M&F Bancorp, Inc. Announces Year End Results

DURHAM, N.C.--(Business Wire)--
M&F BANCORP, INC. ("Bancorp"), a bank holding company whose
wholly-owned subsidiary is Mechanics and Farmers Bank ("M&F Bank"),
reported net income for the year ended December 31, 2007 of $0.927
million or $0.55 per diluted share versus $1.786 million or $1.05 per
diluted share for the year ended December 31, 2006. Net interest
income, after credits for loan losses, decreased by $0.698 million or
7.1%, to $9.122 million on a year over year basis versus 2006. Factors
contributing to the results for year-end 2007 include: decreased
interest income due to lower loan volume; prepayment fees for early
payoff of high interest rate Federal Home Loan Bank debt; and expenses
incurred in preparation for the acquisition of Mutual Community
Savings Bank Inc., SSB ("MCSB").

Total assets decreased by $45.790 million to $222.218 million as
of December 31, 2007 from $268.008 million as of December 31, 2006.
Net loans decreased to $144.183 million as of December 31, 2007 from
$159.013 million as of December 31, 2006. Deposits decreased 23.13% to
$172.054 million as of December 31, 2007 from $223.829 million as of
December 31, 2006. The decrease is largely attributable to
management's focus on repositioning the balance sheet by exiting the
market for high-rate Internet deposits. As of December 31, 2007,
shareholders' equity increased to $22.160 million, from $21.762
million as of December 31, 2006.

Commenting on the results, Kim D. Saunders, President and Chief
Executive Officer said, "We recognized that 2007 and even the first
half of 2008 would be a period of major adjustments, as required for a
successful MCSB merger and our future operations. In addition to
realizing expense related to our recently closed merger, we invested
significant time and resources developing the Board's vision for the
company, as well as the management team's strategic and business
operating plans. We worked diligently throughout the year to
reposition our balance sheet so that we may maximize profitability
going forward. We're working just as diligently to build our loan
volume and core deposits, and to develop enhanced products and
services that will position us more competitively in the marketplace."

M&F Bancorp, Inc., a bank holding company with assets of
approximately $222.218 million as of December 31, 2007, is the parent
company of M&F Bank. Bancorp's common stock is quoted in the
over-the-counter market through the OTC Bulletin Board under the
symbol "MFBP." For additional information contact M&F Bank Corporate
Headquarters, 2634 Durham Chapel Hill Blvd., Durham, North Carolina at
919-687-7800, or visit www.mfbonline.com.

This release contains certain forward-looking statements with
respect to the financial condition, results of operations and business
of Bancorp and M&F Bank. These forward-looking statements involve
risks and uncertainties and are based on the beliefs and assumptions
of management of Bancorp and M&F Bank and on the information available
to management at the time that these disclosures were prepared. These
statements can be identified by the use of words like "expect,"
"anticipate," "estimate" and "believe," variations of these words and
other similar expressions. Readers should not place undue reliance on
forward-looking statements as a number of important factors could
cause actual results to differ materially from those in the
forward-looking statements. Neither Bancorp nor M&F Bank undertakes an
obligation to update any forward-looking statements. Additional
information is detailed in Bancorp's filings with the Securities and
Exchange Commission, and is available at www.sec.gov

M&F Bancorp, Inc.
Allan E. Sturges, 919-687-7800, ext. 887
Fax: 919-687-7821
allan.sturges@mfbonline.com

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