will this be the first necessary merge, page-3

With respect "street talk", you are talking absolute nonsense.

Street talk in Bendigo (the city) is that Bendigo (the bank) is having HUGE cash inflow from its depositors.... HUGE.
In recent times this has been increasing.. in a flight to safety.
They have been massive beneficiaries of the finacial uncertainty.

They therefore have a very cheap source for much of their funding.. their depositors..... and as a result, their margins are NOT being squeezed. FACT

Their community banking model has been embraced by the public and is very successful.
The public appreciate their good steady conservative approach.

And as far as "banking models" go, your statement that "its banking model is not feasible in todays environment" could not be further fronm the truth:

The "banking model" used by the big four where they have collectivly lost billions of dollars from imprudent loans, and their fair weather friends approach to their customers has not won them too many admirers.

BEN will not have to merge with anyone to survive and prosper.

Having said that it may well be that they will be seen as a takeover or merger possibilty.

But this will be because of the soundness and desirability of their business,..... not the reasons you suggest.