Residential Real Estate Loans. Residential real estate loans are comprised
of loans secured by one- to four-family residential and, to a lesser extent,
multi-family properties. Included in residential real estate loans are traditional
one- to four-family mortgage loans, multifamily mortgage loans, home equity
installment loans, and home equity lines of credit.
Home Equity Loans. Our underwriting standards for home equity loans include
a determination of the applicant’s credit history and an assessment of
the applicant’s ability to meet existing obligations and payments on the
proposed loan. The stability of the applicant’s monthly income may be
determined by verification of gross monthly income from primary employment,
and additionally from any verifiable secondary income. We also consider the
length of employment with the borrower’s present employer as well as the
amount of time the borrower has lived in the local area. Creditworthiness of
the applicant is of primary consideration; however, the underwriting process
also includes a comparison of the value of the collateral in relation to the
proposed loan amount.
Home equity loans entail greater risks than one- to four-family residential
mortgage loans, which are secured by first lien mortgages. In such cases, collateral
repossessed after a default may not provide an adequate source of repayment
of the outstanding loan balance because of damage or depreciation in the value
of the property or loss of equity to the first lien position. Further, home
equity loan payments are dependent on the borrower’s continuing financial
stability, and therefore are more likely to be adversely affected by job loss,
divorce, illness or personal bankruptcy. Finally, the application of various
Federal and state laws, including Federal and state bankruptcy and insolvency
laws, may limit the amount which can be recovered on such loans in the event
of a default.
Commercial Real Estate Loans. We originate commercial real estate loans that
are secured primarily by improved properties such as retail facilities, office
buildings and other non-residential buildings.
Construction Loans. We originate construction loans to individuals to finance
the construction of residential dwellings and also originate loans for the construction
of commercial properties, including hotels, apartment buildings, and owner-occupied
properties used for businesses.
Commercial and Industrial Loans. We originate commercial and industrial loans
and lines of credit to borrowers located in our market area which are generally
secured by collateral other than real estate such as equipment, inventory, and
other business assets.
Consumer Loans. We originate consumer loans which primarily consist of indirect
auto loans and, to a lesser extent, secured and unsecured loans and lines of
credit.