Skip to main content
United States flag An official website of the United States government
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

NCUA Releases Simplified CECL Tool for Small Credit Unions

September 2022
NCUA Releases Simplified CECL Tool for Small Credit Unions

ALEXANDRIA, Va. (Sept. 14, 2022) – The National Credit Union Administration released today a new tool to help small credit unions comply with the Financial Accounting Standards Board’s accounting standard on current expected credit loss, or CECL, which goes into effect for most credit unions at the start of 2023. The CECL Tool is intended for use by credit unions with under $100 million in assets, although it could be used by larger credit unions based on the discretion of their management and auditors.

“The Simplified CECL Tool gives small credit unions a valuable resource to help them implement CECL without having to hire an econometrician or to use complicated models,” NCUA Chairman Todd M. Harper said. “With an uncertain economic picture, this tool provides relief for smaller credit unions, so they can focus on serving their members and communities. The NCUA will continue to provide CECL-related information on our website, and our staff is available to assist credit unions with using the tool and with other CECL-related questions.”

The Simplified CECL Tool uses the Weighted Average Remaining Maturity (WARM) methodology, which FASB supports, to estimate the allowance for credit loss. The tool is simple to use, requiring a credit union to enter its charter number, total assets, and loan portfolio balances. The loan portfolio categories in the tool mirror the categories in NCUA’s Call Report. For each loan portfolio category, the tool calculates the credit union’s net charge-off rate from its Call Report data and provides the industry-based WARM factor. The tool also allows the credit union to make qualitative adjustments for current conditions and reasonable and supportable forecasts, as required by CECL.

The Simplified CECL Tool, along with FAQs, a user guide, and information on the model used, is available on the NCUA website, CECL Resource Center.

The NCUA recognizes credit unions need time to evaluate which CECL methodology is appropriate for their size and complexity. As credit unions evaluate their options, the Simplified CECL Tool will be updated for use with the September 30 and December 31, 2022, quarter ends to allow credit unions to test and calibrate the tool. After that, the tool will be updated each quarter. The tool is now available for download on

Todd M. Harper Current Expected Credit Losses (CECL)
Last modified on