On August 11, 2014, M&F Bancorp Inc. entered into an employment agreement with James H. Sills III, age 56, in connection with his appointment as President and Chief Executive Officer of the Company, effective September 1, 2014. Effective August 31, 2014, Kim D. Saunders, President and Chief Executive Officer of the Company, will step down from her post. Following Mr. Sills' appointment, James E. Sansom, Interim President of the Bank, will continue on in his role as Chief Lending Officer.

Mr. Sills' employment agreement provides for an initial term of employment of two years, beginning September 1, 2014. At the end of the initial term, the term of employment will be automatically extended for additional terms of one year unless a notice of termination is given by the Company and the Bank to Mr. Sills not less than 120 days prior to the end of the initial term, or the Additional Term, as applicable.