Merger awaits formal regulatory approval
Illawarra Credit Union and Community First Bank have announced plans to merge, aiming to enhance value and strengthen their competitive position in the banking sector.
The boards of directors for both institutions have agreed to the merger, which follows a successful due diligence process. The merger now awaits formal approval from the Australian Prudential Regulation Authority (APRA).
Following APRA’s approval, members of both credit unions will vote on the merger at their respective annual general meetings in late 2024.
If approved, the merged entity will serve nearly 80,000 members and customers, with combined assets of approximately $2.5 billion.
“The merger is an exciting step for both Community First Bank and Illawarra Credit Union,” said
John Tancevski (pictured above right), chief executive of Community First Bank. “It will create valuable member benefits, allowing the two organisations to position themselves for their next phase of growth.”
Anthony Perkiss (pictured above left), CEO of Illawarra Credit Union, echoed Tancevski’s sentiment, highlighting the shared values and history of collaboration between the two institutions.
“Together, we recognise the exciting synergies in combining our strengths into a single, larger community-focused financial institution where we can better meet the needs of all our members while retaining our high standards of service.”
The merger promises to bring enhanced technological capabilities and greater physical distribution. It also aims to bolster resources, enabling better compliance with prudential and regulatory obligations and fostering innovation and growth.
Both credit unions have assured members that the merger will not result in forced staff redundancies and that members will continue to receive personal service from familiar staff.
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