New Zealand's newest registered bank, Heartland Bank, has reported a near tripling of first half operating profit, thanks to lower operating costs and a slump in funding costs as its bank registration took effect.The institution, rated BBB-, is the product of several mergers -  Marac Finance, CBS Canterbury and Southern Cross Building Society - in early 2011. The Reserve Bank of New Zealand granted it a banking license in December 2012 after Heartland raised NZ$55 million of fresh equity, bought PGG Wrightson Finance, changed its management and board, ditched its controversial major shareholder and improved its liquidity.The NZX-listed Heartland reported an operating profit of NZ$14.6 million for the six months to December 31, up from NZ$5.5 million in the same six months a year earlier. Net profit was up less dramatically to NZ$10.7 million from NZ$9.7 million, thanks largely to the previous period including a tax benefit of NZ$4.1 million.Heartland's finance receivables fell to NZ$2.04 billion from NZ$2.08 billion a year earlier. Heartland's rump of Marac Finance has specialised in vehicle, equipment and asset finance since dropping its property development finance arm in the wake of the property development finance company collapses in 2008.Heartland said it was focused on building its operating income by resuming its lending growth now it has a banking license, reducing costs related to the license application and further reducing its funding costs.Heartland is joining an increasingly active bevy of smaller locally owned banks, including TSB Bank, SBS Bank, Kiwibank and The Cooperative Bank, that are aiming to take market share from the big four Australian-owned banks, particularly in rural and provincial areas.