ARCSys supports institutions through every stage of a merger, whole-bank acquisition, or loan pool purchase: valuing the portfolio you are acquiring, the purchase accounting that lands on Day 1, and reconciling the two institutions' credit policies and allowance models afterward.
We value the target's loans one at a time, the way ARCSys models your own book, and carry the marks into your Day-1 accounting.
On Day 1, the loans you buy become part of your balance sheet and your allowance. Know them one at a time.
From pre-deal pricing through Day-1 marks and ongoing surveillance, every assumption is documented and ready for board or examiner review.
ASU 2025-08 adoption: loan-by-loan qualification for gross-up treatment, seasoning assessments, and audit-ready documentation.
Loan-level valuation of the target portfolio, separating credit marks from interest rate marks.
Credit policy reconciliation, CECL modeling updates, and risk appetite integration across both institutions.
Loan-level seasoning and credit deterioration tests, so favorable gross-up treatment is not lost to portfolio contamination.
System and data changes to support PSL classification, gross-up calculations, and the new allowance rollforward line item.
Every input, election, and judgment recorded for auditors and examiners from the outset.
Valuation, purchase accounting, and credit alignment handled on one documented basis, so the combined institution operates on a single view of credit risk from the first reporting period forward.
Loan-level credit quality, concentrations, collateral, and expected loss.
Credit mark separated from the interest rate mark so accreted yield reflects true margin.
Seasoning and deterioration tests to protect gross-up treatment under ASU 2025-08.
Assumptions and judgments recorded for the board and the examiner.
Gross-up applied to the acquired loans that qualify, so their allowance is recorded without a Day-1 credit-loss expense.
PSL classification, gross-up calculations, and the allowance rollforward supported in your systems.
Credit policies reconciled and the allowance model updated for the combined book.
Ongoing monitoring of the acquired portfolio with the documentation already in place.
ASU 2025-08 extends the gross-up approach to purchased seasoned loans: acquired loans that are not purchased credit-deteriorated and meet the seasoning criteria. For those loans it removes the Day-1 credit-loss expense. We test each acquired loan against the criteria, keep the loans that qualify from being contaminated by the ones that don't, and document every election for your auditor and examiner. It takes effect for annual periods beginning after December 15, 2026, and early adoption is permitted.
▸ Request a scope callValuation, purchase accounting, and credit alignment handled with specialists who have done it before.
A clearer basis for the strategic and economic fit of a deal before committing capital.
Documentation from the outset, not reconstructed after close.
Bring the term sheet, the target's loan tape, or the policy you need to reconcile.
