Host Keith Daly, Principal, Banking & Fintech Search at Travillian, sits down with Zach Boyda, Treasurer at CFG Bank, and Adam Mustafa, CEO and Co-Founder of Invictus Group. Together, they discuss the evolution of stress tests from a regulatory requirement into a proactive tool for capital planning, growth, and strategy. The conversation covers CFG Bank’s journey from $1 billion to $5.5 billion in assets, the role of tailored stress testing in managing healthcare and CRE concentrations, and how banks of all sizes can use capital planning to justify independence and optimize shareholder returns.
Available now on Apple Podcasts and Spotify — or read the full summary with timestamps below.
Listen Here: APPLE PODCASTS | SPOTIFY
00:00 – 02:16 | Introductions & Background
Keith welcomes Zach and Adam, highlighting Zach’s six years at CFG Bank and Adam’s work with Travillian as a client. He recalls placing Zach in his role and supporting Adam with Invictus hires, setting the stage for a discussion on stress testing.
02:16 – 06:03 | What Stress Testing Really Means
Adam explains that while only banks over $100B are required to stress test, regulators expect smaller banks with concentrations (like CRE) to do so. He argues that community banks often treat it as a “check the box” exercise, missing its true value as a capital planning and allocation tool.
06:03 – 10:43 | CFG Bank’s Approach with Invictus
Zach outlines CFG’s partnership with Invictus, running both standard and customized stress tests, particularly on healthcare lending. These tests allow CFG to set internal limits, inform loan growth and dividends, and proactively present capital strategies to regulators.
10:43 – 14:29 | Why Even Traditional Banks Need Stress Testing
Adam stresses that every community bank is unique to its footprint and should optimize capital accordingly. Stress testing helps divide capital into “defense” and “offense,” ensuring independence and stronger shareholder returns, especially as banks grow.
14:29 – 18:43 | The Evolution of Finance at CFG
Zach shares how CFG’s finance function has evolved as assets grew from $1B to $5.5B. The process now includes a robust capital plan aligned with strategic and liquidity plans, contingency triggers, and regulator-facing narratives.
18:43 – 22:34 | Strategic Finance & the Role of Talent
Adam describes how the finance function has become more strategic, noting the importance of leaders like Zach who think proactively about capital allocation. He contrasts this with banks that only seek reports to satisfy regulators, lacking long-term planning.
22:34 – 24:42 | Practical Advice from CFG
Zach emphasizes the value of regular discussions with Invictus, beyond just running models. These conversations spark new stress tests and strategies tied to CFG’s evolving priorities, helping the bank stay ahead of regulatory and business changes.
24:42 – 26:56 | Practical Advice from Invictus
Adam advises banks to first ask why they want to improve stress testing. Too often, it’s regulator-driven, but the real goal should be capital optimization, quantifying true needs, and identifying excess capital for growth or defense.
26:56 – 29:09 | Closing Thoughts
Keith wraps up by encouraging banks to reach out to Adam and Invictus. Adam reflects on making stress testing engaging by treating it like a strategy game — anticipating “what if” scenarios that empower banks to grow and stay resilient.
