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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 ...
/ 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 ...
/ 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 ...

Pandemic Stress Testing Can Be an Investment with a Huge ROI

By Adam Mustafa, Invictus Group CEO With the right approach, the potential Return on Investment (ROI) from pandemic stress testing is quite significant. Most community banks treat stress testing as a check-the-box exercise when they should be viewing it as a strategic one. As a ...
/ CEOs & Boards, Intel, Invictus Blog

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 ...
/ 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 ...
/ Intel, Invictus Blog, Most Read

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

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 competitive disadvantage for years to come ...
/ Intel, Invictus Blog, Strategy Corner

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 ...
/ Intel, Invictus Blog, Most Read

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 ...
/ 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 ...
/ Intel, Invictus Blog