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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 2022 Q2 Community Bank Sentiment Index Number is:

84


This represents a negative reading in economic sentiment by community bankers and is thirteen points below the index reading for last quarter. 

Key Highlights: 

  • The CBSI dropped to 84 points, falling 31 points lower than a year ago and setting a record low for the index that began in early 2019.
  • Expectations that the Federal Reserve’s monetary policy decisions will impact market conditions declined the most, dropping 62 points from 95 in Q1 2022 to 33 in Q2 2022. 
  • The outlook for future business conditions also declined significantly, falling 45 points from 83 in Q1 2022 to 38 in Q2 2022.
  • At 101, the profitability component had the greatest quarterly improvement for the second straight survey, rising 33 points from 68 in Q1 2022 and above the neutral level of 100 for the first time since Q2 2021. 
  • The regulatory burden component (19 points) remains the lowest among the seven components, tumbling another nine points from last quarter to its lowest historical level.

   

Chart 1

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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