Another potential bank merger is on the cards, following the announcement that Regional Australia Bank and SWSbank have signed a Memorandum of Understanding (MOU) to explore the prospect of the organisations merging.

If successful, the proposed merger would bring together two customer-owned banks with a shared commitment to supporting regional Australians.

In a statement on January 29, Regional Australia Bank said the proposed merger, which is subject to due diligence and regulatory approvals, “aims to combine the strengths of both banks to deliver more choice, greater access to services, and stronger support for local communities, all while maintaining the personalised, face-to-face banking experience members value.”

Founded over 50 years ago, SWSbank serves the South-West Slopes of NSW, with branches in Young, West Wyalong, Temora, and Cootamundra. Regional Australia Bank has 37 branches across NSW including the New England North-West, Central West, Riverina, Mid-North Coast and Greater Newcastle regions.

SWSbank CEO Andrew Jones said the company is exploring a partnership with Regional Australia Bank so both can bring more benefits to customers.

"Our members and communities have always been at the heart of everything we do,” he said.

“From enhanced services to stronger local support, together, we can ensure our communities continue to thrive while keeping the personal connection our members rely on."

Regional Australia Bank CEO David Heine concurred.

"We’re thrilled to begin this journey with SWSbank. Both organisations share the same purpose: to support regional Australians, keep branches open, and invest in a sustainable future,” he said.

“By joining forces, we can deliver even greater value for our members, our people, and the communities we proudly serve."

If the merger proceeds, the combined organisation would reportedly manage approximately $5.5 billion in assets and serve over 140,000 members.

In its statement, Regional Australia Bank also said the merged entity would maintain and grow local branches and face-to-face services, and continue investing in digital banking, security, and innovation.

The merger also complements Regional Australia Bank’s ongoing expansion, including its merger process with Summerland Bank, further strengthening its presence and impact across regional Australia with over 50 branches staffed by local regional Australians.

“Both banks emphasise that this proposed merger is about more than scale, it is about strengthening communities, empowering members, and preserving the heritage and values of both organisations,” the statement continued.

“The merged entity would initially operate under both brands, with future branding decisions made in consultation with members.”