Regional Australia Bank (RAB) and Summerland Bank have moved a step closer to completing their prospective merger, setting a target completion date of 1 July 2026.
The banks, based in regional NSW, announced they have received approvals from their respective boards to proceed with the merger, with both also having completed “an intensive, independently conducted” due diligence.
The pair say they will now proceed to member votes and brand considerations on the merger later this year, with regulatory submissions to regulators APRA and ASIC currently underway.
The mutual banks jointly announced their intention to join forces in October 2024, with the merger promising a considerable resource boost to enhance customer experience and digital innovation.
Commenting on the progression of the merger, Summerland chief executive John Williams noted opportunities to advance the banks’ tech capabilities, particularly in the sector-wide priority areas of fraud and scams prevention.
“By integrating our systems and capabilities, we will continue to deliver an outstanding digital experience for our customers, especially in the increasingly challenging environment of scams and security threats,” he said.
Williams added: “While we’re still working through the specifics of the integration roadmap, the intent is to not only streamline systems but also to build on the strengths each bank brings. That includes improving functionality, performance, and the overall digital experience over time.”
Headquartered in Armidale, RAB boasts a member base of more than 100,000, a network of 39 branches spanning regional NSW, and assets of more than $3.4 billion.
Last financial year, the group reported a pre-tax profit of $37.8 million (up 14 per cent year-over-year), a deposit book of $3.1 billion (up 15 per cent y-o-y), and a loan book of $2.8 billion (also up 14.5 per cent y-o-y).
Summerland, based in the far north of NSW and the junior partner in the merger, counts more than 29,000 customers, 10 branches primarily covering the far- and mid-north coasts of NSW, and assets of more than $1.1 billion.
Its deposit and loan books also saw healthy growth through FY2024, hitting $1.0 billion and $900 million (both up more than 8 per cent y-o-y), respectively, with the bank reporting a pre-tax profit of $6.6 million.
Summerland also holds B Corp certification.
RAB chief executive David Heine declared the merger progression a “proud step forward” for both banks.
“The successful completion of the due diligence phase and board approvals highlights the strength of our alignment, values and shared ambition for our proposed merger,” he said.
“This partnership represents a meaningful milestone in our ambition to be chosen by more regional Australians to be their bank. Together we can accelerate our work to deliver a more vital regional Australia through finding the good that money can do.”
Williams added that the “natural and powerful partnership” will deliver “more value, more innovation, and a stronger future for our members and respective communities as we grow and expand”.
The pair, which will count a network of 49 branches post-merger with “no overlap”, confirmed that no branches will be shuttered as a result of the merger. Both will also continue to operate under their existing brands during the merger process.
Meanwhile, Bank Australia and Qudos Bank have confirmed they have received member approval to proceed with planned merger. The banks will await final regulatory approval from APRA, with a targeted merger date of 1 July 2025.
