Bank Of Hawaii

Honolulu, HI 96813

LEI: XJCRTTYJVBMA22IXL619

Tax ID: 99-0033900

2019 Data | 2018 Data


Overview

Bank Of Hawaii is a small mortgage company specializing in Home Purchase and Refi loans. Bank Of Hawaii 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 Urban Honolulu and Kahului 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. Bank Of Hawaii is typically a exceptionally high fee lendor.


Originations

4,943

Origination Dollar Volume (All Markets)

$1,810,555,000

Product Mix

Loan Type Originations Total Value Average Loan
Conventional 4,827 $1,760,815,000 $364,785
FHA 42 $11,220,000 $267,143
VA 74 $38,520,000 $520,541

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 1,286 $695,970,000 $541,190
Home Improvement 543 $79,405,000 $146,234
Other 726 $104,880,000 $144,463
Refi 1,764 $632,420,000 $358,515
Cash Out Refi 624 $297,880,000 $477,372

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
URBAN HONOLULU, HI 3,693 $1,411,635,000 $382,246
Outside of Metro Areas 729 $220,005,000 $301,790
KAHULUI-WAILUKU-LAHAINA, HI 521 $178,915,000 $343,407

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% 198 $56,990,000 $287,828
2.5-3% 783 $214,405,000 $273,825
3-4% 2,897 $1,156,565,000 $399,229
4-5% 700 $322,650,000 $460,929
5-6% 222 $38,310,000 $172,568
6-7% 142 $21,570,000 $151,901
7-8% 1 $65,000 $65,000

Loan Sizing

Loan Size Originations Total Value Average Loan
$100,000 or less 864 $52,510,000 $60,775
$100k-200k 993 $139,775,000 $140,760
$200k-400k 1,465 $409,445,000 $279,485
$400k-600k 693 $338,065,000 $487,828
$600k-1000k 746 $565,250,000 $757,708
$Over $1MM 182 $305,510,000 $1,678,626

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% 990 $238,110,000 $240,515
40-60% 764 $375,320,000 $491,257
60-80% 1,327 $778,115,000 $586,372
80-100% 514 $261,550,000 $508,852
Over 100% 12 $15,120,000 $1,260,000
Under 20% 1,335 $137,785,000 $103,210

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 1,179 $342,715,000 $290,683
$150k-250k 1,380 $531,800,000 $385,362
$50k-75k 531 $100,755,000 $189,746
$50k-or less 206 $24,950,000 $121,117
$75k-100k 642 $155,090,000 $241,573
$Over $250k 810 $500,070,000 $617,370

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan
Asian 2,444 $793,110,000 $324,513
White 1,276 $472,160,000 $370,031
Not provided 709 $314,865,000 $444,097
Native Hawaiian 339 $103,115,000 $304,174
Not applicable 35 $92,845,000 $2,652,714
American Indian 37 $8,315,000 $224,730
Black 24 $6,940,000 $289,167
Chinese 17 $4,915,000 $289,118
Japanese 16 $4,040,000 $252,500
Filipino 22 $3,950,000 $179,545
Native Hawiian 12 $3,490,000 $290,833
Samoan 5 $1,535,000 $307,000
Korean 3 $455,000 $151,667
Other Pacific Islander 1 $385,000 $385,000
Guamanian 1 $205,000 $205,000
Other Asian 1 $175,000 $175,000
1 $55,000 $55,000

Approval Rates

Total approvals of all applications
77.72%

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
80.33%

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 4,943 $1,810,555,000 $366,287

Origination Fees

Origination Fee Originations Total Value Average Loan
$<1k 249 $147,075,000 $590,663
$1k-2k 138 $49,540,000 $358,986
$2k-3k 144 $64,380,000 $447,083
$3k-4k 320 $123,850,000 $387,031
$5k+ 1,091 $685,625,000 $628,437

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 35 $93,655,000 $2,675,857
Single Family (1-4 Units):Site-Built 4,908 $1,716,900,000 $349,817