Heritage Bank and People’s Choice Credit Union to merge with Peter Lock as CEO

Heritage Bank CEO Peter Lock will lead the enlarged group, which will boast assets worth more than $22.5bn.

Heritage Bank and People’s Choice tout their tie-up as offering “seamless leadership and deep expertise for the merged organisation during the integration period and into the future”. Picture: Annette Dew

The merger between Heritage Bank and People’s Choice Credit Union will go ahead following the completion of due diligence, which is set to create Australia’s largest mutual lender with assets worth more than $22.5bn.

The banks will now seek regulatory approval, and then the deal will then be put to members at the end of the year. The merged organisation is expected to be up and running by early 2023.

Heritage Bank said on Wednesday that the due diligence process showed the two banks could deliver enhanced products, services, digital capabilities and competitive pricing for bank services.

The merged bank would boast 1800 employees across the business, with promises of no redundancies below executive level as a consequence of the deal.

The merged company will hold dual head offices in Adelaide and Toowoomba.

“Both organisations are committed to remaining proudly member-owned and, as a result of the merger,” the two banks said in a statement.

“Most importantly, members will benefit from more branches, better products and services and contemporary, secure banking technology.”

Unlike many other lenders Heritage Bank has been pushing to expand its branch network, most recently opening a new branch in Tweed Heads in December after opening another branch in Macquarie Park in November.

Heritage Bank and People’s Choice touted the merger deal as offering “seamless leadership and deep expertise for the merged organisation during the integration period and into the future”.

The proposed board of the merged bank would be led by current People’s Choice chair Michael Cameron.

Heritage Bank CEO Peter Lock will lead the merged group for 18 months and then step down.

Heritage Bank chair Kerry Betros will take up the role of deputy chair.

Heritage Bank’s current chief executive Peter Lock will serve as head of the merged organisation.

However, Mr Lock has announced he will retire 18 months after the establishment of the merged bank and will be succeeded by current People’s Choice CEO Steve Laidlaw.

Mr Laidlaw will take on the role of deputy CEO at the merged bank prior to Mr Lock’s retirement.

Mr Lock said he was confident the merger was in the member‘s best interest.

“Joining forces represents a unique pairing of equals, offering unparalleled cultural and strategic alignment and an absolute commitment to mutuality,” he said.

Heritage Bank last month posted a 8.6 per cent slide in interim profit, topping $21.2m for the bank.

However, total assets across the bank were up 2 per cent to $12.18bn.