|Net interest margin||46.8||16.1||16.1||15.0|
|Unrealized losses on securities portfolio||14.5||4.8||4.8||5.0|
|Difficulty hiring and/or retaining employees||11.3||3.2||0.0||8.3|
|Competition for loans||8.1||0.0||3.2||5.0|
|Commercial real estate risks||6.5||3.2||1.6||1.7|
NOTE: 62 responses.
|Other non-core deposits||11.2|
NOTES: Respondents entered a value for each category; shown are the averages of those values. 59 responses.
|Increased at a faster rate||9.7|
|Increased at a slower rate||11.3|
|Decreased at a faster rate||19.4|
|Decreased at a slower rate||27.4|
NOTE: 62 responses.
|Increased at a faster rate||8.8|
|Increased at a slower rate||5.3|
|Decreased at a faster rate||1.8|
|Decreased at a slower rate||1.8|
NOTE: 57 responses.
NOTE: 60 responses.
|Commercial real estate||39.0|
|Residential real estate||22.0|
|Commercial and industrial||12.5|
NOTES: Respondents entered a value for each category; shown are the averages of those values. 58 responses.
|Construction and land development||21.7|
NOTES: Respondents entered a value for each category; shown are the averages of those values. 48 responses.
(not concerned at all)
|Percent of responses|
|Construction and land development||23.1||46.2||23.1||7.7||0.0|
NOTE: 52 responses.
Special Questions Comments
These comments have been edited for publication.
- The Federal Reserve's delay in starting the cycle of rate increases and the speed at which it hiked 75 basis points several times has shocked the financial banking system, while the market remains spared. The flood of stimulus from monetary and fiscal sources created the inflation issue, and until the consumer spends down the excess savings, inflation will not significantly decline. In the meantime, with each Fed rate hike, the banking system will be negatively impacted. We are competing with the U.S. Treasury for deposits. The banking system took in too much liquidly during the pandemic, and now we are facing a liquidity crunch and the funds are leaving the banking system and being funneled into the market. Rate increases have initiated the beginning of a credit crunch cycle, and the Fed needs to wait and allow the impact from operating in a higher rate environment along with the lack of funding for new loans play out and allow the process to impact a decline in inflation, which may take six months. By that time, the consumer should have depleted any savings received from stimulus funds.
- Senior-living commercial real estate continues to struggle and is my main concern.
- My opinion is the Federal Reserve should allow the past rate hikes to soak in before raising rates again. Also, they could raise the rate by 10, 15, 25 basis points to help facilitate a softer landing. Just my opinion, but we started late, went fast, and now let’s slow this ship down before we crash.
- Raising rates also raises capital rates and lowers collateral values.
- We are generally not concerned with our commercial real estate loan portfolio. Single-family residences (owner occupied and rental-type properties) are our largest concentrations. We are monitoring home values and rental rates very closely with an expectation that values will continue to decline based on the economic conditions and interest rate environment.