Banking Conditions Survey
Special Questions
Special Questions
February 2025
For this survey, respondents were asked supplemental questions about outlook concerns and commercial real estate lending. Data were collected February 4-12, and 69 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.
| Aug. '23 | Nov. '23 | Feb. '24 | May '24 | Aug.'24 | Nov.'24 | Feb. '25 | ||||
| Total (percent) |
Total (percent) |
Total (percent) |
Total (percent) |
Total (percent) |
Total (percent) |
Total (percent) |
Rank 1 (percent) |
Rank 2 (percent) |
Rank 3 (percent) |
|
| Net interest margin | 42.6 | 58.2 | 42.4 | 44.9 | 46.6 | 49.3 | 44.9 | 17.4 | 17.4 | 10.3 |
| Liquidity/deposit volume | 57.4 | 56.7 | 56.1 | 50.7 | 49.3 | 28.4 | 42.0 | 17.4 | 10.1 | 14.7 |
| Cybersecurity | 23.5 | 26.9 | 27.3 | 30.4 | 26.0 | 28.4 | 39.1 | 11.6 | 21.7 | 5.9 |
| Regulatory burden | 42.6 | 31.3 | 51.5 | 43.5 | 37.0 | 53.7 | 37.7 | 13.0 | 11.6 | 13.2 |
| Financial/economic uncertainty | 33.8 | 38.8 | 31.8 | 36.2 | 43.8 | 38.8 | 27.5 | 8.7 | 8.7 | 10.3 |
| Overall profitability | 19.1 | 20.9 | 22.7 | 26.1 | 15.1 | 23.9 | 27.5 | 5.8 | 7.2 | 14.7 |
| Loan demand | 25.0 | 17.9 | 13.6 | 13.0 | 24.7 | 20.9 | 23.2 | 10.1 | 10.1 | 2.9 |
| Difficulty hiring and/or retaining employees | 11.8 | 6.0 | 15.2 | 8.7 | 11.0 | 17.9 | 15.9 | 4.3 | 4.3 | 7.4 |
| Noncurrent loans | 11.8 | 11.9 | 13.6 | 11.6 | 13.7 | 11.9 | 14.5 | 5.8 | 4.3 | 4.4 |
| Competition for loans | 11.8 | 9.0 | 12.1 | 13.0 | 9.6 | 14.9 | 11.6 | 2.9 | 1.4 | 7.4 |
| Commercial real estate risks | 10.3 | 3.0 | 9.1 | 7.2 | 6.8 | 6.0 | 7.2 | 0.0 | 1.4 | 5.9 |
| Unrealized losses on securities portfolio | 7.4 | 14.9 | 4.5 | 8.7 | 2.7 | 4.5 | 5.8 | 1.4 | 1.4 | 2.9 |
| Other | 1.5 | 1.5 | 0.0 | 2.9 | 9.6 | 0.0 | 1.4 | 1.4 | 0.0 | 0.0 |
NOTE: 69 responses. This question was also posed in Nov. ’24.
2. 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 | 15.9 | 58.7 | 20.6 | 4.8 | 0.0 |
| Industrial | 21.0 | 56.5 | 17.7 | 4.8 | 0.0 |
| Retail | 12.7 | 49.2 | 27.0 | 11.1 | 0.0 |
| Multifamily | 23.0 | 42.6 | 21.3 | 13.1 | 0.0 |
| Office | 19.4 | 30.6 | 24.2 | 22.6 | 3.2 |
| Hotels/lodging | 28.3 | 40.0 | 23.3 | 6.7 | 1.7 |
| Other | 50.0 | 35.7 | 14.3 | 0.0 | 0.0 |
NOTES: 63 responses. This question was also posed in Nov. ’24.
Questions regarding the Banking Conditions Survey can be addressed to Mariam Yousuf at mariam.yousuf@dal.frb.org.
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