CECL

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

How to Communicate Your Bank’s CECL Findings to Investors

Edward Chung, Invictus Bank Capital Analyst Although the deadline for CECL implementation for many community banks has been postponed until 2023, larger banks across the country are already using the new accounting standard. Their experiences will provide lessons for the rest of the community banking ...
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/ CECL Trends, Intel, Invictus Blog

CECL vs COVID: Q1 Data Reveals What Drove Loan Loss Reserves for Publicly Traded Banks

By Adam Mustafa and Sonny Capone, Invictus Group Let’s face it: Publicly traded banks that implemented the new current expected credit losses (CECL) accounting standard during the COVID-19 pandemic faced a huge set of challenges. But what really drove their decisions about how much to ...
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/ CECL Trends, Intel, Invictus Blog

Coronavirus Relief Bill Lowers Community Bank Leverage Ratio, Delays CECL for All Banks

The final version of the $2.2 trillion coronavirus relief bill passed by the U.S. Senate would make life easier for community banks this year. The bill temporarily lowers the community bank leverage ratio to 8 percent and postpones the new accounting standards known as CECL ...
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How Much Better Will Banks Be if CECL Dies? The Answer Might Surprise You

By Adam Mustafa, Invictus Group CEO The Federal Deposit Insurance Corp. this week did something unusual:  FDIC chair Jelena McWilliams sent a letter to the Financial Accounting Standards Board, asking it to delay implementing the current expected credit loss (CECL) standard while banks deal with ...
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/ CECL Trends, Intel, Invictus Blog

Coronavirus + CECL = Earnings Nightmare

By Adam Mustafa, Invictus Group CEO If we do not get a miracle turnaround with respect to the coronavirus and its impact on markets, the first quarter earnings for most publicly traded community banks (SEC filers) is going to be a disaster because of CECL ...
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/ CECL Trends, Intel, Invictus Blog

You’ve Been WARMED: Why SEC Filers Should be Leery of the WARM Method for CECL

Earlier this month, FASB published a Q&A related to the applicability of the Weighted Average Remaining Maturity (WARM) Method for CECL compliance.  This method is widely considered to be the simplest approach to CECL since it most resembles what many banks use to calculate their ...
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/ CECL Trends, Intel, Invictus Blog

CECL Issues – Unpacking the Biggest CECL Challenge

CECL ISSUES Unpacking the Biggest CECL Challenge By Adam Mustafa, Invictus Group President and CEO Lack of data is by far the biggest obstacle for banks as they begin figuring out how to implement the new current expected credit loss (CECL) accounting standard, which will go ...
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/ Article, CECL Trends, Featured, Intel, June 2018