We recently published a post by my partner, Adam Mustafa, noting that AFS bond portfolio losses across the industry reached record levels in the first quarter of 2022. While the increases in interest rates are nowhere near (yet)...
News Alert: The Bond Market Wiped out $36 billion of Capital from Community and Mid-Sized Banks in the First Quarter
The bond portfolios of community banks are on fire right now, in a very bad way. With 99 percent of community banks filing their first quarter Call Reports for 2022 as of the date of this article, we now have a sense of how big...
What Community Banks Can Learn from the Fed’s Stress Test Scenarios (or Not)
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...