Optus Bank and M&F to merge, creating largest Black-owned bank in US

Dan Ennis Thu, July 23, 2026 at 2:47 AM PDT · 3 min read

Two of the nation's oldest Black-owned banks are combining in a deal valued at $105 million or more, with the transaction expected to close in the fourth quarter.

Durham, North Carolina-based Mechanics & Farmers Bank (M&F) will merge into Columbia, South Carolina-based Optus Bank, creating a roughly $1.3 billion-asset institution with 10 locations across two states, the lenders announced Wednesday.

Paul Mitchell, chairman of Optus Bank and its holding company, called the combination "a defining moment – not only for our organizations, but for mission-driven banking in America."

Background and Significance

Optus and M&F are each federally designated minority depository institutions (MDIs) and certified community development financial institutions (CDFIs) with more than a century of history. Both have frequently been targeted for investment when larger banks and organizations seek to make a statement.

Notable examples include:

• Wells Fargo — At the height of recent racial equity consciousness in the U.S., months after the killing of George Floyd by police, Optus and M&F were among 11 Black-owned banks in which Wells Fargo pledged to invest.
• State Street — Optus and M&F were the first beneficiaries of a $100 million investment by State Street into MDIs and CDFIs in 2024.
• NFL — In 2023, when the NFL sought to bolster nonwhite-owned banks, Optus and M&F were among 16 institutions from which it borrowed $78 million.

Leadership and Structure

Once the transaction closes:

• Paul Mitchell will serve as chair of the combined holding company and bank.
• James Sills III, CEO and president of M&F's holding company, will serve as CEO of the combined bank and holding company.

"Together, we will create a stronger institution with greater scale, enhanced capabilities, and an expanded capacity to advance economic mobility throughout the Carolinas and beyond," Mitchell said in a statement.

Sills added: "M&F Bank was founded on the belief that every community deserves a financial institution that understands and serves its unique needs. That principle has guided us for more than a century and led us to this partnership with Optus. We share a common mission, aligned values, and a steadfast commitment to our customers and communities. This transaction enables us to honor our legacy while providing enhanced resources and capabilities to those we serve."

Financial Details

As part of the deal, M&F holding company shareholders will receive up to $53.30 per common share in cash:

• $46.57 per share payable at closing
• $6.73 per share possible if certain outstanding shares of preferred stock are repurchased within one year of the transaction's completion

Scale and Reach

The combined institution would become the largest Black-owned bank in the nation, the lenders said Wednesday.

• Optus Bank — $785.2 million in assets as of the end of the first quarter; founded in 1921 as Victory Savings Bank; two locations
• M&F Bank — $517.5 million in assets; founded in 1907; eight locations

Their combination will leave one fewer Black-owned bank in the U.S.

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