Purchase Accounting: Due Diligence To Day One & Day Two Accounting

Full Service Purchase Accounting Services for Bank Acquisition

Level 1 Services – Pre-Due Diligence Fair Value Assistance

Cedar Hill can prepare a review of the high level preliminary pre-due diligence estimated purchase accounting fair value adjustments and related earnings impact prepared by its investment banking firm and related key assumptions: including estimating a preliminary core deposit intangible, CD, Loan and other requested purchase accounting fair value valuation adjustments.

Level 2 Services – Due Diligence Fair Value Assistance

Cedar Hill will assist the Company in the development of more detailed due diligence preliminary purchase accounting fair value adjustments and related earnings impact working jointly with the Company in the development of related key assumptions: including estimating a preliminary core deposit intangible, CD, Loan and other requested purchase accounting fair value valuation adjustments.

Level 3 Services – After the Announcement of Transaction but before Closing

(Securities Exchange Commission and Regulatory Application filings pro forma financial tables and related footnotes)

With the guidance from Company management and incorporating information prepared by Cedar Hill and the Company, Cedar Hill we assist in prepare for the preparation of Securities Exchange Commission and Regulatory Application pro forma financial tables and related footnotes.

Level 4 Services – Acquisition Date GAAP Purchase Accounting Assistance

Cedar Hill we will prepare an Acquisition Date Purchase Accounting Documentation Book that includes an executive summary of the transaction and description of valuation methodologies employed, purchase accounting entries to be made to each legal entity, the purchase accounting fair values estimates and related documentation, and any other transaction related documentation deemed necessary by either Cedar Hill or the Company. Our clients share the Documentation Book with their internal and external auditors and examiners as a road map to the fair value process.

  • Prepare Acquisition Date Core Deposit Intangible Valuation.
  • Prepare an Acquisition Date Fair Value Estimate of the Acquired Certificates of Deposit from the Transaction using a present value approach. The fair value of certificates and borrowings represents the present value of the expected contracted payments discounted by market rates of similar certificates of deposits using market rates typically obtained from a third-party deposit rate survey provider, such as Bankrate.com. Cedar Hill will also provide the Company with a monthly amortization table using the “level yield” amortization method to be used by the accounting department to record future amortization.
  • Prepare an ASC 310-20 (good loans) Acquisition Date Acquired Loans Interest Rate Fair Value and General Credit Fair Value Analysis
  • Assist the Company in preparing ASC 310-30 Deteriorated Loan Loan Specific Credit Fair Value Adjustment for non-performing loan receivables.
"Cedar Hill Advisors has completed over 50 purchase accounting projects in the PA and NJ region (approximately 65% of all bank mergers) during the last five years, and have clients throughout the Mid-Atlantic region and we continue to expand nationally."
Robert Barilla
President & CFO

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