Stay on top of M&A trends at financial institutions
A recent survey by Bank Director found that 56% of bank executives and directors are open to acquisitions over the next five years. See survey
Streamline accounting for purchased assets, origination costs, and fees
Income recognition software for banks and credit unions
Financial institutions often struggle with recognizing accretion income post-acquisition due to risky, time-consuming manual processes and incomplete core systems that may not be fully GAAP compliant. This can lead to potential capital shortfalls, lower profitability, and increased regulatory scrutiny.
Abrigo Income Recognition provides all the tools you need in one flexible solution that can easily scale to support increases in transactions, volume, complexity, and more. Our expert Advisory Services team is ready to complement this software solution based on your specific needs.
A comprehensive solution
Streamline income recognition with Abrigo
Efficient
Run income recognition methodologies with the click of a button, recognizing interest income for deferred loan origination fees, costs, and acquired discount for monthly reporting.
Flexible
Configure solution as needed, including setting advanced elections to handle loans with no maturity/past maturity, rerunning methodologies for measurement period adjustments, and more.
Compliant
Process loans through Effective Interest Method (EIM) and Straight-Line Method to help ensure GAAP compliance.
Transparent
Enhance visibility and analysis with access to all the underlying, granular data related to your accretion income.
Support based on your needs
Multiple income recognition options
Software
- Calculate accelerated and base accretion
- Track acquisitions with date and ID
- Automate loan number conversion post-acquisition
- Load loan acquisition data prior to core system conversion to record financial results beginning at legal close
- Provide consistent reporting
- Ensure SOC1 and SOC2 compliance
Advisory
- Assist with implementing acquisitions, including valuation and loan data
- Analyze monthly results of base and accelerated accretion
- Assist in analysis of reports, including:
- Monthly income recognition projections for GAAP reporting
- Current period accretion/ amortization calculation for remaining discount/ premium
- General ledger-level journal entries to record current period accretion/amortization
Additional services offered by Abrigo
Get specialized support for your next M&A deal
Valuation Services
Abrigo offers comprehensive purchase accounting and bank valuation services, supporting financial institutions through M&A transactions by providing accurate fair value determinations of acquired assets and liabilities. Our expert team ensures compliance and efficiency, helping banks and credit unions navigate complex deals with confidence.
Income Recognition Software FAQs — GAAP-Compliant Accounting for Financial Institutions
What is Abrigo Income Recognition software?
Abrigo Income Recognition is accounting software that automates recognition of interest income, deferred loan origination fees, costs, and acquired discounts for banks and credit unions. It helps financial institutions maintain GAAP compliance while reducing manual spreadsheet processes and improving reporting accuracy.
Who should use Income Recognition software?
Finance and accounting teams at banks and credit unions use Abrigo Income Recognition to streamline post-acquisition accounting, improve audit readiness, and manage complex income recognition schedules. It is designed for institutions that need scalable, defensible accounting processes.
How does the software ensure compliance?
Abrigo Income Recognition supports established GAAP methodologies, including the Effective Interest Method (EIM) and Straight-Line Method. This structure improves calculation consistency, documentation, and audit defensibility for financial institutions.
What processes can be automated with this solution?
The software automates base and accelerated accretion, amortization schedules, acquisition data tracking, and loan number conversions after acquisition. It helps ensure accurate financial results beginning at legal close and continuing through integration.
Can the solution be configured for complex accounting scenarios?
Yes. Abrigo Income Recognition allows configurable elections for loans without standard maturities and supports re-running methodologies for measurement period adjustments. This flexibility supports evolving accounting needs without rebuilding spreadsheets.
Does Abrigo offer implementation support?
Abrigo pairs Income Recognition software with Advisory Services that assist with implementation, valuation support, monthly analysis, and journal entry preparation. This helps finance teams accelerate adoption and maintain consistent reporting practices.
How does Income Recognition fit within the Portfolio Risk suite?
Abrigo Income Recognition integrates within the Portfolio Risk platform, aligning income recognition workflows with broader CECL and portfolio risk processes. This integration improves data consistency and reduces reconciliation effort across finance and risk teams.
What are the core benefits of using Abrigo’s Income Recognition software instead of spreadsheets?
Abrigo’s Income Recognition software centralizes calculations, improves transparency into underlying data, and reduces manual error risk compared to spreadsheets. It strengthens internal controls and provides more scalable accounting infrastructure for banks and credit unions.
