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. 

127
The 2024 Q4 Community Bank Sentiment Index Number

This represents a positive reading in economic sentiment by community bankers and is 17 points above the index reading for last quarter. This is the highest level recorded since the survey's inception in 2019.

Key Highlights

  • At 127, the fourth quarter 2024 CBSI is up 17 points from the third quarter 2024 reading and at the highest level recorded since the survey’s inception in 2019. The latest CBSI is up 35 points from one year ago.
  • At 136, the profitability component gained 7 points from last quarter and is at its highest point since the survey began in 2019.
  • At 119, the monetary policy component dropped 6 points from 125 last quarter but remains in positive territory (above 100) for the third straight quarter.
  • At 100, the regulatory burden component had the greatest quarterly improvement, gaining an unprecedented 80 points from the third quarter survey, and at its highest level since the survey began in 2019, surpassing the component’s highest value of 78 in the first quarter 2020 survey. It is also noteworthy that the regulatory burden indicator has been below 30 since the first quarter of 2021.
  • In the open-ended comments, many community bankers said they are optimistic that regulatory burdens for smaller institutions will improve, however, they also note this will take some time and that the economy has many vulnerabilities and could get worse before getting better.
Read More on the 2024 Q4 Community Bank Sentiment Index Survey Results
  • The fourth quarter 2024 CBSI is the first reading where all seven components are at or above 100. The CBSI has advanced for six consecutive quarters and is up 54 points from its nadir of 73 in mid-2023.
  • 252 community bankers from 42 states responded to the fourth quarter 2024 CBSI survey.
  • Four of the seven components that comprise the CBSI improved from the previous quarterly survey and three declined. Two indicators drove the index sharply higher: regulatory burden and business conditions.
  • The business conditions indicator gained 37 points from 80 last quarter to 117 in the fourth quarter and is above 100 for the first time since the fourth quarter of 2021.
  • At 135, the operations expansion component inched up 2 points from 133 last quarter, whereas the capital spending indicator dropped 5 points to 127 from last quarter’s reading of 132. Both indices are near their historical averages.
  • At 152, the franchise value indicator is down one point, but is nearly 20 points above its historical average.
  • The CBSI Uncertainty Index (computed by adding together the “I don’t know/unsure” responses for all seven components) held steady at 23 and is slightly below its historical level of 25.
  • In a special question, 41% of community bankers believe the U.S. economy is at the start of, or already in, a recession, down from 79% last quarter.
  • In another special question, community bankers rated the following as their top concerns: cyberattacks, bank fraud, the federal debt/deficit, and government regulation. This is the first time that “bank fraud” was included on the list of concerns for bankers to choose from.
CBSI Q4
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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