Member vote clears path for July 2026 combination of two mutual lenders
Members of Regional Australia Bank and Summerland Bank have endorsed a planned merger that will establish a substantial player in Australia's mutual banking sector.
The transaction is scheduled to take effect on July 1, 2026, following approval at separate shareholder meetings last week.
Members of Summerland Bank gathered on November 19, with 96% supporting the proposed merger. The following day, shareholders at Regional Australia Bank voted in favour, with 96.72% approving the move.
The combined organisation will control approximately $5 billion in assets and maintain a presence across 49 branch locations spanning regional areas of New South Wales and southern Queensland.
Client deposits across both institutions currently total $4.6 billion.
Management at both institutions have committed to preserving their existing service infrastructure. According to statements made recently, the merger will not result in any branch closures, employment reductions, or alterations to how customers access banking services.
“The vote reinforces our commitment to regional Australia by growing our ability to serve more towns and communities throughout regional NSW and into Queensland,” said David Heine (pictured top right), chief executive of Regional Australia Bank.
“Resilience will be supported through shared infrastructure, broader geographic reach, and increased financial capacity, allowing us to continue delivering personalised service while adapting to changing market conditions,” said John Williams (pictured top left), chief executive of Summerland Bank.
The regulatory approval process was completed in August when the Australian Prudential Regulation Authority (APRA) authorised the transaction. This development follows Regional Australia Bank’s acquisition of Macquarie Credit Union in 2023.
Branding to remain separate
Both institutions intend to maintain their separate identities following the combination, at least initially.
Any future consolidation of branding or operational structures will be assessed once the merger is implemented. This approach mirrors strategies adopted by other large mutual mergers, including the 2023 transactions involving Greater Bank and Newcastle Permanent, as well as Heritage Bank and People's Choice.
Upon completion, the merged entity will rank among Australia's largest customer-owned banks, positioning it ahead of Defence Bank in terms of total assets.
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