Banner Bank

Portland, OR 97204

LEI: WE0I402RW25AU38DTI13

Tax ID: 91-1645638

2019 Data | 2018 Data


Overview

Banner Bank is a small mortgage company specializing in Home Purchase loans. Banner 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 Seattle, Los Angeles, Portland, Spokane, and Wenatchee 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. Banner Bank is typically a lendor.


Originations

5,559

Origination Dollar Volume (All Markets)

$1,895,155,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 5,105 $1,768,495,000 $346,424
FHA 235 $59,205,000 $251,936
VA 190 $61,510,000 $323,737
USDA 29 $5,945,000 $205,000

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 2,330 $1,143,080,000 $490,592
Home Improvement 1,233 $140,105,000 $113,629
Other 545 $57,285,000 $105,110
Refi 516 $294,860,000 $571,434
Cash Out Refi 935 $259,825,000 $277,888

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
SEATTLE-BELLEVUE-KENT, WA 640 $318,420,000 $497,531
Outside of Metro Areas 989 $192,695,000 $194,838
LOS ANGELES-LONG BEACH-GLENDALE, CA 126 $168,510,000 $1,337,381
PORTLAND-VANCOUVER-HILLSBORO, OR-WA 478 $151,180,000 $316,276
SPOKANE-SPOKANE VALLEY, WA 410 $98,190,000 $239,488
WENATCHEE, WA 270 $82,640,000 $306,074
TACOMA-LAKEWOOD, WA 227 $80,005,000 $352,445
SACRAMENTO-ROSEVILLE-FOLSOM, CA 117 $79,005,000 $675,256
SAN DIEGO-CHULA VISTA-CARLSBAD, CA 226 $67,810,000 $300,044
BELLINGHAM, WA 214 $65,480,000 $305,981
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 130 $54,640,000 $420,308
WALLA WALLA, WA 218 $46,360,000 $212,661
KENNEWICK-RICHLAND, WA 218 $45,080,000 $206,789
MOUNT VERNON-ANACORTES, WA 188 $40,090,000 $213,245
BOISE CITY, ID 160 $38,700,000 $241,875
YAKIMA, WA 204 $37,690,000 $184,755
EUGENE-SPRINGFIELD, OR 183 $31,285,000 $170,956
FRESNO, CA 13 $31,155,000 $2,396,538
MEDFORD, OR 157 $31,095,000 $198,057
DENVER-AURORA-LAKEWOOD, CO 9 $24,865,000 $2,762,778
SALT LAKE CITY, UT 5 $19,125,000 $3,825,000
ANAHEIM-SANTA ANA-IRVINE, CA 19 $17,825,000 $938,158
BEND, OR 16 $17,270,000 $1,079,375
VALLEJO, CA 4 $14,720,000 $3,680,000
EL CENTRO, CA 1 $13,245,000 $13,245,000
COEUR D'ALENE, ID 51 $12,465,000 $244,412
OAKLAND-BERKELEY-LIVERMORE, CA 11 $10,505,000 $955,000
YUBA CITY, CA 8 $10,110,000 $1,263,750
LONGVIEW, WA 32 $9,820,000 $306,875
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA 5 $9,365,000 $1,873,000
GRANTS PASS, OR 43 $9,205,000 $214,070
REDDING, CA 11 $8,165,000 $742,273
BREMERTON-SILVERDALE-PORT ORCHARD, WA 25 $7,705,000 $308,200
LEWISTON, ID-WA 40 $7,480,000 $187,000
OLYMPIA-LACEY-TUMWATER, WA 21 $4,755,000 $226,429
TUCSON, AZ 2 $4,730,000 $2,365,000
PHOENIX-MESA-CHANDLER, AZ 4 $4,240,000 $1,060,000
SALEM, OR 19 $4,135,000 $217,632
STOCKTON, CA 6 $3,520,000 $586,667
PROVO-OREM, UT 3 $3,025,000 $1,008,333
CHICO, CA 16 $2,360,000 $147,500
MODESTO, CA 4 $2,350,000 $587,500
ALBANY-LEBANON, OR 10 $2,280,000 $228,000
OGDEN-CLEARFIELD, UT 2 $2,150,000 $1,075,000
NAPA, CA 1 $2,115,000 $2,115,000
SANTA MARIA-SANTA BARBARA, CA 1 $1,835,000 $1,835,000
SAN RAFAEL, CA 1 $1,425,000 $1,425,000
MADERA, CA 5 $1,385,000 $277,000
SAN LUIS OBISPO-PASO ROBLES, CA 5 $1,365,000 $273,000
TWIN FALLS, ID 7 $725,000 $103,571
CORVALLIS, OR 1 $355,000 $355,000
BAKERSFIELD, CA 1 $335,000 $335,000
OXNARD-THOUSAND OAKS-VENTURA, CA 1 $105,000 $105,000
SANTA ROSA-PETALUMA, CA 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% 58 $1,450,000 $25,000
2.5-3% 22 $5,930,000 $269,545
3-4% 1,812 $827,190,000 $456,507
4-5% 1,574 $706,210,000 $448,672
5-6% 1,221 $272,395,000 $223,092
6-7% 471 $51,005,000 $108,291
7-8% 283 $23,065,000 $81,502
Over 8% 118 $7,910,000 $67,034

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 1,440 $79,540,000 $55,236
$100k-200k 1,360 $192,390,000 $141,463
$200k-400k 1,816 $515,850,000 $284,058
$400k-600k 595 $278,675,000 $468,361
$600k-1000k 191 $140,105,000 $733,534
$Over $1MM 157 $688,595,000 $4,385,955

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% 862 $136,260,000 $158,074
40-60% 729 $308,615,000 $423,340
60-80% 1,488 $955,590,000 $642,198
80-100% 1,255 $401,095,000 $319,598
Over 100% 28 $9,580,000 $342,143
Under 20% 1,193 $83,645,000 $70,113

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 1,216 $283,170,000 $232,870
$150k-250k 943 $247,095,000 $262,031
$50k-75k 915 $162,735,000 $177,852
$50k-or less 620 $78,990,000 $127,403
$75k-100k 890 $187,160,000 $210,292
$Over $250k 611 $229,815,000 $376,129

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
White 4,184 $977,570,000 $233,645
Not applicable 181 $642,585,000 $3,550,193
Not provided 905 $188,655,000 $208,459
Asian 133 $52,995,000 $398,459
Black 49 $11,835,000 $241,531
American Indian 48 $10,520,000 $219,167
Asian Indian 27 $3,525,000 $130,556
Filipino 8 $1,880,000 $235,000
Chinese 4 $1,660,000 $415,000
Japanese 7 $1,515,000 $216,429
Other Asian 4 $900,000 $225,000
Native Hawaiian 4 $680,000 $170,000
Korean 3 $465,000 $155,000
Vietnamese 1 $315,000 $315,000
Guamanian 1 $55,000 $55,000

Approval Rates

Total approvals of all applications
76.94%

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
80.75%

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 5,559 $1,895,155,000 $340,917

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 847 $219,335,000 $258,955
$1k-2k 629 $150,245,000 $238,863
$2k-3k 416 $108,720,000 $261,346
$3k-4k 563 $186,085,000 $330,524
$5k+ 478 $255,470,000 $534,456

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 3 $2,705,000 $901,667
Multifamily:Site-Built 160 $653,690,000 $4,085,563
Single Family (1-4 Units):Manufactured 332 $54,000,000 $162,651
Single Family (1-4 Units):Site-Built 5,064 $1,184,760,000 $233,957