$1.3 billion. Ten locations across North and South Carolina. One historic merger. Two notable southern banks, Optus and M&F Bank, just combined forces to build America’s largest Black-owned bank. To understand what this shift means for Black wealth, The Root spoke with banking pioneer Walter L. Davis, whose track record building financial institutions from the ground up makes him uniquely positioned to assess the moment.
North Carolina’s oldest minority-owned financial institution, M&F Bank, is merging with Optus Financial Corp., parent company of Columbia, South Carolina-based Optus Bank. The deal, announced July 22, values M&F Bancorp—one of the most influential African American businesses in North Carolina in the 20th century and the second oldest Black-owned bank in the United States—at more than $105 million. Once merged, the combined entity will hold $1.3 billion in assets and operate ten locations across the Carolinas.
For context, this isn’t just another corporate consolidation. Optus was founded in 1921 with an explicit mission: economic empowerment and closing wealth gaps. That DNA matters when you’re evaluating a merger of this scale.
Davis, who previously served as Chief Executive Officer of CertusBank and oversaw its growth into a $2 billion financial institution, said he’s impressed by what’s taking shape. “More consolidation has been needed for a while because economies of scale are important,” Davis told The Root. “In order to be really profitable, you have to have those economies of scale these days in banking.”
But scale alone doesn’t guarantee impact. The real question—especially for communities that depend on these institutions—is whether building a bigger bank actually translates to better service and real wealth-building for the people it serves.
Davis addressed that tension directly. “Most of the customers they serve are Black customers today,” he explained. “The more profitable they are the better they can invest in systems and great people. All of those things will be a net positive for the businesses and consumers that bank with these folks.”
What distinguishes this merger from the megabank consolidations we’re used to hearing about is purpose. Chase and PNC have long been accused of extracting wealth from neighborhoods. This institution was designed to reinvest it back.
“Community banking is the lifeblood of small business in this country,” Davis said. “When you start talking about the big banks, it benefits big business and capital markets. But there’s room for community banks to expand their services for small businesses and consumers. This is much different. You can have a more hands-on approach.”
Five to ten years from now, how will we know if this merger actually worked? Davis frames the timeline differently. The real proof arrives much sooner—within three to four years.
“My hope is that it’s an accretive merger, meaning that for what Optus paid, it becomes accretive for their shareholders in a short period of time and profitable for them. I think that hopefully it’s foundational for them to continue to grow,” Davis said.
Beyond the balance sheet, he pointed to the tangibles: lending, business investments, expanded loans to scale emerging enterprises. And accessibility matters. “You see it in ATMs, branches, and how easily customers can reach the bank,” Davis continued. “Mega banks like Bank of America and PNC built a philosophy of having a bank on every corner. You won’t accomplish that here. But there’s an opportunity for mobile banking and greater technology—and that’s real service to the community.”
Black-owned banks have historically filled gaps that traditional financial systems ignored—providing capital for homes, small businesses, and community development when other doors stayed shut. This M&F Bank and Optus merger represents something rare: two institutions with that same founding ethos consolidating to strengthen their collective reach.
Pending final shareholder and regulatory approvals, the merger is expected to close in the fourth quarter of 2026.
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