First M&F Corp. Investor Information

CONTACT:	John G. Copeland
	EVP & Chief Financial Officer
	(662) 289-8594

April 18, 2008

FOR IMMEDIATE RELEASE

First M&F Corp. reports solid results for the first quarter of 2008

KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) reported solid results today for the first quarter ended March 31, 2008, with earnings of $3.139 million, or $.35 basic and $.34 diluted earnings per share, compared to $3.554 million, or $.39 basic and diluted earnings per share for the first quarter of 2007, a decline of 11.7% and 10.25% respectively.

For the first quarter of 2008 the annualized return on assets was .76%, while return on equity was 8.87%. Comparatively, the return on assets for the first quarter of 2007 was .94%, with a return on equity of 11.18%.

“First quarter results are below last year’s results and early expectations. The primary influence was the effect on the net interest margin brought about by the actions of the Federal Reserve in January and March to lower short term rates”, said Hugh Potts, Jr., Chairman and CEO. Potts added, “The Fed actions precipitated cuts in Prime which had an immediate negative impact on the margin. While we expect to recover margin as the year unfolds, its effect is evident.”

Net Interest Income

Net interest income was up by 0.9% compared to the first quarter of 2007, with the net interest margin decreasing to 3.66% on a tax equivalent basis in the first quarter of 2008 as compared to 3.94% in the first quarter of 2007. The significant contributor to the increase in net interest income and the squeeze in the margin was balance sheet growth offset by continuing erosion in spreads as loan yields reacted downward with falling Prime at a faster rate than deposits could be repriced. The net interest margin for the fourth quarter of 2007 was 3.83% as compared to 3.94% for the third quarter of 2007 and 4.00% for the second quarter of 2007. Loan yields decreased to 7.35% in the first quarter of 2008 from 7.80% in the first quarter of 2007. Loan yields also decreased from the fourth quarter of 2007 to the first quarter as the prime rate fell 200 basis points during the quarter. Average loans were $1.220 billion for the first quarter of 2008 as compared to $1.207 billion for the fourth quarter of 2007 and $1.111 billion during the first quarter of 2007. Loans decreased by $13.340 million in the first quarter of 2008 and grew by $20.975 million in the fourth quarter of 2007.

Deposit costs decreased in the first quarter of 2008 from the fourth quarter of 2007 but were higher than the first quarter of 2007, as the higher rate environment through much of 2007 gave way to Fed rate cuts in late 2007 and early 2008. Deposit costs were 3.51% in the first quarter of 2008 as compared to 3.46% in the first quarter of 2007. Deposits rose by $51.120 million during the first quarter of 2008. Management plans to continue to focus on core deposit growth for 2008 to offset the influence that loan repricing may have on the net interest margin. Loans as a percentage of assets were 73.21% at March 31, 2008 as compared to 70.87% at March 31, 2007 and 73.74% at December 31, 2007. Loans grew by 8.80% since the first quarter of 2007 while deposits grew by 8.66%. Mr. Potts stated, “We are pleased with deposit growth and especially in cash-type deposits, that is, relationship-based transaction and non-maturity type deposits, with deposits being up 4.05% since the end of the year and almost 9.00% from the year ago quarter. This results from a specific strategic focus on building these types of relationship deposit accounts.”

Non-interest Income

Non-interest income, excluding securities transactions, for the first quarter of 2008 was down 0.95% compared to the first quarter of 2007, with deposit-related income up by 11.76% and mortgage income down by 5.53%. Insurance agency commissions were down by 3.84%.

A major part of non-interest income is from deposit sources. Deposit revenues continue to be supported by debit card fee income, which has increased by 24.26% in the first quarter of 2008 over 2007, and overdraft fee income, which increased by 12.23%. Commission revenues from traditional insurance products decreased by 3.83%.

Non-interest Expenses

Non-interest expenses were up by 5.32% in the first quarter of 2008 as compared to the first quarter of 2007 largely due to de novo branching and higher salaries. Salaries and benefits were up by 5.59%.

Credit Quality

Annualized net loan charge-offs as a percent of average loans for the first quarter of 2008 were .27% as compared to .11% for the same period in 2007. Non-accrual and 90-day past due loans as a percent of total loans were 1.23% at the end of the first quarter of 2008 as compared to .38% at the end of the 2007 quarter. Mr. Potts further stated, “In an economic slowdown, beginning with and being most severe in the real estate sector, we expect some adverse trends in asset quality. M&F is proactive in risk management, loan review and credit administration. No opportunity to serve the credit needs of worthy borrowers will be missed. Furthermore, our capital and reserves are sufficient to weather this storm.”

The allowance for loan losses as a percentage of loans was 1.17% at March 31, 2008 as compared to 1.37% at March 31, 2007. The provision for loan losses increased to $.780 million in the first quarter of 2008 from $.630 million in the first quarter of 2007.

Balance Sheet

Total assets at March 31, 2008 were $1.647 billion as compared to $1.654 billion at the end of 2007 and $1.564 billion at March 31, 2007. Total loans were $1.206 billion compared to $1.219 billion at the end of 2007 and $1.109 billion at March 31, 2007. Deposits were $1.314 billion compared to $1.262 billion at the end of 2007 and $1.209 billion at March 31, 2007. Total capital was $143.410 million, or $ 15.83 in book value per share at March 31, 2008. “Capital retention from healthy earnings will provide a strong base from which to grow and adapt to the times,” said Mr. Potts.

Growth

In November, 2007 the Company opened a second full-service banking location in Okaloosa County, Florida in the community of Niceville. Mr. Potts stated in closing, “For 118 years M&F has grown, prospered, adapted to and weathered the events and trials affecting our communities and the nation as a whole. We fully expect to continue to serve with integrity the financial needs of our clients as both they and we grow and prosper.”

About First M&F Corporation

First M&F Corp., the parent of M&F Bank, is committed to proceed with its mission of making the mid-south better through the delivery of excellence in financial services to 33 communities in Mississippi, Alabama, Tennessee and Florida.

Caution Concerning Forward-Looking Statements

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in First M&F Corporation's filings with the Securities and Exchange Commission.

First M&F Corporation

Condensed Consolidated Statements of Condition (Unaudited)

(In thousands, except share data)

	March 31 2008		December 31 2007			March 31 2007
Cash and due from banks		52,735		54,240			51,458
Interest bearing bank balances		8,204		3,480			10,282
Federal funds sold		3,800		2,000			15,000
Securities available for sale (cost of $240,473, $236,575 and $249,530 )		243,250		237,138			248,624
Loans held for sale		6,302		5,571			8,755
Loans		1,206,095		1,219,435			1,108,550
Allowance for loan losses		14,196		14,217			15,276
Net loans		1,191,899		1,205,218			1,093,274
Bank premises and equipment		45,185		45,545			42,030
Accrued interest receivable		11,289		12,434			12,148
Other real estate		6,927		6,232			2,270
Goodwill		32,572		32,572			32,572
Other intangible assets		7,491		7,612			7,928
Other assets		37,814		41,709			39,767
Total assets		1,647,468		1,653,751			1,564,108
Non-interest bearing deposits		187,080		191,206			188,116
Interest bearing deposits		1,126,495		1,071,249			1,020,748
Total deposits		1,313,575		1,262,455			1,208,864
Federal funds and repurchase agreements		5,714		9,676			6,177
Other borrowings		143,977		201,312			176,859
Junior subordinated debt		30,928		30,928			30,928
Accrued interest payable		4,979		5,151			4,679
Other liabilities		4,867		4,131			5,676
Total liabilities		1,504,040		1,513,653			1,433,183
Noncontrolling interest in subsidiaries		18		18			19
Common stock, 9,060,080, 9,067,580 and 9,055,080 shares issued & outstanding		45,300		45,338			45,275
Additional paid-in capital		30,399		30,475			30,309
Nonvested restricted stock awards		709		643			459
Retained earnings		66,341		64,395			57,070
Accumulated other comprehensive income		661		(771	)		(2,207	)
Total equity		143,410		140,080			130,906
Total liabilities & equity		1,647,468		1,653,751			1,564,108

First M&F Corporation and Subsidiary

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except share data)

	Three Months Ended March 31
	2008			2007
Interest and fees on loans		22,155			21,219
Interest on loans held for sale		97			112
Taxable investments		2,357			2,484
Tax exempt investments		507			462
Federal funds sold		88			12
Interest bearing bank balances		77			43
Total interest income		25,281			24,332
Interest on deposits		9,721			8,671
Interest on fed funds and repurchase agreements		60			188
Interest on other borrowings		1,876			1,970
Interest on subordinated debt		497			496
Total interest expense		12,154			11,325
Net interest income		13,127			13,007
Provision for possible loan losses		780			630
Net interest income after loan loss		12,347			12,377
Service charges on deposits		2,793			2,499
Mortgage banking income		393			416
Agency commission income		1,001			1,041
Fiduciary and brokerage income		138			137
Other income		1,179			1,464
Loss on extinguishment of debt		-			-
Gains (losses) on AFS investments		11			-
Total noninterest income		5,515			5,557
Salaries and employee benefits		7,656			7,251
Net occupancy expense		1,005			867
Equipment expenses		891			897
Software and processing expenses		431			344
Intangible asset amortization		121			185
Other expenses		3,253			3,138
Total noninterest expense		13,357			12,682
Net income before taxes		4,505			5,252
Income taxes		1,364			1,691
Noncontrolling interest in earnings (losses) of subsidiaries, net of income taxes of $1 and $4		2			7
Net income		3,139			3,554
Weighted average shares (basic)		9,064,311			9,052,627
Weighted average shares (diluted)		9,100,498			9,103,462
Basic earnings per share	$	0.35		$	0.39
Diluted earnings per share	$	0.34		$	0.39
Return on assets (annualized)		0.76	%		0.94	%
Return on equity (annualized)		8.87	%		11.18	%
Efficiency ratio		70.34	%		67.17	%
Net interest margin (annualized, tax-equivalent)		3.66	%		3.94	%
Net charge-offs to average loans (annualized)		0.27	%		0.11	%
Nonaccrual and 90 day accruing loans to total loans		1.23	%		0.38	%

First M&F Corporation
Financial Highlights
	QTD Ended			QTD Ended			QTD Ended			QTD Ended
	March 31			December 31			September 30			June 30
	2008			2007			2007			2007
Per Common Share (diluted):
Net income		0.34			0.39			0.42			0.39
Cash dividends paid		0.13			0.13			0.13			0.13
Book value		15.83			15.45			15.06			14.63
Closing stock price		14.50			15.80			17.55			18.63
Loan Portfolio Composition: (in thousands)
Commercial, financial and agricultural		165,605			169,447			164,866			167,184
Non-residential real estate		737,964			731,595			713,619			672,764
Residential real estate		211,132			223,614			221,915			220,876
Home equity loans		45,796			45,987			44,964			37,374
Consumer loans		39,478			40,860			40,374			41,385
Other loans		6,120			7,932			12,722			7,296
Total loans		1,206,095			1,219,435			1,198,460			1,146,879
Deposit Composition: (in thousands)
Noninterest-bearing deposits		187,080			191,206			186,123			187,604
NOW deposits		210,295			190,067			186,944			205,347
MMDA deposits		182,824			156,364			129,505			137,245
Savings deposits		117,532			105,924			105,819			102,376
Certificates of deposit under $100,000		289,531			301,298			287,899			281,597
Certificates of deposit $100,000 and over		299,394			289,533			292,477			269,890
Brokered certificates of deposit		26,919			28,063			26,339			28,101
Total deposits		1,313,575			1,262,455			1,215,106			1,212,160
Nonperforming Assets: (in thousands)
Nonaccrual loans		9,472			6,524			6,334			5,886
Accruing loans past due 90 days or more		5,451			1,093			1,955			455
Total nonperforming loans		14,923			7,617			8,289			6,341
Other real estate		6,927			6,232			4,926			3,652
Total nonperforming assets		21,850			13,849			13,215			9,993
Total nonperforming assets to assets ratio		1.33	%		0.84	%		0.81	%		0.63	%
Allowance For Loan Loss Activity: (in thousands)
Beginning balance		14,217			14,941			15,059			15,276
Provision for loan loss		780			630			630			630
Charge-offs		(1,041	)		(1,905	)		(920	)		(984	)
Recoveries		240			551			172			137
Ending balance		14,196			14,217			14,941			15,059

First M&F Corporation
Financial Highlights
	QTD Ended			QTD Ended			QTD Ended			QTD Ended
	March 31			December 31			September 30			June 30
	2008			2007			2007			2007
Condensed Income Statements: (in thousands)
Interest income		25,281			26,414			26,045			25,125
Interest expense		12,154			12,689			12,259			11,603
Net interest income		13,127			13,725			13,786			13,522
Provision for loan losses		780			630			630			630
Noninterest revenues		5,515			5,209			5,425			4,861
Noninterest expenses		13,357			13,025			12,889			12,509
Net income before taxes		4,505			5,279			5,692			5,244
Income taxes		1,364			1,716			1,879			1,702
Noncontrolling interest		2			2			5			7
Net income		3,139			3,561			3,808			3,535
Tax-equivalent net interest income		13,475			14,039			14,084			13,831
Selected Average Balances: (in thousands)
Assets		1,654,951			1,625,756			1,580,780			1,546,058
Loans held for investment		1,213,122			1,200,977			1,166,820			1,122,129
Earning assets		1,481,144			1,453,458			1,417,310			1,386,464
Deposits		1,295,443			1,234,452			1,215,724			1,187,020
Equity		142,371			139,438			135,157			132,636
Selected Ratios:
Return on average assets (annualized)		0.76	%		0.87	%		0.96	%		0.92	%
Return on average equity (annualized)		8.87	%		10.13	%		11.18	%		10.69	%
Average equity to average assets		8.60	%		8.58	%		8.55	%		8.58	%
Net interest margin (annualized, tax-equivalent)		3.66	%		3.83	%		3.94	%		4.00	%
Efficiency ratio		70.34	%		67.67	%		66.07	%		66.92	%
Net charge-offs to average loans (annualized)		0.27	%		0.45	%		0.25	%		0.30	%
Nonaccrual and 90 day accruing loans to total loans		1.23	%		0.62	%		0.69	%		0.55	%
Price to book (x)		0.92			1.02			1.17			1.27
Price to earnings (x)		10.66			10.13			10.45			11.94

First M&F Corporation

Financial Highlights

Historical Earnings Trends:

			EPS
	(in thousands)		(diluted)
1Q 2008		3,139		0.34
4Q 2007		3,561		0.39
3Q 2007		3,808		0.42
2Q 2007		3,535		0.39
1Q 2007		3,554		0.39
4Q 2006		3,739		0.41
3Q 2006		3,665		0.40
2Q 2006		3,251		0.36
1Q 2006		3,270		0.36
4Q 2005		3,065		0.34
3Q 2005		3,284		0.37

Revenue Statistics:

			Non-interest			Non-interest
	Revenues		Revenues to			Revenues to			Contribution
	Per FTE		Ttl. Revenues			Avg. Assets			Margin
	(thousands)		(percent)			(percent)			(percent)
1Q 2008		33.7		29.04	%		1.34	%		59.68	%
4Q 2007		34.2		27.06	%		1.27	%		61.08	%
3Q 2007		35.0		27.80	%		1.36	%		62.57	%
2Q 2007		33.3		26.01	%		1.26	%		60.93	%
1Q 2007		33.4		29.43	%		1.46	%		61.60	%
4Q 2006		33.4		27.86	%		1.37	%		62.39	%
3Q 2006		33.9		28.26	%		1.42	%		62.79	%
2Q 2006		33.2		26.39	%		1.29	%		61.39	%
1Q 2006		33.4		25.40	%		1.27	%		63.27	%
4Q 2005		33.3		24.29	%		1.22	%		62.09	%
3Q 2005		33.5		28.33	%		1.47	%		62.48	%

Expense Statistics:

	Non-interest
	Expense to			Efficiency
	Avg. Assets			Ratio
	(percent)			(percent)
1Q 2008		3.25	%		70.34	%
4Q 2007		3.18	%		67.67	%
3Q 2007		3.23	%		66.07	%
2Q 2007		3.25	%		66.92	%
1Q 2007		3.34	%		67.17	%
4Q 2006		3.36	%		68.25	%
3Q 2006		3.26	%		65.09	%
2Q 2006		3.28	%		67.02	%
1Q 2006		3.22	%		64.26	%
4Q 2005		3.29	%		65.20	%
3Q 2005		3.24	%		62.46	%

Contribution Margin:

(Tax-equivalent net interest income + noninterest revenues - salaries and benefits)

divided by

(Tax-equivalent net interest income + noninterest revenues)

Efficiency Ratio:

Noninterest expense

divided by

(Tax-equivalent net interest income + noninterest revenues)

First M&F Corporation

Average Balance Sheets/Yields and Costs (tax-equivalent)

(In thousands with yields and costs annualized)

	QTD March 2008					QTD March 2007
	Average Balance		Yield/Cost			Average Balance		Yield/Cost
Interest bearing bank balances		9,893		3.15	%		3,694		4.67	%
Federal funds sold		10,463		3.40	%		876		5.57	%
Taxable investments (amortized cost)		188,424		5.03	%		209,282		4.82	%
Tax-exempt investments (amortized cost)		52,139		6.24	%		47,555		6.28	%
Loans held for sale		7,104		5.52	%		8,716		5.21	%
Loans held for investment		1,213,121		7.36	%		1,101,879		7.83	%
Total earning assets		1,481,144		6.96	%		1,372,002		7.29	%
Non-earning assets		173,807					168,914
Total average assets		1,654,951					1,540,916
NOW		202,638		1.46	%		205,598		1.38	%
MMDA		165,706		2.74	%		127,300		2.31	%
Savings		111,973		2.76	%		96,941		2.63	%
Certificates of Deposit		634,966		4.49	%		586,504		4.58	%
Short-term borrowings		7,319		3.30	%		14,550		5.23	%
Other borrowings		200,849		4.75	%		194,111		5.15	%
Total interest bearing liabilities		1,323,451		3.69	%		1,225,004		3.75	%
Non-interest bearing deposits		180,161					177,959
Non-interest bearing liabilities		8,968					8,978
Capital		142,371					128,975
Total average liabilities and equity		1,654,951					1,540,916
Net interest spread				3.27	%				3.54	%
Effect of non-interest bearing deposits				0.44	%				0.48	%
Effect of leverage				-0.05	%				-0.08	%
Net interest margin, tax-equivalent				3.66	%				3.94	%
Less tax equivalent adjustment:
Investments				0.09	%				0.09	%
Loans				0.01	%				0.01	%
Reported book net interest margin				3.56	%				3.84	%