Firstbank

Lakewood, CO 80215

LEI: 5493009V3WNJX9V2GZ85

Tax ID: 84-0521049

2019 Data | 2018 Data


Overview

Firstbank is a small mortgage company specializing in Home Purchase and Refi loans. Firstbank has a high proportion of conventional loans. They have a a low proportion of FHA loans. (This may mean they shy away from first time homebuyers.) Their top markets include Denver, Boulder, Phoenix, Fort Collins, and Greeley among others. They have an 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. Firstbank is typically a normal fee lendor.


Originations

7,885

Origination Dollar Volume (All Markets)

$2,597,205,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 7,877 $2,595,515,000 $329,506
FHA 8 $1,690,000 $211,250

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 3,349 $1,574,795,000 $470,228
Home Improvement 1,303 $108,575,000 $83,327
Other 801 $85,225,000 $106,398
Refi 2,203 $771,365,000 $350,143
Cash Out Refi 229 $57,245,000 $249,978

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
DENVER-AURORA-LAKEWOOD, CO 4,309 $1,281,845,000 $297,481
Outside of Metro Areas 933 $444,215,000 $476,115
BOULDER, CO 430 $254,420,000 $591,674
PHOENIX-MESA-CHANDLER, AZ 574 $200,190,000 $348,763
FORT COLLINS, CO 633 $173,525,000 $274,131
GREELEY, CO 508 $99,840,000 $196,535
COLORADO SPRINGS, CO 359 $91,215,000 $254,081
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 119 $44,405,000 $373,151
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 3 $1,685,000 $561,667
PUEBLO, CO 7 $1,625,000 $232,143
PRESCOTT VALLEY-PRESCOTT, AZ 2 $1,300,000 $650,000
ANAHEIM-SANTA ANA-IRVINE, CA 1 $925,000 $925,000
FLAGSTAFF, AZ 1 $735,000 $735,000
TUCSON, AZ 4 $650,000 $162,500
GRAND JUNCTION, CO 1 $455,000 $455,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 1 $175,000 $175,000

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% 1 $35,000 $35,000
2.5-3% 125 $55,875,000 $447,000
3-4% 2,950 $1,293,310,000 $438,410
4-5% 2,402 $815,400,000 $339,467
5-6% 1,621 $334,725,000 $206,493
6-7% 658 $81,570,000 $123,967
7-8% 115 $15,615,000 $135,783
Over 8% 13 $675,000 $51,923

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 1,968 $96,210,000 $48,887
$100k-200k 1,784 $248,400,000 $139,238
$200k-400k 2,352 $669,410,000 $284,613
$400k-600k 938 $453,180,000 $483,134
$600k-1000k 556 $415,790,000 $747,824
$Over $1MM 287 $714,215,000 $2,488,554

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% 1,111 $258,445,000 $232,624
40-60% 1,064 $470,310,000 $442,021
60-80% 2,820 $1,322,640,000 $469,021
80-100% 743 $336,995,000 $453,560
Over 100% 6 $64,110,000 $10,685,000
Under 20% 2,141 $144,705,000 $67,588

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 1,381 $289,215,000 $209,424
$150k-250k 1,350 $390,420,000 $289,200
$50k-75k 911 $150,405,000 $165,099
$50k-or less 589 $83,285,000 $141,401
$75k-100k 809 $151,695,000 $187,509
$Over $250k 1,114 $514,920,000 $462,226

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 4,903 $1,251,015,000 $255,153
Not applicable 1,710 $1,005,190,000 $587,830
Not provided 803 $223,715,000 $278,599
Asian 307 $82,715,000 $269,430
Black 70 $15,130,000 $216,143
American Indian 54 $10,470,000 $193,889
Asian Indian 9 $2,895,000 $321,667
Chinese 7 $1,905,000 $272,143
Other Asian 7 $1,245,000 $177,857
Japanese 3 $1,035,000 $345,000
Native Hawaiian 6 $660,000 $110,000
Filipino 3 $585,000 $195,000
Vietnamese 2 $540,000 $270,000
Korean 1 $105,000 $105,000

Approval Rates

Total approvals of all applications
89.88%

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
79.25%

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 7,885 $2,597,205,000 $329,386

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 2,087 $668,105,000 $320,127
$1k-2k 425 $133,565,000 $314,271
$2k-3k 345 $80,465,000 $233,232
$3k-4k 603 $194,285,000 $322,197
$5k+ 309 $179,395,000 $580,566

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 148 $412,070,000 $2,784,257
Single Family (1-4 Units):Manufactured 31 $5,895,000 $190,161
Single Family (1-4 Units):Site-Built 7,706 $2,179,240,000 $282,798