Montecito Bank & Trust

SANTA BARBARA, CA 93101

LEI: 549300A7BPOO2YO2YE30

Tax ID: 95-2900153

2019 Data | 2018 Data


Overview

Montecito Bank & Trust is a smaller mortgage company specializing in Home Purchase, Refi, and Cash Out Refi loans. Montecito Bank & Trust has a high proportion of conventional loans. Their top markets include Santa Maria, Oxnard, San Luis Obispo, Anaheim, and Los Angeles 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. Montecito Bank & Trust is typically a medium-low fee lendor.


Originations

129

Origination Dollar Volume (All Markets)

$105,635,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 129 $105,635,000 $818,876

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 42 $27,100,000 $645,238
Home Improvement 3 $225,000 $75,000
Other 7 $6,565,000 $937,857
Refi 33 $33,665,000 $1,020,152
Cash Out Refi 44 $38,080,000 $865,455

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
SANTA MARIA-SANTA BARBARA, CA 89 $81,215,000 $912,528
OXNARD-THOUSAND OAKS-VENTURA, CA 30 $11,900,000 $396,667
SAN LUIS OBISPO-PASO ROBLES, CA 4 $4,820,000 $1,205,000
Outside of Metro Areas 1 $3,005,000 $3,005,000
ANAHEIM-SANTA ANA-IRVINE, CA 1 $2,525,000 $2,525,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 3 $1,855,000 $618,333
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 1 $315,000 $315,000

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
2.5-3% 2 $4,720,000 $2,360,000
3-4% 60 $58,040,000 $967,333
4-5% 45 $38,185,000 $848,556
5-6% 19 $4,015,000 $211,316
6-7% 3 $675,000 $225,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 5 $285,000 $57,000
$100k-200k 14 $1,900,000 $135,714
$200k-400k 25 $7,575,000 $303,000
$400k-600k 22 $10,290,000 $467,727
$600k-1000k 32 $23,490,000 $734,063
$Over $1MM 31 $62,095,000 $2,003,065

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% 27 $22,505,000 $833,519
40-60% 29 $27,995,000 $965,345
60-80% 57 $47,555,000 $834,298
80-100% 12 $6,680,000 $556,667
Under 20% 4 $900,000 $225,000

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 19 $8,255,000 $434,474
$150k-250k 25 $18,605,000 $744,200
$50k-75k 12 $2,750,000 $229,167
$50k-or less 3 $515,000 $171,667
$75k-100k 10 $2,850,000 $285,000
$Over $250k 43 $50,715,000 $1,179,419

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 114 $91,020,000 $798,421
Not applicable 8 $11,230,000 $1,403,750
Asian 3 $1,815,000 $605,000
Other Asian 1 $725,000 $725,000
Not provided 1 $605,000 $605,000
American Indian 1 $135,000 $135,000
Native Hawaiian 1 $105,000 $105,000

Approval Rates

Total approvals of all applications
84.71%

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
79.84%

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
1139.0 1 $105,000 $105,000
1337.7 1 $125,000 $125,000
1514.0 1 $145,000 $145,000
1844.65 1 $125,000 $125,000
1994.0 1 $65,000 $65,000
2180.75 1 $165,000 $165,000
2564.0 1 $55,000 $55,000
2589.0 1 $255,000 $255,000
2769.0 1 $115,000 $115,000
2899.0 1 $165,000 $165,000
3404.0 1 $155,000 $155,000
4079.0 1 $355,000 $355,000
4364.0 1 $245,000 $245,000
489.0 1 $45,000 $45,000
639.0 1 $55,000 $55,000
729.0 1 $65,000 $65,000
NA 113 $103,395,000 $915,000

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 1 $315,000 $315,000
$1k-2k 92 $78,520,000 $853,478
$2k-3k 3 $1,145,000 $381,667
$3k-4k 1 $555,000 $555,000

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 2 $6,160,000 $3,080,000
Single Family (1-4 Units):Manufactured 19 $3,415,000 $179,737
Single Family (1-4 Units):Site-Built 108 $96,060,000 $889,444