The 10 trustees of TSB shareholder the Toi Foundation may take two weeks to consider feedback from the Taranaki community on the proposed takeover of TSB by Heartland Group Holdings after the deadline for feedback passed late on Tuesday.
The deadline for Taranaki residents to submit written feedback was 5pm on Tuesday, June 30. Glen West, Toi Foundation's General Manager for Business Operations, said Toi wanted to thank the community for participating in the consultation process.
"The submissions received to date show a wide range of feedback and we appreciate the time people have taken to share their views," West said, in comments ahead of the 5pm deadline.
Toi Foundation, a charitable trust, has been seeking Taranaki community feedback on the proposal to sell 100% of the ordinary shares in TSB to Heartland Group, the parent company of Heartland Bank, in a deal valued at $620 million comprised of debt, equity and cash.
If the proposal - announced on June 2 - proceeds, Toi Foundation would hold a 17.5% shareholding in Heartland Group. TSB and Heartland Bank would merge, with the merged bank renamed TSB Heartland Bank.
Any decision to sell TSB shares requires a resolution signed by not less than three quarters of the Toi Foundation's 10 trustees.
West said trustees will read the submissions to assess key themes and identify any areas of substantive feedback that may require further consideration.
"They will then meet to discuss and, if necessary, seek advice on those points before making a decision. All trustees will be involved in this process. Depending on the volume and nature of feedback received this could take two weeks."
"We will share a report of submission feedback when the trustees have reached a decision so the community can understand the key themes, points raised, and how these were considered by the trustees," West said.
Board backs sale
Meanwhile, TSB Chairman Mark Darrow says the bank's board supports the deal.
"The Board supports the proposal as being in the best interests of the Bank, recognising the inherent disadvantages smaller regional banks face in competing at scale, investing in technology, and responding to increasing regulatory requirements," Darrow said in a press release on TSB's March-year financial results issued late on Friday.
"If the proposal proceeds, it would accelerate the future pathway for TSB through greater scale and availability of growth capital, while preserving the customer service ethos that TSB is famous for."
"The work undertaken over recent years to strengthen TSB has put the Bank in a position where a merger is now a feasible option for our shareholder to consider. That is an important reflection of the progress made by our people and the quality of the business we have today," Darrow said.
TSB annual profit rises
TSB posted a $4.3 million, or 10%, rise in March-year net profit after tax to $45.465 million from $41.169 million the previous year. It also declared $11.5 million in dividends to Toi Foundation Holdings, the commercial arm of the Toi Foundation.
Net interest income rose $19.9 million, or 10%, to $212.1 million, with the bank's net interest margin up 20 basis points to 2.26%. TSB said this was partly due to customers delaying fixing interest rates in a falling interest rate environment.
The bank's return on equity rose 30 basis points to 5.7%.
Operating expenses rose $10.4 million, or 7%, to just over $160 million, with TSB's cost-to-income ratio down 1% to 71%. Gross lending increased 1.2% to $7.8 billion and loan impairment losses rose to $3.2 million from $1.7 million.
Total deposits were down 1.7% to $8.6 billion.
TSB CEO Kerry Boielle described the March year as one of disciplined execution.
"We've enhanced our digital channels, introduced new tools to help protect customers from fraud and scams, and continued to grow our support for small and medium-sized businesses across New Zealand," Boielle said.
HQ may be sold
Meanwhile, TSB's annual report says it's considering longer-term options for its New Plymouth Head office building, including a potential sale.
"The Bank relocated its New Plymouth Head Office team to a building on Gill Street on a temporary basis in May 2026. In June 2026 the Bank’s central New Plymouth, Te Pū o Te Toi ki Ngāmotu branch, relocated from the Head Office building into the Bank’s existing Customer Hub on Courtenay Street," TSB says.
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