The Dallas Fed Banking Conditions Survey indicated that loan volume grew at a slightly faster rate in February (18.3) than in December (16.0).

• Loan demand saw an even faster acceleration from 10.8 in December to 30.0 in February.
• Loan volumes were increasing at a moderate pace for commercial & industrial loans (6.0), commercial real estate (10.5), and residential real estate (9.0) while consumer loans declined marginally (-4.3).

• Despite a slight increase in loan volume growth, bankers’ views of general business conditions in the last six weeks were slightly more optimistic (14.1 in Feb, down from 24.2 in Dec) while expectations for the next 6 months soured slightly (45.6 in Feb, down from 60.0 in Dec).

• In general, bankers see the growth in nonperforming loans accelerating with that index up 10 pts to 14.1. However, expected growth is still well below where it was in 2022-2023.