- At 99, the second quarter 2024 CBSI reached the highest level recorded since 2021. The first quarter uptick follows last quarter’s increase of 6 points and is up 15 points from one year ago.
- While four of the seven components improved, regulatory burden, expectations regarding business conditions, and future profitability continued to put downward pressure on the index.
- At 96, the profitability component had the greatest quarterly improvement, gaining 9 points from the first quarter survey and at its highest level since the end of 2022. In contrast, the franchise value indicator dropped the most, falling 6 points to 130 in the second quarter, but still well above the neutral level of 100.
- The business conditions component fell 3 points to 75 from the previous quarter but is up 32 points from one year ago. Even so, this indicator continues to suggest a weaker economic outlook; like the overall index, the business conditions component has been below 100 for 10 consecutive quarters.
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.
CSBS is collecting responses for the 2024 third quarter Community Bank Sentiment Index. Your input helps show the expectations for the future of the overall economy. Take the survey here: https://questionpro.com/t/ALKEAZ3vCI
99
The 2024 Q2 Community Bank Sentiment Index Number
This represents a negative reading in economic sentiment by community bankers and is one point above the index reading for last quarter. This is the tenth consecutive quarter with a negative CBSI reading
Key Highlights
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.