During Wednesday’s public meeting for the proposed TSB & Heartland Bank merger, New Plymouth Mayor Max Brough served a letter to the Toi Foundation trustees demanding a pause to the $620 million conditional merger agreement announced earlier this month.
Brough argued the community needs time to consider alternative options, including a potential council-supported model.
"This is not typical engagement, this is a community speaking clearly and with conviction about something it values deeply," Brough said.
He told trustees the bank is deeply tied to the history and identity of Taranaki.
"TSB is not just another financial institution; it is our bank, built by the community, for the community, and intrinsically tied to Taranaki's identity and history."
The Toi Foundation, which currently owns 100% of TSB, announced the conditional merger implementation agreement with Heartland Group Holdings on June 2.
Under the proposal, the banks would amalgamate to create TSB Heartland Bank. The foundation would acquire an approximate 17.5% stake in the Heartland Group alongside a mix of debt capital and cash.
Toi Foundation chair Chris Ussher previously stated the move would free up capital to increase philanthropic funding across the region.
However, the proposal has faced swift public pushback. Brough highlighted a petition launched on June 9 that has already attracted more than 4,000 online signatures, organised by Councillor Gordon Brown.
He said the response reflects a fear the proposal risks diminishing a unique local asset.
"I am not seeking to debate the commercial merits of the proposed merger. However, I ask a simple and reasonable question: Do you understand that you are entrusted with protecting TSB, as a key asset, for the benefit of the Taranaki community?"
A pause in the process would allow for robust financial modelling of alternative pathways and meaningful engagement beyond basic process compliance, he said.
Brough acknowledged that maintaining the status quo might not be the right answer for the bank. However, he insisted the decision did not need to be a binary choice between the Heartland proposal and taking no action at all.
"There is space, and community willingness, to explore innovative, locally grounded solutions that may better align with the long-term interests of Taranaki," Brough said.
He warned that once the transaction proceeds, it cannot be undone.
The foundation's public consultation period on the merger opened on June 3 and is set to close at 5pm on June 30.
Check out the video below 👇
