Optus Financial in Columbia, S.C., has agreed to buy M&F Bancorp in Durham, N.C., in a merger of minority depository institutions.
Optus will pay $105 million in cash, including $46.57 a share at closing and an additional $6.73 a share contingent upon the repurchase of certain outstanding shares of M&F preferred stock within a year of closing. The deal is expected to close in the fourth quarter.
Optus will have $1.3 billion of assets after the deal closes.
James Sills III, M&F’s president and CEO, will become CEO of the combined holding company. Paul Mitchell, Optus’ chairman, will retain that role.
The acquisition “represents a defining moment — not only for our organizations, but for mission-driven banking in America,” Mitchell said in the release. “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.”
Performance Trust Capital Partners and Nelson Mullins Riley & Scarborough advised Optus. Piper Sandler and Brooks, Pierce, McLendon, Humphrey & Leonard advised M&F.