Optus Bank and Durham-based Mechanics & Farmers Bank will merge to unite two of the nation’s longest-standing Minority Depository Institutions.

Optus Financial Corporation, based in Columbia, South Carolina, is the parent company of Optus Bank. M&F Bancorp, Inc. is the parent company of M&F Bank.

Under the terms of the agreement, MFBP will merge with and into Optus, and M&F Bank will merge with and into Optus Bank. The transaction value is expected to exceed $105 million.

This transformative partnership brings together two mission-driven  financial institutions with more than 220 years of combined banking experience and a shared commitment to expanding access to capital, advancing economic opportunity, and strengthening underserved communities. The combined organization will build upon a legacy of community development, wealth creation, and economic empowerment that has impacted generations across the Carolinas.

The announcement comes at a pivotal time as Optus Bank prepares to celebrate 105 years of “Banking on Communities” in October. Founded in 1921 as Victory Savings Bank, Optus has evolved into one of the nation’s leading MDIs and certified Community Development Financial Institutions, dedicated to expanding access to credit, capital and financial services.

M&F Bank, founded in 1907, has a longstanding history of empowering individuals, families, and businesses throughout North Carolina and is widely recognized as one of the nation’s oldest and most respected African American-owned financial institutions.

Upon completion of the transaction, the combined institution will operate 10 locations across North Carolina and South Carolina and will have approximately $1.27 billion in total assets as of March 31,

MFBP President and Chief Executive Officer James H. Sills III will serve as CEO of both the combined holding company and bank. Optus Chairman Paul Mitchell will continue as chairman of both entities.

“This partnership with M&F Bank represents a defining moment, not only for our organizations but for mission-driven banking in America,” Mitchell said. “M&F Bank has a proud legacy of supporting entrepreneurship, fostering generational wealth, and expanding access to capital in underserved communities. 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.”

Closing is anticipated in the fourth quarter.

Comments