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

CECL became effective January 1, 2023, for most credit unions. For credit unions that started using the Simplified CECL Tool in the first quarter of 2023, the June 2023 release is provided to determine the credit loss expense, or provision for credit losses, for the quarter that ends June 30, 2023.

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

The Simplified CECL Tool is provided to credit unions as a means to estimate 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.

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.

For additional information on CECL, please visit our CECL Resources page.

For any questions unanswered in the CECL Resources, please contactEIMail@ncua.gov.