CECL

The New Way to Manage Concentrations in a Post-Pandemic World

Concentration management is becoming a dynamic and data-driven process in the post-pandemic world. Community banks that have always managed their concentrations by simply throwing darts at a board will find themselves in the regulatory crosshairs if they don’t adapt to the new paradigm. More importantly, ...
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/ CECL Trends, Intel, Invictus Blog

A 15-Month CECL Playbook for 2023 Banks

By Adam Mustafa, Invictus Group CEO Most community banks have barely gotten started down the CECL road as of mid-September 2021. The primary reason is simple. The individuals responsible for implementing CECL at your bank have bigger fires to fight right now. Whether it's responding ...
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/ CECL Trends, CEOs & Boards, Intel, Invictus Blog

10 Last-Minute Questions for 2023 CECL Banks to Ask Their Potential Vendor

The clock is starting to tick for community banks that must adopt the CECL standard by January 1, 2023. It’s mid-August and many banks still have not picked a software or consulting partner to assist them on this journey. Banks in this situation have no ...
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/ CECL Trends, Intel, Invictus Blog

PD/LGD Emerges as Top CECL Methodology

More banks are using the probability of default/loss given default (PD/LGD) model for CECL than any other methodology, according to the accounting firm BKD CPAs and Advisors. Firm partner Brandy Buckler wrote in a May 21 Bank Director article that approximately 60 percent of banks ...
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Integrating Critical Processes to Unlock Strategic Value from CECL

By Adam Mustafa, Invictus Group CEO Although the new accounting standard known as CECL is a requirement, bankers need to stop viewing it through that lens. CECL has many silver linings. It provides bank management with a motive to holistically re-think and invest in data ...
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/ CECL Trends, Intel, Invictus Blog

Caveat Emptor: The Pitfalls of a SaaS Approach to CECL

By Adam Mustafa, Invictus Group CEO Software can be wonderful. It can provide a spike in efficiency and automate a host of processes and problems that were previously solved manually in painstaking fashion. As a result, it is no surprise that many community banks have ...
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/ CECL Trends, Intel, Invictus Blog

Picking a CECL Methodology: Five Reasons Why Only One Method Makes Sense

By Adam Mustafa, Invictus Group CEO FASB’s guidance for CECL is flexible when it comes to methodologies. In fact, many software-as-a-service (SaaS) providers and consultants make it a point to brag how their products can handle just about all of them. But let’s not confuse ...
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/ CECL Trends, Intel, Invictus Blog

Free Data Tool: Analysis of 3rd Quarter Loan Loss Reserves for U.S. Community Banks

Want to compare your loan loss reserve to other banks? Check out this new Invictus Group tool, which will help you do just that. The tool includes data for the quarter ending September 30, 2020 back to the fourth quarter of 2019. As your bank ...
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/ CECL Trends, Intel, Invictus Blog

CECL May Not Increase Loan Loss Reserves—And Other Myths for 2023 Filers

By Adam Mustafa, Invictus Group CEO The 2023 class of CECL banks is being unnecessarily conditioned to a false reality: Their loan loss reserve will need to increase under CECL. If CECL is approached correctly, this is simply not true, unless the probability that a ...
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/ CECL Trends, Intel, Invictus Blog

The Problem with CECL Models: You’re Asking the Wrong Question

By Adam Mustafa, Invictus Group CEO If your bank is scheduled to implement CECL in 2023, or you’re a CECL filer unhappy with your existing model, here is my strongest piece of advice:  Stop looking for a “CECL” model.  What you really need is a ...
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/ CECL Trends, Intel, Invictus Blog