Community Bank Sentiment Index

The Community Bank Sentiment Index is an index derived from quarterly polling of community bankers across the nation. As community bankers answer questions about their outlook on the economy, their answers are analyzed and compiled into a single number. An index reading of 100 indicates a neutral sentiment, while anything above 100 indicates a positive sentiment, and anything below 100 indicates negative sentiment.

129
The 2025 Q1 Community Bank Sentiment Index Number

This represents a positive reading in economic sentiment by community bankers and is two points above the index reading for last quarter, reaching another record high since the survey's inception in 2019.

Key Highlights

  • At 129, the first quarter 2025 CBSI rose two points from the fourth quarter 2024 reading and is at the highest level recorded since the survey’s inception in 2019. The latest CBSI is up 31 points from one year ago.
  • At 152, the profitability component gained 17 points from last quarter and is at its highest point since the survey began in 2019.
  • At 106, the monetary policy component dropped 13 points from 119 last quarter but remains in positive territory (above 100) for the fourth straight quarter.
  • At 130, the regulatory burden component had the greatest quarterly improvement, gaining 30 points from the fourth quarter survey, and is above 100 for the first time in the survey's history. The regulatory burden indicator remained below 30 for fifteen consecutive quarters from early 2021 to late 2024 but is up a stunning 112 points from one year ago, which contributes 16 points to the overall CBSI.
  • In the open-ended comments, many community bankers mentioned the heightened aura of economic uncertainty from the potential impacts from tariffs, and that this uncertainty will restrain economic growth until there is greater clarity.
Read More on the 2025 Q1 Community Bank Sentiment Index Survey Results
  • The CBSI has advanced for seven consecutive quarters and is up 56 points from its nadir of 73 in mid-2023.
  • 282 community bankers from 44 states responded to the first quarter 2024 CBSI survey.
  • Four of the seven components that comprise the CBSI improved from the previous quarterly survey, two declined, and one remained the same. While the overall CBSI, at 129, is up only 2 points from the previous quarter, five of the seven indicators moved sharply, with three improving and two falling back.
  • The business conditions indicator dropped 31 points from 117 last quarter to 86 in the first quarter, dropping back below the neutral level of 100. The business conditions indicator is the only component below 100 this quarter.
  • At 135, the operations expansion component is unchanged from last quarter, whereas the capital spending indicator edged 2 points higher to 129 from last quarter’s reading of 127. Both indices are near their historical averages.
  • At 162, the franchise value indicator improved 10 points and is at its highest level since the survey premiered.
  • The CBSI Uncertainty Index (computed by adding together the “I don’t know/unsure” responses for all seven components) grew to 37 from 23 last quarter and is at its highest level since mid-2020 during the pandemic and economic lockdowns.  
  • In a special question, 59% of community bankers believe the U.S. economy is at the start of, or already in, a recession, up from 41% last quarter.
  • In another special question, community bankers rated the following as their top concerns: cyberattacks, bank fraud, the cost and availability of labor, the federal debt/deficit, and inflation.
CBSI Q1 2025 Chart
Click to Enlarge

Interactive Dashboard

In this interactive, you can click on a positive, neutral, or negative view in each subcategory to see how those respondents answered other questions. For example, if you click the "they will be better than today" green bar under business conditions, all other subcategories will update to display responses only by those people who believe future business conditions will be better than today. Clicking on the same item a second time will return you to the original display. 

Data Behind the Index

Every quarter, the Community Bank Sentiment Index number will be accompanied with a release explaining the underlying data. Links to the releases are saved below.

Sentiment Index Findings