Banking Conditions Survey
Special Questions
Special Questions
February 2024
For this survey, respondents were asked supplemental questions on outlook concerns, deposits and commercial real estate lending. Data were collected February 6-14, and 66 bankers responded to the survey.
1. What are the top three concerns around your institution’s outlook over the next six months, if any? Please rank in order of importance.
May '23 | Jun. '23 | Aug. '23 | Nov. '23 | Feb. '24 | ||||
Total (percent) |
Total (percent) |
Total (percent) |
Total (percent) |
Total (percent) |
Rank 1 (percent) |
Rank 2 (percent) |
Rank 3 (percent) |
|
Liquidity/deposit volume | 61.3 | 54.8 | 57.4 | 56.7 | 56.1 | 25.8 | 21.2 | 9.1 |
Regulatory burden | 35.5 | 29.0 | 42.6 | 31.3 | 51.5 | 25.8 | 7.6 | 18.2 |
Net interest margin | 46.8 | 54.8 | 42.6 | 58.2 | 42.4 | 12.1 | 25.8 | 4.5 |
Financial/economic uncertainty | 46.8 | 43.5 | 33.8 | 38.8 | 31.8 | 10.6 | 9.1 | 12.1 |
Cybersecurity | 22.6 | 19.4 | 23.5 | 26.9 | 27.3 | 6.1 | 6.1 | 15.2 |
Overall profitability | 17.7 | 16.1 | 19.1 | 20.9 | 22.7 | 4.5 | 9.1 | 9.1 |
Difficulty hiring and/or retaining employees | 11.3 | 14.5 | 11.8 | 6.0 | 15.2 | 1.5 | 3.0 | 10.6 |
Loan demand | 19.4 | 12.9 | 25.0 | 17.9 | 13.6 | 7.6 | 3.0 | 3.0 |
Noncurrent loans | 4.8 | 11.3 | 11.8 | 11.9 | 13.6 | 4.5 | 6.1 | 3.0 |
Competition for loans | 8.1 | 3.2 | 11.8 | 9.0 | 12.1 | 0.0 | 4.5 | 7.6 |
Commercial real estate risks | 6.5 | 12.9 | 10.3 | 3.0 | 9.1 | 1.5 | 3.0 | 4.5 |
Unrealized losses on securities portfolio | 14.5 | 16.1 | 7.4 | 14.9 | 4.5 | 0.0 | 1.5 | 3.0 |
Other | 1.6 | 3.2 | 1.5 | 1.5 | 0.0 | 0.0 | 0.0 | 0.0 |
NOTE: 66 responses.
2. Over the past six weeks, how has your volume of core deposits changed?
Jun. '23 (percent) |
Aug. '23 (percent) |
Sep. '23 (percent) |
Nov. '23 (percent) |
Dec. '23 (percent) |
Feb. '24 (percent) |
|
Increased slightly | 26.2 | 31.3 | 27.7 | 29.9 | 36.5 | 27.3 |
Increased significantly | 0.0 | 3.0 | 4.6 | 0.0 | 4.8 | 3.0 |
No change | 23.0 | 20.9 | 20.0 | 26.9 | 25.4 | 25.8 |
Decreased slightly | 45.9 | 41.8 | 41.5 | 40.3 | 31.7 | 42.4 |
Decreased significantly | 4.9 | 3.0 | 6.2 | 3.0 | 1.6 | 1.5 |
NOTE: 66 responses.
3. Over the next six weeks, how do you expect your volume of core deposits to change?
Jun. '23 (percent) |
Aug. '23 (percent) |
Sep. '23 (percent) |
Nov. '23 (percent) |
Dec. '23 (percent) |
Feb. '24 (percent) |
|
Increase slightly | 30.6 | 35.8 | 41.5 | 40.3 | 49.2 | 42.4 |
Increase significantly | 1.6 | 3.0 | 1.5 | 1.5 | 7.9 | 6.1 |
No change | 33.9 | 34.3 | 30.8 | 32.8 | 28.6 | 25.8 |
Decrease slightly | 33.9 | 26.9 | 23.1 | 23.9 | 14.3 | 25.8 |
Decrease significantly | 0.0 | 0.0 | 3.1 | 1.5 | 0.0 | 0.0 |
NOTES: 66 responses.
4. How concerned are you about the performance of the following categories in your commercial real estate (CRE) loan portfolio, on a scale of 1 (not concerned at all) to 5 (extremely concerned)?
1 (not concerned at all) |
2 |
3 |
4 |
5 (extremely concerned) |
|
Percent of responses | |||||
Construction and land development | 27.1 | 37.3 | 22.0 | 13.6 | 0.0 |
Industrial | 25.4 | 50.8 | 20.3 | 1.7 | 1.7 |
Retail | 19.0 | 48.3 | 27.6 | 3.4 | 1.7 |
Multifamily | 22.4 | 44.8 | 20.7 | 12.1 | 0.0 |
Office | 16.9 | 32.2 | 28.8 | 16.9 | 5.1 |
Hotels/lodging | 29.3 | 37.9 | 17.2 | 12.1 | 3.4 |
NOTES: 59 responses. This question was also posed in May '23, Aug. '23 and Nov. '23.
Special Questions Comments
These comments have been edited for publication.
- We have minimal amounts of industrial, multifamily and office loans.
- Regarding Question 3, we have a seasonal increase in deposits coming from income tax refunds.
- We do not make loans in the categories shown, so I am not concerned about loans in these categories (Question 4). If we did make these types of loans, I would be concerned.
Questions regarding the Banking Conditions Survey can be addressed to Emily Kerr at emily.kerr@dal.frb.org.
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