What is it?
The Simplified CECL Tool provides a current expected credit loss methodology for credit unions to determine the Allowance for Credit Losses (ACL) on loans and leases for their loan portfolio. On the Call Report, the ACL is reported on Line 18, Page 2, and is labeled: Allowance for Credit Losses on Loans and Leases (AS0048).
Who should use it?
The Simplified CECL Tool was developed to support credit unions with less than $100 million in assets. NCUA chose the Weighted Average Remaining Maturity (WARM) methodology for calculating the ACL because the Financial Accounting Standards Board deemed it appropriate to estimate a credit loss allowance for less complex financial asset pools.
Use of the Simplified CECL Tool and the underlying methodology may not be appropriate for every credit union. Each credit union’s management is responsible for determining whether this approach is appropriate given their institution’s unique facts and circumstances.
How does it work?
This tool relies on portfolio-level WARM proxy data to estimate current expected credit losses. The Simplified CECL Tool will be updated quarterly to ensure the WARM assumptions remain current.
A credit union’s management can select a different method for estimating its ACL if an alternative method is more appropriate to the size and complexity of the credit union and will result in a more robust estimate of an institution’s ACL Whatever method selected, it should be appropriate for the financial assets being evaluated, consistent with the credit union's size and complexity, and well documented with clear explanations of the supporting analyses and rationale.
The Simplified CECL Tool is updated for each quarter’s Call Report. Download the latest updated Excel workbook and use the prompts and formulas to calculate ACL.
Download the Simplified CECL Tool, June 2026 Version
General Resources
- Frequently Asked Questions
- Users Guide
- Model Development Document
- Historical Loss Rates, 2023-2025 Calculation Details
- Historical Loss Rates, 2022-2024 Calculation Details
- Historical Loss Rates, 2021-2023 Calculation Details
- Historical Loss Rates, 2020-2022 Calculation Details
- Historical Loss Rates, 2019-2021 Calculation Details
- Letter to Credit Union 22-CU-10, Simplified CECL Tool for Credit Unions
- FASB Staff Q&A: TOPIC 326, NO. 1: Whether the Weighted-Average Remaining Maturity Method is an Acceptable Method to Estimate Expected Credit Losses
Previous Versions of the Simplified CECL Tool
- March 31, 2026 Version
- December 31, 2025 Version
- September 30, 2025 Version
- June 30, 2025 Version
- March 31, 2025 Version
- December 31, 2024 Version
- September 30, 2024 Version
- June 30, 2024, Version
- March 31, 2024, Version
- December 31, 2023, Version
- September 30, 2023, Version
- June 30, 2023, Version
- March 31, 2023, Version
- December 31, 2022, Version
- September 30, 2022, Version
- June 30, 2022, Version
Disclaimer
Utilizing the Simplified CECL Tool approach does not by itself ensure compliance with U.S. Generally Accepted Accounting Principles (GAAP) or any other requirement. While ASC 326 (Financial Instruments—Credit Losses) allows entities to use judgment in determining appropriate and relevant information and estimation methods, a credit union’s management is responsible for ensuring the ACL conforms with GAAP and adequately covers risk.
By using the Simplified CECL Tool, you assume the risk related to your use of the tool, including your use of any updates to it. The NCUA is providing the Simplified CECL Tool “as is” and it expressly disclaims all warranties, express or implied, including any implied warranties of merchantability and fitness for a particular purpose. The NCUA is not liable to you or any third party for any direct, indirect, incidental, consequential, special, or exemplary damages or lost profit related to the use of the tool. Users may not modify the Simplified CECL Tool and present it as an official government document.