First Interstate Bank

BILLINGS, MT 59101

LEI: 549300RFSMIRUODUVW59

Tax ID: 81-0192860

2019 Data | 2018 Data


Overview

First Interstate Bank is a small mortgage company specializing in Home Purchase loans. First Interstate 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 Bend, Cheyenne, Billings, Casper, and Spokane 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. First Interstate Bank is typically a lendor.


Originations

6,695

Origination Dollar Volume (All Markets)

$1,590,375,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 5,990 $1,415,460,000 $236,304
FHA 275 $58,945,000 $214,345
VA 322 $94,640,000 $293,913
USDA 108 $21,330,000 $197,500

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 3,261 $992,105,000 $304,233
Home Improvement 704 $65,780,000 $93,438
Other 796 $77,860,000 $97,814
Refi 1,185 $271,785,000 $229,354
Cash Out Refi 749 $182,845,000 $244,119

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
Outside of Metro Areas 2,987 $674,965,000 $225,968
BEND, OR 417 $139,385,000 $334,257
CHEYENNE, WY 564 $123,020,000 $218,121
BILLINGS, MT 593 $115,305,000 $194,444
CASPER, WY 461 $85,715,000 $185,933
SPOKANE-SPOKANE VALLEY, WA 126 $82,400,000 $653,968
MISSOULA, MT 347 $73,365,000 $211,427
COEUR D'ALENE, ID 257 $69,925,000 $272,082
BOISE CITY, ID 345 $59,175,000 $171,522
RAPID CITY, SD 166 $25,520,000 $153,735
GREAT FALLS, MT 118 $20,290,000 $171,949
SEATTLE-BELLEVUE-KENT, WA 11 $15,955,000 $1,450,455
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 37 $14,765,000 $399,054
Outside of Metro Areas 1 $14,185,000 $14,185,000
MEDFORD, OR 67 $10,655,000 $159,030
SACRAMENTO-ROSEVILLE-FOLSOM, CA 5 $7,175,000 $1,435,000
SALEM, OR 39 $6,955,000 $178,333
GRANTS PASS, OR 32 $6,120,000 $191,250
DENVER-AURORA-LAKEWOOD, CO 12 $5,100,000 $425,000
EUGENE-SPRINGFIELD, OR 17 $4,535,000 $266,765
PHOENIX-MESA-CHANDLER, AZ 15 $4,485,000 $299,000
LEWISTON, ID-WA 1 $3,105,000 $3,105,000
FORT COLLINS, CO 7 $2,505,000 $357,857
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 4 $2,500,000 $625,000
LOS ANGELES-LONG BEACH-GLENDALE, CA 2 $2,230,000 $1,115,000
KENNEWICK-RICHLAND, WA 4 $2,050,000 $512,500
LAS VEGAS-HENDERSON-PARADISE, NV 8 $2,040,000 $255,000
SAN RAFAEL, CA 1 $2,005,000 $2,005,000
SANTA ROSA-PETALUMA, CA 1 $1,715,000 $1,715,000
RENO, NV 1 $1,615,000 $1,615,000
GREELEY, CO 5 $1,175,000 $235,000
WENATCHEE, WA 2 $1,110,000 $555,000
IDAHO FALLS, ID 4 $830,000 $207,500
TUCSON, AZ 6 $790,000 $131,667
POCATELLO, ID 4 $740,000 $185,000
CORVALLIS, OR 3 $655,000 $218,333
SAN JOSE-SUNNYVALE-SANTA CLARA, CA 1 $575,000 $575,000
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 2 $550,000 $275,000
WALLA WALLA, WA 2 $500,000 $250,000
SAN LUIS OBISPO-PASO ROBLES, CA 1 $485,000 $485,000
BREMERTON-SILVERDALE-PORT ORCHARD, WA 2 $450,000 $225,000
BELLINGHAM, WA 2 $400,000 $200,000
CHICO, CA 1 $385,000 $385,000
OGDEN-CLEARFIELD, UT 1 $355,000 $355,000
ST. GEORGE, UT 1 $335,000 $335,000
OMAHA-COUNCIL BLUFFS, NE-IA 2 $330,000 $165,000
TWIN FALLS, ID 1 $325,000 $325,000
BISMARCK, ND 1 $315,000 $315,000
YAKIMA, WA 1 $215,000 $215,000
COLORADO SPRINGS, CO 1 $205,000 $205,000
LONGVIEW, WA 1 $205,000 $205,000
SALT LAKE CITY, UT 1 $185,000 $185,000
LEXINGTON-FAYETTE, KY 1 $155,000 $155,000
CHATTANOOGA, TN-GA 1 $155,000 $155,000
LAKE HAVASU CITY-KINGMAN, AZ 1 $105,000 $105,000
ALBANY-LEBANON, OR 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% 8 $7,120,000 $890,000
2.5-3% 91 $24,225,000 $266,209
3-4% 2,372 $631,440,000 $266,206
4-5% 2,320 $705,860,000 $304,250
5-6% 1,371 $177,945,000 $129,792
6-7% 358 $35,700,000 $99,721
7-8% 90 $6,400,000 $71,111
Over 8% 21 $1,295,000 $61,667

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 1,755 $87,445,000 $49,826
$100k-200k 1,788 $267,920,000 $149,843
$200k-400k 2,397 $659,255,000 $275,033
$400k-600k 562 $258,170,000 $459,377
$600k-1000k 116 $87,350,000 $753,017
$Over $1MM 77 $230,235,000 $2,990,065

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% 934 $139,680,000 $149,550
40-60% 859 $223,055,000 $259,668
60-80% 1,787 $648,545,000 $362,924
80-100% 1,828 $494,240,000 $270,372
Over 100% 66 $19,450,000 $294,697
Under 20% 1,216 $64,070,000 $52,689

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 1,383 $310,365,000 $224,414
$150k-250k 887 $244,695,000 $275,868
$50k-75k 1,383 $232,595,000 $168,181
$50k-or less 931 $116,815,000 $125,473
$75k-100k 1,094 $210,720,000 $192,614
$Over $250k 523 $215,945,000 $412,897

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 6,022 $1,284,270,000 $213,263
Not applicable 225 $206,545,000 $917,978
Not provided 312 $76,390,000 $244,840
Asian 49 $8,865,000 $180,918
American Indian 46 $7,080,000 $153,913
Black 26 $4,460,000 $171,538
Native Hawaiian 8 $1,920,000 $240,000
Asian Indian 2 $390,000 $195,000
Japanese 2 $190,000 $95,000
Other Pacific Islander 1 $175,000 $175,000
Filipino 2 $90,000 $45,000

Approval Rates

Total approvals of all applications
90.69%

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
80.23%

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
0.0 3 $115,000 $38,333
250.0 1 $45,000 $45,000
NA 6,691 $1,590,215,000 $237,665

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 1,243 $317,255,000 $255,233
$1k-2k 831 $138,255,000 $166,372
$2k-3k 1,145 $299,475,000 $261,550
$3k-4k 805 $271,135,000 $336,814
$5k+ 145 $79,615,000 $549,069

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 11 $27,235,000 $2,475,909
Multifamily:Site-Built 62 $139,730,000 $2,253,710
Single Family (1-4 Units):Manufactured 229 $30,335,000 $132,467
Single Family (1-4 Units):Site-Built 6,393 $1,393,075,000 $217,906