The Federal Reserve just released the severely adverse economic scenario for the required Comprehensive Capital Analysis and Review (CCAR) stress tests for the largest banks in the country. The annual tests determine each large...
The New Way to Manage Concentrations in a Post-Pandemic World
Concentration management is becoming a dynamic and data-driven process in the post-pandemic world. Community banks that have always managed their concentrations by simply throwing darts at a board will find themselves in the...
A 15-Month CECL Playbook for 2023 Banks
Most community banks have barely gotten started down the CECL road as of mid-September 2021. The primary reason is simple. The individuals responsible for implementing CECL at your bank have bigger fires to fight right now....
The Evolving Role of Management and Directors in a Post-Pandemic World
Many community bankers and their boards are entering the post-pandemic world blindfolded. The pandemic had an uneven impact on industries within their geographic footprints, and there is no historical precedent for how recovery...
10 Last-Minute Questions for 2023 CECL Banks to Ask Their Potential Vendor
The clock is starting to tick for community banks that must adopt the CECL standard by January 1, 2023. It’s mid-August and many banks still have not picked a software or consulting partner to assist them on this journey. Banks...
Strategic Analysis Should Surpass Investment Banking Ties in Bank M&A, Expert Says
As community and regional bank mergers and acquisitions accelerate in the post-pandemic world, the advisory process “will require an altered approach,” argues bank consultant Joe Fenech in a blog post this week.
Pie Growth vs Market Share Wars: The Post-Pandemic Loan Growth Mystery
The 2020 Pandemic marks the end of the post-2008 recovery business cycle for the banking industry and the economy as a whole. As we enter the post-pandemic economy, community banks across the country are struggling with how to...
PD/LGD Emerges as Top CECL Methodology
More banks are using the probability of default/loss given default (PD/LGD) model for CECL than any other methodology, according to the accounting firm BKD CPAs and Advisors.
How to Break Through the Concentration Limit Ceiling
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...