The Community Bank Sentiment Index (CBSI)
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.
The 2026 Q2 Community Bank Sentiment Index Number
This represents a positive reading in sentiment by community bankers. Slipping two points from the value of 131 recorded in last quarter's survey, the overall index remains well above the neutral level of 100.
Key Highlights
- At 129, the second quarter 2026 CBSI slid two points from the first quarter 2026 value and is down four points from the record high of 133 reached nine months ago. The latest CBSI is up three points from one year ago and up 30 points from two years ago.
- Three of the seven components that comprise the CBSI decreased from the previous quarterly survey, three advanced, and one remained the same.
- At 152, the profitability component improved nine points from last quarter, returning to its peak level reached in the first quarter of 2025. The Profitability indicator has remained at or above 129 during the last eight quarters.
- At 99, the future business conditions indicator remains below the neutral level of 100 but is up one point from last quarter. The business conditions indicator has been above the neutral level of 100 only once since 2021 when it hit 117 in the fourth quarter of 2024.
- At 96, the monetary policy component dropped 11 points from last quarter and is now off 34 points from its all-time high reached nine months ago. This is the first time since the end of 2023 that the monetary policy indicator has not been in positive territory (above 100).
- At 113, the regulatory burden component fell nine points from last quarter and is down from its peak level of 130 reached nine months ago. Community bankers still foresee a more tailored regulatory environment in the coming year, but their optimism has faded somewhat. The regulatory burden indicator has remained at or above 100 for seven straight quarters, following fifteen consecutive quarters—from early 2021 to late 2024—when the indicator was consistently below 30 and indicated, at that time, a much heavier regulatory burden expected.
- At 139, the operations expansion component is unchanged from last quarter, while the capital spending indicator improved seven points to 141.
- At 166, the franchise value indicator slipped four points from its all-time high of 170, which peaked last quarter. The franchise value component has been above 150 over the past eight quarters.
- Read More on the 2026 Q2 Community Bank Sentiment Index Survey Results
- 227 community bankers from 40 states and the District of Columbia responded to the second quarter 2026 CBSI survey.
- In the open-ended comments, many community bankers voiced concerns about the current geopolitical situation and how this uncertainty might impact the US economy, from higher inflation to potential interest rate hikes to the impact on consumer and business spending. Community bankers also remain concerned about deposit competition, regulations that disproportionately impact smaller banks and businesses, monetary policy uncertainty, and federal government deficit spending. Even so, several community bankers indicated their local markets are doing well and their margins and profitability have improved.
- The CBSI Uncertainty Index (computed by adding together the “I don’t know/unsure” responses for all seven components) slid six points to 25, indicating less overall uncertainty than recorded in the previous quarter’s survey.
- In a special question, 41% of community bankers believe the U.S. economy is at the start of, or already in, a recession, up from 39% last quarter. Thirty-one percent of community bankers said the economy is at the start of an expansion while 28% believe there is solid economic growth.
- In another special question, community bankers once again rated the following as their top concerns: cyberattacks, bank fraud, competition, the cost and availability of labor, and the federal debt/deficit. These are the same top five concerns bankers have had in the previous four quarterly surveys.
Interactive Dashboard
2026 Q2 CBSI Survey Results
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