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First M&F Corp. Approved to Participate in U.S. Treasury Capital Purchase Program
Posted by: gurufocus (IP Logged)
Date: December 16, 2008 10:01AM

Press Release: First M&F Corp. Approved to Participate in U.S. Treasury Capital Purchase Program 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 32 communities in Mississippi Alabama Tennessee and Florida. First M & F Corp. has a market cap of $82.23 million; its shares were traded at around $8.13 with a P/E ratio of 9.6 and P/S ratio of 0.67. The dividend yield of First M & F Corp. stocks is 5.8%. First M & F Corp. had an annual average earning growth of 15.1% over the past 5 years. More on FMFC: Gurus buys and sells of FMFC 10-year financial history of FMFC. Insider buys/sells of FMFC.

Press Release:

KOSCIUSKO, Miss., Dec. 16 /PRNewswire-FirstCall/ -- First M&F Corporation(Nasdaq: FMFC) announced today the preliminary approval of the TreasuryDepartment to participate in the Troubled Asset Relief Program's (TARP)Capital Purchase Program. Although participation by sound and well-capitalized banks like First M&F has been encouraged by the TreasuryDepartment, the program is entirely voluntary. The Company's participation issubject to standard closing conditions. The Program provides for aninvestment in the Company by the Treasury of up to 3% of Risk-Based Assets inthe form of Preferred Stock with common stock warrants of 15% of the Preferredinvestment. The Company applied for approval of up to $40 million in non-voting senior preferred shares.

The Capital Purchase Program is intended to increase the flow of credit toworthy borrowers and to restore confidence in the nation's banking system."This program will further strengthen our already well-capitalized balancesheet. We view it as a defensive measure against further weakening in theeconomy and as an offensive measure, allowing us to grow loans as theopportunities present themselves," said CEO and Chairman, Hugh Potts, Jr.

The issuers under this capital program will pay a 5% dividend for thefirst five years and 9% thereafter unless redeemed. The preferred stock maybe redeemed after a minimum of three years. The stock warrants issued will be10-year warrants.

First M&F Corporation is a $1.6 billion bank holding company with 50banking locations throughout Central and North Mississippi, in Shelby County,Alabama, in Southwest Tennessee, including the Memphis metro area and inOkaloosa County, Florida.

Caution Concerning Forward-Looking Statements

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

Source: PRNewsWire More on FMFC: Gurus buys and sells of FMFC 10-year financial history of FMFC. Insider buys/sells of FMFC.

Stocks Discussed: FMFC,
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