An ADC system dynamically adjusts threshold levels used to resolve PAM signal amplitudes into digital values. The ADC circuitry includes an analog front end to receive and condition the PAM signal, a low-resolution ADC to digitize the conditioned signal according to a first set of threshold values, and a high-resolution ADC to subsample the conditioned signal to generate subsampled signals. A microprocessor in communication with the low-resolution ADC and the high-resolution ADC derives a statistical value from the subsampled signals, determines an updated set of threshold values, and dynamically replaces the first set of threshold values for the low-resolution ADC with the updated set of threshold values.