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M&A Hunting Season: Why the Pandemic is a Perfect Time to Target Acquisitions

By Adam Mustafa, Invictus Group CEO As crazy as it sounds, now is an ideal time to be on the M&A hunt for community banks. It comes down to supply and demand. The supply of willing sellers is likely to increase as management teams and ...
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/ Intel, Invictus Blog

Tough Exams During COVID-19: One Bank’s Saga of Loan Downgrades and Stress Tests

Kelly Barclay, President and CEO of Ozona National Bank in Texas, wasn’t expecting an aggressive safety and soundness exam last month in relation to COVID-19 economic issues. As a member of the Dallas Federal Reserve Bank board and a director of the Independent Bankers of ...
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/ Intel, Invictus Blog

Forget Loan Categories: The New Way to Look at Post-Pandemic Community Banking

By Kamal Mustafa, Invictus Group Chairman The pandemic has upended the very nature of community banking. This change requires a new way of strategic thinking, which we explain in this article. Banks that fail to adopt to the new environment will end up at a ...
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/ Intel, Invictus Blog

Q2 Loan Loss Reserve Analysis: Download Free Tool to Find Out Where Your Bank Stands

By Adam Mustafa, Invictus Group CEO There is no single line item in bank financial statements getting more attention these days than the loan loss reserve, due to both CECL and COVID-19.  With the second quarter of 2020 now in the books, we decided to ...
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/ Intel, Invictus Blog

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

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

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

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, May 2019

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