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NCUA released the March 2023 update of its Simplified CECL Tool. For most credit unions, CECL became effective at the start of 2023. For credit unions that started using the Simplified CECL Tool in the first part of 2023, the March 2023 release is used to determine the credit loss expense, or provision for credit losses, from the date of adopting CECL until March 31, 2023.
For credit unions that adopted CECL in the first quarter of 2023, the March 2023 Call Report will include the day-one adjustment to undivided earnings and the credit loss expense since the date of CECL adoption.
The update includes the following:
With this update and future quarterly updates of the Simplified CECL Tool, a credit union can use the CECL 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 NCUA's Call Report.
To obtain the latest version, please visit The Simplified CECL Tool page and click on, “Download the Latest Simplified CECL Tool.”