Community Bank Leverage Ratio

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

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