Regional Australia Bank continues its rapid growth, with the latest merger with a Northern Rivers bank getting the green light from regulators.
First announced in October 2024, the proposed merger between Summerland Bank and Regional Australia Bank was approved by APRA, the Australian Prudential Regulation Authority, last week. The final say now rests with members of both banks, who will vote on the proposal at their upcoming AGMs in November.
Regional Australia Bank is the former New England Credit Union that merged with Peel Valley Credit Union, Orana Credit Union, and Hunter Mutual to become Regional Australia Bank, later absorbing the Holiday Coast Credit Union as well. It currently operates 39 branches across the New England, North West, Central West, Riverina, Mid North Coast and Greater Newcastle regions, and head offices in Armidale and Port Macquarie. Summerland Bank – formerly Summerland Credit Union – runs 10 branches across the Northern Rivers in New South Wales and one in South East Queensland.
Both mutual banks are deeply embedded in their local communities, often being the only branch in town and providing crucial support in times of hardship.
Regional Australia Bank CEO David Heine said the merger would allow the two institutions to deliver stronger services and better outcomes for customers without losing the community focus that has defined them.
“Our shared values and ambitions are sharpened through the union of two like-minded mutuals. This merger confirms our intent to empower all regional Australians through our customer-owned banking services,” said Mr Heine.
Summerland rebuilt its Lismore head office and flagship branch after the 2022 floods, while Regional Australia Bank’s Wingham branch was also recently affected by flooding on the Mid North Coast. These experiences, the banks say, have reinforced their commitment to face-to-face banking and the importance of staying connected with local communities.
“Both banks are committed to delivering greater benefits to members and local communities, with an increased ability to invest in infrastructure, compliance, security, as well as new digital capabilities, products and services,” said Mr Heine.
“We are committed to investing back into our regions, responsibly and sustainably and remain unwavering in our goal.”
Summerland Bank CEO John Williams said joining forces would strengthen the ability of both organisations to serve their members and communities.
“This merger means we can do more for our members and communities—investing in better infrastructure, security, and services.”
“A merger with Regional Australia Bank allows us to better serve our mission of providing better banking and stronger communities,” said Mr Williams.
Members of both banks will be asked to vote on the merger in November. Regional Australia Bank’s AGM will take place on 20 November, while Summerland Bank’s AGM will be held the day before on 19 November. Members unable to attend in person will be able to vote through a representative or by lodging a proxy form 48 hours before their AGM. Information as well as a survey has already been sent to most customers.
If members endorse the merger, the combined bank will operate 49 branches across regional New South Wales and beyond, employ more than 450 staff, manage over $5 billion in assets, and serve more than 130,000 members. Importantly, both banks have reaffirmed there will be no branch closures and no staff losses as part of the merger.
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