Banking Conditions Survey

Results summary

Historical data are available from March 2017.

Survey participants are given the opportunity to submit comments on current issues that may be affecting their businesses. Some comments have been edited for grammar and clarity.

• A firm is building a $50 billion data center where we have three branches within 40 miles, and it’s producing lots of activity in our markets.
• One of our biggest concerns is increasing rates, which put pressure on our margins. Other concerns are the November midterm election and the stabilization of oil prices.
• We believe that the Federal Open Market Committee (FOMC) will try to transition back to a 1990s-era FOMC. Treasury yields will continue to be elevated, and any discussion of a ceasefire with Iran will be just talk. These will all slow the economy and put downward pressure on inflation. We will go into a slowdown, and the FOMC will not step in to lower rates until it is too late. 
• Hiring of two new loan officers from another local bank due to [mergers and acquisitions].
• Multifamily is beginning to revert to how the business was always meant to operate. Multifamily was always a get-rich-slow business, but the 2010–2022 period was the anomaly, not the norm. The market seems to be returning to the fundamentals, though there is still pain to come.
• High level of uncertainty affecting ability to plan going forward. Experiencing lower credit risk in some areas and higher in others, with some signs of overextension by a small number of borrowers. That said, overall credit risk lower than historic levels, with no indication of material cause for concern.
• The national economy and regional water issues [are our top concerns.]