A mutual bank and a credit union complete their merger

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A mutual bank revealed that it made the legal transfer to finalize a merger with a credit union.

Teachers Mutual Bank Limited (TMBL) has announced the completion of the legal transfer to formalize its merger with Pulse Credit Union Limited (PCUL).

The final stage of data migration will take place this week on November 5-6, 2021.

The completion of the merger came after an overwhelming majority of PCUL members backed the proposed deal with TMBL.

The Australian Prudential Regulation Authority (APRA) gave initial approval for the combination of the two lenders in August after receiving the green light from the two companies’ boards of directors in July.

Going forward, the 6,000 PCUL members who voted in favor of the proposed merger (98%) are now either part of Healthcare Professionals Bank or UniBank (both are divisions of TMBL).

Additionally, the deal would see the credit union’s $122 million in assets join TMBL’s base of more than 220,000 members and more than $9.75 billion in assets.

In an earlier letter to Pulse members, credit union president Neil McDonald said the board believes this is “the best and most appropriate strategy for Pulse to ensure a prosperous and sustainable future in a very challenging and rapidly changing financial services environment”. .

According to TMBL, the transition would be a “natural fit” as PCUL has traditionally provided banking services to essential healthcare workers such as nurses, midwives, doctors and hospital staff.

TMBL and PCUL had been exploring the deal since January this year, with Pulse citing business and technology challenges as key drivers.

Previous mergers with La Trobe University Credit Union and Melbourne University Credit Union allowed Pulse Credit Union Limited to expand the provision of banking services to members of the higher education sector, creating further alignment with UniBank.

All new Health Professionals Bank and UniBank members have access to products and services such as a mobile banking app, unlimited ATM withdrawals, the new payment platform and the ability to request credit cards.

In addition, new members would also have the opportunity to access socially responsible mortgage and deposit products, according to TMBL, which added that any retail mortgage or deposit product opened at TMBL is responsible investment certified by Responsible Investment. Australasia Association, at no additional cost. Cost.

Commenting on the completion of the merger, TMBL Managing Director Steve James said: “We are delighted to complete our merger with Pulse Credit Union Limited and increase the number of healthcare and education members. superior that we serve in Victoria.

“While the Australian economy has remained fairly stable throughout the waves of the COVID-19 pandemic, the low rate environment and push for digital offerings has put increased pressure on some of the smaller credit unions.

“As we move closer to the end of 2021, our board is optimistic about future merger opportunities with like-minded mutuals.

“At Teachers Mutual Bank Limited our aim is to provide good banking services to those who do good and we are so proud to serve over 220,000 members across Australia working in the vital niches of education, emergency services and health care.”

However, TMBL’s head of industry partnerships, Jim O’Connell, told Mortgage Business that TMBL is not currently in talks with any other mutual banks about future mergers.

Speaking about the merger with PCUL, Mr. O’Connell said: “Early discussions on the merger with Pulse Credit Union Limited indicated that we shared a commitment to providing high quality, personalized member experiences.

“As we worked through the due diligence process, the bond between our two mutuals grew stronger, despite the challenges posed by the Delta variant of the COVID-19 pandemic. Achieving an interstate merger while the borders are closed is no easy task, but our teams have shown passion throughout the process and it’s fantastic to have 6,000 new members to serve.

Mutual mergers abound

Mr O’Connell acknowledged that there is ongoing consolidation in the mutual banking sector, noting that some of the largest mutual banks have recently signaled their intention to merge.

Indeed, the latest merger represents the second for TMBL this year, following the consolidation of its Firefighters Mutual Bank and Firefighters Credit Co-operative brand in May.

There have also been various other mutual mergers in play, with Newcastle Permanent and Greater Bank exploring options to merge with Greater Bank, with both banks undertaking a due diligence process. The merger would create a bank with $19.8 billion in total assets and about 600,000 customers.

Newcastle permanent chairman Jeff Eather said he believes more mergers will follow as smaller banks seek to expand to manage technology costs and fight for relevance.

Meanwhile, Heritage Bank and People’s Choice Credit Union are also completing due diligence for a proposed merger, with a member vote expected in early 2022.

Commenting on the trend, Mr O’Connell told Mortgage Business: “I think we will continue to see this trend play out in the mutual sector as some of the smaller credit unions continue to face business and technology challenges. increasing in an era of digital disruption, shrinking margins, increasing regulatory change and challenges resulting from COVID-19.”

[Related: Bank completes merger with credit union]

A mutual bank and a credit union complete their merger

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Last update: April 05, 2022

Posted: November 01, 2021

Malavika Santhebennur

Malavika Santhebennur

Malavika Santhebennur is the Mortgage Headlines Editor at Momentum Media.

Prior to joining the team in 2019, Malavika held roles at Money Management and Benchmark Media. She has been writing about financial services for six years.

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