Historic Merger to Create America’s Largest Black-Owned Bank

Optus Bank and Mechanics & Farmers Bank combine to form a US$1.27 billion institution.

Two of America’s oldest Black-owned banks are merging to form the largest Black-owned bank in the country by assets. Optus Financial Corporation, parent of South Carolina’s Optus Bank, and M&F Bancorp, parent of North Carolina’s Mechanics & Farmers Bank, have signed a definitive merger agreement that would combine more than 220 years of Black banking history.

Mechanics & Farmers Bank, founded in 1907, is North Carolina’s oldest Black-owned bank; Optus Bank dates to 1921. The combined entity, with roughly US$1.27 billion in assets, will operate 10 branches across the Carolinas, focused on expanding homeownership, small-business lending and financial services in underserved communities.

Under the deal, valued at more than US$105 million, M&F Bancorp shareholders will receive cash for their shares. James H. Sills III, M&F Bancorp’s current CEO, will lead the combined bank, while Optus Financial chairman Paul Mitchell will serve as board chairman. The merger is expected to close in the fourth quarter of 2026, pending shareholder and regulatory approval.

The announcement has drawn attention on social media, reviving debate over the role of Black-owned banks in building generational wealth – and whether the consolidation reflects strength or necessity.