Regional Australia Bank has continued its bold expansion efforts, announcing another proposed merger before the ink on the last one is dry.
Regional Australia Bank and SWSbank have signed a memorandum of understanding to explore a potential merger that would bring together two customer-owned banks with a shared focus on supporting regional communities.
Headquartered in Armidale and Port Macquarie, Regional Australia Bank has deep roots in northern New South Wales and maintains more branches across the region than any other bank. This merger, which is subject to due diligence and regulatory approvals, would spread its reach to south west NSW and increase the number of branches to over 50.
SWSbank chief executive Andrew Jones said the partnership presented an opportunity to expand the support provided to members and their communities.
“Our members and communities have always been at the heart of everything we do,” Mr Jones said.
“By exploring a partnership with Regional Australia Bank, we see an opportunity to bring even more benefits to the people we serve, from enhanced services to stronger local support.
“Together, we can ensure our communities continue to thrive while keeping the personal connection our members rely on.”
Regional Australia Bank chief executive David Heine said the proposed merger aligned with both organisations’ missions and long-term commitment to regional Australians.
“We’re thrilled to begin this journey with SWSbank,” Mr Heine said.
“Both organisations share the same purpose: to support regional Australians, keep branches open, and invest in a sustainable future.
“By joining forces, we can deliver even greater value for our members, our people, and the communities we proudly serve.”
If approved, the merged entity would manage approximately $5.5 billion in assets and serve more than 140,000 members.
Both banks have committed to maintaining and growing their branch networks and in-person services, while continuing to invest in digital banking, cybersecurity and innovation.
The proposed merger would complement Regional Australia Bank’s existing expansion strategy, including its current merger process with Summerland Bank, which has been approved by both organisations and is expected to take effect from July 1.
It is quite a remarkable story of transformation for an organisation that began in 1969 as the New England Staff Credit Union, becoming New England Credit Union as it expanded beyond its original campus base.
A series of mergers followed, including Peel Valley Credit Union in 2004, Orana Credit Union in 2008 and Hunter Mutual in 2010, forming the Community Mutual Group. In 2016, the group merged with Holiday Coast Credit Union and adopted the Regional Australia Bank name. Last year it merged with Macquarie Credit Union and began the process of merging with Summerland Bank, further extending its reach in NSW and Southern Queensland.
The proposed tie-up with SWSbank comes amid a period of rapid consolidation across Australia’s customer-owned banking sector.
Last year, Bank Australia merged with Qudos Bank and acquired Australian Unity’s banking business, while Auswide Bank merged with MyState Bank, and G&C Mutual Bank merged with Unity Bank. Beyond Bank Australia is currently merging with Family First Bank, having completed a merger with First Choice Credit Union and AWA Alliance Bank in recent years. Great Southern Bank has also been eyeing off expansions, but a proposed merger with Police & Nurses Limited, which operates BCU Bank in NSW and Southern Queensland, as well as P&N Bank in WA, has fallen through.
While the proposed merger would create a larger institution, both banks have emphasised the move is about more than scale, framing it as a commitment to strengthening regional communities, empowering members, and keeping branches open.
Don’t miss any of the important stories from around the region. Subscribe to our email list.