The merger will form a $1.27 billion institution with 10 branches in the Carolinas, becoming the nation’s largest Black-owned bank if approved and expected to close in late 2026.
By Glenn H. Burkins
Qcity Metro
https://qcitymetro.com/
Two of the nation’s largest Black-owned banks announced plans to merge in a deal that would create a combined organization with $1.27 billion in assets and 10 locations across North and South Carolina.
The agreement was announced Wednesday between Durham-based M&F Bancorp, parent of M&F Bank, and Columbia-based Optus Financial Corp., which opens Optus Bank.
M&F Bank has a prominent location on Beatties Ford Road in Charlotte.
Directors of both companies voted to approve the merger, which is scheduled to close in the fourth quarter of 2026, the companies announced in a statement. Federal regulators and M&F Bancorp shareholders also must approve the merger.
Leadership roles for the combined holding company and bank will be distributed between the two organizations, according to the announcement
James H. Sills III, the current president and CEO of M&F Bancorp and M&F Bank, will serve as CEO of both the combined holding company and bank. Meanwhile, Paul Mitchell, the current chairman of Optus Financial and Optus Bank, will continue to serve as chairman of both combined entities.
Benita Lefft will remain president of Optus Bank.
The merger brings together more than 220 years of combined banking history: M&F Bank, founded in 1907, is recognized as the nation’s second-oldest Black-owned financial institution. It currently operates eight locations in North Carolina. Optus Bank, founded in 1921 as Victory Savings Bank, operates as South Carolina’s only Black-owned bank.
In a statement, Mitchell called the merger a “defining moment” for “mission-driven banking in America.”
“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.
Meanwhile, James A. Stewart, chairman of M&F Bancorp and M&F Bank, said, “The combined organization will allow us to serve more communities and operate with greater scale and effectiveness.
“Shareholders, directors, and employees of both institutions can take pride in this partnership, which honors and advances our shared mission and legacy,” he added.
The combined institution will retain its status as a federally designated minority depository institution (MDI) and a certified community development financial institution (CDFI), focusing on small business growth, affordable housing and expanded access to capital.
The merger proposal, which values M&F Bancorp at more than $105 million, would create the nation’s largest Black-owned financial institution.
Under the terms of the agreement, the M&F brand would be merged into Optus.
Meanwhile, M&F shareholders are expected to receive up to $53.30 per common share in cash, consisting of $46.57 per share at closing, with an additional $6.73 contingent on the repurchase of certain outstanding preferred stock prior to or within 12 months following the close.
Glenn H. Burkins, Staff Writer
Email Glenn at gburkins@qcitymetro.com. Stay up to date with our morning newsletter. Read more articles by Glenn.
