Banking on the future

SUMMERLAND Bank is entering a due diligence phase for its proposed merger with Regional Australia Bank to investigate the proposal’s feasibility and benefits.

The two customer-owned banks announced their intent to merge in October, with hopes the new entity will be formed in 2026.

The move will enhance the banks’ ability to invest in infrastructure, compliance, security, new digital capabilities, products and services.

They have also vowed to prioritise preserving and enhancing face-to-face retail banking services in regional communities.

Summerland Bank, which was founded as Summerland Credit Union in 1964, has branches throughout the Northern Rivers region, including Ballina, Bangalow, Casino, Kingscliff, Nimbin and Lismore.

Regional Australia Bank was originally established as New England Staff Credit Union at The University of New England in Armidale in 1969 and became RAB in 2016.

As there is no overlap in locations, no branch closures are planned.

The due diligence phase involves a comprehensive investigation conducted by both organisations to assess each other’s business models, financial performance and operational processes to ensure that the proposed merger will be beneficial for all stakeholders.

Brisbane-based certified public accountant Grant Thornton has been appointed to coordinate the due diligence process.

The merged organisation will continue to operate under both brands in their respective locations until after the merger date.

Current Regional Australia Bank CEO David Heine will head the new entity, while Summerland’s CEO John Williams will take on the role of deputy CEO (strategy).

Should the merger progress, members of both banks will be invited to vote at a member meeting in late 2025.