Australian Mutual Bank and Community First Credit Union have signed a memorandum of understanding to explore a merger of the two organisations.
A merger of the two would create a mutual bank with approximately 120,000 members, A$3.1 billion in assets, 250 employees, and 20 branches in and around Sydney.
Subject to due diligence, regulatory and member approvals, the merger would occur early in 2024.
Australian Mutual Bank is the 17th largest mutual bank with $1.7 billion in assets at June 2021. Community First is the 24th largest mutual bank with $1.3 billion in assets a year ago.
Australian Mutual Bank has been the most active merger partner among Sydney-based mutuals and it is little surprise two of the billion plus mutuals in Sydney are tying the knot.
The merged entity would probably rank in the top 10 mutual banks by assets, though lacking scale in comparison to those at the top of this niche.