IMB Bank and Sutherland Credit Union to merge
IMB Bank and Sutherland Credit Union have announced plans to merge. Both institutions are based in the southern suburbs of Sydney and the Illawarra, south of Sydney.Sutherland Credit Union has around 10,000 members, A$217 million of assets, four branches and 35 employees.The merged group will have 190,000 members, $5.2 billion of assets, 48 branches and 530 employees.IMB, which changed its status from a building society to a mutual bank in August, has been keen to participate in the consolidation of the mutual sector but has been held back by its hybrid structure.It is a mutual authorised deposit-taking institution and also a public company limited by guarantee and shares, which are traded on a market. This structure gives it two classes of members.In 2012 it launched a buyback program that will eventually see all its ordinary shares cancelled.The buyback process has been slow and has required IMB to hold capital in reserve, which has put the brakes on growth.The deal with Sutherland Credit Union is an indication that the bank is making progress with its restructure and is in a position to take advantage of growth opportunities.