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First M&F records more losses

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 which 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.”


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