What are Cincinnati Bancorp Inc's Business Segments?
One- to Four-Family Residential Real Estate Lending. The focus of our lending
program has historically been the origination of one- to four-family residential
real estate loans.
We currently originate a small number of non-owner occupied residential loans.
We impose strict underwriting guidelines in the origination of such loans, including
a maximum number of loans to the same borrower, local residency, and no prior
bankruptcies and/or foreclosures. Properties securing non-owner occupied loans
must be within 50 miles of a Cincinnati Federal branch office. We also generally
limit loans on non-owner occupied properties to borrowers with no more than
ten total rental properties as a way to mitigate the risks involved in lending
to professional property investors.
Nonresidential Real Estate and Multi-Family Lending. In recent years, we have
sought to increase our nonresidential real estate and multi-family loans. Our
nonresidential real estate loans are secured primarily by office buildings,
retail and mixed-use properties, and light industrial properties located in
our primary market area.
Most of our nonresidential and multi-family real estate loans have a maximum
term of up to 25 years. The interest rates on nonresidential real estate and
multi-family loans are generally fixed for an initial period of three, five
or seven years and adjust annually thereafter based on the One Year Treasury
Rate.
Construction Lending and Land Loans. We make construction loans to individuals
for the construction of their primary residences and, to a limited extent, loans
to builders and commercial borrowers.
Home Equity Loans and Lines of Credit. We offer home equity loans and lines
of credit, which are generally made for owner-occupied homes, and are secured
by first or second mortgages on residences. We generally offer these loans with
a maximum loan-to-value ratio (including senior liens on the collateral property)
of 90% if the first mortgage is originated by Cincinnati Federal and 85% if
the first mortgage is not originated by Cincinnati Federal. We currently offer
home equity lines of credit for a period of ten years, and generally at rates
tied to the prevailing prime interest rate.
Consumer Lending. To date, our consumer lending apart from home equity loans
and lines of credit has been limited.
|