CONTACT:
Hugh S. Potts, Jr.
Chief Executive Officer
(662) 289-8501

February 20, 2004

FOR IMMEDIATE RELEASE

First M&F Corp. reports completion of stock repurchase; additional loan loss

KOSCIUSKO, Miss.- The Board of Directors of First M&F Corp., at its meeting March 12, 2003, replaced a stock repurchase program begun in August, 2002 with a 12-month program targeted to acquire up to 240,000 shares. The new program ended with 173,854 shares repurchased at an average price of $34.82 per share. The combined results of the 2002 and 2003 repurchase programs are 234,092 shares repurchased during the period of October, 2002 through February, 2004 at an average price of $33.29. From January, 2003 through February, 2004 the Company issued 182,167 shares related to stock option exercises for an average price of $26.92 per share. The Company had 4,562,859 shares of common stock outstanding at February 29, 2004.

The Company owns a 51% stake in an accounts receivable factoring business that has experienced a loan loss of approximately $2.0 million. The consolidated effect to the Company will be a pre-tax net expense of $500,000, with an estimated after-tax earnings decrease of $.07 per share. The Company’s allowance for loan losses will also decrease by $500,000 due to the loan loss. It is too early to determine the extent to which the company will realize any recoveries resulting from collection efforts.

On Friday, March 26, M&F Bank held the grand opening of its new Flowood branch, located on Highway 25 at Airport Road. The opening of this full-service branch expands the bank’s number of Rankin County locations to four and its number of Jackson metropolitan locations to 10. This step is part of the Bank’s expansion effort in the Rankin and Madison County area as well as in DeSoto County. New branch locations are planned in Olive Branch and Southaven, where the bank has already acquired property. The Bank currently has three locations in DeSoto County.

First M&F Corp. (NASDAQ:FMFC) is a $1.08 billion community bank holding company, Making Mississippi Better, with banking locations throughout Central and North Mississippi.

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