Two Oldest Black-Owned Banks Merge to Form $1.27 Billion Institution

By Tony O. Lawson

In a significant milestone for Minority Depository Institutions (MDIs), two of the oldest Black-owned banks in America, Optus Bank and Mechanics & Farmers Bank (M&F), are merging. This will create a combined financial institution boasting approximately $1.27 billion in assets.

Unveiling the Mega Merger

Optus Bank, originating from South Carolina, and North Carolina’s M&F Bank have announced plans for a merger valued at over $105 million. Pending regulatory and shareholder approval, the merged entity will operate 10 banking locations across the Carolinas, representing over 220 years of banking history.

This merger is set to birth the biggest Black-owned financial institution in the United States, marking a significant development within the MDI landscape.

The Legacy of the Two Institutions

Founded in 1907, M&F Bank has been a pillar in Durham, North Carolina’s historic Black Wall Street business district. It has financed entrepreneurs, homeowners, churches, and businesses for over a century, surviving economic downturns that led to the closure of many community banks.

Optus Bank, the oldest Black-owned bank in South Carolina, has been operating since 1921. As one of the country’s certified Community Development Financial Institutions (CDFIs), it offers commercial banking, consumer banking, mortgage lending, and small business financing.

Both banks were established during a period when Black entrepreneurs and families had limited access to traditional financial services, a shared mission that remains central to their operations.

Benefits of the Merger

As of March 31, 2026, Optus reported assets of approximately $785 million, while M&F reported about $518 million. The merger will create a combined entity with approximately $1.27 billion in assets.

However, the benefits of the merger are not limited to an expanded balance sheet. A larger financial institution can increase lending capacity, invest heavily in technology, enhance treasury and commercial banking services, and cater to larger business relationships while continuing to serve local communities.

A Unique Merge in the Black-Owned Banking Sector

While the broader U.S. banking industry has experienced decades of consolidation, Black-owned banks have had a different journey. The Optus-M&F merger is distinctive as it combines two century-old institutions with shared missions to expand access to capital through MDIs and CDFI programs.

Looking Ahead

The merger is anticipated to conclude in the fourth quarter of 2026, subject to regulatory approval and M&F Bancorp shareholder consent. James H. Sills III will serve as the CEO of the combined company, with Paul Mitchell remaining as chairman.

The seven branches of M&F will operate under the M&F name for approximately two years before transitioning to the Optus brand. This merger could provide businesses across the Carolinas with expanded access to commercial lending and other financial services, continuing the community-focused mission that has defined both banks for generations.