Auswide Bank and MyState Bank have finalised their previously announced A$755m ($480.4m) merger, creating a larger regional banking group in Australia.
The banks will have a combined home lending portfolio of A$12.7bn ($8.08bn) and customer deposits of A$9.9bn ($6.3bn).
The merged entity will serve 272,000 customers across Australia’s eastern seaboard through a network of 23 branches, digital banking services, brokers, and two Australia-based contact centres.
Under the agreement, MyState Bank, a wholly owned subsidiary of MyState, has taken full ownership of Auswide Bank’s fully paid ordinary shares, making Auswide Bank an indirect wholly owned subsidiary of MyState.
Eligible Auswide Bank shareholders have received 1.112 new MyState shares for each Auswide Bank share held.
Following the transaction, trading in Auswide Bank shares on the Australian Securities Exchange (ASX) has been suspended.
The merged group will continue operating under four brands, namely MyState Bank, Auswide Bank, SelfCo, and TPT Wealth, with the latter maintaining its investment and trustee services.
The merger is expected to deliver pre-tax cost synergies of A$20m ($12.73m) to A$25m ($15.91m) per annum by the end of FY27, with operational integration to be completed within three years.
The business is projected to be earnings-per-share accretive on a post-synergies run-rate basis from FY26, excluding integration and transaction costs.
MyState managing director and CEO Brett Morgan said: “Today we celebrate the first day of a new MyState with the Auswide merger complete.
“We look forward to growing into a stronger and larger regional bank with a more diverse customer and geographic footprint.”
Initially announced in August 2024, the merger received approval from the Federal Treasurer last month under the Financial Sector (Shareholdings) Act 1998.
The consolidation aims to enhance operational efficiency, expand product offerings, and strengthen the group’s presence along Australia’s East Coast.
Additionally, the combined entity plans to leverage shared resources and technology to improve customer services while ensuring a seamless transition for clients.
