First M&F Corp. said late Thursday that it has agreed to buy Community Federal Bancorp of Tupelo, Miss., for $77.9 million in stock.

The price is about 1.33 times Community Federal's book value.

Community Federal has $305 million of assets and three branches in northeastern Mississippi. The acquisition is expected to be completed by yearend.

The deal, which will be accounted for as a purchase, calls for First M&F to exchange $18.27 worth of cash and its common stock for each share of Community Federal.

First M&F Corp., with $735 million of assets, is the parent of Merchants & Farmers Bank. The company operates 33 branches in central and northern Mississippi.

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