Optus Financial and M&F Bancorp agree merger to create largest Black-owned bank in the US

South Carolina-based Optus Financial Corporation and North Carolina-based M&F Bancorp have agreed to merge in a transaction valued at more than $105 million, creating what the parties describe as the largest Black-owned bank in the United States. M&F was founded in 1907 and Optus in 1921, as Victory Savings Bank.

Announced on 22 July 2026, the agreement provides for M&F Bancorp to merge into Optus Financial and for Mechanics and Farmers Bank to merge into Optus Bank. The transaction is expected to close in the fourth quarter of 2026.

DEAL STRUCTURE AND VALUATION

Under the terms of the agreement, shareholders of M&F Bancorp would receive cash for their shares. The parties put the total value of the transaction at more than $105 million, and the combined institution would have about $1.27 billion in assets and 10 locations across North and South Carolina.

M&F Bancorp shareholders would receive up to $53.30 in cash per share: $46.57 payable at closing and up to $6.73 contingent on the repurchase of certain M&F Bancorp preferred shares within 12 months after closing.

Both are federally designated minority depository institutions and certified community development financial institutions; M&F has eight locations and Optus two. The parties said the combined organisation would continue as a mission-driven minority depository institution and community development financial institution, while expanding its financial products, technology and operational capabilities.

APPROVALS AND EXPECTED CLOSE

Completion of the merger is subject to approval by M&F Bancorp shareholders and to regulatory approvals.

The parties said they expected the transaction to close in the fourth quarter of 2026.

If completed, the combination would create the largest of the 22 Black-owned banks in the United States, according to Banking Dive. Both banks have received investments from Wells Fargo, State Street and the NFL, according to Banking Dive.

James H. Sills III, M&F's chief executive, will become chief executive of the combined company, and Paul Mitchell will remain chairman.