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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

News Alert: Regulatory Advice on What Banks Should Do in 2021

With the economic impact of the coronavirus still masked by relief efforts, community banks should act conservatively in 2021, making sure their banks have proper risk management processes in place to guard against additional fallout, regulators said Friday at the New Jersey Bankers Association Economic ...
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/ 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

Lessons from the Field: How Three $1B+ Community Banks Are Using Pandemic Stress Testing to Manage Strategy, Risk and Capital

Pandemic stress tests are helping banks manage concentrations, while also reassuring boards and management teams that they can withstand the economic fallout from the coronavirus, three community bankers revealed on a December 3rd Invictus Group webinar. The hour-long “Lessons from the Field” webinar, which can ...
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/ 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

FDIC Says Worst is Yet to Come, 1 out of 4 ‘Satisfactory’ Banks Hit with MRBAs

By Lisa Getter, Invictus Group While community banks have so far weathered the coronavirus pandemic, Federal Deposit Insurance Corp. officials said in two recent advisory committee meetings that the worst is yet to come. And that means banks must begin proactive measures now – or ...
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/ Intel, Invictus Blog, Most Read