FNBI's bank unit has a 6% NIM, 2x the industry average and 3x large bank results. Loss given default is 85% of par and the bank boasts just 11bp of defaults, well-below peer. First National Bank of America has a WAM of 14.5 years, which means that they are retaining a lot of long-duration mortgage loans. And the gross spreads on the FNBI real estate book are north of 800bp vs maybe half that amount for a large urban lender like JPM or Wells Fargo (WFC).
