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Stop Paying Twice: The End of the Day 1 "Double Count" for PFAs

For years, financial institutions have struggled with the "double counting" effect under CECL, where the acquisition of non‑PCD (Purchased Credit Deteriorated) loans triggered an immediate Day 1 provision expense—even though credit risk was already priced into the fair value of the loan.

Upcoming
DATE

Tuesday, August 4, 2026
2:30 pm - 3:30 pm

INSTRUCTOR

Justin Umscheid

FORMAT

Webinar

$299.00 or 1 Token

Includes: Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Accounting/Reporting
  • Branch Manager
  • Compliance Officer
  • Controller/Accountant
  • Private Banker
  • Risk Manager

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In November 2025, FASB issued ASU 2025-08, finally addressing this issue by expanding the "gross-up" approach to a new category of assets: Purchased Seasoned Loans (PSLs).

This webinar provides a comprehensive deep dive into the new standard.We will move beyond the theory to discuss practical implementation strategies.

We will explore how to identify "seasoned" loans, the mechanics of the gross-up approach (formerly reserved only for PCD assets), and the strategic impact this will have on M&A and loan portfolio acquisitions.

What You'll Learn

  • Differentiate legacy Non-PCD from new Purchased Financial Asset (PFA) accounting to eliminate the "Day 1 double count" of credit losses.
  • Review seasoning criteria (90-day rule, lack of acquirer involvement) to correctly classify acquired loans as eligible PSLs or new originations.
  • Identify the "gross-up" method to calculate initial amortized cost and record Day 1 journal entries for seasoned loans.
  • Assess operational and strategic implications of early (2026) vs. mandatory (2027) adoption, including data and policy updates.
  • Quantify the new standard's financial statement impact on post-acquisition earnings, capital, and yield via case studies.
  • Evaluate the optional accounting policy election for subsequent measurement to determine if aggregating purchased and originated loans outweighs a one-time provision true-up.

Who Should Attend

Attendees should be employees from financial institutions who are involved in CECL processes.
Justin Umscheid

Instructor Bio

With more than a decade of accounting and implementation experience, Justin serves as Vice President of Client Services at ARCSys Technologies. He excels at guiding clients through the onboarding process for CECL, ensuring a smooth transition. Justin's core focus is to support institutions with their allowance calculations, provide expert accounting guidance, and offer specialized consulting for back-testing, validations, and stress and sensitivity analysis. His comprehensive approach fosters a deeper understanding of the client's financial data as a key part of the ARCSys service model.

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