Southern New Mexico economy

While the key measures suggest that conditions that hamper a bank’s resilience to economic adversity are marginally higher than before the pandemic in 2019, we expect further declines in bank stress levels as interest rates normalize.

Economic indicators were mixed in Las Cruces in fourth quarter 2024 after a slow third quarter. Employment grew solidly; however, unemployment rose.

Natural gas liquids production increased in 2024 as did exports. The number of U.S. chemical railcar loadings remained flat compared to last year. Intermediate chemical prices have risen in recent months, while chemical export numbers, adjusted for inflation, are on the decline.

U.S. exports of liquefied natural gas (LNG) are expected to continue to grow further into 2025. From October 2024 through the beginning of this year, U.S. natural gas and heating oil prices remained fairly steady.

Eleventh District community banks will likely continue to outperform their nationwide peers in terms of profitability, given their larger share of noninterest-bearing deposits.

Bankers responding to the fourth-quarter agricultural survey reported persistent weak conditions across most regions of the Eleventh District.