The Federal Reserve Board has lifted a memorandum of understanding against First M&F (FMFC) in Kosciusko, Miss.

As part of the November 2009 agreement, the $1.5 billion-asset company was barred from paying dividends to shareholders or interest on trust-preferred securities without first securing Fed approval. First M&F had also agreed to refrain from paying dividends on preferred stock it issued to the Treasury Department in return for $30 million from the Troubled Asset Relief Program.

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