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Top-Down Stress Testing: The Poisonous Placebo

By Adam Mustafa, Invictus Group CEO Community banks that take a “top-down” approach toward stress testing are taking the equivalent of a placebo when it comes to assessing how ready they are if the pandemic triggers a severe and protracted economic downturn.  Placebos are cheap ...
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/ Intel, Invictus Blog

Dealing with a Critical Bank Exam: A Case Study in Using the Right Tool for the Job

As the coronavirus financial fallout continues, many community bank executives may soon be dealing with tough safety and soundness exams. That was the situation in 2018 for Middlefield Bank, a $1.3 billion Ohio institution. “We had to meet the FDIC’s demands,” recalled John Lane, EVP ...
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/ Intel, Invictus Blog

Read Between the Lines July 2020

What Community Banks Need to Know about Regulatory Actions Regulators Want Stress Tests to Account for Changing Conditions If your bank isn’t adjusting its stress tests to reflect for the changing COVID-19 environment, expect to come under increased regulatory scrutiny. The Office of the Comptroller ...
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/ Article, Intel, September 2019

If Your Capital Plan is Missing this Metric, It’s Broken and Needs to be Fixed Now

By Adam Mustafa, Invictus Group CEO Regulators have made it clear in recent guidance: As the economic fallout from the coronavirus continues, capital plans will be under the microscope at your next exam. And while most community banks have a capital plan, way too many ...
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/ Intel, Invictus Blog

CEO Alert: Five Tips for Successful COVID-19 Stress Testing

As regulatory scrutiny looms, community and regional banks must ensure they have the proper tools to assess the impact of the COVID-19 crisis on their capital, asset quality, earnings, liquidity and more. The one tool that covers all those areas is a stress test designed ...
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/ 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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/ Intel, Invictus Blog

What Community Banks Should Glean from the Fed’s Stress Tests  

By Adam Mustafa, Invictus Group CEO The Federal Reserve announced last week that it was suspending stock repurchases and limiting the amount of dividends the largest banks can pay in the second quarter. The Fed made this decision after the large banks “passed” the DFAST/CCAR ...
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/ Intel, Invictus Blog, Most Read

Sleepless CEO Nights – Say Goodbye to Traditional Pricing Benchmarks

By Leonard J. DeRoma, Invictus Group Director of Liquidity Analytics The last several months of the COVID-19 crisis have heaped an enormous and unexpected level of stress and complexity onto bank CEOs. Managing potentially serious credit problems with clients in various industries, learning to have ...
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/ Intel, Invictus Blog

News Alert: Examiners to Focus on Banks’ Ability to Manage COVID-19 Risks

CEOs take note: Bank examiners will be looking at how well your management team has assessed risks from the COVID-19 environment, whether and how you have changed your business practices, and if you have addressed these changes in your long-term strategic planning, according to an ...
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/ Intel, Invictus Blog, Most Read

Updated: Additional Data Shows Most Banks Saying No to CBLR

As we told you last month, two out of every three community banks chose not to opt into the Community Bank Leverage Ratio. We've updated our numbers as more banks file their Call Reports, but the trend continues. The latest numbers show just 1,709 banks ...
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