Optus Financial Corp., the parent company of South Carolina-based Optus Bank, and M&F Bancorp, the parent company of North Carolina-based Mechanics & Farmers Bank, recently announced they have agreed to merge. The aggregate transaction value of the merger is expected to be more than $105 million.
Under the terms of the agreement, M&F Bancorp will merge with and into Optus, and M&F Bank will merge with and into Optus Bank. The combined institution will operate 10 locations throughout North Carolina and South Carolina and will have assets totaling approximately $1.27 billion. It will create the largest African American owned financial institution in the United States.
M&F Bancorp President and CEO James H. Sills III will serve as CEO of the combined holding company and bank while Optus and Optus Bank Chairman Paul Mitchell will continue to serve as chairman of both.
“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,” Mitchell said.
Combined, the financial institutions have more than 220 years of banking experience.
Both companies’ boards of directors have approved the transaction. The deal is expected to close during the fourth quarter, pending customary closing conditions and regulatory approvals.