Community bankers maintain an overall positive outlook on the economy but worry that future business conditions are fading, according to the most recent Community Bank Sentiment Index by the Conference of State Bank Supervisors.
The survey gauges community banker sentiment in seven economic components, with a score above 100 representing a positive outlook. The index rose two points in the first quarter of 2025 to 129, which is the highest level recorded since the survey’s inception in 2019. The profitability component of the index gained 17 points to reach 152 while the regulatory component jumped 30 points to 130.
At the same time, many community bankers mentioned in open-ended comments that they had heightened concerns of economic uncertainty from the potential effects of tariffs, according to CSBS. They also worried that such uncertainty will restrain economic growth until there is greater clarity.
