Kosciusko — First M&F Corp., for the quarter ended June 30, 2009, recorded a net loss of $5.111 million, or a negative $(.61) basic and diluted earnings per share, compared to the first quarter of 2009 loss of $27.241 million, or negative $(2.99) per share and a loss of $.466 million, or $(.05) basic and diluted earnings per share for the second quarter of 2008.
The reported loss included $6.39 million in extraordinary loan loss provisioning. The quarterly results also included $1.407 million in losses on the sale or write-down of other real estate properties.
Hugh Potts Jr., chairman and CEO of First M&F, said, “The effects of an extended credit cycle and continuing recession take their toll. Our operating loss of $5.1 million makes it apparent that the recovery has not yet had any material effect on the issues that confront First M&F. Special loan impairments continue though at a lesser volume. These are the result of appraisals reflecting further declines in perceived market value of real estate. The special assessment by the FDIC, reappraisal expenses, losses on other real estate and the squeeze on the margin from higher levels of non-performing assets are the primary negative drags on earnings.
“During the quarter, new loan production increased. Mortgage volume continues to be strong and insurance commissions, though soft, still are not far off the year-ago level. Expenses are up, mostly due to credit-related issues, while core overhead expenses on day-to-day operations are at or below previous periods.”
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info