(FMFC) - First M&F Corp - company has a price-to-book ratio of 1.4, compared to 4.9 for the market

First M&F Corporation (FMFC), a Zacks #1 Rank stock, beat the third-quarter consensus earnings estimate by 8.1% when it posted profits of 40 cents per share. The company recently opened its first Florida branch, providing FMFC with opportunities for growth in that market. The Board of Directors declared a quarterly cash dividend of 13 cents per share on Nov 9. The company has a price-to-book ratio of 1.4, compared to 4.9 for the market. Full Analysis First M&F Corporation operates as the holding company for Merchants and Farmers Bank of Kosciusko. The company has 46 banking locations throughout Central and North Mississippi, in Shelby County, Alabama, in Southwest Tennessee, including the Memphis metro area and now in Okaloosa County, Florida. On Oct 19, FMFC reported third-quarter profits of $3.7 million, or 40 cents per share. With analysts calling for profits of 37 cents per share, the company surprised to the upside by a solid 8.1%. FMFC posted earnings of 37 cents in the prior-year period. Net interest income increased 20.7% to $13.4 million from $11.1 million in the third quarter of 2005. For the first nine months of the year, profits came in at $10.2 million, compared to $9.5 million for the same period last year. Net interest income jumped 19.9% to $39.2 million from $32.7 million for the first nine months of 2005. Chairman and CEO Hugh S. Potts, Jr. stated, “With the help of our two recent bank acquisitions, we have grown our assets by 21% and deposits by almost 24% since the beginning of the year, creating a growing base from which to offer M&F banking to a broadening footprint in three states. We also look forward to opening our first Florida branch in the fourth quarter of 2006 and the opportunities for growth in that market.” FMFC announced the opening of a branch in Crestview, Okaloosa County, Florida on Nov 20. Consensus estimates for this quarter and next jumped 5.3% and 7.9%, respectively, over the past 60 days. Profit forecasts for this year and next have risen 3.4% and 7.6%, respectively, over the same period of time. The Board of Directors declared a quarterly cash dividend of 13 cents per share of stock on Nov 9. The dividend is payable on Dec 29 to stockholders of record as of Dec 18. FMFC has a current dividend yield of 2.8% and a five-year average dividend yield of 2.9%. FMFC is currently trading at a valuation of 12.5x trailing 12-month earnings and at 12.2x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.7x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.4, compared to 4.9 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home