M&F Bancorp, Inc. Receives $11.7 Million from TARP

M&F Bank Continues Community Mission and Lending
DURHAM, N.C.--(Business Wire)--
M&F Bancorp, Inc., parent company of Mechanics and Farmers Bank (M&F Bank),
today announced that it has received approximately $11.7 million from the
Federal government`s Troubled Asset Relief Program (TARP). The TARP funds have
been provided on a preferred basis due to M&F Bank`s designation as a Community
Development Financial Institution (CDFI).

James A. Stewart, Chairman of M&F Bancorp, Inc., said, "Treasury`s recent
expansion of the TARP for community banks was designed to help give `Main
Street` America greater access to capital, thus encouraging real economic
recovery. These funds offer us a relatively low-priced, affordable source of
capital, and represent the first major non-organic infusion of capital for M&F
in more than 50 years. Our shareholders paved the way for this exciting new
development with their votes at the recent shareholders meeting, and we are now
even better able to support M&F Bank in its vital role as a community bank."

President and CEO, Kim D. Saunders, said, "I believe this infusion of capital is
critical because it will help M&F Bank retain a well-capitalized status,
maintain stability, enhance our competitive position, and continue lending to
creditworthy borrowers - all of which are essential during these unprecedented
economic times. The TARP money is not a bailout for us; rather, it is a bridge
that will allow us to do just what we have done now for over 100 years and
should continue to do, which is providing loans to deserving borrowers,
supporting business development and job creation and retention in our markets,
and building on our track record of success."

M&F Bancorp, Inc., a bank holding company headquartered in Durham, NC with
assets of approximately $260 million as of March 31, 2009, is the parent company
of M&F Bank. M&F Bank is a state-chartered commercial bank founded in 1907, and
has operated continuously and profitably since 1908. With branch locations in
Durham, Raleigh, Charlotte, Greensboro and Winston-Salem, NC, M&F Bank is one of
few NC banks designated by the United States Treasury as a Community Development
Financial Institution.

This release contains certain forward-looking statements with respect to the
financial condition, results of operations and business of M&F Bancorp, Inc.
These forward-looking statements involve risks and uncertainties and are based
on the beliefs and assumptions of management of M&F Bancorp, Inc. 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, including but not
limited to, the financial success or changing conditions or strategies of M&F
Bancorp, Inc.'s customers or vendors, fluctuations in interest rates, actions of
government regulators, the availability of capital and personnel or general
economic conditions. Additional factors that could cause actual results to
differ materially from those anticipated by forward looking statements are
discussed in M&F Bancorp, Inc.'s filings with the Securities and Exchange
Commission, including without limitation its annual report on Form 10-K,
quarterly reports of Form 10-Q and current reports on Form 8-K. M&F Bancorp,
Inc. undertakes no obligation to revise or update these statements following the
date of this release.

M&F Bancorp, Inc.
Kim D. Saunders, President/CEO
919-687-7800, ext. 816
kim.saunders@mfbonline.com

Copyright Business Wire 2009