We’re excited to announce that our Board of Directors has begun proceedings towards a potential merger with Teachers Mutual Bank Limited (TMBL).
We have entered into a Memorandum of Understanding (MOU) with TMBL under the Firefighters Mutual Bank brand to explore the possible advantages of a future merger. The MOU is not a commitment to merge, rather an initial step to allow us to investigate things further.
Why are we merging with TMBL?
The primary reason for the merger is to seek a partner to strategically position your Credit Co-operative in the market. Like other small credit unions, Firefighters Credit Co-operative Limited (FCCL) faces growing commercial and technological challenges in a rapidly changing industry.
The merger will ensure our Members become part of a larger, stronger and more geographically extensive mutual bank with greater financial resources, improved product offerings and a service focus unparalleled in the industry. TMBL has excellent corporate social responsibility credentials, a strong Member value proposition, and a cultural fit that makes it an ideal merger partner.
Both parties are strongly committed to retaining FCCL’s role as a financial service provider to the firefighting community in Victoria.
After carefully weighing up the alternatives, our Board of Directors concluded that joining forces with TMBL was the best path to securing a successful and sustainable future that would appeal to the next generation of Members.
Who is Teachers Mutual Bank Limited?
TMBL is one of Australia’s largest mutual banks with over 210,000 Members across the country and more than $8 billion in assets. It has a well-established national identity and is in its 54th year of operation. Historically, TMBL’s success as a financial service provider has been built on sustained, largely organic growth achieved through excellence in service delivery to its Members. This is demonstrated by the awards and accomplishments the Bank has achieved including:
- Members rated Firefighters Mutual Bank 92% Member satisfaction in 2019
- Firefighters Mutual Bank was named one of the World’s Most Ethical Companies® for the last 3 years
- All new mortgage and savings accounts are certified socially responsible products by RIAA
In order for any merger to proceed, three things need to happen.
- We must complete a due diligence process with TMBL. This exercise will commence in August/September 2020.
- Subject to the due diligence requirement being successfully completed, FCCL Members have to be given the opportunity to vote on the desirability of any proposed merger. Given the current circumstances in Victoria, this is likely to be a postal ballot. A proposed merger can only proceed if 75% of Members voting support the proposal recommended by the Board of Directors.
- The merger arrangement as approved by the Members of FCCL would still require the approval of the industry regulators.
We’re still here to help you
I personally wanted to assure you if the merger between our organisations were to proceed, there would be relatively little impact for you as a FCCL Member in terms of day to day services. Our identity as a firefighters’ financial institution and our culture would also be unchanged. There will be no forced staff redundancies and our current staff will be there to support you.
The Board of Directors believes that this proposed merger with TMBL presents a wonderful opportunity for Members to help build a truly sustainable future for the superior quality of financial services that Members have come to expect from FCCL.
What’s coming next?
More detailed information about the proposed merger arrangement will be provided to all Members prior to the Special General Meeting.
Thank you for your continued support, and we look forward to keeping you updated through this important development.