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

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8-K - FORM 8-K - FIRST M&F CORP/MS	v237729_8k.htm

Exhibit 99.1

First M&F Corp. Investor Information

CONTACT:

John G. Copeland

EVP & Chief Financial Officer

(662) 289-8594

October 20, 2011

FOR IMMEDIATE RELEASE

Steady Margin Improvement bolsters First M&F Core Earnings.

KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) reported today a net profit for the quarter ended September 30, 2011 of $1.330 million compared to $1.245 million at September 30, 2010. Net income for the quarter allocated to common shareholders was $.878 million or $0.10 basic and diluted earnings per share, compared to September 30, 2010 common earnings of $13.565 million and $1.49 per share which included a gain on the exchange of preferred stock of $12.867 million. Common net income for the quarter ended September 30, 2011 was $.883 million or $0.10 per share versus the year-ago quarter common net income of $.804 million excluding the gain on exchange, or $.09 basic and diluted earnings per share. Second quarter of 2011 earnings allocated to common shareholders were $.661 million, or $.07 basic and diluted earnings per share.

Hugh Potts, Jr., Chairman and CEO commented, “The overall upward trend in net interest margin over the last year has provided a strong base for a continuing recovery of earnings which improves our capacity to remediate our credit issues. In that vein, the foreclosure and acquisition and then disposition of Other Real Estate are essential ingredients in cleaning up after a real estate collapse and credit cycle such as we’ve seen since 2008. We have made much progress in that area as reflected by improving credit metrics.”

Net Interest Income

Reported net interest income was up 7.57% compared to the third quarter of 2010, with the net interest margin increasing to 3.72% on a tax equivalent basis in the third quarter of 2011 as compared to 3.60% in the third quarter of 2010. The significant contributors to the increase in net interest margin year over year continues to be the improvement in spreads, primarily due to lower cost of funds supplemented by a trend downward in new nonaccrual loans. The net interest margin for the second quarter of 2011 was 3.75% as compared to 3.59% for the first quarter of 2011 and 3.57% for the fourth quarter of 2010. Loan yields fell to 5.81% in the third quarter of 2011 from 5.90% in the third quarter of 2010. Loan yields decreased from the second quarter of 2011 to the third quarter as well as the Company strove to increase loan volumes in the face of tepid demand. Average loans were $1.035 billion for the third quarter of 2011 as compared to $1.053 billion for the second quarter of 2011 and $1.052 billion during the third quarter of 2010. Loans held for investment decreased by $29.6 million in the third quarter of 2011 and fell by $6.7 million in the second quarter.

Deposit costs decreased in the third quarter of 2011 from the second quarter of 2011 and from the third quarter of 2010, in response to the continuing low rate environment. Deposit costs were 1.10% in the third quarter of 2011 as compared to 1.60% in the third quarter of 2010. Deposits fell by $40.6 million during the third quarter of 2011 consistent with historic seasonal fluctuations but have grown $62.0 million since the third quarter of 2010. Management plans to continue to focus on core deposit growth for 2011 to encourage relationship-driven deposits as a stable source of funding.

Loans held for investment as a percentage of assets were 64.0% at September 30, 2011 as compared to 67.7% at September 30, 2010 and 66.1% at December 31, 2010. Loans held for investment fell by 3.06% since the third quarter of 2010 while deposits grew by 4.69%.

Non-interest Income

Non-interest income, excluding securities transactions and impairment of investments, for the third quarter of 2011 improved by 3.77% compared to the third quarter of 2010, with deposit-related income up 3.50%. Insurance agency commissions were flat quarter over quarter.

A major part of non-interest income is from deposit sources. Deposit revenues for the quarter benefitted from an August, 2011 overdraft fee increase of $6.00 and also continue to be supported by debit card fee income, which was up 15.7% in the third quarter of 2011 compared to the third quarter of 2010, while overdraft fee income was virtually flat.

Non-interest Expenses

Non-interest expenses were up by 7.87% in the third quarter of 2011 as compared to the third quarter of 2010 largely due to higher foreclosed property expenses. Mr. Potts commented, “We initiated a cost savings and efficiency project in the third quarter, Project McKinley, designed to position the bank to better deal with the continuing low-growth economy. The initiative involves the closure or sale by year-end of six branches with commensurate staff reductions throughout the bank. McKinley is an appropriate reflection of changes in customer delivery channel preferences as well as the general economic outlook. The positive overhead effects will be seen in 2012.”

Credit Quality

Annualized net loan charge-offs as a percent of average loans for the third quarter of 2011 were 2.03% as compared to 0.19% for the same period in 2010. Net charge-offs totaled $5.274 million for the quarter versus $.504 million a year ago and $.518 million in the second quarter of 2011. Non-accrual and 90-day past due loans as a percent of total loans were 2.61% at the end of the third quarter of 2011 as compared to 3.61% at the end of the 2010 quarter. The allowance for loan losses as a percentage of loans held for investment was 1.59% at September 30, 2011 as compared to 1.92% at September 30, 2010. The provision for loan losses grew slightly to $2.580 million in the third quarter of 2011 from $2.280 million in the third quarter of 2010. Mr. Potts commented, “Virtually every credit trend we measure is moving in a positive direction in spite of the sluggish economy. Although net charge-offs are up versus the year ago quarter, year-to-date net charge-offs since 2009 continue to fall.”

Balance Sheet

Total assets at September 30, 2011 were $1.587 billion as compared to $1.604 billion at the end of 2010 and $1.547 billion at September 30, 2010. Total loans held for investment were $1.015 billion compared to $1.060 billion at the end of 2010 and $1.047 billion at September 30, 2010. Deposits were $1.384 billion compared to $1.375 billion at the end of 2010 and $1.322 billion at September 30, 2010. Total capital was $110.8 million or $10.23 in book value per common share at September 30, 2011.

In closing, Mr. Potts said, “Much of the business and retail community continues to mark time awaiting a positive shift in public policy toward a less restrictive, less expensive and more market accommodative business climate. We are not, however, content to just “wait and see” what develops. Our specialty lending niches, church and timber lending as well as our SBA credit program, recently named in the top five SBA lenders in Mississippi, are beginning to gain traction. We believe they will bear fruit and add value during the coming periods.”

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)
	September 30		December 31		September 30
	2011		2010		2010
Cash and due from banks	$	42,545	$	45,099	$	36,232
Interest bearing bank balances		66,026		72,103		32,904
Federal funds sold		25,000		25,000		25,000
Securities available for sale (cost of
$301,274, $274,421 and $265,788)		307,167		276,929		272,467
Loans held for sale		11,676		6,242		3,893

Loans		1,014,966		1,060,146		1,047,013
Allowance for loan losses		16,111		16,025		20,077
Net loans		998,855		1,044,121		1,026,936

Bank premises and equipment		40,382		40,696		41,143
Accrued interest receivable		5,915		6,380		6,617
Other real estate		32,722		31,125		38,631
Other intangible assets		4,693		5,013		5,119
Other assets		51,886		51,256		57,693
Total assets	$	1,586,867	$	1,603,964	$	1,546,635

Non-interest bearing deposits	$	222,042	$	212,199	$	220,556
Interest bearing deposits		1,161,817		1,163,213		1,101,323
Total deposits		1,383,859		1,375,412		1,321,879

Federal funds and repurchase agreements		8,374		33,481		25,685
Other borrowings		44,315		50,416		50,141
Junior subordinated debt		30,928		30,928		30,928
Accrued interest payable		1,237		1,470		1,554
Other liabilities		7,374		5,192		7,691
Total liabilities		1,476,087		1,496,899		1,437,878

Preferred stock, 30,000 shares issued and outstanding		17,260		16,390		16,164
Common stock, 9,142,717, 9,106,803 and 9,097,522
shares issued & outstanding		45,714		45,534		45,488
Additional paid-in capital		31,917		31,883		31,893
Nonvested restricted stock awards		647		784		756
Retained earnings		14,016		12,225		12,050
Accumulated other comprehensive income		1,226		249		2,406
Total First M&F Corp equity		110,780		107,065		108,757
Noncontrolling interests in subsidiaries		-		-		-
Total equity		110,780		107,065		108,757
Total liabilities & equity	$	1,586,867	$	1,603,964	$	1,546,635

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
	2011			2010			2011			2010
Interest and fees on loans	$	15,063		$	15,532		$	45,719		$	46,607
Interest on loans held for sale		53			46			121			170
Taxable investments		1,746			1,863			5,448			5,940
Tax exempt investments		318			374			934			1,196
Federal funds sold		16			17			47			67
Interest bearing bank balances		43			23			141			109
Total interest income		17,239			17,855			52,410			54,089

Interest on deposits		3,234			4,471			10,604			14,632
Interest on fed funds and repurchase agreements		8			15			30			49
Interest on other borrowings		479			576			1,512			2,488
Interest on subordinated debt		293			499			1,043			1,487
Total interest expense		4,014			5,561			13,189			18,656

Net interest income		13,225			12,294			39,221			35,433
Provision for possible loan losses		2,580			2,280			7,440			6,940
Net interest income after loan loss		10,645			10,014			31,781			28,493

Service charges on deposits		2,721			2,629			7,652			7,675
Mortgage banking income		524			330			1,203			1,142
Agency commission income		1,010			1,112			2,838			2,945
Fiduciary and brokerage income		146			141			431			406
Other income		558			567			1,969			2,084
Other-than-temporary impairment on securities, net of
$72, $29, $215 and $32 recognized in other
comprehensive income		(200	)		(37	)		(581	)		(403	)
Gains on AFS securities		460			4			2,150			1,716
Total noninterest income		5,219			4,746			15,662			15,565

Salaries and employee benefits		7,457			6,853			21,570			20,571
Net occupancy expense		992			1,023			2,932			2,969
Equipment expenses		476			554			1,392			1,859
Software and processing expenses		368			405			1,162			1,227
FDIC insurance assessments		545			808			1,896			2,493
Foreclosed property expenses		1,483			166			5,304			1,041
Intangible asset amortization and impairment		106			107			320			320
Other expenses		2,716			3,195			8,681			9,382
Total noninterest expense		14,143			13,111			43,257			39,862

Net income before taxes		1,721			1,649			4,186			4,196
Income tax expense		391			407			800			828
Net income		1,330			1,242			3,386			3,368
Net loss attributable to noncontrolling interests		-			(3	)		-			(2	)
Net income attributable to First M&F Corp	$	1,330		$	1,245		$	3,386		$	3,370

Earnings Per Common Share Calculations:
Net income attributable to First M&F Corp	$	1,330		$	1,245		$	3,386		$	3,370
Dividends and accretion on preferred stock		(447	)		(441	)		(1,319	)		(1,317	)
Gain on exchange of preferred stock (Note 1)		-			12,867			-			12,867
Net income applicable to common stock		883			13,671			2,067			14,920
Earnings attributable to participating securities		5			106			13			116
Net income allocated to common shareholders	$	878		$	13,565		$	2,054		$	14,804

Weighted average shares (basic)		9,133,481			9,087,769			9,120,370			9,075,554
Weighted average shares (diluted)		9,133,481			9,087,769			9,120,370			9,075,554
Basic earnings per share	$	0.10		$	1.49		$	0.23		$	1.63
Diluted earnings per share	$	0.10		$	1.49		$	0.23		$	1.63

First M&F Corporation
Financial Highlights
	YTD Ended			YTD Ended			YTD Ended			YTD Ended
	September 30			December 31			September 30			December 31
	2011			2010			2010			2009
Performance Ratios:
Return on assets (annualized)		0.28	%		0.25	%		0.28	%		-3.63	%
Return on equity (annualized) (a)		4.15	%		3.74	%		4.23	%		-42.97	%
Return on common equity (annualized) (a)		3.00	%		2.87	%		3.54	%		-53.73	%
Efficiency ratio (c)		77.85	%		78.47	%		76.86	%		89.87	%
Net interest margin (annualized, tax-equivalent)		3.69	%		3.43	%		3.38	%		3.29	%
Net charge-offs to average loans (annualized)		0.94	%		1.65	%		1.39	%		4.50	%
Nonaccrual loans to total loans		2.59	%		3.11	%		3.53	%		4.17	%
90 day accruing loans to total loans		0.02	%		0.09	%		0.08	%		0.23	%

	QTD Ended			QTD Ended			QTD Ended			QTD Ended
	September 30			June 30			March 31			December 31
	2011			2011			2011			2010
Per Common Share (diluted):
Net income	$	0.10		$	0.07		$	0.06		$	0.03
Cash dividends paid		0.01			0.01			0.01			0.01
Book value		10.23			10.20			9.98			9.96
Closing stock price		3.16			3.78			4.08			3.74

Loan Portfolio Composition: (in thousands)
Commercial, financial and agricultural	$	143,133		$	152,063		$	137,620		$	133,226
Non-residential real estate		603,904			621,546			642,372			646,731
Residential real estate		185,564			187,932			189,290			195,184
Home equity loans		38,320			38,891			38,622			40,305
Consumer loans		44,045			44,163			43,357			44,700
Total loans	$	1,014,966		$	1,044,595		$	1,051,261		$	1,060,146

Deposit Composition: (in thousands)
Noninterest-bearing deposits	$	222,042		$	243,626		$	208,457		$	212,199
NOW deposits		378,409			397,281			411,898			364,209
MMDA deposits		179,138			174,127			161,959			166,455
Savings deposits		118,814			117,830			116,714			114,769
Core certificates of deposit under $100,000		250,130			255,847			261,087			268,272
Core certificates of deposit $100,000 and over		216,655			217,540			222,617			234,500
Brokered certificates of deposit under $100,000		4,686			4,611			2,880			3,074
Brokered certificates of deposit $100,000 and over		13,985			13,637			14,464			11,934
Total deposits	$	1,383,859		$	1,424,499		$	1,400,076		$	1,375,412

Nonperforming Assets: (in thousands)
Nonaccrual loans	$	26,622		$	32,800		$	37,407		$	33,127
Other real estate		32,722			30,650			29,660			31,125
Investment securities		509			693			639			698
Total nonperforming assets	$	59,853		$	64,143		$	67,706		$	64,950
Accruing loans past due 90 days or more	$	252		$	784		$	338		$	951
Restructured loans (accruing)	$	19,712		$	22,988		$	16,320		$	18,052
Total nonaccrual loan to loans		2.59	%		3.13	%		3.55	%		3.11	%
Total nonperforming credit assets to loans and ORE		5.60	%		5.89	%		6.19	%		5.85	%
Total nonperforming assets to assets ratio		3.77	%		3.95	%		4.21	%		4.05	%

Allowance For Loan Loss Activity: (in thousands)
Beginning balance	$	18,805		$	17,043		$	16,025		$	20,077
Provision for loan loss		2,580			2,280			2,580			2,280
Charge-offs		(5,419	)		(1,442	)		(2,147	)		(6,536	)
Recoveries		145			924			585			204
Ending balance	$	16,111		$	18,805		$	17,043		$	16,025

First M&F Corporation
Financial Highlights
	QTD Ended			QTD Ended			QTD Ended			QTD Ended
	September 30			June 30			March 31			December 31
	2011			2011			2011			2010
Condensed Income Statements: (in thousands)

Interest income	$	17,239		$	17,602		$	17,569		$	17,603
Interest expense		4,014			4,331			4,844			5,235
Net interest income		13,225			13,271			12,725			12,368
Provision for loan losses		2,580			2,280			2,580			2,280
Noninterest revenues		5,219			4,712			5,731			4,956
Noninterest expenses		14,143			14,303			14,811			14,628
Net income before taxes		1,721			1,400			1,065			416
Income tax expense (benefit)		391			294			115			(226	)
Noncontrolling interest		-			-			-			1
Net income	$	1,330		$	1,106		$	950		$	641
Preferred dividends		(447	)		(440	)		(432	)		(375	)
Gain on exchange of preferred stock		-			-			-			-
Net income applicable to common stock		883			666			518			266
Earnings (loss) attributable to participating securities		5			5			3			(1	)
Net income allocated to common shareholders	$	878		$	661		$	515		$	267

Tax-equivalent net interest income	$	13,449		$	13,495		$	12,955		$	12,624

Selected Average Balances: (in thousands)
Assets	$	1,592,030		$	1,598,871		$	1,622,363		$	1,574,426
Loans held for investment		1,028,372			1,050,136			1,056,903			1,041,453
Earning assets		1,433,189			1,444,677			1,463,032			1,404,766
Deposits		1,390,835			1,396,331			1,403,733			1,341,738
Equity		110,412			108,911			107,633			109,110
Common equity		93,307			92,096			91,102			90,612

Selected Ratios:
Return on average assets (annualized)		0.33	%		0.28	%		0.24	%		0.16	%
Return on average equity (annualized) (a)		4.78	%		4.07	%		3.58	%		2.33	%
Return on average common equity (annualized) (a)		3.76	%		2.90	%		2.31	%		1.16	%
Average equity to average assets		6.94	%		6.81	%		6.63	%		6.93	%
Tangible equity to tangible assets (b)		6.71	%		6.50	%		6.41	%		6.38	%
Tangible common equity to tangible assets (b)		5.61	%		5.46	%		5.37	%		5.36	%
Net interest margin (annualized, tax-equivalent)		3.72	%		3.75	%		3.59	%		3.57	%
Efficiency ratio (c)		75.76	%		78.56	%		79.26	%		83.22	%
Net charge-offs to average loans (annualized)		2.03	%		0.20	%		0.60	%		2.41	%
Nonaccrual loans to total loans		2.59	%		3.13	%		3.55	%		3.11	%
90 day accruing loans to total loans		0.02	%		0.07	%		0.03	%		0.09	%
Price to book		0.31	x		0.37	x		0.41	x		0.38	x
Price to earnings		7.90	x		13.50	x		17.00	x		31.17	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)
	3Q 2011	$	1,330		$	883		$	878		$	0.10
	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	)

Revenue Statistics:				Non-interest			Non-interest
		Revenues		Revenues to			Revenues to
		Per FTE		Ttl. Revenues			Avg. Assets
		(thousands)		(percent)			(percent)
	3Q 2011	$	36.6		27.96	%		1.30	%
	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	%

Expense Statistics:		Non-interest
		Expense to			Efficiency
		Avg. Assets			Ratio
		(percent)			(percent) (c)
	3Q 2011		3.52	%		75.76	%
	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	%

First M&F Corporation
Average Balance Sheets/Yields and Costs (tax-equivalent)
(In thousands with yields and costs annualized)	QTD September 2011					QTD September 2010
	Average					Average
	Balance		Yield/Cost			Balance		Yield/Cost
Interest bearing bank balances	$	74,683		0.23	%	$	29,023		0.31	%
Federal funds sold		25,000		0.25	%		28,522		0.24	%
Taxable investments (amortized cost)		265,438		2.61	%		235,439		3.14	%
Tax-exempt investments (amortized cost)		33,294		6.04	%		39,743		5.95	%
Loans held for sale		6,402		3.27	%		5,320		3.43	%
Loans held for investment		1,028,372		5.82	%		1,046,242		5.91	%
Total earning assets		1,433,189		4.83	%		1,384,289		5.19	%
Non-earning assets		158,841					169,126
Total average assets	$	1,592,030				$	1,553,415

NOW	$	383,104		0.51	%	$	312,167		1.04	%
MMDA		175,471		0.65	%		149,972		1.11	%
Savings		118,273		1.09	%		115,332		1.27	%
Certificates of Deposit		490,297		1.72	%		528,929		2.15	%
Short-term borrowings		6,319		0.48	%		17,583		0.33	%
Other borrowings		75,641		4.05	%		84,991		5.01	%
Total interest bearing liabilities		1,249,105		1.27	%		1,208,974		1.82	%
Non-interest bearing deposits		223,689					225,223
Non-interest bearing liabilities		8,824					10,683
Preferred equity		17,105					28,988
Common equity		93,307					79,547
Total average liabilities and equity	$	1,592,030				$	1,553,415
Net interest spread				3.56	%				3.37	%
Effect of non-interest bearing deposits				0.19	%				0.29	%
Effect of leverage				-0.03	%				-0.06	%
Net interest margin, tax-equivalent				3.72	%				3.60	%
Less tax equivalent adjustment:
Investments				0.05	%				0.06	%
Loans				0.01	%				0.02	%
Reported book net interest margin				3.66	%				3.52	%

First M&F Corporation
Average Balance Sheets/Yields and Costs (tax-equivalent)
(In thousands with yields and costs annualized)	YTD September 2011					YTD September 2010
	Average					Average
	Balance		Yield/Cost			Balance		Yield/Cost
Interest bearing bank balances	$	79,876		0.24	%	$	59,409		0.24	%
Federal funds sold		25,000		0.25	%		39,228		0.23	%
Taxable investments (amortized cost)		259,198		2.81	%		238,443		3.33	%
Tax-exempt investments (amortized cost)		33,211		6.00	%		42,635		5.98	%
Loans held for sale		4,539		3.55	%		7,707		2.95	%
Loans held for investment		1,045,033		5.86	%		1,046,819		5.97	%
Total earning assets		1,446,857		4.91	%		1,434,241		5.12	%
Non-earning assets		157,453					162,266
Total average assets	$	1,604,310				$	1,596,507

NOW	$	395,544		0.68	%	$	321,618		1.06	%
MMDA		168,287		0.75	%		146,859		1.11	%
Savings		117,299		1.14	%		113,870		1.29	%
Certificates of Deposit		499,313		1.78	%		555,037		2.35	%
Short-term borrowings		12,893		0.31	%		14,029		0.46	%
Other borrowings		77,764		4.39	%		109,245		4.86	%
Total interest bearing liabilities		1,271,100		1.39	%		1,260,658		1.98	%
Non-interest bearing deposits		216,475					220,272
Non-interest bearing liabilities		7,740					9,066
Preferred equity		16,819					28,929
Common equity		92,176					77,582
Total average liabilities and equity	$	1,604,310				$	1,596,507
Net interest spread				3.52	%				3.14	%
Effect of non-interest bearing deposits				0.20	%				0.29	%
Effect of leverage				-0.03	%				-0.05	%
Net interest margin, tax-equivalent				3.69	%				3.38	%
Less tax equivalent adjustment:
Investments				0.05	%				0.07	%
Loans				0.02	%				0.01	%
Reported book net interest margin				3.62	%				3.30	%

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.

Attached files

FIRST M&F CORP/MS Reports

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