Arlington – November 10, 2026 -- Eighty-seven percent of US bank executives expect their funding costs to rise over the next 12 months, according to the third quarter Bank Executive Business Outlook Survey by fintech IntraFi.
Survey of 411 bank leaders shows little relief in loan demand
IntraFi conducted the survey online from October 5 to October 19, 2026. It covers 411 bank CEOs, presidents, CFOs and COOs nationwide. IntraFi CEO and cofounder Mark Jacobsen said bankers face "pressure on both sides of the balance sheet" and must pursue growth without sacrificing profitability or overextending balance sheets.
Bond market volatility puts net interest margins at risk for 58% of respondents
Asked about the effect of current long-term interest rates and bond market volatility on their securities portfolios over the next 12 months, 58% named higher funding costs or pressure on net interest margins as the most significant potential impact. Another 16% cited further unrealized losses that could limit capital flexibility.
Nearly half of banks hold balance sheet strategy steady
Forty-seven percent of respondents are maintaining their current balance sheet strategies. Twenty-two percent are accepting lower securities balances to make room for loans or for cash and liquidity.
Most executives see no improvement in the economy or in access to capital
Eighty-three percent expect economic conditions to worsen or stay unchanged over the next 12 months, and 78% expect access to capital to remain unchanged.
On mortgages, 74% are not pursuing products or programs to help homeowners locked into low mortgage rates move or upgrade their homes.