Special Questions

Results Tables

Over the past six weeks, have you observed an increase in draws on existing commercial credit lines that you would attribute to the coronavirus (COVID-19)?

	March '20 (percent)	May '20 (percent)	June '20 (percent)
Yes	24.6	37.1	18.6
No	75.4	62.9	81.4

NOTE: 70 responses.

Over the past six weeks, have you made any of the following SBA loans to businesses adversely impacted by the coronavirus (COVID-19)? Please select all that apply.

	May '20 (percent)	June '20 (percent)
Paycheck Protection Program (PPP) loans	80.6	80.6
Traditional SBA loans	4.5	15.3
SBA Express bridge loans	1.5	2.8
We are not making SBA loans	19.4	18.1

NOTE: 72 responses.

Are you participating or planning to participate in any of the Main Street Business Lending Facilities?

	June '20 (percent)
Yes	5.5
No	45.2
Don’t know/haven’t decided yet	49.3

NOTE: 73 responses.

What share of your loan volume is currently on payment deferral due to the coronavirus (COVID-19)?

	June '20 (percent)
Total loans	14.5
Commercial and industrial loans	7.2
Commercial real estate loans	12.7
Residential real estate loans	4.7
Consumer loans	4.5

NOTES: 70 responses. Shown is the trimmed mean with the lowest and highest five percent of responses omitted.

What share of your outstanding total loan volume is to companies engaged in or dependent on oil and gas-related business? This would include the provision of goods or services to oil and gas businesses—machinery or components manufacturing, transportation, accounting, etc.—and companies located in energy hubs that depend on oil and gas activity.

	June '20 (percent)
	2.8

NOTES: 69 responses. Shown is the trimmed mean with the lowest and highest five percent of responses omitted.

Mid-Cycle Special Questions

The Dallas Fed conducted a supplemental special questions survey between the May and June regular Banking Conditions Survey periods. The results below were collected May 19-22, with 57 financial institutions responding.

As of today, what is your current loan loss provision as a share of total loans? For comparison, what was the average last year?

	Average (percent)
Current	1.23
2019	1.10

NOTE: 31 responses.

Other than increasing loan loss provisions, are you doing anything to prepare for expected loan losses?

This question was only posed to those indicating their current loan loss provision is higher than in 2019. These comments are from respondents’ completed surveys and have been edited for publication.

• Having weekly energy oversight council [meetings] to oversee the bank’s energy loan portfolio; beginning to identify individuals on the lending staff that will supplement the special assets division to help with loan workouts.
• Ramping up communication with small business borrowers. Increasing volume of loan committee meetings. Creating a “problem loan workout” task force.
• Continuous contact with customers to assess deteriorating business conditions. Offering forbearance programs and facilitating participation in PPP.
• Evaluating collection staffing; may add an additional position and possibly recast the budget for 2020.
• Just monitoring loans that requested relief.
• We have taken some gains on a few securities and expect to place that money into ALL [allowance for loan and lease losses]; we have made $12 million in PPP loans and expect to place all the fees earned into ALL.

What share of your total loan volume is currently on payment deferral? For comparison, what was the average last year? What do you expect at the end of this year?

	Average (percent)
Current	14.73
2019	0.54
Expected end of 2020	8.04

NOTE: 57 responses.

What share of your outstanding total loan volume is to oil and gas companies?

	Average (percent)
Current	1.6

NOTE: 56 responses.

What measures are you taking to help your oil and gas customers weather the energy downturn?

This question was only posed to those engaged in lending to oil and gas companies. These comments are from respondents’ completed surveys and have been edited for publication.

Offering deferrals

• We have very limited oil and gas exposure. For those few customers we do have, we have contacted them regarding their plans, modified their payments to interest only for three months, and are monitoring their situation closely going forward.
• We have done principal and interest deferments for three months.
• We do not have a significant concentration in the energy sector. We are offering deferment of principal and interest payments for 90 days. Only one borrower has requested assistance. All other are managing at this point with present liquidity positions and/or investor injections.
• Deferrals, extensions, interest-only periods and PPP loans.
• Providing SBA [Small Business Administration] PPP loans and debt relief; offering either principal and interest deferrals or conversion to interest-only payments for up to 90 days for now.
• We expect to address any weakness in repayment by putting the customer on interest-only payments in the short term.
• Considering payment deferrals.

Increased monitoring/communication

• Our small exposure is to companies with very little leverage and diversified revenue sources. We have been keeping in close contact with them and offering assistance if need be. Currently, the companies are OK.
• Monitoring weekly and with in-person meetings very frequently. Looking to hire a consultant for extra advice and guidance.
• Communicating with our oil and gas customers.
• Closely monitoring their loans and activities.

Other

• PPP loans.
• When borrowing base deficiencies exist, in some cases we are allowing those to be cured over three to six months instead of immediately. Also encouraging borrowers to hedge future prices.

Nothing needed

• Nothing. Both companies are doing well and have not requested any deferment.
• None have been requested.
• None needed. They are very strong.