Summerland Bank and Regional Australia Bank will proceed with the merger, after members of both customer-owned banks voted in favour at their respective AGMs last week.
More than 96 per cent of Summerland Bank’s members voted in favour of the tie-up at the Lismore-headquartered lender’s AGM, held last Wednesday (19 November).
A similar result was recorded at Regional Bank of Australia’s AGM on Thursday (20 November), with more than 96 per cent of the regional NSW-based bank’s members backing the proposal.
Member approval clears the path for a merger to proceed from 1 July 2026.
The combined entity will manage more than $5 billion in assets, servicing more than 130,000 members across 49 locations in regional NSW and southern Queensland.
Both lenders have also reaffirmed their commitments to no brand closures or staff losses, with accounts, services, and support set to continue as per usual.
Summerland Bank CEO John Williams said the two lenders share both vision and values as community-focused customer-owned banks.
“By approving the merger our members will enjoy more branches, greater support for local communities, a wider range of products and better services,” he said.
“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.”
Regional Australia Bank CEO David Heine said the lender was thrilled with the outcome.
“Today’s vote reinforces our commitment to regional Australia by growing our ability to serve more towns and communities throughout regional NSW and into Queensland,” he said.
Their positions were supported by their respective chairs, and Summerland Bank chair Colin Sales said the merger represented more than a structural change.
“It’s a shared vision for a stronger, more sustainable future in regional banking,” he said.
“For our members, it reflects our commitment to maintaining a local presence, enhancing service delivery, and building a bank that’s better equipped to meet the evolving needs of our communities.”
Regional Australia Bank chair Michael Fenech also commented on the benefits of the tie-up.
“Our members have voted to merge two strong mutual banks into one stronger customer-owned bank that will serve our members and regional communities even better,” he said.
“Together we will be able to provide members with wider access to personalised face-to-face banking, sharper pricing and new products underpinned by the same great service.”
Mutuals continue to join forces
The Summerland Bank and Regional Australia Bank merger is the latest in a wave of consolidation across Australia’s mutual banking sector.
In August, Beyond Bank Australia revealed it is exploring a potential merger with Family First Credit Union (trading as Family First Bank).
If successful, the move would extend Beyond Bank’s presence in regional NSW, expanding its footprint into areas including the Blue Mountains, Lithgow, Bathurst, Blackheath, and Mudgee.
Earlier this year, Bank Australia and Qudos Bank officially merged, creating a group with 300,000 customers, nearly 900 employees, and $18 billion in total assets.
Auswide Bank also became a wholly owned subsidiary of MyState Limited, while G&C Mutual Bank and Unity Bank finalised their merger to form Unity Bank Limited, effective July 2025.
You can find out more about how the mutuals are merging to maintain momentum in the August edition of The Adviser magazine!
[Related: Brokers will be key if 2 mutuals merge: Summerland Bank CEO]
