Regional bank M&F puts losses of 2009 behind it

KOSCIUSKO — Regional banking company First M&F Corp found the black in 2010, turning a loss of $60.6 million in 2009 into net income of $4 million.

Helped by an exchange of preferred stock, earnings to common shareholders totaled $15 million, or $1.66 per share, compared to a loss of $60.6 million, or  $6.69 a share, for 2009.

Earnings attributable to common shareholders includes a $12.867 million gain on exchange of preferred stock recorded in the third quarter. Excluding the gain on exchange, common earnings were $2.3 million, or 25 cents a share.

Net income attributable to shareholders for the fourth quarter ended Dec. 31 totaled $267,000, or 3 cents a share. That’s a reversal from the same quarter in 2009, when losses totaled $27.5 million, or $3.03 a share, said officials of First M&F, a $1.6 billion regional bank with 33 locations in Mississippi, Alabama, Tennessee and Florida.

Chairman & CEO Hugh S. Potts Jr. said virtually every credit related measure improved in 2010. “Actions taken during 2009 bore fruit in 2010,” he said.

Losses on charge-offs on loans were reduced from $49 million to $17 million. And non-accrual loans declined from 4.17 percent to 3.11 percent, the bank said.