NECU is already the largest inland credit union in Australia and, upon completion of the merger in March next year, will have 73,000 members, 28 branches, four agencies, 240 staff and around $1 billion in total assets.

The chairmen of the two credit unions, NECU‘s Michael Dennis and Hunter Mutual’s Kevin Bell are confident the merger will receive regulatory approval and the support of members, resulting in a formal amalgamation early next year.

Under the agreed terms of the merger, Armidale will remain the headquarters of the new entity and Hunter Mutual’s trading name, branches, agencies and existing employees will be retained.

“It looks like a perfect fit as we share cultures, a strong financial position and positive relationships with our members and the communities in which we operate,” Mr Dennis said.

“Our talks have been productive and cooperative and we see mutual benefits in joining together to become a stronger financial institution that focuses entirely on regional NSW.”

Mr Bell said the interests of members, staff and other stakeholders were paramount in selecting NECU as a merger partner.

“Hunter Mutual and NECU have similar cultures and values and the merger will create a business that can deliver even stronger financial results, despite the current difficult trading environment,”he said.

“Members will also have access to a larger network of branches and ATMs that will extend from Singleton in the South to Tenterfield in the North and as far west as Cobar,” he added.

Hunter Mutual, established in 1968, has 6000 members, four branches, in Muswellbrook, Singleton, Scone and Merriwa, three agencies located at Denman, Aberdeen and Murrurundi, 29 staff and assets under management of $144 million as at June 2009.

If the merger proceeds, Hunter Mutual CEO Col Sales will join the executive management team of the merged entity.

In 2004 NECU successfully merged with the Tamworth based Peel Valley Credit Union and in September last year merged with the Orana Credit Union, based in Narromine.

“In each case the mergers have run very smoothly,” NECU CEO Kevin Dupé said.

“We have managed to retain a local focus while building a much stronger regional profile and greater breadth of services for members.

“Throughout our talks with Hunter Mutual there has been clear agreement regarding the interests of our members and staff.

“It really looks like a perfect fit and would be a great advantage to our inland region.”