- At 133, the third quarter 2025 CBSI advanced seven points from the second quarter 2025 value and reached a new record high since the survey’s inception in 2019. The latest CBSI is up 23 points from one year ago.
- At 145, the profitability component remained unchanged from last quarter’s level, but remains near its all-time high of 152 recorded six months ago.
- At 130, the monetary policy component hit a new all-time high, improving 16 points from 114 last quarter. The indicator has been in positive territory (above 100) since the end of 2023.
- At 114, the regulatory burden component inched up one point from the previous quarter. This component stayed above 100 for only the third time in the survey’s history. The regulatory burden indicator was below 30 for fifteen consecutive quarters from early 2021 to late 2024 but is up 94 points from one year ago, contributing about 13 points of the 23-point increase in the overall CBSI from last year’s value of 110.
- In the open-ended comments, community bankers mentioned numerous concerns driving economic uncertainty and their outlook, including tariffs, immigration, low agricultural prices, labor shortages, rising insurance costs, potential inflation, geopolitical risks, and competition from nonbanks.
- Read More on the 2025 Q3 Community Bank Sentiment Index Survey Results
- 255 community bankers from 44 states responded to the third quarter 2025 CBSI survey.
- Six of the seven components that comprise the CBSI increased from the previous quarterly survey, and one remained the same.
- At 98, the future business conditions indicator is the only component below the neutral level of 100, but it is up seven points from last quarter’s value of 91.
- At 142, the operations expansion component advanced 10 points from last quarter, and the capital spending indicator improved 8 points to 136.
- At 168, the franchise value indicator increased seven points and hit a new record level since the survey premiered.
- The CBSI Uncertainty Index (computed by adding together the “I don’t know/unsure” responses for all seven components) increased from 23 last quarter to 31 this quarter. Most of the heightened uncertainty since last quarter came from the monetary policy and business conditions indicators.
- In a special question, 50% of community bankers believe the U.S. economy is at the start of, or already in, a recession, down from 61% last quarter.
- In another special question, community bankers rated the following as their top concerns: cyberattacks, bank fraud, the cost and availability of labor, competition, and the federal debt/deficit.
