Latest Content

How to Break Through the Concentration Limit Ceiling

By Adam Mustafa, Invictus Group CEO Here’s a problem that’s rarely discussed, even though it’s happening frequently across the country: Community banks are maxing out their own lending limits for certain types of loans. When this happens, bank management must go to the board of ...
/ Intel, Invictus Blog

The Business Case for Dynamic Concentration Risk Management

By Adam Mustafa, Invictus Group CEO Say goodbye to the days in which concentration risk management was as simple as assigning an arbitrary limit to commercial real estate and construction loans and calling it a day. Concentration risk management is rapidly becoming a dynamic process ...
/ Intel, Invictus Blog

How the Pandemic Has Changed the Nature of Managing Concentrations

By Adam Mustafa, Invictus Group CEO If you still think of concentration risk management as only applicable to commercial real estate, you’re in for a rude awakening. The primary pandemic lesson for community banks is that they need to rethink how concentration risks are identified ...
/ Intel, Invictus Blog

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 ...
/ 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 ...
/ 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 ...
/ 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 ...
/ Intel, Invictus Blog, Strategy Corner

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 ...
/ 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 ...
/ 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 ...
/ CECL Trends, Intel, Invictus Blog