Simplified CECL Tool Updated for December 2023

The National Credit Union Administration released today the December 2023 update of its Simplified CECL Tool. The update includes the latest life-of-loan, or Weighted Average Remaining Maturity, and other enhancements.

For most credit unions, CECL became effective January 1, 2023. For credit unions that are currently using the Simplified CECL Tool, the NCUA provides the September 2023 release to determine the credit loss expense, or provision for credit losses, for the quarter that ends December 31, 2023.

For credit unions that adopted CECL in the fourth quarter of 2023, the December 2023 Call Report will include the day-one adjustment to undivided earnings and the credit loss expense since the date of CECL adoption.

To obtain the latest version, please visit the Simplified CECL Tool page and click on “Download the Latest Simplified CECL Tool.” To facilitate your evaluation of the Simplified CECL Tool, please review Frequently Asked Questions, the User Guide, and the Model Development Document located on the Simplified CECL Tool page.

The Simplified CECL Tool is provided to credit unions as an option for estimating the allowance for credit losses on loans and leases. The NCUA implements quarterly updates to enable a credit union to use the Tool before its books are closed and it makes its quarterly NCUA Call Report submission.

For additional information on CECL, please visit our CECL Resources page. For any questions unanswered on the CECL Resources page, please contact EIMail@ncua.gov.