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ABA: The American Bankers Association
Industry Insight

Interest rate impacts on fair value in financial institution deals

  • Brought to you by Abrigo
  • Published February 3, 2025

How interest rates have influenced deal structures & valuation

Recent moves by the Fed to decrease interest rates have provided some relief from the larger fair value discounts of recent years, potentially giving a boost to more merger activity.

Key topics covered in this post:

  • How higher rates and credit risk have affected M&A
  • The impact on fair value of loan portfolios
  • How rates are affecting core deposit premiums
  • When to update fair value marks

Read the industry insight
Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo’s platform centralizes the institution’s data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth. We also offer banks the only ABA-endorsed solutions for CECL compliance, giving institutions confidence as they make the accounting transition. Make Big Things Happen. Get started at abrigo.com.

Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo’s platform centralizes the institution’s data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth. We also offer banks the only ABA-endorsed solutions for CECL compliance, giving institutions confidence as they make the accounting transition. Make Big Things Happen. Get started at abrigo.com.

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Related to This

Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo’s platform centralizes the institution’s data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth. We also offer banks the only ABA-endorsed solutions for CECL compliance, giving institutions confidence as they make the accounting transition. Make Big Things Happen. Get started at abrigo.com.