NCUA updates simplified CECL Tool for March 31
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:
- The incorporation of each credit union’s December 2022 net charge-offs values in its average three-year net charge-off rates
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