Directors of Regional Australia Bank and Holiday Coast Credit Union were pleased to announce the commencement of merger discussions on Wednesday, November 7.
Due diligence will now commence and once approval was received from both the Australian Prudential Regulatory Authority (APRA) and respective owner/members, a formal merger of the two organisations was anticipated to be completed by June 30, 2019.
It was proposed that the merged organisation will continue to operate both Regional Australia Bank and Holiday Coast brands in their respective locations and the combined entity would have an asset size of over $2 billion.
Regional Australia Bank’s chairman Graham Olrich said it was very apparent during initial discussions with Holiday Coast Credit Union that the two shared strategic alignment.
“And a passion for member service - an essential ingredient in any successful merger,” he said.
“With greater product diversification, simplified fee structures and competitive pricing, members will enjoy an even greater, sustainable, customer owned banking experience.”
If approved, this will be the biggest merger in the sector since 2009, and with assets of $607 million, 25,000 members and 98 staff, Holiday Coast is less than half the size of Regional Australia Bank, leaving it as the junior partner in the deal.
Regional Australia Bank has merged twice before, once in 2008, when it merged with Orana Credit Union and again in 2010 when it merged with Hunter Mutual. The two smaller merger partners in those deals had assets of $82 million and $107 million, respectively.