ThinkinThowed

Two of the nation’s oldest Black-owned banks are set to merge in a historic deal that would create the largest Black-owned bank in the United States by total assets.

South Carolina-based Optus Financial Corporation, the parent company of Optus Bank, and North Carolina-based M&F Bancorp, the parent company of Mechanics & Farmers Bank, announced they have entered into a definitive merger agreement. Once completed, the combined institution will hold approximately $1.27 billion in assets.

The merger unites more than 220 years of banking history. Mechanics & Farmers Bank, founded in 1907, is North Carolina’s oldest Black-owned bank, while Optus Bank traces its roots back to 1921. Together, the new organization is expected to operate 10 branches across North and South Carolina while continuing to focus on increasing access to homeownership, small business lending, and financial services in underserved communities.

As part of the agreement, M&F Bancorp shareholders will receive cash for their shares in a transaction valued at more than $105 million. M&F Bancorp President and CEO James H. Sills III is expected to lead the combined company as CEO, while Optus Chairman Paul Mitchell will continue serving as chairman.