This bank was one of the first substantial commercial buildings constructed in Hamilton, being built in 1878. It was erected by the Bank of New Zealand (BNZ) on the western side of the Waikato River, which was the most commercially important part of the town. The BNZ was the second bank to set up business in colonial Hamilton, having arrived in 1875. Its construction of a large, permanent bank displayed growing confidence in the town as an economic centre after the arrival of the railway connection to Auckland in 1877. The BNZ was heavily involved in the development of the Waikato after the third New Zealand - or Waikato - War (1863-1864), investing substantial amounts of capital in local enterprises. The two-storey bank was erected in a prestigious location, opposite the ferry crossing to Hamilton East. It was designed by Edward Mahoney, who was responsible for other important buildings in the region. The adoption of an ornate Italianate style reinforced its prominence, as did its use of durable materials such as roofing slate and local brick. The latter was rendered to resemble masonry, and improved the building's security against theft and fire. The interior contained a banking chamber near the front door, with a manager's room to one side. The bank's early managers were influential members of the local community, and were provided with suitably well-appointed accommodation at the rear of the building and on the first floor. Later expansion of the BNZ's business saw single-storey extensions on both Hood and Victoria Streets in 1908-1909 and 1932-1933, using a similar Italianate style. These promoted notions of stability and tradition, but concealed significant changes to the internal layout such as the creation of a large banking hall. The bank was vacated by the BNZ in the 1980s, after which the main facades were secured by a protection notice issued by the Minister of Conservation due to a threat of demolition. Its interior was substantially affected by alterations in 1994, during its conversion to other uses. The building is significant as one of the oldest commercial structures left in Hamilton, and is the city's earliest surviving bank. It is important for demonstrating Hamilton's growing prosperity in the later colonial period, and its role as a commercial centre in the region. The building reflects the growth of the BNZ, one of New Zealand's major financial institutions, and its part in the colonisation of the Waikato. It is of value to the history of banking, illustrating a number of social issues including the importance of bank managers in the local community and the relationship between accommodation and work. The bank contains valuable evidence of colonial construction technology and materials in the Waikato, including the production of local bricks. It is important as one of the earliest surviving buildings in Hamilton designed by a known architect, and among the first in the town carried out by Edward Mahoney. The building is significant for reflecting the origins of Victoria Street, the main commercial thoroughfare in Hamilton. It is a well-known and popular local landmark, adding to the historical and visual quality of its immediate environment.