Stress Testing & Capital Planning

Maximizing a bank's strategic options

We don’t approach stress testing as a check-the-box exercise. We integrate the system into
strategic planning so you get real value, actionable insights and regulatory respect.

Six Ways Our Stress Testing System is Unique

The world is changing every week — and so does our stress test. We are constantly investing in the technology behind our stress tests, so that we can ensure our clients get up-to-date analyses as their requirements — and the world around us — evolve.

We customize the analytics for each bank, marrying a top-down approach with bottom-up data that focuses on the core fundamentals of banking.

You see what you get. There is no black box you don’t understand. Our process is designed to provide management with full ownership and confidence in the analysis, without wasting their time.

Stress testing is the tool, not the job. We stress test the bank’s strategic plan, its policy limits, where it stands today and where it may be two years down the road. We show you the capital impact of every contemplated action.

We are not software vendors who give you a report and walk away. We provide expertise and leadership to the process, advising CEOs and boards on how to translate the analysis into actions that will increase profitability and shareholder value.

When our bank clients understand the strategic value they can get from the process, they view stress testing as an essential part of their management toolkit, not a regulatory expectation. This is what regulators want. It’s the ultimate secret when it comes to regulatory blessings for your strategic plans.

Freeing Up Regulatory Capital

An example of a bank client freeing up nearly $51 million of capital using a BankGenome -powered stress test

Stress test gives financial advantage

The Invictus Stress Test provides a competitive advantage by quantifying how much capital a bank would need to withstand a severe economic recession, usually less than the regulatory “rule of thumb” requirement. All community banks should conduct a stress test before opting in to the new Community Bank Leverage Ratio framework, which will require a leverage ratio of more than 9 percent.

How amounts compare (in millions):
Base Assets
$3.10 billion
Tier 1 Capital
$341.3 million
Reported Ratio

Note: FreeCapital™ is a trademarked calculation defined as reported capital less base capital less capital required for stress test.


Our bank clients have used our stress testing analyses to:

  • Reduce regulatory capital requirements, allowing them to increase their excess capital for growth and M&A
  • Win approval for CRE and Ag concentration levels well above industry norms
  • Unlock hidden value and uncover hidden risk within acquisition targets
  • Obtain regulatory approval for acquisitions without having to raise unnecessary capital
  • Increase shareholder returns by allocating capital to areas that maximize risk/reward
  • Justify recurring dividends, increases in dividends and strategic stock repurchases
  • Terminate consent orders, MOUs, and MRAs
  • Boost their CAMELS ratings


Our analytical techniques are validated through the key principles underlying CECL. That’s because our disruptive intelligence led us to develop our technology years before CECL was finalized.

We are the only firm that can provide banks with both a stress testing and CECL solution using the same system, which is critical to doing it right.

Invictus is now offering an expedited COVID-19 stress test for community banks that want to see how their banks will fare in a downturn.

A complete stress test can be completed in as little as 3 weeks following receipt of critical loan-level information. Our goal is to help community banks quickly but properly diagnose the strengths and weaknesses of their balance sheet and their capital in the event of a recession.

The stress tests will answer these critical questions:

  • What does my bank look like if we have a deep recession?
  • How much exposure do I have to high-risk industries and which loans should we prioritize?
  • How should I adjust my strategic and capital plans?
  • Is my ALLL set at the right level?

The Invictus COVID-19 stress tests utilize the Federal Reserve’s severely adverse case scenario as a starting point but are adjusted to reflect the reality of the coronavirus fallout. Features include enhanced stress on loans associated with affected industries, expected compression of the net interest margin due to the Fed’s zero interest-rate policy and quantitative easing, additional customization in collaboration with bank management, and more.

Please contact for more information.

We give our clients a competitive advantage.