Hume Bank and Geelong Bank have signed a Memorandum of Understanding (MOU) to explore a merger that would bring together two customer-owned banks with shared values and deep regional roots.

Bringing the two banks together would create one of the largest regional customer owned banks with $2.4b in assets, a network of 16 branches, over 60,000 customers and around 200 staff.

The combined bank would gain greater scale and resilience, enabling further investments in technology, product innovation and customer experience according to the announcement made this week.

It would also strengthen the merged entity’s ability to respond to an evolving and competitive banking landscape.

Both banks have a shared vision to remain customer-owned and embedded in the community.

Hume Bank chair, Kerry Grigg said that the formation of a larger single organisation, with Geelong Bank as part of Hume Bank, would enable combined resources, expertise and strengths to deliver better value, products and services.

“Our proposed merger is about creating a stronger foundation for both banks to enable us to reinvest more into our products, services and communities," Ms Grigg said.

"What’s special here is that both banks are deeply committed to local impact, and we share the same objective of maintaining personalised service so our members continue to get the local support they rely on.”

Geelong Bank chair, Allison Batten said the proposed merger presented an exciting opportunity to combine two banks with a rich history of helping regional people reach their financial goals and grow their livelihoods.

“The dedication and deep community knowledge displayed by our team members is what makes both banks special," Ms Batten said.

"We are committed to retaining every team member, because they are the ones who deliver the personal, trusted service our members expect.”

Due diligence and approval processes will progress over the coming months, which will inform the development of a binding merger agreement expected in early 2026.