Heritage Bank and People’s Choice proceed with merger plans

Highlights

• Plans to create one of Australia’s largest customer-owned banking organisations will move forward.
• Members will benefit from more branches, a wider range of competitively priced products and services, and contemporary, secure banking technology.
• Both Heritage Bank and People’s Choice remain absolutely committed to mutuality and remaining proudly member-owned.
• Governance structure for the merged entity has been agreed.

13 April 2022 – Heritage Bank and People’s Choice Credit Union, two of Australia’s leading customer-owned banking organisations, will proceed with merger plans following completion of an extensive due diligence process confirming strong benefits for members.

The next step is the regulatory approval process, followed by a member vote expected in late 2022.

Strong strategic rationale

The due diligence review confirmed that the proposed merger is a compelling opportunity to bring together two member-focused, complementary organisations. The combined entity will offer improved products, services, digital capabilities, competitive pricing and a stronger national footprint, while increasing support for community and environmental initiatives.

The merged organisation will have approximately 1,800 employees, 720,000 members and more than $22.5 billion in total assets, making it one of Australia’s largest customer-owned banking organisations.

Governance structure agreed

A robust governance structure for the merged organisation has been agreed.

Michael Cameron, current People’s Choice Chairman, will become Chairman, with Heritage Chairman Kerry Betros appointed Deputy Chairman.

Heritage CEO Peter Lock will serve as CEO of the merged organisation. People’s Choice CEO Steve Laidlaw will be appointed Deputy CEO and will become CEO 18 months after establishment, when Mr Lock retires.

Both organisations will have equal Board representation, with all current directors joining the new entity’s Board.

This structure provides stability, local expertise and strong succession planning, reflecting a true merger of equals. Both organisations are committed to remaining proudly member-owned. As a result of the merger, there will be:

• No redundancies below executive level
• No branch closures
• Dual head offices in Adelaide and Toowoomba
• Improved products, services and secure banking technology for members

Board and management encourage member support

Heritage CEO Peter Lock said, “We are confident a merger is firmly in our members’ best interests. Joining forces represents a unique pairing of equals, offering unparalleled cultural and strategic alignment and an absolute commitment to mutuality.”

People’s Choice CEO Steve Laidlaw said, “By coming together we will form a national member-owned banking organisation with the size and scale to deliver outstanding products and services for our members.”

The Chairmen of both organisations encouraged members to support the merger.

“This is an exciting opportunity that will strengthen the legacies of both organisations and ensure all members benefit from a stronger, united customer-owned banking organisation,” Heritage Chairman Kerry Betros said.

“The Board is committed to ensuring we remain a strong values-driven organisation dedicated to mutuality, our members, employees and the communities in which we operate,” People’s Choice Chairman Michael Cameron said.

Next steps

The merger remains subject to regulatory and member approval. Detailed information will be provided to members ahead of a member vote at both organisations’ Annual General Meetings in late 2022. If approved, the merged organisation is expected to be established in early 2023.

About Heritage Bank

Heritage is one of Australia’s oldest and largest customer-owned banks, with 330,000 members, 900 employees, $12.2 billion in assets, and 62 branches and mini branches. Established in 1875, Heritage serves members across Australia through a national digital presence, Queensland and New South Wales branches, and a national mortgage broker network.

About People’s Choice

People’s Choice is Australia’s largest credit union, with 390,000 members, almost 900 employees, $10.3 billion in assets, and 33 branches and lending & advice centres. It serves members nationally through digital channels and branches in South Australia, Victoria and the Northern Territory, plus its mortgage broker network.