HGH - Heartland Group Holdings

[Nizzy]

Yes a couple of local guys organising a petition and are hoping that if they can get enough people against it that HGH Will pull the pin. I heard them talking about it on the radio and at that stage last week they had 2000 signatures against the transaction.

I can understand their main concern that Heartland will close the physical branches down and stop funding community events.

more than a petition. Its going to court. further consultation with locals. Appears Toi got some stuff wrong. Some TSB folk dislike Heartland's reverse mortgage offering.   

[Basil]

https://www.nzherald.co.nz/business/companies/banking-finance/legal-threat-by-former-tsb-chair-slows-progress-on-proposed-merger-of-tsb-and-heartland-bank/5HOVLLAZGNFZFLHZDUMBIX4ALM/
Former Chairperson of the Toi foundation believes one of the issues is that Heartland's reverse mortgages are "repugnant".

[Ferg]

Former Chairperson of the Toi foundation believes one of the issues is that Heartland's reverse mortgages are "repugnant".

Irrespective of whether his opinion is correct or not, it doesn't sound like the basis for a legal challenge.

[Shareguy]

Irrespective of whether his opinion is correct or not, it doesn't sound like the basis for a legal challenge.

Agree Ferg, Some would say paying taxes are "repugnant" or in fact paying interest to borrow money...

[Basil]

Irrespective of whether his opinion is correct or not, it doesn't sound like the basis for a legal challenge.

Just one of many concerns by the sound of it.  Excerpt:-

This rationale didn't sit well with Elaine Gill – a former long-serving TSB director and chairwoman.
She teamed up with chartered accountant Kevin Landrigan and Pacific Winds International chief executive Aorangi Bobbie Matsuda to create an incorporated society that is throwing the book at Toi.
In its lengthy legal letters to Toi, the Taranaki Community Accountability Society Incorporated noted a petition opposing the merger had about 6927 signatories.

I'm just a curious observer, I have no position in HGH and none is desired.  The two banks seem such strange bedfellows and I'm not convinced even if it proceeds the synergies will be realised and it will be EPS accretive to HGH shareholders.

There's some fascinating revelations today on the other channel.

[Basil]

Heartland Group Holdings posted the biggest decline on the day, falling 2.8% to $1.205 after the Taranaki Community Accountability Society filed an interlocutory application against the Toi Foundation's trustees, challenging the consultation and process of the proposed sale of TSB Bank to Heartland.

[Left Field]

Great result......holders v happy.

https://api.nzx.com/public/announcement/478170/attachment/474933/478170-474933.pdf

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) has announced a net profit after tax (NPAT)
for the financial year ended 30 June 2026 (FY2026) of $93.2 million (up from $38.8 million in the financial year
ended 30 June 2025 (FY2025)). On an underlying basis1, FY2026 NPAT was $90.4 million (up from $46.9 million
in FY2025).

[Ferg]

Do I say it and risk getting a reaming?

[Left Field]

Do I say it and risk getting a reaming?

Go on Ferg.... embrace the fear and say it...

[Ferg]

Go on Ferg.... embrace the fear and say it...

Haha....

....check out those cash flows...or lack thereof

I have assumed the position. 

[Basil]

EPS of 9.9 CPS...nobody in their right mind would still try and claim this is a growth company.  Apply a no growth PE of 8.5 to that and I see fair value of 84 cents.
I have also assumed the position lol

[mfd]

They are guiding to grow NPAT by about 10% in the next year, that is decent growth for the price, and ignores any benefits coming from the potential merger. Still recovering from past indiscretions perhaps but the future looks bright.

[Shareguy]

Craigs say Solid Result

Heartland Bank (HGH) – Overweight – Wade Gardiner – Solid result with uNPAT of $90.4m vs guidance of "at least $85m". Final DPS 3.5 cps, (CIPe 3.25cps), taking the total for FY26 to 7.0 cps. The NIM was in line with CIPe at 3.93% (from 3.56% pcp), and impairments were slightly below CIPe with an impairment ratio of 45 bps (vs CIPe 50 bps). Operating costs were slightly higher than we had forecast.  Guidance for FY27 is for NPAT of at least $102m (excluding costs associated with the proposed TSB merger, which HGH estimates at $9.5m). Current CIPe is for $104m in FY27.....stock to trade flat to up.

[Basil]

They are guiding to grow NPAT by about 10% in the next year, that is decent growth for the price, and ignores any benefits coming from the potential merger. Still recovering from past indiscretions perhaps but the future looks bright.

9.9 CPS v 16 CPS many years ago.  A growth company or just a cyclical company ?

[Left Field]

9.9 CPS v 16 CPS many years ago.  A growth company or just a cyclical company ?

140% growth in NPAT the sort of growth the market seems to like today.