Summerland Bank has announced its intention to merge with Regional Australia Bank (RAB) in a move to create a localised banking entity with assets of approximately A$4.8bn ($3.2bn.)
In line with this, both parties have signed a memorandum of understanding (MoU).
The two customer-owned banks are entering a due diligence phase to assess the feasibility and potential benefits of the merger.
Through the proposed merger, Summerland Bank and Regional Australia aim to increase their market share and presence across Australia’s regional populations. Both banks will also align their shared goal of building strong communities through a member-owned banking model.
The enlarged bank is expected to have a customer base exceeding 130,000 members.
The proposed merger comes after Summerland Bank’s recent transition from a credit union to a customer-owned bank. The bank employs more than 120 individuals from the local community.
Currently, both banks will operate independently, maintaining their individual identities while planning for a unified future.
The combined organisation is expected to continue operating under both brands, with a full integration of services planned after the proposed merger completion in mid-2026.
Both banks will focus on providing enhanced benefits to customers, including more branch locations, digital innovation, and competitive pricing.
Summerland Bank CEO John Williams said: “With our members and local communities at the forefront of our decision making, we proactively initiated discussions with Regional Australia Bank who operate on the same values of reciprocity, responsibility, community and sustainability as Summerland Bank.
“This potential merger presents exciting opportunities for our members as we could expand our market share and increase our pricing efficiency and competitiveness.”
Operating 37 branches across regional New South Wales (NSW), Regional Australia Bank earlier this year completed a merger with Macquarie Credit Union.
Both banks focus on in-branch and face-to-face banking, alongside increasing digital integration. In addition, the merger will allow them to expand their branch network, with no closures planned, ensuring continued in-person service for their members.
Regional Australia Bank CEO David Heine said: “As we strive to fulfil our purpose of becoming the trusted bank for all regional Australians, we are pleased to begin merger discussions with Summerland Bank. Our commitment to investing back into our regions, responsibly and sustainably, remains unwavering.
“The team at Summerland Bank provide a shining example of regional community service. Our shared values and ambitions are sharpened through the union of two like-minded mutuals.”
