deposit under $100,000		4,611			2,880			3,074			3,005
Brokered certificates of deposit $100,000 and over		13,637			14,464			11,934			14,762
Total deposits	$	1,424,499		$	1,400,076		$	1,375,412		$	1,321,879

Nonperforming Assets: (in thousands)
Nonaccrual loans	$	32,800		$	37,407		$	33,127		$	37,082
Other real estate		30,650			29,660			31,125			38,631
Investment securities		693			639			698			596
Total nonperforming assets	$	64,143		$	67,706		$	64,950		$	76,309
Accruing loans past due 90 days or more	$	784		$	338		$	951		$	858
Restructured loans (accruing)	$	22,988		$	16,320		$	18,052		$	18,518
Total nonaccrual loan to loans		3.13	%		3.55	%		3.11	%		3.53	%
Total nonperforming credit assets to loans and ORE		5.89	%		6.19	%		5.85	%		6.95	%
Total nonperforming assets to assets ratio		3.95	%		4.21	%		4.05	%		4.93	%

Allowance For Loan Loss Activity: (in thousands)
Beginning balance	$	17,043		$	16,025		$	20,077		$	18,301
Provision for loan loss		2,280			2,580			2,280			2,280
Charge-offs		(1,442	)		(2,147	)		(6,536	)		(1,485	)
Recoveries		924			585			204			981
Ending balance	$	18,805		$	17,043		$	16,025		$	20,077

First M&F Corporation

Financial Highlights

	QTD Ended			QTD Ended			QTD Ended			QTD Ended
	June 30			March 31			December 31			September 30
	2011			2011			2010			2010
Condensed Income Statements: (in thousands)

Interest income	$	17,602		$	17,569		$	17,603		$	17,855
Interest expense		4,331			4,844			5,235			5,561
Net interest income		13,271			12,725			12,368			12,294
Provision for loan losses		2,280			2,580			2,280			2,280
Noninterest revenues		4,712			5,731			4,956			4,746
Noninterest expenses		14,303			14,811			14,628			13,111
Net income before taxes		1,400			1,065			416			1,649
Income tax expense (benefit)		294			115			(226	)		407
Noncontrolling interest		-			-			1			(3	)
Net income	$	1,106		$	950		$	641		$	1,245
Preferred dividends		(440	)		(432	)		(375	)		(441	)
Gain on exchange of preferred stock (Note 1)		-			-			-			12,867
Net income applicable to common stock		666			518			266			13,671
Earnings (loss) attributable to participating securities		5			3			(1	)		106
Net income allocated to common shareholders	$	661		$	515		$	267		$	13,565

Tax-equivalent net interest income	$	13,495		$	12,955		$	12,624		$	12,563

Selected Average Balances: (in thousands)
Assets	$	1,598,871		$	1,622,363		$	1,574,426		$	1,553,415
Loans held for investment		1,050,136			1,056,903			1,041,453			1,046,242
Earning assets		1,444,677			1,463,032			1,404,766			1,384,289
Deposits		1,396,331			1,403,733			1,341,738			1,331,624
Equity		108,911			107,633			109,110			108,535
Common equity		92,096			91,102			90,612			79,547

Selected Ratios:
Return on average assets (annualized)		0.28	%		0.24	%		0.16	%		0.32	%
Return on average equity (annualized) (a)		4.07	%		3.58	%		2.33	%		4.55	%
Return on average common equity (annualized) (a)		2.90	%		2.31	%		1.16	%		4.01	%
Average equity to average assets		6.81	%		6.63	%		6.93	%		6.99	%
Tangible equity to tangible assets (b)		6.50	%		6.41	%		6.38	%		6.72	%
Tangible common equity to tangible assets (b)		5.46	%		5.37	%		5.36	%		5.67	%
Net interest margin (annualized, tax-equivalent)		3.75	%		3.59	%		3.57	%		3.60	%
Efficiency ratio (c)		78.56	%		79.26	%		83.22	%		75.75	%
Net charge-offs to average loans (annualized)		0.20	%		0.60	%		2.41	%		0.19	%
Nonaccrual loans to total loans		3.13	%		3.55	%		3.11	%		3.53	%
90 day accruing loans to total loans		0.07	%		0.03	%		0.09	%		0.08	%
Price to book		0.37	x		0.41	x		0.38	x		0.33	x
Price to earnings		13.50	x		17.00	x		31.17	x		0.57	x

First M&F Corporation

Financial Highlights

Historical Earnings Trends:
					Earnings			Earnings
					Applicable to			Allocated to
					Common			Common
		Earnings			Stock			Shareholders			EPS
		(in thousands)			(in thousands)			(in thousands)			(diluted)
	2Q 2011	$	1,106		$	666		$	661		$	0.07
	1Q 2011		950			518			515			0.06
	4Q 2010		641			266			267			0.03
	3Q 2010		1,245			13,671			13,565			1.49
	2Q 2010		1,272			833			826			0.09
	1Q 2010		853			416			413			0.05
	4Q 2009		(27,311	)		(27,747	)		(27,488	)		(3.03	)
	3Q 2009		(136	)		(571	)		(580	)		(0.06	)
	2Q 2009		(5,111	)		(5,550	)		(5,498	)		(0.61	)

Revenue Statistics:
					Non-interest			Non-interest
		Revenues			Revenues to			Revenues to
		Per FTE			Ttl. Revenues			Avg. Assets
		(thousands)			(percent)			(percent)
	2Q 2011	$	36.6			25.88	%		1.18	%
	1Q 2011		37.9			30.67	%		1.43	%
	4Q 2010		35.4			28.19	%		1.25	%
	3Q 2010		34.9			27.42	%		1.21	%
	2Q 2010		35.1			29.98	%		1.31	%
	1Q 2010		34.4			32.66	%		1.39	%
	4Q 2009		32.8			26.09	%		1.05	%
	3Q 2009		34.4			29.81	%		1.30	%
	2Q 2009		31.2			29.92	%		1.24	%

Expense Statistics:
		Non-interest
		Expense to			Efficiency
		Avg. Assets			Ratio
		(percent)			(percent) (c)
	2Q 2011		3.59	%		78.56	%
	1Q 2011		3.70	%		79.26	%
	4Q 2010		3.69	%		83.22	%
	3Q 2010		3.35	%		75.75	%
	2Q 2010		3.35	%		76.69	%
	1Q 2010		3.32	%		78.16	%
	4Q 2009		8.25	%		106.73	%
	3Q 2009		3.41	%		78.34	%
	2Q 2009		3.94	%		95.10	%

First M&F Corporation

Average Balance Sheets/Yields and Costs (tax-equivalent)

(In thousands with yields and costs annualized)

	QTD June 2011					QTD June 2010
	Average					Average
	Balance		Yield/Cost			Balance		Yield/Cost
Interest bearing bank balances	$	71,291		0.26	%	$	68,553		0.24	%
Federal funds sold		25,000		0.25	%		39,548		0.24	%
Taxable investments (amortized cost)		262,915		2.95	%		243,858		3.34	%
Tax-exempt investments (amortized cost)		32,407		5.98	%		41,696		6.01	%
Loans held for sale		2,928		3.75	%		6,363		2.90	%
Loans held for investment		1,050,136		5.85	%		1,038,148		6.08	%
Total earning assets		1,444,677		5.00	%		1,438,166		5.16	%
Non-earning assets		154,194					160,119
Total average assets	$	1,598,871				$	1,598,285

NOW	$	400,942		0.71	%	$	322,791		1.06	%
MMDA		167,657		0.77	%		143,445		1.13	%
Savings		117,783		1.12	%		113,983		1.28	%
Certificates of Deposit		493,722		1.76	%		559,825		2.40	%
Short-term borrowings		8,637		0.34	%		10,728		0.57	%
Other borrowings		77,440		4.15	%		111,440		4.82	%
Total interest bearing liabilities		1,266,181		1.37	%		1,262,212		2.01	%
Non-interest bearing deposits		216,227					222,318
Non-interest bearing liabilities		7,552					8,374
Preferred equity		16,815					28,931
Common equity		92,096					76,450
Total average liabilities and equity	$	1,598,871				$	1,598,285
Net interest spread				3.63	%				3.15	%
Effect of non-interest bearing deposits				0.20	%				0.30	%
Effect of leverage				-0.08	%				-0.05	%
Net interest margin, tax-equivalent				3.75	%				3.40	%
Less tax equivalent adjustment:
Investments				0.05	%				0.06	%
Loans				0.02	%				0.02	%
Reported book net interest margin				3.68	%				3.32	%

First M&F Corporation

Average Balance Sheets/Yields and Costs (tax-equivalent)

(In thousands with yields and costs annualized)

	YTD June 2011					YTD June 2010
	Average					Average
	Balance		Yield/Cost			Balance		Yield/Cost
Interest bearing bank balances	$	82,515		0.24	%	$	74,854		0.23	%
Federal funds sold		25,000		0.25	%		44,670		0.22	%
Taxable investments (amortized cost)		256,026		2.92	%		239,969		3.43	%
Tax-exempt investments (amortized cost)		33,169		5.98	%		44,105		5.99	%
Loans held for sale		3,593		3.81	%		8,920		2.81	%
Loans held for investment		1,053,501		5.88	%		1,047,113		6.00	%
Total earning assets		1,453,804		4.94	%		1,459,631		5.09	%
Non-earning assets		156,748					158,780
Total average assets	$	1,610,552				$	1,618,411

NOW	$	401,866		0.76	%	$	326,422		1.07	%
MMDA		164,635		0.81	%		145,276		1.11	%
Savings		116,805		1.17	%		113,126		1.30	%
Certificates of Deposit		503,896		1.81	%		568,309		2.45	%
Short-term borrowings		16,235		0.27	%		12,223		0.56	%
Other borrowings		78,843		4.56	%		121,573		4.81	%
Total interest bearing liabilities		1,282,280		1.44	%		1,286,929		2.05	%
Non-interest bearing deposits		212,809					217,756
Non-interest bearing liabilities		7,188					8,244
Preferred equity		16,674					28,900
Common equity		91,601					76,582
Total average liabilities and equity	$	1,610,552				$	1,618,411
Net interest spread				3.50	%				3.04	%
Effect of non-interest bearing deposits				0.21	%				0.30	%
Effect of leverage				-0.04	%				-0.06	%
Net interest margin, tax-equivalent				3.67	%				3.28	%
Less tax equivalent adjustment:
Investments				0.05	%				0.07	%
Loans				0.01	%				0.01	%
Reported book net interest margin				3.61	%				3.20	%

First M&F Corporation

Notes to Financial Schedules

(a)	Return on equity is calculated as: (Net income attributable to First M&F Corp) divided by (Total equity)

Return on common equity is calculated as: (Net income attributable to First M&F Corp minus preferred dividends) divided by (Total First M&F Corp equity minus preferred stock)

(b)	Tangible equity to tangible assets is calculated as: (Total equity minus goodwill and other intangible assets) divided by (Total assets minus goodwill and other intangible assets)

Tangible common equity to tangible assets is calculated as: (Total First M&F Corp equity minus preferred stock minus goodwill and other intangible assets) divided by (Total assets minus goodwill and other intangible assets)

(c)	Efficiency ratio is calculated as: (Noninterest expense) divided by (Tax-equivalent net interest income plus noninterest revenues)

Note 1: On September 29, 2010 the Company issued 30,000 shares of Class B, Series CD, par value $1,000 preferred stock to the U.S. Treasury to acquire its 30,000 shares outstanding of Class B, Series A, par value $1,000 preferred stock. The Series CD preferred stock issued has a dividend rate of 2.00%. The estimated fair value of the Series CD preferred stock as of September 29, 2010 was $16,159,000. The Series A preferred stock carried a dividend rate of 5.00% and had a book value of $29,026,000 as of September 29, 2010. The acquisition of the Series A shares in exchange for the Series CD shares resulted in a gain of $12,867,000 which was recorded as a credit to retained earnings.

FIRST M&F CORP/MS - FORM 8-K - EX-99.1 - July 20, 2011

Attached files

FIRST M&F CORP/MS Reports