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Two of the nation’s largest Black-owned banks have announced a merger to create Optus Bank, a $1.27 billion financial institution with 10 locations across North and South Carolina.
The deal brings together Optus Financial Corporation, the parent company of Optus Bank, and M&F Bancorp Inc., which owns Mechanics & Farmers Bank. The merger is valued at more than $105 million.
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Optus Bank Merger Advances Shared Mission and Legacy
The boards of both companies have unanimously approved the merger, which is expected to close in the fourth quarter of 2026, subject to approval from federal regulators and M&F Bancorp shareholders.
“Shareholders, directors, and employees of both institutions can take pride in this partnership, which honors and advances our shared mission and legacy,” M&F chairman James Stewart said in a statement. “The combined organization will allow us to serve more communities and operate with greater scale and effectiveness.”
Under terms of the deal, valued at more than $105 million, M&F’s eight branches will keep operating under the M&F name for two years before transitioning to Optus. M&F’s Charlotte branch is located on Beatties Ford Road in the Historic West End.
MFBP shareholders are expected to receive $53.30 per common share in cash. That includes $46.57 per share payable at closing, plus $6.73 per share contingent on the repurchase of outstanding M&F preferred stock within 12 months of closing.
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Leadership roles for the combined holding company and bank will be shared between the two organizations, according to the announcement. James H. Sills III, president and CEO of M&F Bancorp and M&F Bank, will serve as CEO of the combined holding company and bank. Paul Mitchell, current chairman of Optus Financial and Optus Bank, will serve as chairman of both entities. Benita Lefft will remain president of Optus Bank.Â
The Next Steps for the Next Century of Banking
In a press release, Mitchell called the merger a “defining moment” for “mission-driven banking in America.”Â
“Together, we will create a stronger institution with greater scale, enhanced capabilities, and an expanded capacity to advance economic mobility throughout the Carolinas and beyond,” he said.
M&F Bank, founded in 1907, is the United States’ second-oldest Black-owned financial institution and operates eight locations in North Carolina. Optus Bank, founded in 1921 as Victory Savings Bank, is South Carolina’s only Black-owned bank.
The combined institution will retain its federal designations as a minority depository institution (MDI) and a certified community development financial institution (CDFI). It will focus on small business growth, affordable housing, and expanded access to capital.Â
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Valued at more than $105 million, the merger brings more than 220 years of banking history. Under the agreement, the M&F brand will be merged into Optus.
