Regional Australia Bank and Summerland Bank have received board approval to proceed with their proposed merger.
This follows a due diligence process conducted by the two member-owned financial institutions.
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The assessment phase revealed “significant synergies” and advantages for members of both banks.
It is viewed as a significant point in the progression of plans aimed at creating a stronger organisation.
As part of the proposal, the banks have made several assurances. These include a commitment to avoid forced job losses, maintaining all existing branch locations, and preserving the current trading names.
The two organisations aim to deliver a wider array of services as well as expand employment prospects. They also plan to increase investment in local communities.
Both banks have stated they will maintain clear and regular communication with members and staff. They are now preparing the necessary documents for submission to the Australian Prudential Regulation Authority (APRA).
Subject to approval, feedback will be sought from customers in the lead-up to a formal vote.
Members of both banks will have the opportunity to decide on the merger at the annual general meeting in November. If endorsed, the merger would take effect from 1 July 2026.
In a statement, Summerland Bank said: “We are excited about this natural and powerful partnership for our future, based on our strong collective culture and mutual commitment to putting customers and communities first.
“Together, we will deliver more value, more innovation, and a stronger future for our members and respective communities as we grow and expand.”
