Community banker optimism dropped slightly in the fourth quarter but remains high, according to the Conference of State Bank Supervisors.
Details:
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The CSBS Community Bank Sentiment Index dropped one point from last quarter to 132 points but remains well above neutral.
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Community bankers’ continued optimism is driven by solid earnings prospects from wider net interest margins that have boosted profitability.
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The regulatory burden component surged 16 points from last quarter, indicating bankers foresee a lighter regulatory environment in the coming year.
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For the fourth straight quarter, the only component dragging the index lower was expected future business conditions, although this component improved one point from last quarter’s reading.