Heartland Bank is a wholly New Zealand-owned bank formed in 2011 by the merger of four Financial Institution Groups. Heartland was registered as a bank with the Reserve Bank of New Zealand in 2012. It specializes in motor vehicle loans, reverse mortgages, small business financing, livestock financing, savings, investments and deposits.

History

In 1875, "Ashburton Permanent Building and Investment Society" was formed and subsequently merged with "SMC Building Society and Loan and Building Society" to become "CBS Canterbury". Additionally, "Southern Cross Building Society" opened in Auckland in 1923 to provide similar financial services to clients throughout the North Island.

Four leading stock, in-app businesses; Williams & Kettle, Wrightson, Pyne Gould Guinness and Reid Farmers merged in the 1940s to form PGG Wrightson Finance (PWF). PWF provided financial services to its agricultural and rural clients.

In 1952, "MARAC Finance" was formed as the "North Shore Leasing Van Company", lending to businesses to purchase commercial vehicles. Over the next 55 years, it grew to provide financing, lending and insurance services to businesses and individuals

s Building Society and MARAC Finance Limited merged into one organization. On 31 August 2011, the Group acquired PGG Wrightson Finance.

Become a Bank

Heartland was formed by the merger of CBS Canterbury (Canterbury Building Society), Southern Cross, MARAC and PGG Wrightson Finance. The rationale for the merger was to create a Financial Institution Group with both broad national coverage and sufficient assets and resources to obtain a full banking licence.

On 12 December 2012, the Reserve Bank of New Zealand announced that Heartland Building Society had been registered as a bank and the organization was renamed Heartland Bank.

Credit Rating

In May 2013, rating agency Standard & Poor's downgraded Heartland Bank, along with seven other Small New Zealand Financial Institutions Groups, to a credit rating watch, citing the potential risks of overexposure to New Zealand's highly inflated property market. In October 2014, Heartland's rating was upgraded to BBB (stable outlook) in October 2014. In October 2015, another rating agency, Fitch, confirmed Heartland's rating to BBB (stable outlook), noting that "core asset quality remains solid, benefiting from continued improvements in underwriting standards and good economic conditions". In September 2018, Fitch confirmed Heartland's credit rating as BBB (stable outlook), noting that Heartland "has realized leading niche concessions and certain price-setting rights, resulting in a strong net interest margin".

Acquisitions and Partnerships

In February 2014, Heartland entered the reverse mortgage (or home equity release) market with the acquisition of Sentinel in New Zealand and Australian Seniors Finance in Australia.

In September 2014, Heartland purchased a 10% stake in peer-to-peer lender Harmoney Limited.

In January 2017, Heartland partnered with Spotcap Australia, an online lender for small and medium-sized businesses.

Open for Business - Unsecured Small Business Loans

In April 2016, Heartland launched an online platform, Open for Business, to provide unsecured loans to small businesses. Applications through Open for Business can be completed in two to three minutes and applicants receive a decision immediately.

Savings & Investing

In May 2018, Heartland's Direct Call Account received a 5-star rating from CANSTAR in its Flexible Saver and Regular Saver categories.

In June 2018, Heartland launched a mobile app for its depositing customers to give them more control over their investments.

In July 2018, Heartland was named Canstar's Savings Bank of the Year. Canstar conducted research, analysis and comparison of annual ratings for 31 accounts from 11 providers