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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 Quarter 2 2021 Community Bank Sentiment Index Number is:

115


This represents a positive reading in economic sentiment by community bankers and, while unchanged from the first quarter of 2021, is 25 points higher than at the same time last year. The index was buoyed by optimism around future business conditions and profitability, but tempered by concerns about the potential for burdensome regulation and adverse monetary policy.

Key Highlights: 

  • At 115, the Q2 2021 CBSI is the same as last quarter but 25 points higher than a year ago.
  • The monetary policy component changed the most from the previous quarter, falling seven points from 96 to 89, suggesting that the Federal Reserve’s monetary policy decisions are more negatively impacting community banker outlooks in the coming year.
  • Regulatory burden remains the greatest concern for community bankers. The current value of 26 signals community banker anxiety that bank regulation could be more heavy-handed in the future; however, this reading improved by 5 points from last quarter’s historic low of 21.
  • The franchise value component also increased by 5 points to 155, returning to the average quarterly level recorded in 2019 and significantly above the low of 98 computed one year ago during the depths of the 2020 recession.

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 paper explaining the underlying data. You can read the full report to learn how this breaks down by region and asset size, the influence of technology and impact on merger activity. 

Sentiment Index Findings

Top Category

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