Horizon Bank and Lysaght Credit Union have announced they plan to merge, creating a A$540 million mutual bank. The Horizon Bank will be retained.
Both based in Wollongong, the two ADIs emerged in the mid-1960s.
Horizon Bank was established in 1964 as the Illawarra County Council Staff Credit Union and over the years rolled up mutuals with similar bonds on the NSW South Coast.
Lysaght Credit Union was founded in 1966 to provide banking services to the employees of John Lysaght Australia in Port Kembla, and is still close to the heart of the Bluescope steelworks.
In a statement to members, chairman Viktor Tomeski said “Lysaght Credit Union has been an integral part of the South Coast and BlueScope (Springhill works) community for over 50 years and we want to ensure that our members have another 50 years to look forward to.
“That is not realistic in the face of rising costs, decreasing margins, and the required investment in technology and compliance. Therefore, exploring merger opportunities has been a part of the Lysaght board’s strategic planning over the past 12 months.”
Only Lysaght Credit Union members will need to vote on the merger proposal, with a Special General Meeting expected to be held in late 2020 or early 2021, subject mainly to APRA’s priorities.
It is anticipated that the merger be completed by 31 March 2021. There will be no forced staff redundancies, the two boards said yesterday.
Lysaght has 2400 members, eight staff and two branches. Horizon Bank has 14,900 members, 56 staff and “maintains nine branches on the NSW south coast extending from Thirroul to Merimbula.”