September’s repo market problems were front page news. But until JPMorgan Chase CEO Jamie Dimon spoke up last week, no one knew why the banks did not step in as rates kept increasing, even though they had excess reserves. The...
Deposits Becoming a Zero-Sum Game for Community Banks
The growing deposit crisis for community banks is not going away. The problem is a strategic issue—and easy money policies only buy banks time, they don’t solve the dilemma. Invictus Group’s proprietary analytics, powered by...
Deposit Wars: A Breakdown of Key Trends in the First Quarter of 2019
Deposit growth in the banking industry has become a zero-sum game for all intents and purposes. Several months ago we published a white paper that revealed the deposit dilemma appeared more serious than anticipated, based on 2018...
When it Comes to Valuation, it’s the Quality of Your Bank Earnings that Count
The quality of a bank's earnings has an overlooked impact on valuation, according to an Invictus Group analysis of publicly traded bank stocks. We all know that trading multiples of publicly traded banks are driven by asset size...
You’ve Been WARMED: Why SEC Filers Should be Leery of the WARM Method for CECL
Earlier this month, FASB published a Q&A related to the applicability of the Weighted Average Remaining Maturity (WARM) Method for CECL compliance. This method is widely considered to be the simplest approach to CECL since it...
Solving the Deposit Dilemma with M&A: ABA Presentation
There’s only one true way to solve the deposit dilemma and other balance sheet challenges facing community banks as interest rates rise and QE unwinds: a targeted merger or acquisition. Invictus Chairman Kamal Mustafa, the...
Regulatory Statement Offers Good News for Banks with CRE Concentrations
The interagency statement from bank regulators makes clear that guidance is not the same as regulations or laws.
BankDirector Cites Invictus Chair in Special M&A Issue
Most banks are using inadequate tools to analyze potential M&A deals, Invictus Chairman Kamal Mustafa says in the August issue of BankDirector. In the article, "Pitfalls of M&A", Mustafa advises banks to find out exactly what...
Exclusive Study: Banks Don’t Need More Than 8 Percent Capital Leverage Ratios
The vast majority of community banks would be severely damaged by a community bank leverage ratio requirement of 9 or 10 percent, an Invictus study has found. More than 82 percent of community banks have a strong case their...