Marriage would create 280,000 member-strong entity with $13.4 billion in assets under management
Teachers Mutual Bank Limited (TMBL) will put its proposed merger with Australian Mutual Bank to a member vote on Monday, 9 February, ahead of a special general meeting scheduled for 12 March.
The two customer-owned banks signed a Memorandum of Understanding (MoU) to explore a potential merger in December 2024. TMBL’s board of directors endorsed the proposed merger in May 2025 following the completion of due diligence.
If it goes ahead, the merger will create a new heavyweight in the Australian mutual banking sector with $13.4 billion in assets under management and around 280,000 members.
TMBL chief executive Anthony Hughes (pictured), said: “This merger is a strategic decision that will make us even stronger and better equipped to meet the challenges ahead, while holding true to our purpose and our history.
“With shared values, complementary strengths and aligned purpose, Australian Mutual Bank is a natural partner, and we’re excited by what we’ll be able to do together as one merged bank.”
TMBL is urging members to consider the benefits of the merger, including nearly double the amount of brick-and-mortar branches, a broader range of products and potentially lower fees.
“Post-merger, Teachers Mutual Bank Limited will continue to support the education, health, and emergency services professions through sponsorships and partnerships, and its member -first, profit-for-purpose model,” said the group.
Hughes added: “This merger will build on what our members already love about our bank while ensuring we can continue to deliver outstanding value to our members now and into the future.
“We are looking forward to opening the vote next week and encourage every eligible member to have their say.”
If successful, the vote would mark the second major endorsement of a customer-owned bank consolidation in 2026, following an overwhelming ‘yes’ vote on the Beyond Bank and Family First Bank marriage, which is expected to take effect from 1 March.
Not all proposed mutual banking mergers have been successful this year.
In January, Great Southern Bank and P&N Bank scrapped their long-running merger talks without sealing a deal.
"After careful consideration and a robust process, the Great Southern Bank Board determined that progressing the merger would not be in the best interests of its members," GSB said in a statement.
P&N Bank confirmed it had concluded exploratory merger discussions with GSB, saying: "Both boards have mutually agreed to terminate the Memorandum of Understanding. After careful consideration and a robust process, the PNL Board determined that progressing the merger would not be in the best interests of its customers.
