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 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, Richmond, and Charlotte 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

9,063

Origination Dollar Volume (All Markets)

$2,500,155,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 6,445 $1,790,785,000 $277,856
FHA 1,560 $385,080,000 $246,846
VA 841 $277,705,000 $330,208
USDA 217 $46,585,000 $214,677

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 7,057 $1,969,485,000 $279,082
Home Improvement 219 $31,215,000 $142,534
Other 374 $61,520,000 $164,492
NA 1 $305,000 $305,000
Refi 990 $327,320,000 $330,626
Cash Out Refi 422 $110,310,000 $261,398

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 2,406 $631,630,000 $262,523
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 1,198 $394,250,000 $329,090
BALTIMORE-COLUMBIA-TOWSON, MD 1,288 $359,110,000 $278,812
RICHMOND, VA 895 $232,505,000 $259,782
Outside of Metro Areas 515 $159,985,000 $310,650
CHARLOTTE-CONCORD-GASTONIA, NC-SC 644 $153,580,000 $238,478
RALEIGH-CARY, NC 462 $145,850,000 $315,693
Outside of Metro Areas 589 $143,835,000 $244,202
WILMINGTON, NC 277 $77,735,000 $280,632
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 138 $36,680,000 $265,797
CALIFORNIA-LEXINGTON PARK, MD 101 $27,295,000 $270,248
DURHAM-CHAPEL HILL, NC 57 $26,785,000 $469,912
CHARLESTON-NORTH CHARLESTON, SC 101 $21,275,000 $210,644
HAGERSTOWN-MARTINSBURG, MD-WV 46 $9,890,000 $215,000
SALISBURY, MD-DE 42 $8,590,000 $204,524
ASHEVILLE, NC 27 $7,145,000 $264,630
YORK-HANOVER, PA 23 $5,235,000 $227,609
WILMINGTON, DE-MD-NJ 16 $3,940,000 $246,250
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 14 $3,640,000 $260,000
CHARLOTTESVILLE, VA 12 $3,430,000 $285,833
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 8 $3,410,000 $426,250
BURLINGTON, NC 15 $3,045,000 $203,000
JACKSONVILLE, NC 10 $2,910,000 $291,000
FAYETTEVILLE, NC 18 $2,870,000 $159,444
ROCKY MOUNT, NC 18 $2,560,000 $142,222
PITTSBURGH, PA 8 $1,940,000 $242,500
GREENSBORO-HIGH POINT, NC 11 $1,645,000 $149,545
MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PA 4 $1,600,000 $400,000
ORLANDO-KISSIMMEE-SANFORD, FL 5 $1,475,000 $295,000
GETTYSBURG, PA 7 $1,385,000 $197,857
HICKORY-LENOIR-MORGANTON, NC 5 $1,345,000 $269,000
WINSTON-SALEM, NC 4 $1,130,000 $282,500
NAPLES-MARCO ISLAND, FL 2 $1,110,000 $555,000
STAUNTON, VA 6 $1,100,000 $183,333
ROANOKE, VA 4 $1,100,000 $275,000
CAPE CORAL-FORT MYERS, FL 4 $1,070,000 $267,500
HILTON HEAD ISLAND-BLUFFTON, SC 5 $1,065,000 $213,000
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN 3 $1,055,000 $351,667
GREENVILLE-ANDERSON, SC 6 $1,040,000 $173,333
LYNCHBURG, VA 6 $1,010,000 $168,333
TAMPA-ST. PETERSBURG-CLEARWATER, FL 3 $985,000 $328,333
GREENVILLE, NC 6 $940,000 $156,667
PORT ST. LUCIE, FL 4 $920,000 $230,000
PENSACOLA-FERRY PASS-BRENT, FL 3 $825,000 $275,000
READING, PA 2 $740,000 $370,000
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 3 $715,000 $238,333
LANCASTER, PA 3 $655,000 $218,333
CHATTANOOGA, TN-GA 2 $600,000 $300,000
HARRISBURG-CARLISLE, PA 2 $520,000 $260,000
NEW BERN, NC 1 $505,000 $505,000
CHAMBERSBURG-WAYNESBORO, PA 3 $495,000 $165,000
AUGUSTA-RICHMOND COUNTY, GA-SC 1 $415,000 $415,000
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL 1 $415,000 $415,000
JACKSONVILLE, FL 2 $390,000 $195,000
JOHNSON CITY, TN 1 $365,000 $365,000
HARRISONBURG, VA 1 $325,000 $325,000
BLACKSBURG-CHRISTIANSBURG, VA 2 $310,000 $155,000
LEBANON, PA 1 $295,000 $295,000
GOLDSBORO, NC 1 $295,000 $295,000
ATHENS-CLARKE COUNTY, GA 1 $265,000 $265,000
WINCHESTER, VA-WV 1 $265,000 $265,000
PUNTA GORDA, FL 1 $255,000 $255,000
HOMOSASSA SPRINGS, FL 1 $245,000 $245,000
FLORENCE, SC 3 $235,000 $78,333
CLARKSVILLE, TN-KY 1 $215,000 $215,000
DOVER, DE 2 $210,000 $105,000
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL 1 $205,000 $205,000
PALM BAY-MELBOURNE-TITUSVILLE, FL 1 $165,000 $165,000
ALBANY, GA 1 $145,000 $145,000
UTICA-ROME, NY 1 $145,000 $145,000
CUMBERLAND, MD-WV 1 $145,000 $145,000
COLUMBIA, SC 1 $145,000 $145,000
NORTH PORT-SARASOTA-BRADENTON, FL 1 $145,000 $145,000
HINESVILLE, GA 1 $125,000 $125,000
SPARTANBURG, SC 1 $125,000 $125,000
OCALA, FL 1 $95,000 $95,000
PHILADELPHIA, PA 1 $65,000 $65,000

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% 2 $10,000 $5,000
2.5-3% 367 $43,195,000 $117,698
3-4% 453 $144,185,000 $318,289
4-5% 6,261 $1,907,795,000 $304,711
5-6% 1,648 $385,940,000 $234,187
6-7% 111 $17,685,000 $159,324
7-8% 4 $240,000 $60,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 1,073 $48,985,000 $45,652
$100k-200k 2,430 $372,370,000 $153,239
$200k-400k 4,115 $1,158,935,000 $281,637
$400k-600k 1,048 $490,830,000 $468,349
$600k-1000k 294 $211,490,000 $719,354
$Over $1MM 103 $217,545,000 $2,112,087

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% 448 $88,280,000 $197,054
40-60% 733 $180,785,000 $246,637
60-80% 1,953 $669,385,000 $342,747
80-100% 4,920 $1,436,340,000 $291,939
Over 100% 283 $93,945,000 $331,961
Under 20% 726 $31,420,000 $43,278

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 1,738 $526,990,000 $303,216
$150k-250k 1,187 $418,455,000 $352,532
$50k-75k 2,107 $423,185,000 $200,847
$50k-or less 1,339 $179,645,000 $134,164
$75k-100k 1,376 $359,510,000 $261,272
$Over $250k 696 $362,350,000 $520,618

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 6,222 $1,693,650,000 $272,203
Black 1,249 $303,725,000 $243,175
Not applicable 458 $194,960,000 $425,677
Not provided 593 $155,805,000 $262,740
Asian 494 $140,460,000 $284,332
American Indian 20 $5,260,000 $263,000
Native Hawaiian 16 $3,830,000 $239,375
Asian Indian 3 $725,000 $241,667
Other Pacific Islander 3 $715,000 $238,333
Vietnamese 2 $410,000 $205,000
Other Asian 1 $385,000 $385,000
Japanese 1 $195,000 $195,000
Korean 1 $35,000 $35,000

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 9,063 $2,500,155,000 $275,864

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 2,572 $660,200,000 $256,687
$1k-2k 2,999 $848,155,000 $282,813
$2k-3k 610 $164,600,000 $269,836
$3k-4k 522 $188,570,000 $361,245
$5k+ 320 $197,190,000 $616,219

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:Manufactured 1 $1,605,000 $1,605,000
Multifamily:Site-Built 47 $108,685,000 $2,312,447
Single Family (1-4 Units):Manufactured 8 $1,050,000 $131,250
Single Family (1-4 Units):Site-Built 9,007 $2,388,815,000 $265,218