Heritage Bank and People’s Choice Credit Union have completed the due diligence on their proposed merger and have decided to proceed with their union.

The mutuals announced yesterday that they have agreed on the governance structure for the merged entity. Following regulatory approval, they aim to put a vote to members late this year.

If all goes to plan the new organisation will be established early next year. The parties have made a commitment that the merged entity will remain member-owned.

The merger will create one of Australia’s largest, if not the largest, customer-owned banking organisation, with around 1800 employees, 722,000 members, 95 branches and A$22.5 billion of assets.

Heritage and People’s Choice said in a statement that the due diligence confirmed the benefits to members in the merger of “two complementary businesses” through “enhanced products, services, digital capabilities and competitive pricing through a growing national footprint, while increasing support for community and environmental initiatives”.

Heritage chief executive Peter Lock will be CEO of the merged organisation and People’s Choice CEO Steve Laidlaw will be deputy CEO.

Lock has agreed to retire 18 months after the establishment of the merged organisation and Laidlaw will be appointed CEO.

People’s Choice chair Michael Cameron will be the chair and Heritage chair Kerry Betros will be deputy chair.

The two organisations will have equal board representation, with all current directors appointed to the new board.

There will be no redundancies below executive level and no branch closures. The merged entity will have dual head office in Adelaide and Toowoomba.