NCUA released the December 2022 update of the Simplified CECL Tool Thursday, which includes the latest life-of-loan, or Weighted Average Remaining Maturity factors, as well as minor enhancements.

For most credit unions, CECL will become effective January 1, 2023. For credit unions that plan to use the Simplified CECL Tool, the December release can be used to determine the day-one adjustment to undivided earnings, as required by CECL implementation guidance. For these credit unions, the day-one adjustment will be recorded effective January 1, 2023, and will be reported in the March 2023 Call Report.

With this update and future quarterly updates of the Simplified CECL Tool, a credit union can use the Tool to estimate its allowance for credit losses on loans and leases. Quarterly updates will be provided so a credit union can incorporate them before its books are closed and before it submits the NCUA’s Call Report.

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