Banking Conditions Survey

Special Questions

October 2024

For this survey, respondents were asked supplemental questions about deposits, credit standards, commercial real estate lending and interest rates. Data were collected September 24-October 2, and 75 bankers responded to the survey.

1. Over the past six weeks, how has your volume of core deposits changed?

	Jun. '23 (percent)	Aug. '23 (percent)	Sep. '23 (percent)	Dec. '23 (percent)	Mar. '24 (percent)	Jun. '24 (percent)	Oct. '24 (percent)
Increased significantly	0.0	3.0	4.6	4.8	2.9	2.7	4.1
Increased slightly	26.2	31.3	27.7	36.5	45.6	42.5	50.0
No change	23.0	20.9	20.0	25.4	26.5	28.8	32.4
Decreased slightly	45.9	41.8	41.5	31.7	23.5	26.0	10.8
Decreased significantly	4.9	3.0	6.2	1.6	1.5	0.0	2.7

NOTE: 74 responses.

2. 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)	Dec. '23 (percent)	Mar. '24 (percent)	Jun. '24 (percent)	Oct. '24 (percent)
Increase significantly	1.6	3.0	1.5	7.9	1.5	0.0	1.3
Increase slightly	30.6	35.8	41.5	49.2	41.2	47.2	54.7
No change	33.9	34.3	30.8	28.6	29.4	36.1	30.7
Decrease slightly	33.9	26.9	23.1	14.3	27.9	16.7	13.3
Decrease significantly	0.0	0.0	3.1	0.0	0.0	0.0	0.0

NOTE: 75 responses.

3. How do you expect credit standards and terms to change over the next three months for the following loan categories?

	Ease considerably (percent)	Ease somewhat (percent)	Remain unchanged (percent)	Tighten somewhat (percent)	Tighten considerably (percent)
Commercial and industrial	0.0	4.2	78.9	12.7	4.2
Commercial real estate	0.0	2.8	77.5	15.5	4.2
Residential real estate	0.0	4.2	87.5	5.6	2.8
Consumer	0.0	5.5	76.7	15.1	2.7

NOTES: 75 responses. This question was also posed in Aug. '23, Sep. '23, Dec. '23, Mar. '24 and Jun. '24.

4. How do you expect credit standards and terms to change over the next three months for the following categories of commercial real estate lending?

	Ease considerably (percent)	Ease somewhat (percent)	Remain unchanged (percent)	Tighten somewhat (percent)	Tighten considerably (percent)
Construction and land development	0.0	5.9	69.1	19.1	5.9
Industrial	0.0	4.5	75.8	15.2	4.5
Retail	0.0	4.5	71.2	19.7	4.5
Multifamily	0.0	3.0	71.2	19.7	6.1
Office	0.0	1.5	68.2	19.7	10.6
Hotels/lodging	0.0	3.0	74.2	16.7	6.1
Other	0.0	3.4	86.4	5.1	5.1

NOTES: 69 responses. This question was also posed in Sep. '23, Dec. '23, Mar. '24 and Jun. '24.

5. As of June 18, the federal funds target rate is in the range of 5.25–5.5; what do you expect the federal funds target range to be at the end of 2024?

	Median	Mode	Range
Mar. '24	4.75–5	4.75–5	0.25–5.5
Jun. '24	5–5.25	5–5.25	0.25–5.5
Oct. '24	4.25–4.5	4.25–4.5	3.25–5

NOTE: 76 responses.

6. Since the initial federal funds rate increase in March 2022, what share of your CRE loan portfolio has been repriced due to refinancing in anticipation of maturity?

	Median	Mode	Range
Oct. '24	30–39	0–9	0–89

NOTE: 61 responses.

6a. Of the CRE loans that were repriced, what was the average rate increase in terms of basis points?

	Median	Mode	Range
Oct. '24	200–299	200–299	0–1,000

NOTE: 58 responses.

6b. For CRE loans that you tried to reprice but could not, what was the action taken?

	Oct.'24
All were repriced	29.2
Customer found financing elsewhere	20.8
Borrower paid off or paid down loan	16.7
Negotiated with borrower for lower repricing	8.3
Credit enhancement such as a cash or equity pledge	4.2
Moved to nonaccrual status	4.2
Other	16.7

NOTE: 24 responses.

Special Questions Comments

These comments have been edited for publication.

We have a very high-quality portfolio that has had limited problems. It probably is not comparable to the industry.
We have stress tested all commercial real estate loans that are repricing in the next two years—some concerns but looks doable.

Questions regarding the Banking Conditions Survey can be addressed to Mariam Yousuf at mariam.yousuf@dal.frb.org.