M&F Bank, Optus Bank Merger Could Reshape Black Wealth and Economic Opportunity Across the Carolinas

For generations, Black-owned banks have provided something many traditional financial institutions did not: access, opportunity, and a commitment to communities too often overlooked. Now, a proposed merger involving Durham’s historic M&F Bank could significantly expand that mission—and potentially change the financial landscape for Black families and businesses across the Carolinas.

M&F Bank and South Carolina-based Optus Bank have announced plans to combine, creating what the institutions say would become the largest African American-owned financial institution in the United States.

The proposed partnership represents more than a banking transaction. It raises an important question for the Black community: Could a stronger, larger Black-owned bank help close longstanding gaps in business financing, homeownership, and generational wealth?

Why This Merger Matters to the Black Community

Access to capital has long been a critical challenge for Black entrepreneurs and families seeking to build wealth.

Black-owned banks have historically helped address that challenge by serving customers and neighborhoods that have not always received equitable access to traditional banking services.

The proposed M&F Bank Optus merger would combine two institutions with more than 220 years of banking history and a shared mission of supporting underserved communities.

Together, the banks expect to strengthen their ability to:

• Expand lending opportunities for Black-owned businesses seeking startup or growth capital.
• Support homeownership and affordable housing through community-focused financing.
• Increase investment in underserved neighborhoods and local economic development.
• Provide additional banking resources to individuals, families, and nonprofit organizations.
• Help build generational wealth through expanded financial services and access to capital.

These are anticipated opportunities rather than announced changes to specific loan programs or customer services.

For Black communities across North Carolina and South Carolina, the significance lies in the potential for a financial institution with greater resources to invest in the people and places that helped build its legacy.

A Historic Durham Institution Enters a New Chapter

Founded in 1907, Mechanics & Farmers Bank has been a cornerstone of Black economic empowerment in Durham for nearly 120 years.

The bank emerged during an era when African Americans faced widespread discrimination in banking and business financing. It became part of Durham’s celebrated Black Wall Street, helping Black residents, entrepreneurs, and organizations establish financial independence.

Today, M&F Bank is recognized as the nation’s second-oldest African American-owned financial institution.

Its prospective partner, Optus Bank, was founded in 1921 as Victory Savings Bank and is headquartered in Columbia, South Carolina.

Both institutions are designated Minority Depository Institutions (MDIs) and certified Community Development Financial Institutions (CDFIs), reflecting their focus on financial access and community development.

Their merger would bring together two longstanding institutions whose missions extend beyond conventional banking.

What the Combined Bank Would Look Like

Under the agreement, M&F Bancorp, Inc. would merge into Optus Financial Corporation, while M&F Bank would merge into Optus Bank.

The combined institution is expected to have:

• Approximately $1.27 billion in total assets, based on figures as of March 31, 2026.
• Ten banking locations across North and South Carolina.
• James H. Sills III, currently president and CEO of M&F Bank, as chief executive officer of the combined holding company and bank.
• Paul Mitchell, chairman of Optus Financial Corporation and Optus Bank, continuing as chairman of both combined entities.

The transaction is valued at more than $105 million.

M&F Bancorp shareholders could receive up to $53.30 per common share in cash, including a contingent payment tied to the repurchase of certain preferred shares.

The boards of both institutions have unanimously approved the agreement. However, the transaction still requires M&F Bancorp shareholder approval, regulatory approval, and other customary closing conditions.

The companies anticipate closing in the fourth quarter of 2026.

Leadership Emphasizes Economic Empowerment

James H. Sills III said the proposed merger builds on the principle that every community deserves a financial institution that understands its needs.

“M&F Bank was founded on the belief that every community deserves a financial institution that understands and serves its unique needs,” Sills said.

He emphasized that the partnership would allow the institutions to preserve their shared mission while providing additional resources to customers and communities.

Benita Lefft, president of Optus Bank, described the agreement as an opportunity to strengthen economic empowerment across the Carolinas.

Paul Mitchell, chairman of Optus, also pointed to the potential for increased support for entrepreneurship, generational wealth, and access to capital.

What Happens to M&F Bank Customers?

For current M&F Bank customers, the announcement does not mean the merger has already taken effect.

The companies have not detailed any immediate changes to account numbers, branch operations, banking products, or customer services.

Customers should continue using their existing banking services unless they receive official instructions from their financial institution.

An important issue to watch will be how the combined bank preserves M&F’s community relationships, local accessibility, and historic identity as the organizations integrate.

A Bigger Bank—But Will the Community Benefit?

The proposed M&F Bank Optus merger creates an opportunity to strengthen Black-owned banking at a time when access to capital remains central to conversations about economic mobility.

But the real measure of success will extend beyond the institution’s asset size.

Will more Black entrepreneurs qualify for business financing? Will more families gain access to affordable homeownership? Will underserved communities see greater investment?

Those outcomes will determine how transformative this partnership ultimately becomes.

For Durham, the merger also represents a new chapter in the history of an institution that helped establish the city’s reputation as a center of Black enterprise.

The challenge—and opportunity—will be ensuring that as the bank grows, the communities that built its legacy grow with it.

The proposed merger remains subject to required approvals.