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Regional Australia Bank and SWSbank announce intent to merge, creating stronger services for regional communities.
Regional Australia Bank and SWSbank are excited to announce that they have signed a Memorandum of Understanding (MOU) to explore a potential merger, bringing together two customer-owned banks with a shared commitment to supporting regional Australians. The proposed merger is subject to due diligence and regulatory approvals.
The proposed merger aims to combine the strengths of both banks to deliver more choice, greater access to services, and stronger support for local communities, all while maintaining the personalised, face-to-face banking experience members value.
If the merger proceeds, the combined organisation would:
- Manage approximately $5.5billion in assets
- Serve over 140,000 members
- Maintain and grow local branches and face-to-face services
- Continue investing in digital banking, security, and innovation
The merger also complements Regional Australia Bank’s ongoing expansion, including its merger process with Summerland Bank, further strengthening its presence and impact across regional Australia with over 50 branches staffed by local regional Australians.
Both banks emphasise that this proposed merger is about more than scale, it is about strengthening communities, empowering members, and preserving the heritage and values of both organisations. The merged entity would initially operate under both brands, with future branding decisions made in consultation with members.
About SWSbank
Founded over 50 years ago, SWSbank is a customer-owned mutual bank serving the South West Slopes of New South Wales, with branches in Young, West Wyalong, Temora, and Cootamundra. The bank is known for its community engagement, local decision-making, and personalised service.
About Regional Australia Bank
Regional Australia Bank is a customer-owned mutual bank serving regional New South Wales, focused on providing personalised banking, keeping branches local, and reinvesting in communities. Founded over 50 years ago, it offers a full range of financial services while prioritising member value and regional prosperity.
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MOU with SWSbank FAQ
Who is SWSbank?
SWSbank is a member-owned, community-focused bank based in regional New South Wales. It has served the South West Slopes region since 1972 and operates branches in Young, Cootamundra, Temora and West Wyalong, with an agency in Harden.
Why are the banks proposing to merge?
Both banks believe this merger will deliver long-term benefits for members and regional communities. By coming together, we can protect local banking services, keep more branches open while remaining proudly customer-owned and community focused. Most importantly, the merger supports our shared purpose of helping regional Australians and the communities we live in to thrive.
How big would the combined bank be?
If the merger proceeds, the combined bank would support around 145,000 members, operate more than 50 branches across regional Australia, and have combined assets of approximately $5.5 billion.
How large is SWSbank?
SWSbank currently has around 14,000 members, 40 staff and assets of approximately $323 million. It operates four branches and one agency location.
What is a merger?
A merger is when two organisations combine to operate as one. Mergers are undertaken to strengthen services, share resources and ensure long-term sustainability while continuing to serve members in line with shared values.
How is a merger approved?
A merger involves several steps, including signing a Memorandum of Understanding, completing a due diligence process, and seeking approval from regulators such as APRA. Each step ensures the merger is in members’ best interests.
Is a member vote required?
SWSbank members are expected to vote on the merger in line with their constitution. At this stage, it is unlikely that Regional Australia Bank members will be required to vote, subject to regulatory approval.
What does due diligence mean?
Due diligence is a detailed review where both banks examine each other’s operations, risks and financial position to ensure the merger is well planned and in members’ best interests.
Will anything change straight away?
No. There will be no immediate changes. Both banks will continue operating as usual while the merger process progresses, and members will be kept informed.
How does this affect the RAB and Summerland merger?
This proposal builds on the same rationale as the RAB and Summerland merger, creating a stronger regional bank with more branches, expertise and capacity to serve members.
Will the bank still be called Regional Australia Bank?
Yes. The name and core values of Regional Australia Bank will not change. The SWSbank brand will continue initially, with any future changes discussed with members.
Will any branches close as a result of the merger?
No. There are no branch closures planned. The merger would expand the branch network by adding SWSbank’s locations in Young, Cootamundra, Temora, West Wyalong and Harden.
Will there be job losses?
No job losses are planned. The focus is on retaining skilled people and creating more opportunities as the bank grows.
Will there be changes to leadership?
The CEO of the combined bank will be David Heine.
When would the merger take effect?
If all approvals are received, the legal merger is expected to take effect in April 2027.
What happens if the merger doesn’t proceed?
If the merger does not go ahead, both banks will continue operating as normal.
How will members be kept informed?
Members will be kept informed as key milestones are reached. Members can also contact their local branch with any questions.
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