Optus Bank and M&F Bank to Merge into Nation's Largest Black-Owned Financial Institution
Two of the oldest Black-owned banks in the U.S., Mechanics & Farmers (M&F) Bank and Optus Bank, are merging in a deal valued at $105 million or more. The merger is expected to close by the end of 2026 and will create an institution with approximately $1.3 billion in assets and ten locations across North Carolina and South Carolina. The combined entity will be led by Paul Mitchell as chairperson, while James Sills III from M&F Bank will serve as CEO. Both banks are certified community development financial institutions (CDFIs) and have historically been key beneficiaries of investments aimed at supporting minority depository institutions (MDIs). The merger is seen as a significant step for mission-driven banking in the U.S. The deal includes cash payments to M&F shareholders, with potential additional compensation based on preferred stock repurchases. This transaction will reduce the number of Black-owned banks from 23 to 22 and position Optus-M&F as the largest such institution by asset size.