When Cyclone Alfred threatened Ballina in March, Summerland Bank CEO John Williams was photographed out the front of the River Street branch, sandbagging like any other small business owner.

That image –  later published by the Australian Financial Review – became a symbol of what sets regional banks apart from the big four.

Now Mr Williams is facing another test: convincing customers that Summerland’s proposed merger with Regional Australia Bank won’t cost it that local touch.

APRA gives the green light

The Australian Prudential Regulation Authority (APRA) approved the merger plan last week, clearing the way for the two customer-owned banks to put their case to members.

The final decision rests with Summerland’s customers, who will vote at a members’ meeting in Lismore on November 19.

If supported, the combined bank would serve more than 130,000 customers, operate 49 branches across regional NSW and Southern Queensland, and manage assets of more than $5 billion.

Both banks have pledged that “every branch will stay open, and all staff will retain their jobs.” Whether that promise extends to Summerland’s senior executives in Lismore remains less clear.

Mr Williams said the merger was about building scale while keeping community banking values.

 “This is about investing more in our branches, products and services, while ensuring every branch remains open and our people continue to serve their communities,” he said.

Customers are being promised improved digital services, more competitive products, and a stronger presence in local communities.

Two banks with regional roots

Summerland Bank began in 1964 as Summerland Credit Union, founded by locals in the Northern Rivers. 

It has stayed customer-owned, with a focus on social and environmental values.

Regional Australia Bank traces its origins to 1969, when it was formed as the New England Staff Credit Union at the University of New England in Armidale.

It has since expanded through a series of mergers, most recently with the Port Macquarie–based Holiday Coast Credit Union in 2016.

Both banks have built reputations for supporting local projects, events, and jobs.

The vote ahead

While APRA’s approval is a key milestone, members will now decide the bank’s future. 

Customers will be sent detailed information ahead of the November AGM, where they can vote in person or by proxy.

If the merger is backed, the new entity is expected to take effect from July 1 next year.

As Mr Williams put it: “This partnership marks an exciting next chapter. It will allow us to keep doing what we do best –  supporting regional people and communities, while giving us the strength to do even more.”