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

July 19, 2006

FOR IMMEDIATE RELEASE

First M&F Corp. reports second quarter 2006 earnings

KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) reported today that net income for the quarter ended June 30, 2006 was $3.251 million, or $.36 basic and diluted earnings per share, compared to $3.045 million, or $.34 basic and diluted earnings per share for the second quarter of 2005. All per share data has been adjusted to reflect the Company’s 2 for 1 stock split effective May 15, 2006.

For the second quarter of 2006 the annualized return on assets was .87%, while return on equity was 10.82%. Comparatively, the return on assets for the second quarter of 2005 was 1.02%, with a return on equity of 10.60%. Second quarter 2006 earnings increased 6.8% over second quarter 2005.

“While our second quarter earnings per share were the same as first quarter we are pleased to continue to show improvement in year-over-year periods. Asset quality is also trending upward. We continued in the second quarter to integrate our Alabama acquisition and entered West Tennessee in May with full service banking,” said Hugh S. Potts, Jr., Chairman and CEO. “We are encouraged by early indications of growth opportunities in the Memphis metro area and are enthusiastic about our earlier announcement of expanding our presence into the Florida panhandle. Our growth initiatives into West Tennessee, Alabama and Florida are forward-focused moves aimed at earnings growth and the building of shareholder value. It is our objective to increase earnings per share and relative profitability concurrently with expansion which is challenging yet achievable.”

Net interest income was up by 21.63% compared to the second quarter of 2005, with the net interest margin decreasing to 4.05% in the second quarter of 2006 from 4.17% in the second quarter of 2005. The net interest margin for the first quarter of 2006 was 4.11% as compared to 4.26% for the fourth quarter of 2005 and 4.15% for the third quarter of 2005. Loan yields increased to 7.46% in the second quarter of 2006 from 6.57% in the second quarter of 2005 while deposit costs increased to 2.95% from 2.10% for the same periods. Loans outstanding increased by 23.32% and deposits increased by 26.24% from June 30, 2005 to June 30, 2006. These increases included the effect of the merger with Columbiana Bancshares, Inc. and its subsidiary bank, First National Bank of Shelby County and with Crockett County Bancshares, Inc. and its subsidiary, Bells Banking Company. Excluding the mergers, loans increased approximately 12% over 2005 and deposits increased approximately 8%. The primary factors in the improvement in net interest income were (1) the growth in loan volume year-over-year, including acquisitions, which improved interest revenues and (2) the growth in non-interest bearing deposits, which reduced the Company’s dependence on interest-bearing sources of funding for the growth. Earning asset yields were 6.94% for the second quarter of 2006, 6.66% for the first quarter of 2006 and 6.18% for the second quarter of 2005. Liability costs for the same periods were 3.26%, 2.94% and 2.33%. Management believes that yields and costs will increase in the current and foreseeable rate environment. Short-term Treasury rates increased by 188 basis points during the twelve months ending on June 30, 2006 while the prime lending rate increased from 6.25% at June 30, 2005 to 8.25% at June 30, 2006. Management plans to continue to focus on core deposit growth for 2006 to offset the influence that rising rates will have on the cost of funds. Loans as a percentage of assets were 70.45% at June 30, 2006 as compared to 73.65% at December 31, 2005 and 72.52% at June 30, 2005.

Noninterest revenues, excluding securities transactions, increased by 19.58% for the second quarter of 2006 as compared to the same period in 2005. Deposit-related income was up by 23.04%, mortgage income was down by 18.49%, and insurance agency commissions were down by 5.07%. All other noninterest income categories were up a total of 69.27% due mainly to the Alabama and Tennessee acquisitions.

Noninterest expenses increased by 28.04% for the second quarter of 2006 as compared to the same period in 2005. Salaries and benefits were up by 28.69%, due primarily to the expansion efforts in Alabama and Memphis.

Annualized net loan charge-offs as a percent of average loans for the second quarter of 2006 were .13% as compared to .15% for the comparable period in 2005. Non-accrual and 90-day past due loans as a percent of total loans were .30% at June 30,2006 as compared to .40% at March 31, 2006 and .29% at June 30, 2005. The allowance for loan losses as a percentage of loans was 1.49% at June 30, 2006 as compared to 1.33% at December 31, 2005 and 1.40% at June 30, 2005.

Total assets at June 30, 2006 were $1.533 billion as compared to $1.267 billion at the end of 2005 and $1.208 billion at June 30, 2005. Total loans were $1.080 billion compared to $933 million at the end of 2005 and $876 million at June 30, 2005. Deposits were $1.205 billion compared to $974 million at the end of 2005 and $954 million at June 30, 2005. Total capital was $120.479 million, or $ 13.36 in book value per share at June 30, 2006.

First M&F Corp., the parent of M&F Bank, is committed to proceed with its mission of making the Mid-South better by exceeding expectations everyday in 28 communities in Mississippi, Tennessee and Alabama.

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)
• First M&F Corporation and Subsidiary - Condensed Consolidated Statements of Income (Unaudited)
• First M&F Corporation Financial Highlights
• First M&F Corporation Average Balance Sheets / Yields and Costs (tax-equivalent)

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