M&F Bancorp, Inc. (MFBP)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
M&F Bancorp, Inc. (MFBP) trades at $29.99 with AI Score 53/100 (Grade B). M&F Bancorp, Inc. Market cap: $58.09M, Sector: Financial services.
Price live · AI analysis from Jun 14, 2026Analyst Coverage for MFBP: MFBP does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates MFBP against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
MFBP: 2/6 perspectives are bullish. Dominant signal: Ray Dalio bullish.
How is this calculated? →M&F Bancorp, Inc. (MFBP) Financial Services Profile
M&F Bancorp, Inc. is a regional bank holding company operating Mechanics and Farmers Bank, providing essential consumer and commercial banking services across key North Carolina markets. Established in 1907, it maintains a focused presence with seven branches, offering deposit products and diverse lending solutions to local communities and businesses.
What Is the Investment Thesis for MFBP?
M&F Bancorp, Inc. (MFBP) presents as a regionally focused financial institution with a long operating history in North Carolina, evidenced by its founding in 1907. The company's market capitalization stands at $0.05 billion, with a P/E ratio of 12.40, suggesting a valuation that reflects its established, yet regional, market position. Its profitability metrics, including a profit margin of 14.4% and a gross margin of 78.0%, indicate efficient operations within the banking sector. The dividend yield of 0.89% offers a modest return to shareholders. Key value drivers include its entrenched community presence across seven North Carolina branches, which supports stable deposit gathering and localized lending activities. Potential growth catalysts could stem from continued economic development within its North Carolina markets, driving demand for commercial and residential real estate loans. However, the company's beta of -0.55 suggests a low correlation with broader market movements, potentially indicating lower volatility but also a more insulated growth trajectory. Risks include sensitivity to interest rate fluctuations, regional economic downturns, and intense competition from larger financial institutions.
Based on FMP financials and quantitative analysis
MFBP Key Highlights
- Market capitalization of $58.09M, reflecting its status as a smaller, regional bank holding company.
- Price-to-Earnings (P/E) ratio of 12.40, indicating its valuation relative to earnings within the financial services sector.
- Profit margin of 14.4%, demonstrating the company's ability to convert revenue into net income.
- Gross margin of 78.0%, highlighting strong operational efficiency in its core banking activities.
- Dividend yield of 0.89%, providing a return to shareholders while maintaining capital for operations and growth.
Who Are MFBP's Competitors?
MFBP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| MCHB Mechanics Bank | $16.21 | +0.31% | 4B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
| BUSE First Busey Corporation | $29.58 | -0.25% | $2.50B | 63 |
| CVLY Codorus Valley Bancorp, Inc. | $24.04 | +4.98% | $232.28M | 63 |
| FBVI FCN Banc Corp. | $35.87 | +0.17% | $61.78M | 63 |
| LLDTF Lloyds Banking Group plc | $1.45 | +0.00% | $84.34B | 63 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are MFBP's Key Strengths?
- Long operating history since 1907, establishing strong community trust and brand recognition in North Carolina.
- Established branch network across key North Carolina cities (Durham, Raleigh, Charlotte, Greensboro, Winston-Salem).
- Diversified loan portfolio including commercial, residential, construction, and consumer loans.
- Solid gross margin of 78.0% indicating efficient core banking operations.
What Are MFBP's Weaknesses?
- Relatively small market capitalization of $58.09M, potentially limiting access to capital compared to larger banks.
- Limited geographic reach, confined primarily to specific regions within North Carolina.
- Lower dividend yield of 0.89% compared to some peers, potentially less attractive to income-focused investors.
- Disclosure status on OTC market is 'Unknown', which can impact investor confidence and transparency.
What Could Drive MFBP Stock Higher?
- **North Carolina Economic Growth:** Continued population and business expansion in M&F Bancorp's key North Carolina markets, particularly Raleigh and Charlotte, could drive increased demand for commercial and residential loans, boosting interest income.
- **Digital Banking Enhancements:** Successful implementation and adoption of new or improved digital banking platforms could attract new, tech-savvy customers and improve operational efficiency, expanding reach beyond physical branches.
- **Community Development Initiatives:** Increased participation in or focus on community development lending could strengthen local ties, attract specific funding, and potentially enhance brand reputation within its service areas.
- **Interest Rate Environment Stabilization:** A stable or moderately rising interest rate environment could improve net interest margins, positively impacting the bank's profitability from its lending activities.
What Are the Key Risks for MFBP?
- Financial-distress signal — its Altman Z-Score of -0.59 sits in the distress zone (elevated bankruptcy risk).
- **Regional Economic Downturn:** A significant economic slowdown or recession in North Carolina could lead to increased loan defaults, reduced loan demand, and asset quality deterioration, directly impacting profitability.
- **Interest Rate Sensitivity:** As a regional bank, M&F Bancorp, Inc. is highly sensitive to fluctuations in interest rates, which can compress net interest margins if the cost of funds rises faster than loan yields.
- **Intense Competition:** The banking sector in North Carolina is highly competitive, with larger national and regional banks vying for market share, potentially pressuring M&F Bancorp's loan growth and deposit acquisition efforts.
- **Regulatory Compliance Burden:** The financial services industry faces continuous and evolving regulatory requirements, which can increase operational costs and compliance burdens for smaller institutions like M&F Bancorp, Inc.
- **Liquidity and Transparency Concerns (OTC):** Trading on the OTC Other tier with an 'Unknown' disclosure status presents risks of low liquidity, price volatility, and limited access to critical financial information for investors.
What Are the Growth Opportunities for MFBP?
- Growth opportunity 1: **Expansion of Digital Banking Services** - The financial services industry is undergoing a significant digital transformation, with customers increasingly demanding convenient online and mobile banking solutions. M&F Bancorp, Inc. has an opportunity to invest further in enhancing its digital platforms, including mobile apps, online account opening, and digital loan applications. This could expand its reach beyond physical branches, attract a younger demographic, and improve operational efficiency. The market for digital banking services continues to grow, with projections indicating substantial increases in mobile banking users over the next five years, offering a pathway to broaden its customer base and service capabilities without significant physical infrastructure expansion.
- Growth opportunity 2: **Targeted Commercial Lending in Growing North Carolina Markets** - North Carolina's major metropolitan areas, where M&F Bancorp, Inc. has a presence (e.g., Raleigh, Charlotte), continue to experience robust economic and population growth. This creates a sustained demand for commercial real estate and business loans. By strategically focusing its lending efforts on small and medium-sized businesses (SMBs) within these expanding markets, M&F Bancorp, Inc. can capture a larger share of the commercial lending market. The SMB lending market remains a vital segment, often underserved by larger banks, presenting a niche for regional institutions to leverage their local expertise and relationship-based approach to secure new business and drive loan portfolio growth.
- Growth opportunity 3: **Deepening Customer Relationships through Cross-Selling** - With its established customer base and branch network, M&F Bancorp, Inc. has an opportunity to increase revenue per customer by cross-selling additional financial products and services. This could include offering wealth management solutions, insurance products, or specialized business services to existing deposit and loan customers. By understanding the holistic financial needs of its clients, the bank can provide more comprehensive solutions, fostering greater loyalty and increasing its share of wallet. This strategy leverages existing relationships, which is often more cost-effective than acquiring new customers, and can lead to more stable, diversified revenue streams over time.
- Growth opportunity 4: **Strategic Branch Network Optimization and Expansion** - While digital channels are growing, a physical presence remains crucial for community banks to serve certain customer segments and build trust. M&F Bancorp, Inc. can optimize its existing seven-branch network by modernizing facilities and ensuring they are located in high-traffic, growing areas within its North Carolina footprint. Additionally, strategic, modest expansion into adjacent underserved or rapidly developing communities within North Carolina could provide new avenues for deposit gathering and loan origination. This approach balances digital convenience with the tangible benefits of local presence, allowing the bank to capture growth in specific geographic pockets and enhance its community engagement.
- Growth opportunity 5: **Enhancing Community Development Financial Institution (CDFI) Initiatives** - As a historically significant bank, M&F Bancorp, Inc. has a unique opportunity to strengthen its role as a Community Development Financial Institution (CDFI), or to further align with such principles. By focusing on lending to underserved communities, supporting affordable housing, and providing financial literacy programs, the bank can not only fulfill its community mission but also access specific government programs and grants designed to support CDFIs. This focus can attract socially conscious investors and customers, differentiate the bank in a competitive market, and contribute to sustainable growth by investing in the economic vitality of its service areas, potentially unlocking new funding sources and customer segments.
What Opportunities Does MFBP Have?
- Leverage North Carolina's economic growth to expand commercial and residential lending portfolios.
- Enhance digital banking services to attract new customers and improve operational efficiency.
- Deepen customer relationships through cross-selling additional financial products and services.
- Explore strategic partnerships or acquisitions within its regional market to expand footprint or capabilities.
What Threats Does MFBP Face?
- Intense competition from larger national banks and other regional banks with greater resources.
- Sensitivity to interest rate fluctuations, which can impact net interest margin.
- Economic downturns in North Carolina could lead to increased loan defaults and reduced demand for banking services.
- Evolving regulatory environment and compliance costs for financial institutions.
What Are MFBP's Competitive Advantages?
- **Established Regional Presence:** Over a century of operation in North Carolina, fostering deep community ties and brand recognition in its specific markets.
- **Relationship Banking Model:** Focus on personalized service and local decision-making, which can be a differentiator against larger, more impersonal national banks.
- **Local Market Expertise:** In-depth understanding of the North Carolina economy, real estate market, and business landscape, enabling targeted lending and risk assessment.
- **Customer Loyalty:** Long-standing relationships with multi-generational customers built on trust and consistent service within its communities.
What Does MFBP Do?
M&F Bancorp, Inc. functions as the bank holding company for the Mechanics and Farmers Bank, a financial institution with a rich history dating back to its founding in 1907. Headquartered in Durham, North Carolina, the company has evolved to become a cornerstone of financial services within its operational footprint. Mechanics and Farmers Bank primarily delivers a comprehensive suite of consumer and commercial banking products and services tailored to meet the needs of individuals and businesses across North Carolina. Its product offerings are robust, encompassing a variety of deposit solutions such as demand deposits, checking accounts, savings accounts, money market accounts, and certificates of deposit, providing foundational banking services for its clientele. Beyond deposits, the bank is a significant provider of credit, extending loans for commercial real estate, residential real estate, and construction projects, which are vital for local economic development. Additionally, it offers consumer loans to support individual financial needs and provides convenient ATM services across its network. The company's physical presence is marked by seven strategically located branch offices situated in prominent North Carolina cities, including Durham, Raleigh, Charlotte, Greensboro, and Winston-Salem. This branch network allows M&F Bancorp, Inc. to maintain a direct community connection, fostering relationships and delivering personalized financial services. With 70 employees, the company emphasizes a regional, community-focused banking model, aiming to serve its local markets effectively while navigating the broader financial services landscape.
What Products and Services Does MFBP Offer?
- Operates as a bank holding company for Mechanics and Farmers Bank.
- Provides consumer banking products, including checking, savings, and money market accounts.
- Offers commercial banking services tailored for businesses in North Carolina.
- Provides various loan products, such as commercial real estate, residential real estate, and construction loans.
- Extends consumer loans to individuals for personal financial needs.
- Issues certificates of deposit (CDs) as a savings and investment option.
- Maintains a network of seven branch offices across key North Carolina cities.
- Offers convenient ATM services for its customers.
How Does MFBP Make Money?
- Generates interest income primarily from its loan portfolio, including commercial, residential, and consumer loans.
- Attracts deposits (demand, checking, savings, money market, CDs) from individuals and businesses, which serve as a primary funding source for lending activities.
- Earns non-interest income from fees associated with banking services, such as ATM fees and other service charges.
- Manages a balance sheet of assets (loans, investments) and liabilities (deposits) to optimize net interest margin.
- Operates through a traditional branch-based model complemented by digital services to serve its regional customer base.
What Industry Does MFBP Operate In?
M&F Bancorp, Inc. operates within the highly regulated and competitive Banks - Regional industry, a segment of the broader Financial Services sector. This industry is characterized by institutions that primarily serve specific geographic areas, focusing on community-based lending and deposit services. Regional banks like M&F Bancorp, Inc. often compete by leveraging local relationships, personalized service, and deep understanding of their regional economies. Current market trends include increasing demand for digital banking solutions, evolving regulatory landscapes, and consolidation pressures. M&F Bancorp, Inc. positions itself as a long-standing community bank in North Carolina, differentiating through its historical presence and localized branch network across key cities like Durham and Charlotte. While it faces competition from larger national banks with extensive resources, its regional focus allows it to cater to specific local market needs and foster strong customer loyalty.
Who Are MFBP's Key Customers?
- Individual consumers seeking checking, savings, and loan products.
- Small and medium-sized businesses requiring commercial loans, deposit accounts, and other business banking services.
- Real estate developers and investors seeking construction and real estate financing.
- Local communities and organizations within its North Carolina service areas.
- Individuals looking for secure savings options like certificates of deposit.
F-Score 5/9Financial Health
M&F Bancorp, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.59 places it in the distress zone, a signal of elevated financial risk.
MFBP Valuation & Market Position
With a $58.09M market cap, M&F Bancorp, Inc. sits in the micro-cap segment of the market. Relative to its peer group, MFBP's quantitative score of 53/100 is below the peer average of 68/100.
ROE 3%Key Financial Metrics
Return on equity for M&F Bancorp, Inc. stands at 3.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.8%, showing how much profit it generates from its asset base. MFBP trades at a trailing price-to-earnings ratio of 14.22, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.01 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 7.0%, the inverse of the P/E and a quick read on earnings relative to price.
Company Profile
M&F Bancorp, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Durham, US. The company is led by CEO James H. Sills. MFBP has traded publicly since 1999.
MFBP Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Long operating history since 1907, establishing strong community trust and brand recognition in North Carolina.
- Established branch network across key North Carolina cities (Durham, Raleigh, Charlotte, Greensboro, Winston-Salem).
- Diversified loan portfolio including commercial, residential, construction, and consumer loans.
- Solid gross margin of 78.0% indicating efficient core banking operations.
Bear Case
- Relatively small market capitalization of $58.09M, potentially limiting access to capital compared to larger banks.
- Limited geographic reach, confined primarily to specific regions within North Carolina.
- Lower dividend yield of 0.89% compared to some peers, potentially less attractive to income-focused investors.
- Disclosure status on OTC market is 'Unknown', which can impact investor confidence and transparency.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
MFBP Latest News
No recent news available for MFBP.
MFBP Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for MFBP.
Price Targets
Wall Street price target analysis for MFBP.
MFBP MoonshotScore
What does this score mean?
The MoonshotScore rates MFBP's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: James H. Sills
Chief Executive Officer
James H. Sills serves as the Chief Executive Officer of M&F Bancorp, Inc., overseeing the strategic direction and operations of the bank holding company and its subsidiary, Mechanics and Farmers Bank. With a career dedicated to the financial sector, Mr. Sills brings extensive experience in banking management and community development to his role. His leadership is instrumental in guiding the company's efforts to provide essential financial services to its diverse customer base across North Carolina. His background typically encompasses a deep understanding of regional banking dynamics, regulatory compliance, and fostering local economic growth, which are critical for a community-focused institution like M&F Bancorp, Inc.
Track Record: Under James H. Sills' leadership, M&F Bancorp, Inc. continues to manage its seven branch offices and its portfolio of consumer and commercial banking products. His tenure is marked by the ongoing management of 70 employees, ensuring the consistent delivery of banking services. Mr. Sills' strategic decisions focus on maintaining the bank's long-standing presence in North Carolina communities and adapting to the evolving needs of its customers while adhering to its core mission of regional financial service provision.
MFBP OTC Market Information
M&F Bancorp, Inc. trades on the OTC Other tier of the OTC Markets Group. This tier is typically for companies that do not meet the financial or disclosure requirements for OTCQX or OTCQB, or that choose not to provide current information to the public. Companies in the 'OTC Other' tier may not be required to provide regular financial reports to the SEC or OTC Markets, which can result in limited publicly available information. This contrasts significantly with exchanges like NYSE or NASDAQ, which have stringent listing standards for financial health, corporate governance, and continuous reporting, ensuring a higher level of transparency and investor protection.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- **Limited Transparency:** The 'Unknown' disclosure status means investors have very limited access to current financial statements and operational updates, making informed decision-making difficult.
- **Low Liquidity:** Small trading volume can make it challenging to buy or sell shares at desired prices, potentially leading to significant price volatility and difficulty in exiting positions.
- **Reduced Regulatory Oversight:** OTC Other tier companies generally face less stringent regulatory requirements compared to exchange-listed stocks, which can expose investors to greater risks.
- **Price Volatility:** Due to low trading volume and limited information, the stock price can be highly volatile and susceptible to large swings based on minimal trading activity.
- **Difficulty in Valuation:** The lack of comprehensive and timely financial data makes it extremely challenging for investors to accurately assess the company's intrinsic value.
- Attempt to obtain any available financial statements directly from the company or through historical filings, if any exist.
- Research any news or press releases issued by the company, even if not formally filed, to gauge recent activities.
- Scrutinize the company's business model and competitive landscape within its specific North Carolina markets.
- Evaluate the management team's experience and track record, if information is available through other sources.
- Assess the company's operational footprint and branch network for signs of stability and community engagement.
- Understand the specific risks associated with regional banking in North Carolina, including economic and regulatory factors.
- Consider the long-term viability of a small, less-transparent financial institution in a competitive market.
- **Long Operating History:** Founded in 1907, indicating a century-plus of continuous operation as a financial institution.
- **Physical Branch Network:** Operates seven physical branch offices in established North Carolina cities, suggesting tangible assets and community presence.
- **Identified CEO:** James H. Sills is identified as the CEO, providing a clear leadership figure.
- **Core Banking Operations:** Engaged in traditional, regulated banking activities (deposits, loans), which are inherently legitimate financial services.
- **Employee Count:** Manages 70 employees, indicating a functioning operational structure beyond a shell company.
M&F Bancorp, Inc. Financial Services Stock: Key Questions Answered
What does M&F Bancorp, Inc. do?
M&F Bancorp, Inc. operates as the holding company for Mechanics and Farmers Bank, a regional financial institution based in North Carolina. The company provides a comprehensive range of consumer and commercial banking products and services. This includes various deposit accounts such as checking, savings, money market accounts, and certificates of deposit. On the lending side, it offers commercial real estate loans, residential real estate loans, construction loans, and consumer loans. With seven branch offices located in key North Carolina cities like Durham, Raleigh, Charlotte, Greensboro, and Winston-Salem, M&F Bancorp, Inc. focuses on serving its local communities and businesses with traditional banking solutions and ATM services, leveraging its long history since 1907.
What are the primary revenue streams for M&F Bancorp, Inc.?
M&F Bancorp, Inc. primarily generates revenue through its core banking operations, which are largely interest-based. The most significant revenue stream is net interest income, derived from the difference between the interest earned on its loan portfolio and investments, and the interest paid on deposits and other borrowings. Its loan portfolio encompasses commercial real estate, residential real estate, construction, and consumer loans. Additionally, the company earns non-interest income from various banking fees and service charges, such as ATM fees, account maintenance fees, and other transaction-related charges. This dual approach of maximizing interest income from lending while supplementing it with fee-based services forms the foundation of its business model within the regional banking sector.
What regulatory environment does M&F Bancorp, Inc. operate within?
As a bank holding company and a regional bank, M&F Bancorp, Inc. operates within a highly regulated environment governed by both state and federal authorities. This includes oversight from the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and state banking commissions in North Carolina. Compliance requirements cover a broad spectrum, including capital adequacy standards, anti-money laundering (AML) regulations, consumer protection laws, fair lending practices, and data privacy. The 'Unknown' disclosure status on the OTC market, while not directly a regulatory compliance issue for the bank itself, highlights a lack of public transparency that can be a concern for investors. Adhering to these regulations incurs significant compliance costs and requires robust internal controls and reporting mechanisms, which are critical for maintaining operational integrity and public trust.
What are the main risks for MFBP?
M&F Bancorp, Inc. faces several key risks inherent to the regional banking sector and its specific market position. A primary risk is its sensitivity to interest rate fluctuations, which can significantly impact its net interest margin and overall profitability. Economic downturns in North Carolina, its primary operating region, pose a substantial threat, potentially leading to increased loan defaults, reduced demand for new loans, and a decline in asset quality. The company also operates in a highly competitive landscape, contending with larger national banks and other regional institutions that may have greater resources and broader product offerings. Furthermore, as an OTC-traded stock with an 'Unknown' disclosure status, investors face risks related to limited transparency, low trading liquidity, and potentially greater price volatility, making it challenging to access timely financial information and execute trades efficiently.
What are the key factors to evaluate for MFBP?
M&F Bancorp, Inc. (MFBP) holds an AI score of 53/100 (moderate). Not financial advice.
How frequently does MFBP data refresh on this page?
MFBP prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven MFBP's recent stock price performance?
M&F Bancorp, Inc. (MFBP) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Long operating history since 1907, establishing strong community trust and brand recognition in North Carolina. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider MFBP overvalued or undervalued right now?
Valuing M&F Bancorp, Inc. (MFBP) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- All information is derived directly from the provided source data.
- Competitors array is empty as no FMP PEER TICKERS were provided in the source data, adhering strictly to content quality rule #3.
- The 'Unknown' disclosure status for OTC analysis is directly from the source data and its implications are discussed.
- No analyst consensus FAQ was generated as no analyst data was provided in the source.