Australian Mutual Bank and Community First Bank have cancelled a mooted merger.
Community First announced the decision to members yesterday.
AMB has assets of A$1.7 billion and Community First has assets of $1.3 billion. The merger would have created the 13th largest mutual bank, compared to 19th for AMB and 26th for CFB at present.
Negotiations following a memorandum of understanding signed last year allowed both organisations to “delve deeper into assessing the compatibility of a merger and determine whether it would be a suitable match for both parties,” Community First told members.
“The discussions regarding the potential merger did not progress to the stage of seeking regulatory approval or conducting member votes. At the preliminary exploration stage, a decision has been made not to proceed with the merger.
“The two organisations have been unable to reach a mutually agreeable arrangement that aligns with the objectives and aspirations of both parties. Such an outcome is not uncommon during discussions for mergers.”
Community First said it “is currently in a strong position, with substantial capital and liquidity. We are also expecting to report a financially strong profit result for the 2022/23 financial year.”