Pinnacle Bank

Nashville, TN 37201

LEI: 549300CDOC4F7XSRG390

Tax ID: 62-1829917

2019 Data | 2018 Data


Overview

Pinnacle Bank is a small mortgage company specializing in Home Purchase and Refi loans. Pinnacle Bank 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.) They have a low ratio of USDA loans. Their top markets include Nashville, Memphis, Knoxville, Charlotte, and Chattanooga 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. Pinnacle Bank is typically a low fee lendor.


Originations

8,635

Origination Dollar Volume (All Markets)

$2,797,865,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 7,741 $2,600,065,000 $335,882
FHA 586 $119,330,000 $203,635
VA 210 $61,400,000 $292,381
USDA 98 $17,070,000 $174,184

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 4,940 $1,685,340,000 $341,162
Home Improvement 704 $87,190,000 $123,849
Other 945 $143,935,000 $152,312
Refi 1,443 $722,015,000 $500,357
Cash Out Refi 603 $159,385,000 $264,320

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
NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN 2,944 $957,530,000 $325,248
MEMPHIS, TN-MS-AR 1,435 $326,775,000 $227,718
KNOXVILLE, TN 664 $200,980,000 $302,681
CHARLOTTE-CONCORD-GASTONIA, NC-SC 503 $179,185,000 $356,233
CHATTANOOGA, TN-GA 495 $141,235,000 $285,323
Outside of Metro Areas 393 $97,875,000 $249,046
CHARLESTON-NORTH CHARLESTON, SC 277 $91,765,000 $331,282
RALEIGH-CARY, NC 128 $70,890,000 $553,828
GREENSBORO-HIGH POINT, NC 383 $57,845,000 $151,031
WINSTON-SALEM, NC 279 $56,015,000 $200,771
GREENVILLE-ANDERSON, SC 160 $50,160,000 $313,500
ATLANTA-SANDY SPRINGS-ALPHARETTA, GA 30 $33,640,000 $1,121,333
CINCINNATI, OH-KY-IN 9 $26,615,000 $2,957,222
ROANOKE, VA 133 $26,295,000 $197,707
COLUMBUS, OH 11 $25,645,000 $2,331,364
DURHAM-CHAPEL HILL, NC 104 $25,430,000 $244,519
ORLANDO-KISSIMMEE-SANFORD, FL 5 $24,775,000 $4,955,000
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL 36 $21,500,000 $597,222
HOUSTON-THE WOODLANDS-SUGAR LAND, TX 6 $21,030,000 $3,505,000
LOUISVILLE/JEFFERSON COUNTY, KY-IN 8 $19,910,000 $2,488,750
HILTON HEAD ISLAND-BLUFFTON, SC 53 $14,505,000 $273,679
NEW ORLEANS-METAIRIE, LA 10 $14,470,000 $1,447,000
MIAMI-MIAMI BEACH-KENDALL, FL 4 $12,790,000 $3,197,500
ASHEVILLE, NC 41 $12,475,000 $304,268
CHICAGO-NAPERVILLE-EVANSTON, IL 9 $11,765,000 $1,307,222
DALLAS-PLANO-IRVING, TX 11 $11,345,000 $1,031,364
MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC 70 $11,140,000 $159,143
DAYTON-KETTERING, OH 2 $10,700,000 $5,350,000
DENVER-AURORA-LAKEWOOD, CO 5 $10,405,000 $2,081,000
MACON-BIBB COUNTY, GA 1 $10,205,000 $10,205,000
OKLAHOMA CITY, OK 5 $9,695,000 $1,939,000
CLEVELAND, TN 26 $9,240,000 $355,385
GRAND FORKS, ND-MN 2 $8,900,000 $4,450,000
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI 3 $8,715,000 $2,905,000
AUSTIN-ROUND ROCK-GEORGETOWN, TX 5 $8,365,000 $1,673,000
JACKSON, MS 3 $7,695,000 $2,565,000
DETROIT-DEARBORN-LIVONIA, MI 1 $7,505,000 $7,505,000
MONTGOMERY, AL 1 $7,265,000 $7,265,000
PHOENIX-MESA-CHANDLER, AZ 3 $6,835,000 $2,278,333
NEW YORK-JERSEY CITY-WHITE PLAINS, NY-NJ 5 $6,665,000 $1,333,000
MCALLEN-EDINBURG-MISSION, TX 2 $5,760,000 $2,880,000
SPARTANBURG, SC 37 $5,695,000 $153,919
FARGO, ND-MN 1 $5,555,000 $5,555,000
LYNCHBURG, VA 11 $5,005,000 $455,000
TOLEDO, OH 1 $5,005,000 $5,005,000
CLARKSVILLE, TN-KY 28 $4,800,000 $171,429
WARREN-TROY-FARMINGTON HILLS, MI 11 $4,555,000 $414,091
AUGUSTA-RICHMOND COUNTY, GA-SC 23 $4,205,000 $182,826
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 7 $4,135,000 $590,714
WILMINGTON, NC 14 $4,120,000 $294,286
RICHMOND, VA 1 $3,955,000 $3,955,000
LEXINGTON-FAYETTE, KY 3 $3,915,000 $1,305,000
NORTH PORT-SARASOTA-BRADENTON, FL 6 $3,770,000 $628,333
FAYETTEVILLE, NC 4 $3,620,000 $905,000
BURLINGTON, NC 26 $3,420,000 $131,538
MORRISTOWN, TN 11 $3,175,000 $288,636
SHREVEPORT-BOSSIER CITY, LA 2 $2,980,000 $1,490,000
HICKORY-LENOIR-MORGANTON, NC 7 $2,665,000 $380,714
FORT LAUDERDALE-POMPANO BEACH-SUNRISE, FL 5 $2,645,000 $529,000
SAVANNAH, GA 10 $2,590,000 $259,000
ANAHEIM-SANTA ANA-IRVINE, CA 3 $2,545,000 $848,333
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL 7 $2,435,000 $347,857
PORT ST. LUCIE, FL 2 $2,190,000 $1,095,000
FORT WAYNE, IN 1 $2,005,000 $2,005,000
ELIZABETHTOWN-FORT KNOX, KY 1 $1,815,000 $1,815,000
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 2 $1,790,000 $895,000
DAPHNE-FAIRHOPE-FOLEY, AL 7 $1,685,000 $240,714
LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR 4 $1,660,000 $415,000
CORPUS CHRISTI, TX 1 $1,655,000 $1,655,000
COLUMBIA, SC 8 $1,650,000 $206,250
BOWLING GREEN, KY 8 $1,640,000 $205,000
TAMPA-ST. PETERSBURG-CLEARWATER, FL 5 $1,635,000 $327,000
INDIANAPOLIS-CARMEL-ANDERSON, IN 1 $1,635,000 $1,635,000
BLACKSBURG-CHRISTIANSBURG, VA 8 $1,600,000 $200,000
SAGINAW, MI 1 $1,595,000 $1,595,000
KANSAS CITY, MO-KS 2 $1,570,000 $785,000
CAMBRIDGE-NEWTON-FRAMINGHAM, MA 1 $1,505,000 $1,505,000
PENSACOLA-FERRY PASS-BRENT, FL 4 $1,500,000 $375,000
HUNTSVILLE, AL 6 $1,500,000 $250,000
TUCSON, AZ 3 $1,425,000 $475,000
DALTON, GA 7 $1,415,000 $202,143
MANHATTAN, KS 1 $1,365,000 $1,365,000
FAYETTEVILLE-SPRINGDALE-ROGERS, AR 2 $1,290,000 $645,000
BRIDGEPORT-STAMFORD-NORWALK, CT 2 $1,180,000 $590,000
PANAMA CITY, FL 5 $1,175,000 $235,000
CAPE CORAL-FORT MYERS, FL 2 $1,150,000 $575,000
SAN RAFAEL, CA 1 $1,085,000 $1,085,000
LAREDO, TX 1 $1,005,000 $1,005,000
BIRMINGHAM-HOOVER, AL 4 $940,000 $235,000
BRUNSWICK, GA 2 $850,000 $425,000
JACKSONVILLE, NC 3 $845,000 $281,667
OCALA, FL 1 $705,000 $705,000
ST. LOUIS, MO-IL 3 $695,000 $231,667
JOHNSON CITY, TN 4 $670,000 $167,500
JACKSONVILLE, FL 3 $665,000 $221,667
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 2 $610,000 $305,000
OAKLAND-BERKELEY-LIVERMORE, CA 1 $575,000 $575,000
LAS VEGAS-HENDERSON-PARADISE, NV 3 $555,000 $185,000
LAKE CHARLES, LA 2 $520,000 $260,000
ROCHESTER, NY 1 $485,000 $485,000
BOULDER, CO 1 $455,000 $455,000
NAPLES-MARCO ISLAND, FL 1 $455,000 $455,000
JONESBORO, AR 3 $445,000 $148,333
GAINESVILLE, GA 1 $395,000 $395,000
ROCKY MOUNT, NC 3 $385,000 $128,333
ATHENS-CLARKE COUNTY, GA 1 $375,000 $375,000
ST. GEORGE, UT 1 $375,000 $375,000
SUMTER, SC 2 $330,000 $165,000
PALM BAY-MELBOURNE-TITUSVILLE, FL 1 $305,000 $305,000
BATON ROUGE, LA 1 $305,000 $305,000
SALT LAKE CITY, UT 1 $305,000 $305,000
TRENTON-PRINCETON, NJ 1 $295,000 $295,000
BARNSTABLE TOWN, MA 1 $285,000 $285,000
OGDEN-CLEARFIELD, UT 1 $285,000 $285,000
HUNTINGTON-ASHLAND, WV-KY-OH 2 $270,000 $135,000
GRAND RAPIDS-KENTWOOD, MI 1 $245,000 $245,000
ANN ARBOR, MI 1 $225,000 $225,000
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 1 $225,000 $225,000
WICHITA, KS 1 $215,000 $215,000
ANNISTON-OXFORD, AL 1 $185,000 $185,000
JACKSON, MI 1 $185,000 $185,000
LUBBOCK, TX 1 $175,000 $175,000
HOT SPRINGS, AR 1 $175,000 $175,000
HOMOSASSA SPRINGS, FL 1 $165,000 $165,000
KOKOMO, IN 1 $145,000 $145,000
BEAUMONT-PORT ARTHUR, TX 1 $105,000 $105,000
HARRISONBURG, VA 1 $105,000 $105,000
WINCHESTER, VA-WV 1 $105,000 $105,000
JACKSON, TN 1 $95,000 $95,000
CHARLOTTESVILLE, VA 1 $65,000 $65,000
KINGSPORT-BRISTOL, TN-VA 1 $25,000 $25,000

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% 5 $18,255,000 $3,651,000
2.5-3% 4 $1,040,000 $260,000
3-4% 2,136 $665,380,000 $311,507
4-5% 3,883 $1,535,395,000 $395,415
5-6% 2,151 $520,505,000 $241,983
6-7% 437 $54,425,000 $124,542
7-8% 18 $1,230,000 $68,333
Over 8% 1 $1,635,000 $1,635,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 1,682 $101,810,000 $60,529
$100k-200k 2,714 $397,790,000 $146,570
$200k-400k 2,811 $772,605,000 $274,851
$400k-600k 761 $359,445,000 $472,332
$600k-1000k 368 $277,250,000 $753,397
$Over $1MM 299 $888,965,000 $2,973,127

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% 895 $153,145,000 $171,112
40-60% 895 $398,355,000 $445,089
60-80% 2,337 $1,109,875,000 $474,914
80-100% 3,528 $1,035,040,000 $293,379
Over 100% 69 $23,495,000 $340,507
Under 20% 911 $77,955,000 $85,571

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 1,405 $324,845,000 $231,206
$150k-250k 1,292 $382,110,000 $295,751
$50k-75k 1,569 $284,815,000 $181,526
$50k-or less 1,365 $183,485,000 $134,421
$75k-100k 1,100 $224,340,000 $203,945
$Over $250k 1,171 $596,275,000 $509,202

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 5,992 $1,594,830,000 $266,160
Not applicable 532 $761,830,000 $1,432,011
Not provided 992 $223,030,000 $224,829
Black 914 $170,070,000 $186,072
Asian 161 $37,525,000 $233,075
Asian Indian 9 $4,595,000 $510,556
American Indian 14 $2,390,000 $170,714
Other Asian 10 $1,790,000 $179,000
Native Hawaiian 4 $930,000 $232,500
Other Pacific Islander 3 $425,000 $141,667
Vietnamese 2 $300,000 $150,000
Japanese 1 $95,000 $95,000
Korean 1 $55,000 $55,000

Approval Rates

Total approvals of all applications
91.96%

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
81.60%

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 8,635 $2,797,865,000 $324,014

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 4,545 $1,296,275,000 $285,209
$1k-2k 672 $152,720,000 $227,262
$2k-3k 323 $76,555,000 $237,012
$3k-4k 224 $72,820,000 $325,089
$5k+ 92 $73,670,000 $800,761

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 5 $1,575,000 $315,000
Multifamily:Site-Built 205 $670,055,000 $3,268,561
Single Family (1-4 Units):Manufactured 17 $1,075,000 $63,235
Single Family (1-4 Units):Site-Built 8,408 $2,125,160,000 $252,755