PNBK » Topics » Principal Real Estate Lending Areas
This excerpt taken from the PNBK 8-K filed Jun 27, 2008.
Real Estate Lending Areas: The Bank believes its underwriting
criteria is conservative and in some important aspects can be differentiated
from the standards at other banks.
Equity Lines Of Credit - The Bank’s Jumbo HELOCs (over $500K) are fully
underwritten with a maximum loan-to-value ratio of 75%. The Bank’s Retail
HELOCs (of $500K or less) have a maximum loan-to-value ratio of
80%. The loan-to-value ratios for both HELOC programs have
recently been reduced to 70%. All of these loans are in the
Bank’s market area and continue to perform well at this
Real Estate - The Bank has originated owner occupied Jumbo 5/1 Arms with a
maximum loan-to-value ratio of 80%. Although the average
loan-to-value ratio is well below the maximum, our new guideline has
reduced the maximum to 70%. This portfolio continues to perform
well at this time.
- The Bank believes its construction loan portfolio is conservatively
managed. The maximum “as complete” loan-to-value ratio
guideline on construction spec loans is 65% at origination, including
interest reserves. The actual average loan-to-value ratio at
origination on the portfolio is 55%. The portfolio consists
primarily of single family homes and, to a lesser extent, smaller
condominium projects. The Bank does not finance large tract
developments, land developments, or large condominium projects of 20 units
or more. The Bank’s monitoring program consists of inspections
by outside engineers, independent appraisers, in house inspectors and
members of bank senior management. Patriot’s entire
construction portfolio is secured by real estate in our primary market
which is closely monitored
Real Estate – This portfolio continues to perform well at this
How risky is your portfolio?
Remember that 401k from 2 jobs ago?
Taking on too much risk? Too little risk? Have no idea?
Skip the spreadsheet. Track your investments automatically.
We tally your portfolio fees so you don't have to.
You're probably paying higher fees than you think.
Translate your investment accounts from Martian to English.