Police Bank and Transport Mutual Credit Union have signed a memorandum of understanding to explore a proposed merger.
Police Bank and Transport Mutual Credit Union (TMCU), two customer-owned authorised deposit-taking institutions with ties to essential-service workforces, have signed a memorandum of understanding (MOU) to explore a proposed merger.
In a joint statement, the institutions said the non-binding agreement marked the beginning of a formal assessment process.
TMCU members are expected to vote on the proposal in early 2027, while regulatory approval would also be required before any merger could proceed.
The prospective combination would bring together Police Bank, which was established to serve police and their families, and TMCU, a specialist mutual with longstanding links to transport workers, frontline public servants, and the Transport for NSW community.
TMCU’s board said it had considered the potential transaction for more than 12 months and added that Police Bank shared its customer-owned philosophy.
“Police Bank shares our member-first values and, like TMCU, has a long history of serving a distinct occupational community,” TMCU said.
“A proposed merger would give our members the benefits of greater scale and resources, including greater capacity to invest in products, services and technology over time, while maintaining the personal service and connection to our transport and essential services community that have always been central to TMCU.”
Scale with community focus
Police Bank similarly positioned the proposal as a coming together of two mutuals serving members with professional and community connections.
“Police Bank has grown from its policing roots to support police and their families, while TMCU has longstanding ties to frontline public service, transport workers, and the Transport for NSW community,” the bank said.
Police Bank CEO Greg McKenna said the shared focus on member communities was central to the strategic fit.
“This is a strong fit between two member owned organisations that understand the value of serving communities with distinct working lives and needs,” McKenna said.
“We look forward to welcoming TMCU members and ensuring they can continue to benefit from mutual banking for the long term. Together, we can build greater scale to keep investing in the service, products and technology our members expect, without losing the member first approach that defines us.”
TMCU CEO John Kavalieros said its board had prioritised the future interests of the credit union’s members when considering the proposed deal.
“Our board has approached this decision carefully and with one question front of mind: what will best serve TMCU members for the long term? Police Bank shares our commitment to member ownership, personal service and essential worker communities,” he said.
“We believe this merger gives our members the benefits and capability of a stronger mutual while preserving the values and service they know from TMCU.”
As at June 2025, Police Bank held $2.8 billion in assets, compared with TMCU’s $107 million.
Both organisations said members would be kept informed as the proposal developed and key milestones were reached.
[Related: Bank Australia, P&N Group advance proposed merger to next stage]
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