Two historic Black-owned banks plan merger to create the nation’s largest Black-owned bank

Optus Bank and Mechanics & Farmers Bank are joining forces in a proposed monumental Black-owned bank merger.

Two of America’s oldest Black-owned banks are joining forces in a move that could strengthen access to capital in Black communities. If approved, the merger would create the largest Black-owned bank in the United States by 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, have signed a definitive merger agreement. Together, they would form the largest Black-owned bank in the United States, with approximately $1.27 billion in assets.

According to BizJournals, the proposed merger combines more than 220 years of Black banking history. Mechanics & Farmers Bank was founded in 1907 and is the oldest Black-owned bank in North Carolina. Optus Bank traces its roots back to 1921. The combined institution is expected to operate 10 branches across North and South Carolina while continuing its focus on expanding access to homeownership, small business lending and financial services in historically underserved communities.

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Black-owned banks have long played a critical role in helping families, entrepreneurs and neighborhoods gain access to financial opportunities that were often denied elsewhere. Leaders say the merger is designed to strengthen that mission. Under the agreement, M&F Bancorp shareholders would receive cash for their shares in a transaction valued at more than $105 million. James H. Sills III, the current president and CEO of M&F Bancorp, is expected to lead the combined company as CEO, while Paul Mitchell, chairman of Optus Financial, would remain board chairman.

The deal is expected to close in the fourth quarter of 2026, pending shareholder and regulatory approval. The announcement sparked conversation across social media, with many celebrating what the merger could mean for Black economic empowerment. One user admitted they were surprised to learn about the institutions, writing, “Wait, we have our own banks!?!” Another saw the Black-owned bank merger as a positive sign, commenting, “Uh oh, I think we’re starting to get it..” Others praised the timing. “Better late than never,” one commenter wrote, noting the banks had remained separate for decades.

Not everyone was fully convinced. Some questioned whether consolidation signals broader economic challenges, while others wondered if the Black-owned bank merger came from a position of financial strength. Even with those questions, the announcement has renewed conversations about the importance of supporting Black-owned financial institutions and building generational wealth within Black communities.