The Australian Prudential Regulation Authority (APRA) has approved the proposed merger between two mutual lenders.
Summerland Bank and Regional Australia Bank are one step closer to merging, after the prudential regulator has given the deal the green light.
The two mutuals first announced their intention to merge in October 2024. With regulatory approval now granted (28 August 2025), the proposal will go to members for a vote at their respective annual general meetings in November.
Should members approve the merger, it will take effect from 1 July 2026.
If endorsed, the merged entity would manage more than $5 billion in assets and service over 130,000 members across a combined network of 49 branches throughout regional NSW and South-East Queensland.
Both lenders have committed to keeping their existing branch networks intact (39 branches under Regional Australia Bank and 10 under Summerland Bank) and to protecting jobs as part of the merger process.
Speaking to The Adviser in earlier discussions about the merger, Summerland Bank CEO John Williams said it would be “business as usual” for brokers until at least the proposed merger date of 1 July 2026 and noted that both organisations had a strong commitment to growing their broker partnerships.
‘Greater benefits for members’
Commenting after the APRA approval, Williams said the merger would help both banks invest in technology and services.
“This merger means we can do more for our members and communities – investing in better infrastructure, security, and digital services. A merger with Regional Australia Bank allows us to better serve our mission of providing better banking and stronger communities,” Williams said.
David Heine, CEO of Regional Australia Bank, added: “Our shared values and ambitions are sharpened through the union of two like-minded mutuals. This merger confirms our intent to empower all regional Australians through our customer-owned banking services.
“We are committed to investing back into our regions, responsibly and sustainably and remain unwavering in our goal.”
Mutual mergers continue apace
The Summerland-Regional Australia Bank proposal is the latest in a string of mergers across the mutual banking sector.
Last week, Beyond Bank Australia announced it is exploring a potential merger with Family First Credit Union (trading as Family First Bank), in a move that would expand its footprint deeper into regional NSW and further consolidate the country’s mutual banking sector.
If successful, the merger could be finalised in 2025.
The merged entity would manage more than $11.3 billion in assets and extend Beyond Bank’s operations into the Blue Mountains, Lithgow, Bathurst, Blackheath, and Mudgee, complementing the bank’s existing presence in South Australia, the ACT, Victoria, and other parts of NSW.
Meanwhile, in July, mutual banks Bank Australia and Qudos Bank officially merged, bringing together 300,000 customers and forming a banking group with $18 billion in total assets and nearly 900 employees.
Earlier this year, Auswide Bank became a wholly owned subsidiary of MyState Limited, while G&C Mutual Bank and Unity Bank finalised their merger to form Unity Bank Limited from July 2025.
Other notable deals in recent years include the creation of People First Bank following the merger of Heritage Bank and People’s Choice and the consolidation of Greater Bank and Newcastle Permanent.
You can find out more about how the mutuals are merging to maintain momentum in the August edition of The Adviser magazine, out now!
[Related: Brokers will be key if 2 mutuals merge: Summerland Bank CEO]
