First M&F Corp., a $1.6 billion bank holding company with branches in Shelby County, said Tuesday it has received preliminary approval to receive financial bailout money.

First M&F will use the bailout money to strengthen its balance sheet and expand loan opportunities. The Kosciusko, Miss.-based company has banking locations in Chelsea, Columbiana, Inverness, Pelham, Riverchase and Wilsonville.

First M&F applied for approval of up to $40 million in nonvoting senior preferred shares. The U.S. Treasury Department has used preferred stock to alleviate banks under the $700 billion bailout package.

Hugh Potts Jr., CEO and chairman of First M&F, announced the approval from the Treasury Department in a news release.

“This program will further strengthen our already well-capitalized balance sheet. We view it as a defensive measure against further weakening in the economy and as an offensive measure, allowing us to grow loans as the opportunities present themselves,” Potts said.