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

Optus Financial and M&F Bancorp have signed a definitive merger agreement that would combine two longtime African-American owned Minority Depository Institutions and create the largest such bank in the U.S. The deal, expected to close in the fourth quarter of 2026, would expand the combined bank’s footprint across the Carolinas and deepen its lending and community development reach.

Why it matters: - The deal would create the largest African American owned financial institution in the United States. - The combined bank would expand access to credit, capital and banking services across underserved communities in the Carolinas. - The merger would bring more scale to small business lending, affordable housing finance and community development work.

What happened: - Optus Financial Corporation and M&F Bancorp announced a definitive merger agreement on July 22, 2026. - Optus Financial, the parent of Optus Bank, will merge with M&F Bancorp, the parent of Mechanics & Farmers Bank. - M&F Bank will merge into Optus Bank. - The transaction value is expected to exceed $105.0 million. - M&F Bancorp shareholders are expected to receive up to $53.30 per common share in cash. - That total 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 details: - The combined organization will have about $1.27 billion in total assets as of March 31, 2026. - The merged bank will operate 10 locations across North and South Carolina. - 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 deal. - The transaction still needs M&F Bancorp shareholder approval and regulatory approval. - 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: - The merger joins two of the nation’s longest-standing Minority Depository Institutions, both with certified Community Development Financial Institution status. - Optus Bank is approaching its 105th anniversary this October. - Optus was founded in 1921 as Victory Savings Bank and is South Carolina’s only African American owned bank. - M&F Bank was founded in 1907 and is the nation’s second oldest African American owned financial institution. - The combination appears designed to preserve both banks’ community-focused missions while adding balance-sheet strength and broader reach.

What's next: - The companies will move through shareholder and regulatory review before closing. - After the merger closes, the combined institution will keep operating as an MDI and CDFI. - Leadership says the bank will focus on economic mobility, community investment and relationship-based service. - The combined platform is expected to support innovative banking products and expand lending tied to local growth.

The bottom line: - Optus and M&F are betting that a larger mission-driven bank can do more for Carolina communities without losing the legacy that made both institutions important in the first place.