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

Optus Financial Corporation and M&F Bancorp have signed a definitive merger agreement that would combine two of the nation’s oldest African American-owned banks and create the largest such institution in the U.S. Closing is expected in the fourth quarter of 2026, pending shareholder and regulatory approvals.

Why it matters: - The deal would create the largest African American-owned financial institution in the United States. - The combined bank would have more scale to expand access to capital, support small businesses, finance affordable housing and invest in underserved communities. - The transaction highlights continued consolidation among mission-driven minority depository institutions.

What happened: - Optus Financial Corporation and M&F Bancorp announced a definitive merger agreement on July 22, 2026. - M&F Bancorp will merge into Optus, and Mechanics & Farmers Bank will merge into Optus Bank. - The companies described the deal as a partnership between two of the nation’s longest-standing minority depository institutions. - Closing is expected in the fourth quarter of 2026, subject to shareholder approval and required regulatory approvals.

The details: - M&F Bancorp shareholders are expected to receive up to $53.30 per common share in cash. - The cash payment 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 $105.0 million. - The combined institution will operate 10 locations across North and South Carolina. - The combined bank will have approximately $1.27 billion in total assets as of March 31, 2026. - James H. Sills III, president and CEO of M&F Bancorp, will lead the combined holding company and bank as CEO. - Paul Mitchell, chairman of Optus and Optus Bank, will remain chairman of both entities. - The deal was unanimously approved by both boards. - 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 pairs two institutions with deep historical ties in the Carolinas and a shared mission centered on financial inclusion. - Optus is preparing to mark its 105th anniversary in October, while M&F Bank brings a 1907 founding date and a long record of serving Black communities. - The combined footprint and asset base could give the new institution more room to compete while preserving relationship-based banking. - The companies frame the transaction as a way to expand economic mobility without losing either bank’s community focus.

What's next: - M&F Bancorp shareholders still need to vote on the transaction. - Regulators must approve the merger before it can close. - The companies expect the transaction to be completed in the fourth quarter of 2026. - After closing, the combined bank plans to continue operating as an MDI and CDFI focused on economic opportunity and community development.

The bottom line: - If approved, the merger would unite two landmark Black-owned banks into a larger platform aimed at widening access to credit and deepening investment across the Carolinas and beyond.