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| NCUA Updates Simplified CECL Tool |
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The NCUA released the March 2026 update of its Simplified CECL Tool, developed primarily for small and non-complex credit unions as an option for estimating the allowance for credit losses on loans and leases.
The update provides the latest life-of-loan—or Weighted Average Remaining Maturity—factors, and the 2023 to 2025 average net charge-off rates for each of the 13 loan portfolio categories on the NCUA Call Report. The release is for calculating the credit loss expense on loans and leases for the period ending March 31, 2026.
The latest version is available on NCUA’s website, which also includes frequently asked questions, user guide, and a model development document. NCUA also maintains a CECL Resources page.
Copyright © 2024-2026 America's Credit Unions. (link) |
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