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.

126
The 2025 Q2 Community Bank Sentiment Index Number

This represents a positive reading in economic sentiment by community bankers and but slipped three points from its peak value of 129 recorded in last quarter's survey. This is the first decline in the CBSI after advancing for seven consecutive quarters.

Key Highlights

  • At 126, the second quarter 2025 CBSI fell three points from the first quarter 2025 value but is still among the highest three readings recorded since the survey’s inception in 2019. The latest CBSI is up 27 points from one year ago.
  • At 145, the profitability component fell seven points from last quarter’s record level of 152.
  • At 114, the monetary policy component improved eight points from 106 last quarter and remains in positive territory (above 100) for the fifth straight quarter.
  • At 114, the regulatory burden component had the greatest quarterly change, falling 16 points from the first quarter survey. However, it stayed above 100 for only the second time in the survey’s history. The regulatory burden indicator was below 30 for 15 consecutive quarters from early 2021 to late 2024 but is up 94 points from one year ago, contributing about 13 points of the 27-point increase in the overall CBSI from last year’s value of 99.
  • In the open-ended comments, community bankers continue to mention several areas of concern that impact their ability to plan ahead. While not as pronounced as last quarter, heightened uncertainty persists regarding the impact from tariffs (particularly on consumer spending, agriculture, and small businesses), how federal government spending will impact the national debt and economic growth, and how the Federal Reserve will respond.
Read More on the 2025 Q2 Community Bank Sentiment Index Survey Results
  • The CBSI slipped for the first time after advancing seven consecutive quarters and is up 53 points from its nadir of 73 in mid-2023.
  • 250 community bankers from 43 states responded to the second quarter 2025 CBSI survey.
  • Five of the seven components that comprise the CBSI declined from the previous quarterly survey and two improved. Six of the seven components moved by less than 10 points from the previous quarter.
  • At 91, the future business conditions indicator is the only component below the neutral level of 100 but it is up 5 points from last quarter’s value of 86.
  • At 132, the operations expansion component fell 3 points from last quarter, whereas the capital spending indicator slipped 1 point to 128. Both indices are near their historical averages.
  • At 161, the franchise value indicator slipped 1 point but is near 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) fell from 37 last quarter to 23 this quarter as concerns over tariffs and inflation appear to have subsided somewhat.  
  • In a special question, 61% of community bankers believe the U.S. economy is at the start of, or already in, a recession, up slightly from 59% last quarter.
  • In another special question, community bankers rated the following as their top concerns: cyberattacks, bank fraud, the federal debt/deficit, the cost and availability of labor, and competition.
CBSI 2025 Q2 Results 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