Update on IMB Bank’s proposed merger with Hunter United Employees’ Credit Union Ltd

IMB Bank and Hunter United Employees’ Credit Union Ltd (Hunter United) are pleased to announce that the proposed transfer of business from Hunter United to IMB (the “merger”) has progressed through to the next stage of the regulatory approval process.

Hunter United’s members will vote on the merger proposal at its Special General Meeting (SGM) to be held on Thursday, 5^th March 2020. Provided that Hunter United’s members vote to approve the proposed merger (by way of a special resolution), the merger will complete on 1 April 2020 or such other date as is advised to members.

The Boards of IMB Bank and Hunter United believe there is a strong cultural fit between the two customer-owned financial institutions, built on a shared commitment to mutual values, a strong community focus and a history of highly competitive products and services that deliver great value and quality member outcomes.

Established over 50 years ago, Hunter United is a customer-owned credit union based in the Hunter region of New South Wales with 5 branches at Broadmeadow, Charlestown, Glendale, Green Hills and Jesmond. Hunter United has approximately 9,000 members, $334 million in assets under management and 35 staff.

An overview of the merged organisation is shown below:

The merger is to be undertaken by way of a voluntary transfer of the business of Hunter United to IMB in accordance with legislation administered by APRA. Under the merger, all members of Hunter United on the date of the transfer will become members of IMB Bank.

IMB Bank members are not required to vote on the proposed merger due to the relative sizes of IMB Bank and Hunter United, and because the merger will not require the amendment of IMB’s Constitution nor will it result in any variation of the existing rights of IMB Bank members.

From the date that the merger completes (expected to be 1 April 2020), Hunter United will operate as a division of IMB Bank pendingfull integration of the banking systems and operations which is planned to occur within approximately 9 months.

Proposed appointment of Non-Executive Director upon completion of the merger

As communicated to members through IMB’s 2019 Annual General Meeting processes, IMB Bank is also pleased to announce that upon completion of the mergerMs Jann Gardner (BA/LLB (Sydney), MBA (Newcastle), GAICD), current Chair of Hunter United, will be appointed to the Board of IMB Bank and its subsidiaries. Ms Gardner’s appointment to the Board will occur under article 13.4 of IMB’s Constitution which contemplates the appointment of additional directors to the board in a merger transaction. Ms Gardner’s appointment to the IMB Bank Board will not proceed in the unlikely event that Hunter United members do not vote to approve the merger.

As a previous director of Hunter United, Ms Gardner will make an important contribution to the Board’s development of strategy and stakeholder engagement initiatives to drive IMB Bank’s long term success in the Hunter region. 

Ms Gardner spent 27 years as a lawyer in private practice specialising in insurance, risk, dispute resolution and litigation before moving into a non-executive director career and consulting to corporations on strategic issues and business development. She was managing partner of Sparke Helmore’s Newcastle office for 9 years and was a member of the Sparke Helmore Board.

Ms Gardner is currently the Chair of Hunter United Employees Credit Union Ltd (HUECU), and is a non- executive director of StateCover Mutual Ltd, an insurer of local government instrumentalities and Arch LMI Ltd, a mortgage insurer. She sits on the Council of the University of Newcastle, Sancta Sophia College Council at the University of Sydney, a Nursing and Midwifery NSW Council Committee and Chairs the Advisory Board of 2NURFM. She also chairs an Audit and Risk Committee for a local health District.

The Board is very pleased to have Jann join the IMB Bank Board and her insights and experience will be invaluable as the organisation moves through the merger integration process and expands its presence in the Hunter region.

20 February 2020