Both banks have granted each other access to their financials as they conduct due diligence, aiming to finalise the merger by mid-2026.

If successful, the combined entity would manage $4.8 billion in assets and serve 130,000 members across 47 branches across regional NSW.

Summerland Bank CEO John Williams emphasised that the merger will strengthen both banks' infrastructure, compliance, and security while allowing for investment in new digital capabilities, products, and services.

The continued operation of branches was a "critical consideration" for the Lismore-based bank, Mr Williams said.

"Part of Summerland Bank's legacy is that we have been owned and operated by locals for 60 years, and this merger will ensure continued roles for all our local team working across our branches, call centre, and Lismore head office."

Customers of either bank won't see any immediate changes as a result of the proposed merger.

It comes just months after Regional Australia Bank officially merged with Macquarie Credit Union, combining assets worth more than $3.35 billion.

That merger was driven by intense regulatory pressures, a more consolidated financial services landscape, and increasing industry competition, documents provided to members detail.

Macquarie Credit Union products have since been discontinued and are now aligned with those offered by Regional Australia Bank. 

Summerland Bank and Regional Australia Bank will undergo due diligence through October, after which the pair expect to approach regulators.

The merger also requires member approval, with a vote anticipated in late 2025.

Both banks plan to continue operating under their respective names after the merger is complete, though they have flagged future brand consolidation.

If the merger is implemented, it's expected that Regional Australia Bank CEO David Heine will helm the combined entity, with Mr Williams to be its deputy CEO of strategy.

"Our shared values and ambitions are sharpened through the union of two like-minded mutuals," Mr Heine said.

"This merger confirms our intent to empower all regional Australians through our customer-owned banking services."

Image by Chris Liverani on Unsplash

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