Optus Bank, M&F Bank agree to merge in $105 million deal

Optus Financial and M&F Bancorp have signed a definitive merger agreement that would combine two longtime Black-owned Minority Depository Institutions in South Carolina and North Carolina. The deal would create the largest African American owned financial institution in the U.S. and is expected to close in the fourth quarter of 2026, pending approvals.

Why it matters: - The combined Optus Bank and M&F Bank would become the largest African American owned financial institution in the United States. - The deal is designed to expand access to capital, support small business growth, finance affordable housing and increase community investment across the Carolinas. - The merger brings together two mission-driven Minority Depository Institutions with more than 220 years of combined banking experience.

What happened: - Optus Financial Corporation, parent of Optus Bank, and M&F Bancorp, parent of Mechanics & Farmers Bank, announced a definitive merger agreement on July 22, 2026. - M&F Bancorp will merge with and into Optus Financial Corporation. - Mechanics & Farmers Bank will merge with and into Optus Bank. - The combined company is expected to operate 10 locations across North and South Carolina. - The merged institution is expected to have about $1.27 billion in total assets as of March 31, 2026.

The details: - M&F Bancorp shareholders are expected to receive up to $53.30 per common share in cash. - That includes $46.57 per share at closing and up to $6.73 per share tied to the repurchase of certain M&F Bancorp preferred shares. - The aggregate transaction value is expected to exceed $105 million. - James H. Sills III, president and CEO of M&F Bancorp and M&F Bank, will become CEO of the combined holding company and bank. - Paul Mitchell, chairman of Optus and Optus Bank, will remain chairman of both entities. - The boards of both companies unanimously approved the transaction. - The deal still needs M&F Bancorp shareholder approval and regulatory approvals. - Closing is expected in the fourth quarter of 2026. - Performance Trust Capital Partners advised Optus, with Nelson Mullins Riley & Scarborough as legal counsel. - Piper Sandler advised M&F Bancorp, with Brooks, Pierce, McLendon, Humphrey & Leonard as legal counsel.

Between the lines: - Optus is approaching its 105th anniversary this October, giving the bank a symbolic milestone as it pursues a larger platform. - Optus was founded in 1921 as Victory Savings Bank and is headquartered in Columbia, South Carolina. - M&F Bank was founded in 1907 and is headquartered in Durham, North Carolina. - Both institutions are federally designated Minority Depository Institutions and certified Community Development Financial Institutions. - The combination preserves a relationship-based service model while adding scale and broader resources.

What's next: - The companies now move through shareholder and regulatory review. - If approved, the merger would unite the banks under a single mission-driven platform focused on financial inclusion and economic opportunity. - The combined bank would continue serving communities in the Carolinas while expanding lending, development and banking services.