Optus Bank, M&F Bank agree to merge in $105M deal

Optus Financial Corporation and M&F Bancorp have signed a definitive merger agreement that would combine two of the country’s longest-standing Minority Depository Institutions. The deal would create the largest African American owned financial institution in the U.S. and is expected to close in the fourth quarter of 2026, pending shareholder and regulatory approval.

Why it matters: - Optus Bank and M&F Bank would join to create the largest African American owned financial institution in the United States. - The combined bank would expand lending, community investment and access to capital across the Carolinas. - The deal brings together two Minority Depository Institutions with more than 220 years of combined banking experience.

What happened: - Optus Financial Corporation and M&F Bancorp announced a definitive merger agreement on July 22, 2026. - MFBP will merge with and into Optus, and M&F Bank will merge with and into Optus Bank. - The transaction is expected to close in the fourth quarter of 2026. - The boards of directors of both companies unanimously approved the deal.

The details: - Total consideration to MFBP shareholders is expected to be up to $53.30 per common share in cash. - Shareholders would receive $46.57 per share at closing. - An additional $6.73 per share is contingent on repurchase of certain MFBP preferred shares before closing or within 12 months after closing. - The aggregate transaction value is expected to exceed $105.0 million. - The combined institution would operate 10 locations across North and South Carolina. - The combined company would have about $1.27 billion in total assets as of March 31, 2026. - James H. Sills III, president and CEO of MFBP, would serve as CEO of the combined holding company and bank. - Paul Mitchell, chairman of Optus and Optus Bank, would remain chairman of both entities. - Performance Trust Capital Partners advised Optus, and Nelson Mullins Riley & Scarborough served as legal counsel. - Piper Sandler & Co. advised MFBP, and Brooks, Pierce, McLendon, Humphrey & Leonard served as legal counsel.

Between the lines: - The combination pairs two mission-driven banks with deep roots in Black communities and a long emphasis on relationship banking. - Optus is approaching its 105th anniversary in October and traces its roots to Victory Savings Bank, founded in 1921. - M&F Bank was founded in 1907 and is widely recognized as one of the nation’s oldest African American owned financial institutions. - The merged bank would keep operating as an MDI and CDFI, signaling that the institutions intend to preserve their community-focused model while gaining scale.

What's next: - The deal still needs approval from MFBP shareholders and regulators. - The companies said the combined bank would focus on financial inclusion, small business lending, affordable housing finance and community development. - Closing is expected in Q4 2026 if the remaining conditions are met.

The bottom line: - This is a scale-up, not a rebrand: two legacy Black-owned banks are combining to build a larger platform for lending and community development in the Carolinas and beyond.