The future of Taranaki's long-standing independent bank is now up for public discussion.
The Toi Foundation has announced a proposal to sell TSB to Heartland Group for $620 million. If approved, the two financial institutions would merge to form a new entity named TSB Heartland Bank.
However, the deal is not yet final. The philanthropic trust has launched a community consultation period, asking locals to weigh in before trustees make a definitive decision.
In a statement released today, the Foundation said the proposed sale would help increase sustainable, long-term cash returns for community grants and diversify its investment risk over time.
The trust also noted the merger would ensure the bank has a platform to operate successfully in a rapidly changing financial sector while maintaining a "strong connection for TSB to the Taranaki region."
This potential move marks a major shift for the local financial sector. TSB was established in New Plymouth and has maintained a fierce independence for over a century. It famously stood its ground in 1985 when the government pushed to amalgamate all 12 of New Zealand's independent banks.
For residents the Toi Foundation is just as well-known as the bank itself. The trust has historically used TSB dividends to funnel millions of dollars into community initiatives across the region.
Heartland Bank became a registered New Zealand bank in 2012 following the consolidation of CBS Canterbury, Marac Finance, and other entities. The company has grown rapidly in recent years and completed a buyout of Australia's Challenger Bank in 2024.
Consultation opens tomorrow, June 3, and closes at 5pm on Tuesday, June 30. Taranaki residents can make a written submission through the Toi Foundation website.
