Two Black-owned banks have merged.
According to a press release, South Carolina-based Minority Depository Institution (MDI) Optus Bank and North Carolina-based MDI Mechanics & Farmers Bank (M&F Bank) plan to merge, bringing together more than 220 years of combined banking experience and creating a financial institution with 10 locations across North Carolina and South Carolina and an estimated $1.27 billion in combined assets. The institutions, which are also both certified Community Development Financial Institutions, are aligned in ensuring underserved communities have access to capital and economic opportunity, per the release.
The merger will allow for a more intentional approach to serving more communities and operating with “greater scale and effectiveness,” according to James A. Stewart, chairman of M&F Bank and parent company M&F Bancorp Inc. (MFBP).
Furthermore, MFBP President and CEO James H. Sills III will operate as CEO of the combined holding company and bank, and Optus Bank Chairman Paul Mitchell will serve as chairman of both entities when the transaction is completed.
“This partnership with M&F Bank represents a defining moment—not only for our organizations, but for mission-driven banking in America,” said Mitchell, who is also chairman of Optus Bank parent company Optus Financial Corp. “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.”
Sills commented:
“M&F Bank was founded on the belief that every community deserves a financial institution that understands and serves its unique needs. That principle has guided us for more than a century and led us to this partnership with Optus. We share a common mission, aligned values, and a steadfast commitment to our customers and communities. This Transaction enables us to honor our legacy while providing enhanced resources and capabilities to those we serve.”
