Over 90% of members of both Holiday Coast Credit Union (Holiday Coast) and Regional Australia Bank voted in favour of the merger in separate Special General Meetings held this week on Wednesday 29 May and Thursday 30 May respectively.
The vote carried a resolution that will now see one of the largest mergers in the customer owned banking sector in recent times. The sector continues to experience consolidation as it pursues the necessary scale to meet changing market conditions.
Chairman of Holiday Coast Allan Gordon said, that “the member vote marked an historic day for Holiday Coast as the merger will ensure regional mutual banking on the Mid North Coast will be strong, solid and sound for years to come.”
“The member vote is a culmination of 6 months of hard work and allows for the transformations required without sacrificing the core values that have been the hallmarks of Holiday Coast since its formation.
- We will remain member owned.
- Our focus will remain on enriching the lives of our members and their communities by giving back, as we have in the past. “
Chairman of Regional Australia Bank, Graham Olrich said, that “While both Holiday Coast and Regional Australia Bank have been performing well in their respective adjoining markets, we see this merger delivering tangible and immediate financial and non-financial benefits to members of both organisations. Additionally, it will also help preserve a strong and sustainable mutual financial institution in regional Australia.”
“We are excited by the prospect of value that this merger will deliver for our members. Competitive products and services, fair fees & charges as well as greater investment in technology and service systems for the long-term will be some of the key benefits. This is what the partnership is all about, creating sustainable value for members and offering genuine support to the communities where they live and work.”
The combined entity will be $2.2 billion in assets and service about 85,000 members across northern NSW. Graham Olrich will continue as Chairman of the combined entity with Kevin Dupé retaining his position as Regional Australia Bank CEO. Retiring Holiday Coast CEO Neville Parsons will join other Holiday Coast directors Allan Gordon (Chairman) and David Johnson as members of the Regional Australia Bank Board.
The transfer of business will take place from 1 July 2019 subject to regulatory approval by the Australian Prudential Regulatory Authority, with systems migration to follow in the months thereafter.