Townebank

Portsmouth, VA 23703

LEI: 54930039UO39UJGI7078

Tax ID: 54-1910608

2019 Data | 2018 Data


Overview

Townebank is a small mortgage company specializing in Home Purchase and Refi loans. Townebank has a high proportion of conventional loans. They have an average proportion of FHA loans. They have a low ratio of USDA loans. Their top markets include Virginia Beach, Washington, Baltimore, Frederick, and Raleigh among others. They have an above average approval rate for mortages when compared nationally -- and they have a below average pick rate when compared to the same sample of other lendors. Townebank is typically a normal fee medium-low fee lendor.


Originations

9,071

Origination Dollar Volume (All Markets)

$2,666,335,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 6,707 $1,980,245,000 $295,250
FHA 1,257 $316,295,000 $251,627
VA 934 $330,600,000 $353,961
USDA 173 $39,195,000 $226,561

Conventional loans are assumed to be 20% downpayment and either fixed/adjustable rate. FHA loans start at 3.5% downpayment and are targeted towards first time homebuyers who will be owner-occupants. USDA loans target agrarian uses such as farms. VA loans are available to members of the military. FHA, USDA and VA loans are typically subsidized by the government so as to have more favorable terms for the borrower.

Loan Reason

Loan Reason Originations Total Value Average Loan
Home Purchase 6,336 $1,798,450,000 $283,846
Home Improvement 199 $26,565,000 $133,492
Other 288 $47,030,000 $163,299
Refi 1,548 $576,720,000 $372,558
Cash Out Refi 700 $217,570,000 $310,814

Home purchase and refinance loans are typically offered by even the most prudent banks. Cash out refi loans typically carry higher fees-- they allow homeowners to get loans against the equity (appreciated value) of their home, but can be used irresponsibly. Lendors with a high ratio of cash out refi loans may be exposed in the event of an economic downturn, and may be more aggressive with their fee schedules.

Top Markets

Market Originations Total Value Average Loan
VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC 2,175 $559,225,000 $257,115
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 1,318 $463,800,000 $351,897
BALTIMORE-COLUMBIA-TOWSON, MD 1,349 $402,135,000 $298,099
FREDERICK-GAITHERSBURG-ROCKVILLE, MD 669 $225,805,000 $337,526
RALEIGH-CARY, NC 556 $216,630,000 $389,622
RICHMOND, VA 750 $174,390,000 $232,520
CHARLOTTE-CONCORD-GASTONIA, NC-SC 565 $167,075,000 $295,708
Outside of Metro Areas 543 $148,345,000 $273,195
WILMINGTON, NC 288 $82,920,000 $287,917
CALIFORNIA-LEXINGTON PARK, MD 159 $43,875,000 $275,943
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 138 $37,600,000 $272,464
DURHAM-CHAPEL HILL, NC 59 $25,975,000 $440,254
SALISBURY, MD-DE 51 $13,605,000 $266,765
GREENVILLE, NC 81 $13,065,000 $161,296
HAGERSTOWN-MARTINSBURG, MD-WV 45 $10,875,000 $241,667
CHARLESTON-NORTH CHARLESTON, SC 30 $6,680,000 $222,667
WILMINGTON, DE-MD-NJ 26 $5,920,000 $227,692
YORK-HANOVER, PA 28 $5,560,000 $198,571
FAYETTEVILLE, NC 30 $5,400,000 $180,000
WINSTON-SALEM, NC 14 $4,530,000 $323,571
CHARLOTTESVILLE, VA 14 $3,700,000 $264,286
NAPA, CA 1 $3,495,000 $3,495,000
GETTYSBURG, PA 13 $2,795,000 $215,000
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 8 $2,510,000 $313,750
TAMPA-ST. PETERSBURG-CLEARWATER, FL 9 $2,485,000 $276,111
JACKSONVILLE, FL 6 $2,420,000 $403,333
HICKORY-LENOIR-MORGANTON, NC 8 $2,330,000 $291,250
HILTON HEAD ISLAND-BLUFFTON, SC 7 $2,085,000 $297,857
JACKSONVILLE, NC 6 $1,940,000 $323,333
STAUNTON, VA 11 $1,855,000 $168,636
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 7 $1,745,000 $249,286
LYNCHBURG, VA 7 $1,635,000 $233,571
GREENSBORO-HIGH POINT, NC 9 $1,575,000 $175,000
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN 4 $1,480,000 $370,000
ORLANDO-KISSIMMEE-SANFORD, FL 4 $1,150,000 $287,500
NORTH PORT-SARASOTA-BRADENTON, FL 4 $1,020,000 $255,000
ROANOKE, VA 3 $995,000 $331,667
ROCKY MOUNT, NC 6 $940,000 $156,667
ASHEVILLE, NC 4 $860,000 $215,000
GREENVILLE-ANDERSON, SC 4 $840,000 $210,000
NEW BERN, NC 4 $830,000 $207,500
PUNTA GORDA, FL 3 $765,000 $255,000
MIAMI-MIAMI BEACH-KENDALL, FL 2 $740,000 $370,000
LANCASTER, PA 2 $690,000 $345,000
AUGUSTA-RICHMOND COUNTY, GA-SC 3 $635,000 $211,667
OCALA, FL 2 $600,000 $300,000
READING, PA 2 $590,000 $295,000
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ 2 $580,000 $290,000
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 3 $555,000 $185,000
COLUMBIA, SC 2 $530,000 $265,000
BURLINGTON, NC 3 $515,000 $171,667
SAVANNAH, GA 2 $500,000 $250,000
PENSACOLA-FERRY PASS-BRENT, FL 2 $500,000 $250,000
HARRISONBURG, VA 2 $490,000 $245,000
NAPLES-MARCO ISLAND, FL 2 $490,000 $245,000
PALM BAY-MELBOURNE-TITUSVILLE, FL 1 $465,000 $465,000
PHILADELPHIA, PA 2 $460,000 $230,000
WINCHESTER, VA-WV 2 $460,000 $230,000
JOHNSON CITY, TN 1 $365,000 $365,000
MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PA 2 $360,000 $180,000
CHAMBERSBURG-WAYNESBORO, PA 2 $310,000 $155,000
WILLIAMSPORT, PA 1 $305,000 $305,000
HARRISBURG-CARLISLE, PA 1 $305,000 $305,000
MEMPHIS, TN-MS-AR 1 $305,000 $305,000
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL 1 $305,000 $305,000
COLUMBUS, GA-AL 1 $295,000 $295,000
TALLAHASSEE, FL 1 $275,000 $275,000
CAPE CORAL-FORT MYERS, FL 1 $275,000 $275,000
KINGSPORT-BRISTOL, TN-VA 1 $265,000 $265,000
DOVER, DE 1 $255,000 $255,000
PORT ST. LUCIE, FL 1 $225,000 $225,000
LAKELAND-WINTER HAVEN, FL 1 $185,000 $185,000
STATE COLLEGE, PA 1 $145,000 $145,000
GOLDSBORO, NC 1 $145,000 $145,000
THE VILLAGES, FL 1 $145,000 $145,000
HOMOSASSA SPRINGS, FL 1 $125,000 $125,000
KNOXVILLE, TN 1 $85,000 $85,000

Lendors vary in competitiveness at the per market level-- meaning they may have better terms, deals or promotions based on the mortgaged property's location.

Interest Rate & Spreads

Loan Rate Originations Total Value Average Loan
<2.5% 86 $460,000 $5,349
2.5-3% 44 $11,910,000 $270,682
3-4% 4,020 $1,307,380,000 $325,219
4-5% 3,586 $1,068,870,000 $298,067
5-6% 1,063 $250,965,000 $236,091
6-7% 152 $23,660,000 $155,658
7-8% 4 $1,160,000 $290,000
Over 8% 2 $1,100,000 $550,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 950 $41,440,000 $43,621
$100k-200k 2,010 $310,600,000 $154,527
$200k-400k 4,320 $1,232,560,000 $285,315
$400k-600k 1,321 $617,805,000 $467,680
$600k-1000k 371 $269,015,000 $725,108
$Over $1MM 99 $194,915,000 $1,968,838

Different banks have different objectives. Some banks focus solely on high net worth individuals. Others focus on FHA loans for lower income applicants. Knowing what a bank specializes in allows better optimization given the applicant's financial situation.

LTV Distribution

Loan to Value Originations Total Value Average Loan
20-40% 459 $108,235,000 $235,806
40-60% 717 $196,975,000 $274,721
60-80% 2,232 $769,160,000 $344,606
80-100% 4,669 $1,448,785,000 $310,299
Over 100% 300 $104,150,000 $347,167
Under 20% 666 $27,890,000 $41,877

LTV, or loan-to-value, is the amount loaned relative to a home's value. Lower LTV lending implies a larger downpayment-- reducing risk to the lendor. FHA loans will nearly always have a higher LTV due to the lower downpayment requirements. Higher LTVs may also mean a bank is charging higher fees or interest rates to compensate for their risk exposure.

Applicant Income

Applicant Income Originations Total Value Average Loan
$100k-150k 1,788 $556,410,000 $311,191
$150k-250k 1,377 $512,015,000 $371,834
$50k-75k 1,930 $398,580,000 $206,518
$50k-or less 1,021 $139,095,000 $136,234
$75k-100k 1,424 $380,260,000 $267,037
$Over $250k 854 $428,660,000 $501,944

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 6,179 $1,811,045,000 $293,097
Black 1,112 $273,380,000 $245,845
Not provided 852 $253,840,000 $297,934
Not applicable 439 $177,195,000 $403,633
Asian 444 $138,220,000 $311,306
American Indian 26 $5,680,000 $218,462
Asian Indian 6 $3,300,000 $550,000
Native Hawaiian 10 $3,250,000 $325,000
Korean 1 $255,000 $255,000
Vietnamese 1 $105,000 $105,000
Filipino 1 $65,000 $65,000

Approval Rates

Total approvals of all applications
95.71%

A high approval rate means banks are more selective in who they market to or that they are loosey-goosey with who they lend to. Low approval rates may mean a lendor is more stringent in their lending standards.

Pick Rate

Approvals leading to origination
80.96%

A bank's pick rate is how often they are chosen by an applicant once approved. A high pick rate typically means the bank has some sort of advantage-- either the best terms (rates/fees), fastest closing time or even the best customer service. Banks with <75% pick rate may need further investigation as to why they are not more competitive.

Points and Fees

Points Originations Total Value Average Loan
NA 9,071 $2,666,335,000 $293,941

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 2,217 $581,295,000 $262,199
$1k-2k 3,731 $1,135,995,000 $304,475
$2k-3k 590 $175,490,000 $297,441
$3k-4k 527 $196,325,000 $372,533
$5k+ 260 $166,960,000 $642,154

Banks make money on their float/interest spread (fees charged to borrowers vs fees they pay for their capital), for servicing loans, as well as charging origination fees when a loan is disbursed. Modern low-cost efficient lendors can have fees totaling less than $500 for many mortgages-- as low as $250 in some cases. Average lendors will be in the $1k-2k range and high cost lendors will be even more. The costs incurred by the bank will be similar no matter the loan amount, so this is to be viewed as a profit center for most banks.

Occupancy Type Mix

Dwelling Type Originations Total Value Average Loan
Multifamily:Site-Built 54 $89,930,000 $1,665,370
Single Family (1-4 Units):Manufactured 11 $865,000 $78,636
Single Family (1-4 Units):Site-Built 9,006 $2,575,540,000 $285,980