HGH - Heartland Group Holdings

[Snow Leopard]

See Slide 11 of the recent acquisition presentation

Heartland New Zealand Limited, known to its friends and shareholders as HNZ, is not a bank, but it does own one (via a not shown intermediary company).

This new HER stuff will exist outside of the bank and its subsidiaries, at least initially.

HNZ purchased $30M5 of NZ HER Loans in December 2013 (footnote on slide 9 & 14) which should thus be in the Dec 2013 half year accounts for HNZ due to be released soon, but may not be obvious.

It is unlikely that the HER Loans will appear anywhere in the Dec 2013 Disclosure Statement for Heartland Bank, as presumably they are not held by the banking group.
Once HER Loans are brought into the banking group we will find what the Risk Weighting of such assets is and thus what capital backing they need.

The future guidance suggests that this years result will be at the lower end of that $34M to $37M range.

I am not at all sure that I understand the rational for buying the Australian bit.

Best Wishes
Paper Tiger

[noodles]

I am not at all sure that I understand the rational for buying the Australian bit.

Best Wishes
Paper Tiger

Jeff said the Aussie part came as part of the deal. Could not have acquired nz on its own. He did follow-up by saying that the business was very good. Cash flow positive.

[percy]

Jeff said the Aussie part came as part of the deal. Could not have acquired nz on its own. He did follow-up by saying that the business was very good. Cash flow positive.

Being a very good business hopefully will attract an Aussie buyer.!
Chairman Geoff Ricketts is well connected in Aussie,so maybe he will find an aggressive buyer?!

[noodles]

Being a very good business hopefully will attract an Aussie buyer.!
Chairman Geoff Ricketts is well connected in Aussie,so maybe he will find an aggressive buyer?!

I'm desperately trying to remember the presentation, but I got the impression they really liked the Aussie business and they saw growth in that area. So perhaps they would keep up.

[winner69]

Paper Tiger -The future guidance suggests that this years result will be at the lower end of that $34M to $37M range.

That's how I see it as well.

But all 'pie in the sky' so all OK with this company that has a bank in its stable of businesses

Australia was part of the package

[percy]

That's how I see it as well.

But all 'pie in the sky' so all OK with this company that has a bank in its stable of businesses

Australia was part of the package

I will be happy with any figure between $34mil and $37mil this year.A great achievement on year end 31/6/2013.
18 months out figure is the "pie in the sky" to me.
Australian business I may have to reserve judgement?

[noodles]

I will be happy with any figure between $34mil and $37mil this year.A great achievement on year end 31/6/2013.
18 months out figure is the "pie in the sky" to me.
Australian business I may have to reserve judgement?

You see this is where we are quite different Percy. If management give a range, I want them to deliver at the top half of that range. So for me, anything below $35.5mil will be a reduce signal. If they miss $34mil and I'm still holding, it won't be for long.

DISC: Still holding some(albeit at a reduced level)

[SCOTTY]

Jeff said the Aussie part came as part of the deal. Could not have acquired nz on its own. He did follow-up by saying that the business was very good. Cash flow positive.

I do not have a problem with HNZ owning and retaining a good solid profitable Aussie business. Would be very good for the long-term banking profile. Who knows what might emerge from this connection.

[K1W1G0LD]

Would you really want to be taking one of these, does'nt sound like such a great idea to me . Remember Banks don't have morals....................just the desire to earn money , lots of it, without worrying about the personal costs to their customers.

5 Reasons to Avoid a Reverse Mortgage

Watch out for these drawbacks of using a reverse mortgage to fund retirement.

One of the retirement planning resources that has gained interest in recent years is the reverse mortgage. For many retirees, it seems like a solid idea. You get access to the equity in your home, and the bank makes a mortgage payment to you. It turns your home into a source of income.

It’s a nice thought, but the truth about reverse mortgages is far from ideal. In fact, there are a few reasons to avoid getting a reverse mortgage as part of your retirement plan. Most of these reasons revolve around the fact that this type of income stream is actually a loan against your home’s equity that has to be paid back.

Here are five reasons to think twice about getting a reverse mortgage:

1. The fees are often high. Since a reverse mortgage is a loan, you are going to have loan-related fees. Origination fees and other fees on a reverse mortgage are typically rather high. A reverse mortgage is a home equity loan that isn’t decided based on your income or your credit score. As a result, there are unique risks to the lender, and some of those risks are offset by charging higher fees at the outset.

2. High interest rate. The interest rate on a reverse mortgage is often higher than the rate for a more traditional home equity loan. Between the up-front fees on the reverse mortgage and the high interest charges, you might be surprised at how little money you actually end up getting. It’s your equity, but the bank gets an awful lot of it.

3. Your heirs might not get the house. When you get a reverse mortgage, you aren’t expected to make payments on the loan. Instead, the loan is paid off when you sell your home. So, if you die, the home is supposed to be sold so that it can cover the loan amount. This means your heirs can’t have the house. It is possible for your heirs to keep the house if they pay off the reverse mortgage after you die. However, this usually means that the money has to come out of the estate, reducing the total that your children and grandchildren end up with. For someone hoping to leave a legacy, this can be a real drawback.

4. You have to repay the loan when you move out. Dying isn’t the only way that repayment on a reverse mortgage is triggered. In order to avoid making payments on the loan, you have to be living most of the time in your primary residence. You are considered “moved out” if you haven’t lived in the home for a year. This includes if you enter a long-term care facility. So, if you are no longer able to stay in your home, but you haven’t died, you have to start repaying your reverse mortgage—at a time when money is likely already tight. This can put a real strain on your budget.

5. You’re still responsible for home costs. Throughout all of this, you are still responsible for your home costs. You have to pay property taxes, keep up with the homeowners insurance, and pay for regular maintenance on the home. If you have enough equity, you can get a reverse mortgage big enough to cover all these expenses, but it can be a difficult situation nonetheless

[Xerof]

But, but, but....

as a shareholder in HNZ, surely you will be delighted for them to write this sort of business?