UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 10-Q

                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

For quarter ended June 30, 2000                      Commission File No. 0-6764
                  -------------                                          ------

                             Fortune Financial, Inc.
    ------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


              Florida                                    59-1218935
---------------------------------            -----------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)


10475-103 Fortune Parkway, Jacksonville, Florida                          32256
-------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)

Registrant's telephone number, including area code   (904) 363-6339
                                                   --------------------


                           Mobile America Corporation
-------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                    Yes  X    No
                                        ---     ---

                     (APPLICABLE ONLY TO CORPORATE ISSUERS)

There  were  7,467,542  shares  of common  stock,  par  value  $.025 per  share,
outstanding as of the close of business on August 10, 2000.

<PAGE>


                             Fortune Financial, Inc.

                                      INDEX

                                                                           Page

Part I.  Financial Information
------------------------------

Item 1.  Financial Statements
           Unaudited Consolidated Balance Sheets                              3
           Unaudited Consolidated Statements of Operations                    4
           Unaudited Consolidated Statements of Comprehensive Income          5
           Unaudited Consolidated Statements of Cash Flows                    6
           Unaudited Consolidated Statements of Changes
               in Stockholders' Equity                                        7
           Notes to Financial Statements                                   8-12

Item 2.  Management's Discussion and Analysis
               of Financial Condition and Results of Operations           13-17

Item 3.  Quantitative and Qualitative Disclosures About Market Risk          17


Part II.  Other Information
---------------------------

Item 4.  Submission of Matters to a Vote of Security Holders                 18

Item 6.  Exhibits and Reports on Form 8-K
           (a) List of Exhibits                                              18
           (b) Reports on Form 8-K                                           18


Signatures                                                                   19
----------


Exhibits                                                                     20
--------




                                       -2-


<PAGE>


                    Fortune Financial, Inc. and Subsidiaries
                      Unaudited Consolidated Balance Sheets
                       June 30, 2000 and December 31, 1999

                 Assets                              2000               1999
-------------------------------------------------------------------------------

Investments:

   Securities available for sale at fair value
     (amortized cost $19,848,755
      and $32,553,832)                           $ 19,707,522      $32,567,745

   Short-term investments                           3,469,737        9,033,284
                                                  ----------------------------

     Total investments                             23,177,259       41,601,029
                                                  ----------------------------

Cash                                                4,713,255        1,178,791

Receivables:
   Insurance premiums                                 370,557          789,274
   Accrued investment income                          347,017          515,636
   Reinsurance, paid losses and other              14,849,326       12,314,049
   Reinsurance recoverable, unpaid losses          10,075,622       13,706,562
   Other receivables                                   58,350          238,258
   Current income taxes                             1,597,889        1,979,781
                                                  -----------------------------

      Total receivables                            27,298,761       29,543,560
                                                  -----------------------------

Deferred income tax                                 9,774,432        6,724,450

Ceded unearned premium                              8,793,607        8,320,995

Deferred policy acquisition costs                    (377,162)        (598,592)


Property and equipment                              1,911,285        2,038,187

Equity in pools and associations                      943,131          943,130

Other assets                                          376,050          400,124
                                                  ----------------------------


                                                  $76,610,618      $90,151,674
                                                  ============================

See notes to consolidated financial statements.

<PAGE>
                    Fortune Financial, Inc. and Subsidiaries
                      Unaudited Consolidated Balance Sheets
                       June 30, 2000 and December 31, 1999

        Liabilities and Stockholders' Equity           2000             1999
 ------------------------------------------------------------------------------

Insurance loss reserves, including life insurance
    policy benefits of $18,477 and $18,477        $20,493,433      $26,024,918
Unearned premium                                   20,181,482       18,376,039
Unearned service fees                                   8,945           93,305
Contractholders funds                               1,168,597        1,550,109
Reinsurance funds withheld and
    balances payable                                6,305,852        7,129,761
Claim payments outstanding                          2,992,765        3,039,004
Accrued expenses and other liabilities              1,969,162        2,307,233
Notes payable                                       4,125,436        7,200,000
                                             ----------------------------------

         Total liabilities                         57,245,672       65,720,369
                                             ----------------------------------

Stockholders' equity:
Common stock, $.025 par value per share
    Authorized - 18,000,000 shares
    Issued - 7,944,414 shares                         198,610          198,610

Preferred stock, $.10 par value per share
    Authorized - 500,000 shares
    Issued and outstanding - none                           0                0

Capital in excess of par value                      5,185,092        5,185,092


Accumulated other comprehensive income:
Net unrealized appreciation (depreciation)
    on securities available for sale net of
    deferred income taxes of $0 and $4,730           (143,104)           9,182

Treasury stock at cost, 476,872 shares             (1,233,069)      (1,233,069)

Shareholders' notes, 300,000 shares                  (843,750)        (843,750)

Retained earnings                                  16,201,167       21,115,240
                                             ----------------------------------

           Total stockholders' equity              19,364,946       24,431,305
                                             ----------------------------------
                                                  $76,610,618      $90,151,674
                                             ==================================

See notes to consolidated financial statements.

                                       3
<PAGE>

<TABLE>



                   Fortune Financial, Inc. and Subsidiaries
                Unaudited Consolidated Statements of Operations
 Quarters ended June 30, 2000 and 1999, Six Months Ended June 30, 2000 and 1999

                                               Quarters Ended June 30             Six Months Ended June 30
                                                2000           1999                  2000           1999
                                            -----------------------------       ------------------------------
<S>                                             <C>            <C>                  <C>            <C>
Revenues:
  Insurance premiums earned net of
    premiums ceded of $5,135,867, $9,483,587,
    $10,107,269 and $20,693,167                $5,643,879     $7,565,290           $11,297,599    $15,997,935
  Service fees earned                             843,566      1,430,199             1,611,314      3,310,401
  Investment income                               443,576        919,077               916,570      1,920,658
  Other                                           113,336          7,476               157,766         14,929
  Net realized gains(losses) on investments       136,068         65,397              (267,829)        57,306
                                            -----------------------------       ------------------------------
        Total revenues                          7,180,425      9,987,439            13,715,420     21,301,229
                                            -----------------------------       ------------------------------


Expenses:
  Losses and loss adjustment expenses, net of
     reinsurance recoveries of $4,146,494,
     $12,933,684, $8,930,040 and
     $21,479,422                                7,500,605      8,951,509            11,205,456     16,506,346
  Policy acquisition costs                      1,149,021      3,625,641             2,557,948      3,386,381
  Salaries and wages                            1,588,634      1,730,073             3,278,965      3,350,566
  General and administrative expenses           2,501,932      2,154,073             4,374,609      3,662,620
  Interest expense                                105,625        163,616               257,378        342,383
                                            -----------------------------       ------------------------------
        Total expenses                         12,845,817     16,624,912            21,674,356     27,248,296
                                            -----------------------------       ------------------------------


Income (loss) before provision for income
  taxes                                        (5,665,392)    (6,637,473)           (7,958,936)    (5,947,067)
                                            -----------------------------       ------------------------------

Provision and (benefit) for income taxes:
  Current                                               0     (2,493,871)                    0     (1,931,911)
  Deferred                                     (2,152,086)      (106,867)           (3,045,253)      (512,816)
                                            -----------------------------       ------------------------------

    Total provision (benefit) for
      income taxes                             (2,152,086)    (2,600,738)           (3,045,253)    (2,444,727)
                                             -----------------------------       ------------------------------


Net income (loss)                              ($3,513,306)   ($4,036,735)          ($4,913,683)   ($3,502,340)
                                             =============================       ==============================

Basic and diluted earnings (loss) per share:
Net income (loss)                                  ($0.47)        ($0.56)               ($0.66)        ($0.49)
                                             =============================       ==============================


Dividends per share                                  $0.00          $0.00                $0.00          $0.11
                                             =============================       ==============================

See notes to consolidated financial statements.

</TABLE>
                                       -4-

<PAGE>
<TABLE>


                    Fortune Financial, Inc. and Subsidiaries
                  Unaudited Statements of Comprehensive Income
Quarters Ended June 30, 2000 and 1999 and Six Months Ended June 30, 2000 and 1999



                                                    Quarters Ended June 30            Six Months Ended June 30
                                                    2000              1999             2000              1999
                                               ---------------   ---------------  ---------------   ---------------


<S>                                              <C>              <C>              <C>               <C>
Net income (loss)                                ($3,513,306)     ($4,036,735)     ($4,913,683)      ($3,502,340)
                                                -------------   --------------   --------------    --------------

Other comprehensive income:

Unrealized gains (losses) on securities:
        Unrealized holding gains (losses)
        arising during period net of taxes
        $6,863, $(82,113), $(138,232) and
        $(151,960)                                  (129,783)        (159,397)        (411,438)         (294,982)
Reclassification adjustment for (gain) losses
         included in net income (loss) net of
         taxes $6,863, $(13,107), $133,502
         and $(10,093)                                (4,380)         (25,443)         259,152           (19,593)
                                                 ------------   --------------   --------------    --------------

Other comprehensive income (loss)                   (134,163)        (184,840)        (152,286)         (314,575)
                                                 ------------   --------------   --------------    --------------

Comprehensive income (loss)                      ($3,647,469)     ($4,221,575)     ($5,065,969)      ($3,816,915)
                                                 ============   ==============   ==============    ==============


See notes to consolidated financial statements.

</TABLE>



                                       -5-


<PAGE>
<TABLE>


                    Fortune Financial, Inc. and Subsidiaries
                 Unaudited Consolidated Statements of Cash Flows
                     Six Months Ended June 30, 2000 and 1999

                                                                    2000           1999
                                                               -----------------------------
Cash Flows from Operating Activities:
<S>                                                              <C>             <C>
   Net income (loss)                                             ($4,913,683)    ($3,502,340)
   Adjustments to reconcile net income (loss) to
    net cash used in operating activities:
   Provision for depreciation                                        260,213         188,409
   Loss (gain) on sale of investments                                267,829         (57,306)
   Change in assets and liabilities:
     Insurance premiums receivable                                   418,717         388,998
     Accrued investment income and other receivables                 348,527         349,249
     Deferred policy acquisition costs                              (221,430)     (1,163,222)
     Prepaid expenses and other assets                                24,074          35,542
     Insurance loss reserves                                      (5,531,485)      1,957,964
     Unearned premium                                              1,805,443         450,886
     Contractholder funds                                           (381,512)     (9,643,041)
     Reinsurance funds held and balances payable                    (823,909)     (3,523,201)
     Claim payments outstanding                                      (46,239)      1,598,856
     Accrued expenses                                               (338,071)        (86,133)
     Current income taxes                                            381,892      (1,236,326)
     Deferred income taxes                                        (3,049,982)       (512,816)
     Ceded unearned premium                                         (472,612)      2,990,791
     Reinsurance receivable                                        1,095,663      (1,968,671)
     Unearned service fees                                           (84,360)       (254,340)
                                                               -----------------------------
            Net cash used in operating activities                (11,260,925)    (13,986,701)
                                                               -----------------------------

Cash Flows from Investing Activities:
   Net change in short term investments                            5,563,547       9,593,600
   Purchase of investments                                       (13,175,586)     (4,222,339)
   Proceeds from sale and maturity of investments                 25,615,303      11,088,492
   Purchase of property and equipment                               (133,311)       (113,240)
                                                               -----------------------------
            Net cash provided by investing activities             17,869,953      16,346,513
                                                               -----------------------------

Cash Flows from Financing Activities:
   Principal payment, note payable                                (3,200,000)     (1,200,000)
   Principal, note payable                                           125,436               0
   Dividends paid to stockholders                                          0        (783,110)
                                                               -----------------------------
            Net cash used in financing activities                 (3,074,564)     (1,983,110)
                                                               -----------------------------

Net change in cash                                                 3,534,464         376,702

Cash, beginning of period                                          1,178,791       1,082,422
                                                               -----------------------------

Cash, end of period                                               $4,713,255      $1,459,124
                                                               =============================

See notes to consolidated financial statements.

</TABLE>

                                       -6-

<PAGE>




                    Fortune Financial, Inc. and Subsidiaries
      Unaudited Consolidated Statements of Changes in Stockholders' Equity
                     Six Months Ended June 30, 2000 and 1999

                                                           2000         1999
                                                       -------------------------
Common stock:
          No change during period                        $198,610      $191,110
                                                       -------------------------

Preferred stock:
          No change during period                               0             0
                                                       -------------------------

Capital in excess of par value:
          No change during period                       5,185,092     4,348,842
                                                       -------------------------

Accumulated other comprehensive income:
Net unrealized appreciation (depreciation)
 on securities available for sale:
          Balance at beginning of period                    9,182       448,444
          Increase (decrease)                            (157,016)     (476,628)
          Deferred taxes on unrealized gains                4,730       162,054
                                                       -------------------------

          Balance at end of period                       (143,104)      133,870
                                                       -------------------------

Treasury stock:
          No change during period                      (1,233,069)   (1,233,069)
                                                       -------------------------

Shareholders' notes:
          No change during period                        (843,750)            0
                                                       -------------------------

Retained earnings:
          Balance at beginning of period, restated
            for 1999                                   21,115,240    31,807,815
          Net income (loss)                            (4,913,683)   (3,502,340)
          Cash dividends $0 and $.11 per share               (390)     (783,110)
                                                       -------------------------

          Balance at end of period                     16,201,167    27,522,365
                                                       -------------------------


Total stockholders' equity at end of period           $19,364,946   $30,963,118
                                                       =========================

See notes to consolidated financial statements.

                                       -7-

<PAGE>


                    Fortune Financial, Inc. and Subsidiaries
              Notes to Unaudited Consolidated Financial Statements


Note 1.  Basis of Presentation
------------------------------

In the  opinion of  management,  the  accompanying  balance  sheets and  related
interim  statements of income,  comprehensive  income and cash flows include all
adjustments (which include  reclassifications and normal recurring  adjustments)
necessary to present fairly the financial position and results of operations and
cash flows at June 30, 2000 and for all periods presented.  Preparing  financial
statements requires management to make estimates and assumptions that affect the
reported amounts of assets,  liabilities,  revenues and expenses. Actual results
may differ from these estimates.  Interim results are not necessarily indicative
of results for a full year. The information included in this Form 10-Q should be
read in  conjunction  with  Management's  Discussion  and Analysis and financial
statements and notes thereto included in the Fortune Financial, Inc. 1999 10-K.

Certain amounts in prior years' financial  statements have been  reclassified to
conform to the 2000 presentation.


Note 2.  Prior Period Adjustment
--------------------------------

Beginning  retained earnings for the period ended June 30, 1999 has been reduced
by $996,283 from its  previously  reported  amount of  $32,804,098 to correct an
error in applying the minimum ceding commission rate on one of Fortune Insurance
Company's  quota share  reinsurance  agreements  during 1996. The impact of this
adjustment was reported in the Company's 1999 10-K Report.


Note 3  Credit Agreement
------------------------

The  Company  has a Credit  Agreement  with  SouthTrust  Bank  with a  remaining
principal balance at June 30, 2000 of $4 million. That Credit Agreement contains
certain financial  covenants which,  because of its second quarter results,  the
Company did not meet.  The covenants  require the Company to maintain a combined
minimum statutory surplus in its insurance subsidiaries of $11 million, maintain
minimum  consolidated  shareholders'  equity  of  $22  million,  and  not  incur
cumulative  net losses  commencing in 2000 in excess of $2 million.  At June 30,
2000 the Company reported combined


                                       -8-

<PAGE>

                    Fortune Financial, Inc. and Subsidiaries
              Notes to Unaudited Consolidated Financial Statements

Note 3  Credit Agreement (continued)
-----------------------------------

statutory surplus of $9.3 million,  shareholders' equity of $19.4 million, and a
year-to-date net loss of $4.9 million.  The Company has notified the Bank of its
failure to meet the  financial  covenants and will work with the Bank to resolve
the issues.  Under the terms of the Credit  Agreement  the Bank may give written
notice of the failures to meet the financial  covenants,  demanding cure. Should
the Company be unable to comply  with the Bank's  demand for cure within 30 days
of such  notice  an event of  default  will  occur,  at which  time the Bank may
declare the  remaining  amounts  immediately  due and  payable,  or pursue other
rights at law under the terms of the Credit Agreement.


Note 4.  Earnings Per Share
---------------------------

Basic  earnings per share is computed  based on the weighted  average  number of
common shares outstanding during the period. Diluted earnings per share presents
the dilutive effect of options using the treasury stock method.

<TABLE>

                                                     Quarters Ended June 30             Six Months Ended June 30
                                                     ----------------------             -------------------------
                                                      2000           1999                    2000            1999
                                                      ----           ----                    ----            ----
Numerator:
<S>                                                <C>            <C>                     <C>             <C>
Income (loss) available to common shareholders     ($3,513,306)   ($4,036,735)            ($4,913,683)    ($3,502,340)
                                                   ============   ============            ============    ============

Denominator:
  Basic earnings per share
  Weighted average shares                            7,467,542      7,167,542               7,467,542       7,167,542

Effect of dilution:
  Employee stock options                                     0              0                       0               0
                                                             -              -                       -               -


Diluted earnings per share adjusted weighted
average shares and assumed conversions               7,467,542      7,167,542               7,467,542       7,167,542
                                                    ==========     ==========              ==========       =========

Basic earnings (loss) per share                        ($0.47)        ($0.56)                 ($0.66)         ($0.49)
                                                       =======        =======                 =======         =======

Diluted earnings (loss) per share                      ($0.47)        ($0.56)                 ($0.66)         ($0.49)
                                                       =======        =======                 =======         =======

</TABLE>


                                       -9-
<PAGE>


                    Fortune Financial, Inc. and Subsidiaries
              Notes to Unaudited Consolidated Financial Statements


Note 5.  Business Segments
--------------------------

The  Company  and  its  subsidiaries   operate  exclusively  in  Florida  within
principally  six business  segments:  automobile  insurance,  excess and surplus
lines  property  insurance,  fee for service  administration,  premium  finance,
corporate  and other  miscellaneous.  The  automobile  insurance  segment  sells
personal  lines  automobile  insurance  through  independent   insurance  agents
primarily  in south  Florida.  The  excess  and  surplus  lines  segment  writes
specialized  property  insurance  coverage.  The Company has not written any new
policies  during 2000 due to the current high cost of  reinsurance.  The fee for
service  segment  contracts as a servicing  carrier for the Florida  Residential
Property and Casualty Joint  Underwriting  Association,  the Florida  Automobile
Joint  Underwriting  Association  and as a subcontractor  for Policy  Management
Systems Corporation  performing various  underwriting and claims  administration
services for a fee.  This segment is currently in run-off.  The premium  finance
segment finances policies written through the Company's insurance  subsidiaries;
the operating  activities of this segment have been transferred to a third party
under a joint  venture  agreement.  The corporate  segment  includes home office
revenues and assets that are not specific to any particular  segment.  The other
category is  attributable  to a life insurance  company and other small inactive
companies that do not meet the quantitative thresholds for a separate segment.

Management  evaluates  performance  and  allocates  assets based on the separate
entities owned by the Company.  The reportable  segments are business units that
offer different products or services.  The reportable  segments are each managed
separately.  The following  schedule presents segment revenues and profit (loss)
before  taxes for the  three and six  months  ended  June 30,  2000 and 1999 and
assets  by  operating  segment  at June 30,  2000 and  December  31,  1999.  The
reconciling items for revenues and assets include  adjusting  available for sale
securities to market value and the  reclassification of reinsurance  recoverable
balances and the elimination of intercompany holdings.


                                      -10-


<PAGE>

<TABLE>


                                               Fortune Financial, Inc. and Subsidiaries
                                         Notes to Unaudited Consolidated Financial Statements

Note 5.  Business Segments (continued)
-------------------------------------
                                                Quarters Ended June 30                  Six Months Ended June 30
                                                ----------------------                  ------------------------
                                                  2000              1999                    2000              1999
                                                  ----              ----                    ----              ----
Segment revenues:

<S>                                           <C>                <C>                   <C>                <C>
Automobile insurance                          $6,265,863         $8,325,060            $11,671,551        $17,658,902

Excess and surplus lines insurance               697,393          1,052,865              1,509,924          1,952,355

Fee for service                                   15,036            391,149                 84,333          1,027,384

Corporate                                       (172,781)           347,963                182,406            690,037

Premium finance                                   (4,424)           (54,303)                69,777            137,594

Other                                            154,995             53,916                164,828            108,486
                                           --------------    ---------------     ------------------    ---------------

     Total segment revenues                   $6,956,082        $10,116,650            $13,682,819        $21,574,758

Intercompany eliminations                        224,343           (129,211)                32,601           (273,529)
                                           --------------    ---------------     ------------------    ---------------

     Total consolidated revenues              $7,180,425         $9,987,439            $13,715,420        $21,301,229
                                           ==============    ===============     ==================    ===============

Segment profit before taxes:

Automobile insurance                        ($5,151,015)        ($6,155,241)           ($7,102,406)       ($6,128,471)

Excess and surplus lines insurance                 (203)            341,930                (83,044)           639,724

Fee for service                                (122,234)             43,619               (218,839)           342,322

Corporate                                      (453,533)           (741,536)              (624,462)          (798,783)

Premium finance                                 (47,047)           (145,012)               (18,978)           (42,236)

Other                                           108,640              18,767                 88,793             40,377
                                           --------------    ---------------     ------------------    ---------------

Total consolidated profit(loss) before tax  ($5,665,392)        ($6,637,473)           ($7,958,936)       ($5,947,067)
                                           ==============    ===============     ==================    ===============
</TABLE>


                                      -11-

<PAGE>

                    Fortune Financial, Inc. and Subsidiaries
              Notes to Unaudited Consolidated Financial Statements

Note 5.  Business Segments (continued)
-------------------------------------

                                            June 30,2000       December 31,1999
                                          -----------------  -------------------
Segment assets:

Automobile insurance                           $73,998,345         $52,065,243

Excess and surplus lines insurance              10,526,365          10,316,250

Fee for service                                    451,187           3,863,040

Corporate                                       26,152,276          30,258,990

Premium finance                                    458,252           1,030,189

Other                                            1,765,080           3,468,619
                                            --------------     ---------------

     Total segment assets                     $113,351,505        $101,002,331

GAAP adjustments & reclassifications            21,792,572          38,992,962

Intercompany Eliminations                      (58,533,459)         (49,843,619)
                                            --------------     ---------------

     Total consolidated segment assets         $76,610,618         $90,151,674
                                            ==============     ===============


Note 6.  Regulatory Restrictions
--------------------------------
The Company's  Fortune Insurance  Company  subsidiary  ("Fortune") had statutory
surplus at June 30, 2000 of $4.8 million. The Company estimates that its surplus
level would put it in the  Authorized  Control Level category under the National
Association of Insurance  Commissioners'  Risk-Based Capital calculation if that
annual,  calendar year calculation were run as of June 30, 2000. The Company has
already  prepared  and  submitted  a  Risk-Based  Capital  plan  to the  Florida
Department of Insurance  outlining steps it will take to strengthen its surplus,
and is working with the Department to finalize that plan.


Note 7.  Subsequent Events
--------------------------

In early July a settlement was reached in a reinsurance  dispute with Everest Re
over the wording of a reinsurance treaty which had terminated in 1995. Under the
terms  of the  settlement  Everest  Re paid the  Company  $1.7  million  and was
released  from any  further  obligations  potentially  arising  from the expired
treaty.  As a result the Company  reported a loss of $1.9  million in the second
quarter of 2000 associated with the settlement.

                                      -12-


<PAGE>


Item 2.  Management's Discussion and Analysis
         of Financial Condition and Results of Operations
       --------------------------------------------------

Forward-Looking Statements
--------------------------

Statements made in this Form 10-Q, including those relating to future cash flow,
arbitration  proceedings,  the adequacy of loss reserves and  increasing  earned
premium are forward-looking  within the meaning of Section 21E of the Securities
Exchange  Act of 1934,  as  amended,  and are made  pursuant  to the safe harbor
provisions  of the  Private  Securities  Litigation  Reform  Act of  1995.  Such
statements  may use  words  such as  "believes",  "expects",  "intends",  "may",
"will",  "should",  "anticipates",  or the negative  forms of those  words,  and
describe  strategies,  goals and expectations of future results  involving risks
and uncertainties which may cause actual results to differ materially from those
set forth.  Among other  things,  the increase in future cash flow is based upon
expectations  that current trends in new business  volume and claims  settlement
that the Company is  experiencing  will continue;  the Company's  opinion on the
settlement  of  arbitration  proceedings  is based  upon  facts as it knows  and
interprets them; the adequacy of loss reserves is based upon  extrapolations  of
current experience which may or may not be repeated in the future; and estimates
of increasing  earned premium are based upon the Company's  expectation  that it
will be able to  maintain  its volume  momentum,  pricing  structure  and policy
cancellation  patterns.  In addition to the factors set forth  elsewhere in this
Form 10-Q, the economic,  competitive,  governmental,  weather-related and other
factors identified in the Company's 1999 Form 10-K filed with the Securities and
Exchange  Commission  could affect the forward looking  statements  contained in
this Form  10-Q.  The  Company  disclaims  any  intent or  obligation  to update
publicly  these  forward-looking   statements,   whether  as  a  result  of  new
information, future events or otherwise.

Financial Condition
-------------------

During the second quarter of 2000 the Company  continued to experience  negative
cash flow from  operations,  although at a reduced rate from the first  quarter.
Investment  and cash holdings were reduced by $6.3 million in the second quarter
to fund  operating  needs,  down  from an $8.6  million  reduction  in the first
quarter.  Cash inflow from new policies  (net of  cancellations)  averaged  $3.2
million a month  during the first half of 2000,  but cash  outflow to pay claims
averaged  $4.3 million a month for the same period.  In addition,  the Company's
new reinsurance  treaties  effective April 1, 2000 are not structured on a funds
withheld basis. As a result, cash flow is being negatively impacted in the early
months as premiums are remitted to the reinsurers in advance of remittance  back
to the  Company  for losses  paid.  The  Company  still  anticipates  generating
positive cash flow by the end of 2000.

                                      -13-

<PAGE>

Item 2.  Management's Discussion and Analysis
         of Financial Condition and Results of Operations (continued)
         ------------------------------------------------------------

The Company has  historically  reinsured  a  substantial  portion of its private
passenger  automobile  insurance business,  including  approximately 75% of such
business in 1998 and 60% of such business in 1999 and the first quarter of 2000.
Effective April 1, 2000 the Company reduced the amount of its private  passenger
automobile insurance business reinsured to 40%. Since early 1999 the Company has
been  engaged in a dispute  with  Everest Re over the  wording of a  reinsurance
treaty  which had  terminated  in 1995.  In early July,  2000 a  settlement  was
reached under which  Everest Re paid the Company $1.7 million,  and was released
from any  further  obligations.  Accordingly,  the  Company  has written off the
remaining  $1.9  million  Everest Re  receivable  as of June 30,  2000.  Another
reinsurer  has denied a payment  request by the Company for $7.8  million of the
Company's  receivable balance from the reinsurer.  The Company and its legal and
reinsurance  advisors  firmly  believe  that it is owed the full  amount  of the
receivable  and has initiated an arbitration  proceeding  against the reinsurer.
The  Company is  vigorously  pursuing  recovery of the amount  owed,  as well as
interest and damages.

Due to continued adverse loss development, the Company found it necessary during
the second quarter to further strengthen  reserves from prior accident quarters.
Adverse  loss  development  has  not  abated  as  quickly  as  the  Company  had
anticipated.  However,  the  benefit  of the  agency  cancellations  made by the
Company last fall and winter should start to have a significant  positive impact
over the remainder of this year.  The Company is currently  analyzing its policy
and claims  inventories to more  accurately  assess the remaining effect of its
cancelled agent base.

The  Company  has a Credit  Agreement  with  SouthTrust  Bank  with a  remaining
principal balance at June 30, 2000 of $4 million. That Credit Agreement contains
certain financial  covenants which,  because of its second quarter results,  the
Company did not meet.  The Company has  notified the Bank of its failure to meet
the financial covenants and will work with the Bank to resolve the issues. Under
the  terms of the  Credit  Agreement  the Bank may give  written  notice  of the
failure to meet the financial  covenants,  demanding cure. Should the Company be
unable to comply  with the Bank's  demand for cure within 30 days of such notice
an event of default will occur, at which time the Bank may declare the remaining
amounts  immediately  due and  payable,  or pursue other rights at law under the
terms of the Credit Agreement.

                                      -14-

<PAGE>

Item 2.  Management's Discussion and Analysis
         of Financial Condition and Results of Operations (continued)
         ------------------------------------------------------------

Financial Condition (continued)
------------------------------

The Company's  Fortune Insurance  Company  subsidiary  ("Fortune") had statutory
surplus at June 30, 2000 of $4.8 million. The Company estimates that its surplus
level would put it in the  Authorized  Control Level category under the National
Association of Insurance  Commissioners'  Risk-Based Capital calculation if that
annual,  calendar year calculation were run as of June 30, 2000. The Company has
already  prepared  and  submitted  a  Risk-Based  Capital  plan  to the  Florida
Department of Insurance  outlining steps it will take to strengthen its surplus,
and is working with the Department to finalize that plan.


Results of Operations
---------------------

The Company  recorded net earned  premiums of $5.6 million in the second quarter
of 2000,  down 26% from the  second  quarter  of 1999.  Year-to-date  net earned
premiums of $11.3  million  exhibited a similar  decline  from the first half of
1999.  The  decline in net earned  premium  in 2000  reflects  in large part the
result of the Company's  initiative to terminate the unprofitable portion of its
independent  agency base.  Policies are  currently  being  written  through only
one-third the number of agents in place a year ago, after the Company terminated
relationships  with the other  two-thirds  primarily as a result of unacceptable
loss ratios incurred on business written by those agents.  During the first half
of 2000 the Company wrote 55 thousand new private passenger  automobile policies
compared with 79 thousand during the comparable period of 1999.

The impact on earned premium from the decline in the number of policies  written
was offset  somewhat by a reduction  in the amount of business  reinsured  under
quota  share  agreements;  effective  April 1, 2000,  the  Company  reduced  the
percentage of its private  passenger  auto  business  ceded from 60% to 40%. The
Company's  average  written  premium per private  passenger auto policy has also
increased  over  25%  since  the end of the  second  quarter  of  1999,  further
mitigating the impact of the decline in the number of policies written.  Most of
this  increase in rate has  occurred as a result of rate  increases  implemented
March 1, 2000 and June 1, 2000, and will  positively  impact earned premium more
substantially over the next three quarters.




                                      -15-

<PAGE>

Item 2.  Management's Discussion and Analysis
         of Financial Condition and Results of Operations (continued)
         ------------------------------------------------------------

Results of Operations (continued)
--------------------------------

Fee  income  equaled  $1.6  million  in the first  half of 2000,  down from $3.3
million for the same period last year.  The  Company's  fee income is  generated
primarily  from  policy  fees  assessed  at the  time of  policy  issuance,  and
therefore  varies in direct relation to the number of policies  written.  During
the fall of 1999 the Company stopped servicing new policies for both the Florida
Residential and Auto Joint Underwriting  Associations as those books of business
became too small to profitably service.  Income for servicing remaining existing
policies  totaled  only $41  thousand  in the  second  quarter  of 2000 and will
disappear by the end of the year.

Investment  income  declined  to $444  thousand  in the second  quarter of 2000,
compared to $919 thousand for the comparable period a year earlier.  The Company
anticipates  that cash flow from  operations will turn positive later this year,
at which time investment assets and income will once again increase.

In the second  quarter the Company  realized a gain of $125 thousand on the sale
of a piece of real  estate.  This gain  partially  offset the $400  thousand  in
losses on the sales of investments the Company incurred during the first quarter
as it repositioned  investment  assets to increase future yields and utilize tax
loss  carryforwards.  For comparison,  the Company  recorded $57 thousand in net
gains on investments during the first half of 1999.

During the first half of 2000 the Company reported  miscellaneous income of $158
thousand.  The income is primarily from a skybox at Alltel stadium which the
Company leased to third parties for NFL  playoff  games early in 2000,  and then
subsequently  sold.

The Company's loss and loss adjustment expenses for the second quarter and first
half of 2000 were down $1.5  million and $5.3  million,  respectively,  from the
same  periods  a year  ago,  both  declines  reflecting  the  reduced  volume of
business.  In July, 2000 the Company settled a reinsurance  dispute with Everest
Re, resulting in a write-off of $1.9 million in ceded reinsurance receivables in
the second  quarter.  Without the impact of the Everest Re settlement,  loss and
loss  adjustment  expenses  for the second  quarter and first half of 2000 would
have  been down  $3.4  million  and $7.2  million,  respectively,  from the same
periods in 1999.



                                      -16-
<PAGE>


Item 2.  Management's Discussion and Analysis
         of Financial Condition and Results of Operations (continued)
         ------------------------------------------------------------

Results of Operations (continued)
--------------------------------

For the second quarter of 2000 policy  acquisition costs were $2.5 million lower
than the  second  quarter  of 1999,  and for the  first  half of 2000  were $800
thousand  lower  than  1999's  comparable  period.  These  costs  represent  the
commissions  paid by the  Company  to its  agents,  offset by ceding  commission
credits  received by the Company from its  reinsurers.  Under the  Company's old
reinsurance  treaties, which  terminated  on March 31, 2000,  ceding  commission
credits  adjusted  over  time  depending  upon  changes  in loss  ratios  of the
underlying business ceded. Under the new reinsurance treaties ceding commissions
are not adjusted based upon loss ratios. As changes in loss ratios under the old
treaties  stabilize through  development,  the sizeable  quarterly  fluctuations
reported for these costs will not reoccur.

Salaries and wages of $3.3 million in the first half of 2000 remained relatively
flat from the first half of 1999.  Reductions in force over the intervening time
were offset by general salary and wage increases.

Second quarter general and administrative  expenses of $2.5 million were up $300
thousand  over the second  quarter of 1999,  and the first  half's $4.4  million
exceeded last year's first half by $700 thousand. For the first half of the year
legal  fees  were  up  $100  thousand,  computer  consulting  fees  were up $400
thousand,  and computer  equipment  expense was up $200  thousand,  all over the
comparable period last year.

Interest  expense  continued to decline as the Company  made  further  principal
payments on its loan with SouthTrust Bank.


Item 3.  Quantitative and Qualitative Disclosures About Market Risk
-------------------------------------------------------------------

Market risk is the risk of potential loss in fair value of financial instruments
arising from adverse  fluctuations in interest  rates,  market rates and prices,
foreign  currency  exchange  rates,  and  other  relevant  market  rate or price
changes.

The Company's  exposure to market risk in interest rates is  concentrated in its
investment  portfolio and to a lesser extent in its debt obligation.  There have
been no material  changes in the  Company's  exposure to market risk since March
31, 2000.


                                      -17-


<PAGE>


                                     Part II

                                OTHER INFORMATION


Item 4.  Submission of Matters to a Vote of Security Holders
------------------------------------------------------------

At the Company's annual meeting of stockholders held on May 16, 2000 the
following members were elected to the Board of Directors:

         Allan J. McCorkle     Thomas J. McCorkle        R. Lee Smith
         Robert Thomas III     John Michael Garrity      Thomas Edwin Perry
         Holly J. McCorkle     Arthur L. Cahoon

Approval was granted to amend the Incentive Plan increasing to 220,000 the limit
on the number of shares which may be granted to a new  employee for  recruitment
purposes.

Approval was granted to amend the Articles of Incorporation changing the name of
the Company from Mobile America Corporation to Fortune Financial, Inc.

Approval was granted to the Board of Directors to issue a 3-for-1  reverse stock
split  at  such  time  the  Board  deems  such  action  most  beneficial  to the
organization and stockholders.




Item 6.  Exhibits and Reports on Form 8-K
-----------------------------------------

(a) Exhibits:

11.  Unaudited computations of earnings per share.
27.  Financial Data Schedule (electronic filing only)

(b) Reports on Form 8K

On April 18, 2000, the Company filed a Current Report on Form 8-K reporting that
it had changed its certifying accountants from Cherry, Bekaert & Holland, LLP to
KPMG LLP.  The  change  was not as a result  of any  disagreement  with  Cherry,
Bekaert & Holland, LLP over the scope or results of any of their audit work.




                                      -18-


<PAGE>


                                   SIGNATURES

Pursuant to the  requirements  of the Securities Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned  thereunto
duly authorized.



                                      FORTUNE FINANCIAL, INC.
                                            Registrant


August 14, 2000                  By:  /s/ Mark P. Brockelman
---------------                       ------------------------------
       Date                           Mark P. Brockelman
                                      Vice President and Chief Financial Officer







                                      -19-