Members of Teachers Mutual Bank Limited and Australian Mutual Bank have backed a plan to combine the two mutuals, paving the way for one of the sector’s biggest mergers.
Teachers Mutual Bank Limited and Australian Mutual Bank, two long‑standing customer‑owned institutions, will merge to form a single mutual bank after members of both organisations voted above the required approval threshold.
Members from both mutuals endorsed the proposal through Special General Meetings, clearing the last major internal hurdle.
Australian Mutual reported that 93.8 per cent of member votes supported the plan, comfortably above the statutory 75 per cent threshold, which it described as an “overwhelming” result.
Teachers Mutual Bank members on Thursday (12 March) also voted in favour of the deal – approving changes to the bank’s constitution and updated limits on aggregate director remuneration to reflect the scale and complexity of the merged entity.
The merger will proceed via a voluntary transfer of Australian Mutual Bank’s business to Teachers Mutual under the Financial Sector (Transfer and Restructure) Act - with implementation scheduled for 1 May 2026 pending regulatory approval.
Structure of the merged bank
The combined bank will operate under the Teachers Mutual Bank Limited name, creating a 100 per cent member‑owned institution with around $14.2 billion in assets (as at February 2026).
The group will boast 280,000 members – while retaining a suite of specialist brands and an expanded branch footprint across four states and territories.
Under the deal, all operations will remain fully Australian‑based and member‑owned, with both boards committing that there would be no forced redundancies.
The combined bank will bring together around 750 staff and a branch network which will expand to 13 locations across the ACT, New South Wales, Victoria and Western Australia – almost doubling the current footprint available to members.
The Australian Mutual Bank retail brand will continue to operate alongside Teachers Mutual Bank’s existing brands: Teachers Mutual Bank, Firefighters Mutual Bank, Health Professionals Bank and UniBank.
Each will continue targeting its core communities – including teachers, health professionals, firefighters and university staff and students – while drawing on shared balance sheet strength and technology platforms.
Teachers Mutual Bank chair Andrew Kearnan, who will serve as the merged bank's chair, said the emphatic endorsement was a clear sign that members accepted the case for greater scale.
“Our strategic intent is to create an even stronger, more resilient, future‑ready bank that’s 100 per cent owned by its members – and it's fantastic to see such strong support across our membership as we take this important step forward,” he said.
He added that combining two “trusted and financially strong” institutions would enable the group to deliver more value over the long term while “bringing banking for good to more Australians.”
Anthony Hughes, who will remain CEO of the merged Teachers Mutual Bank, said the vote capped off a multi‑year process aimed at positioning the bank for a more competitive and technology‑driven market.
“Thank you to our members, who overwhelmingly supported the merger,” he said.
“This is a significant strategic milestone. By bringing our banks together, we will have greater capacity to invest in what matters most to members.
“With member approval now secured, our focus turns to bringing the best of both banks together for the benefit of members over the coming months.”
Promises on products, service and security
Both institutions highlighted the potential for a broader and more competitive product offering, along with stepped‑up investment in digital banking and fraud prevention.
Teachers Mutual’s merger material pointed to increased resources for online and mobile platforms, more Australian‑based customer service and enhanced scam and cyber‑security measures.
Australian Mutual Bank also told members they could expect a wider range of accounts and loans, savings from lower fees and the advantages of being part of a larger mutual with greater funding capacity.
Both banks said members would retain existing account details and access in the near term, with integration work on systems, product alignment and branding to be staged over the lead‑up to the 1 May completion date.
Australian Mutual Bank chair Fiona Bennett said the vote reflected confidence in the board and management to navigate that transition.
“This overwhelming support from our members reflects the trust they place in the Board and management to act in their long-term interests,” she said.
“The proposed merger represents an important step in strengthening our mutual bank so we can continue delivering value and service to members well into the future.
Australian Mutual Bank chief executive Mark Worthington said member engagement throughout the process had been critical.
“We appreciate the engagement from members and their participation in this important decision. This outcome supports the creation of a stronger, sustainable mutual bank that will continue to put members first,” he said.
Part of a broader mutuals shake‑up
The merger comes amid a wave of consolidation across Australia’s customer‑owned sector, as smaller institutions seek greater scale to fund technology investment, absorb rising regulatory and cybersecurity costs and compete on pricing with other banks and non‑bank lenders.
Recent years have seen multiple mutual tie‑ups, including Unity Bank’s combination with G&C Mutual Bank and Community First Bank’s merger with Illawarra Credit Union.
[Related: Mutual bank sets date for merger vote]
