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A Black-owned banks merger between two historic financial institutions could reshape the future of minority banking in the United States.
South Carolina-based Optus Financial Corporation, the parent company of Optus Bank, and North Carolina-based M&F Bancorp, the parent company of Mechanics & Farmers Bank, have announced a proposed merger that would create the largest Black-owned bank in the country by assets.
The combined institution would hold approximately $1.27 billion in total assets, strengthening its ability to provide financial services, lending opportunities, and economic support to underserved communities.
Historic Black-owned banks join forces
The proposed merger would unite two banks with more than two centuries of combined history.
M&F Bank was founded in 1907 and is recognized as the oldest Black-owned bank in North Carolina. Meanwhile, Optus Bank traces its origins back to 1921 and has built a legacy of expanding financial access for communities that have historically faced barriers.
Together, the institutions would operate 10 branches throughout North and South Carolina.
The merger reflects a continued effort among Black-owned financial institutions to grow their reach while preserving their mission of supporting Black communities, entrepreneurs, and families.
New bank aims to expand economic opportunities
The combined company plans to continue focusing on areas such as small business lending, homeownership, and access to capital.
For decades, Black-owned banks have played an important role in helping customers who may struggle to receive financing from traditional financial institutions. These banks often provide loans, business support, and financial resources designed to strengthen local communities.
The merger could allow the new institution to increase its lending capacity while maintaining its commitment to economic empowerment.
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Merger valued at more than $105 million
Under the agreement, M&F Bancorp shareholders would receive cash payments for their shares. The total value of the transaction exceeds $105 million.
James H. Sills III, the current president and CEO of M&F Bancorp, is expected to lead the combined company as CEO. Optus Chairman Paul Mitchell is expected to remain chairman after the merger is completed.
However, the deal still requires approval from shareholders and financial regulators before it can move forward.
Largest Black-owned bank could emerge in 2026
If approved, the merger is expected to close during the fourth quarter of 2026.
The creation of a larger Black-owned bank could mark a major moment for minority banking in America. It would combine the strength, experience, and community relationships of two institutions that have spent generations serving customers.
As financial challenges continue to impact many underserved communities, supporters say the partnership could provide more opportunities for wealth building, entrepreneurship, and long-term economic growth.
Source: Axios; Optus Financial Corporation and M&F Bancorp merger announcement
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