On this page you will find resources related to CECL, the Current Expected Credit Losses rule created by FASB to promote more accurate provision for loan and lease losses. There are many sites on the Internet with CECL resources, and lots of educational webinars. This page provides resources developed specifically for small credit unions that wish to implement their own CECL solution.

NCUA has indicated that smaller, less complex credit unions should be able to perform their own CECL calculations (that is, they won't have to pay a vendor for the service), and that their method for doing so can be less complex than a larger credit union with more varied and complicated products and services. 

We have partnered with another state association that has developed and shared with us some CECL resources geared toward helping small credit unions across the country meet the new CECL requirements. We think these resources can be a game changer for credit unions in the Dakotas: 

  • Spreadsheets demonstrating methods
  • A primer detailing the information behind the spreadsheets
  • Videos walking you through the primer and spreadsheets

While it will likely take some work for a credit union to get this system set up, we believe that it's completely doable by a credit union that can get the right data and has the patience and spread-sheet know-how. Once the system and spreadsheets are set up, it should take relatively minimal effort on an ongoing basis.

If you have questions or need assistance with any of the resources below, contact Jay Kruse at the Association at jkruse@dakcu.org 

Note that these resources are provided to members free of charge, and you are welcome to use them as you see fit, as long as you do not charge for any of the resources. That is, please do not re-distribute them for any kind of fee. 

CECL Videos

  • Introduction to CECL (8:40)
  • WARM-like methodology (54:04)
  • Vintage methodology (22:47)
  • Snapshot methodology (22:25)
  • Forecast intro (18:23)
  • Incorporating a reasonable and supportable forecast (18:29)
  • Weighted averages (6:03)
  • Other miscellany: data, templates, timeline, frequency, unconditionally cancellable (14:36)

CECL Primer Spreadsheets
These Excel spreadsheets demonstrate how to execute the processes described in the primer.  This is a work in progress. It may be updated in the future. Current version as of July 31, 2019. 

  • WARM-like
  • Vintage
  • Snapshot
  • Q-Factors
  • Forecast

CECL Primer

This pdf provides a simplified description of CECL requirements, how the three calculation methodologies meet those requirements, and how to go about doing the calculation using each of the three methodologies. It also addresses the data points that credit unions should make sure they are collecting now. As it describes the calculation process, the document references the spreadsheet below. This is a work in progress. It may be updated in the future. Current version as of July 31, 2019.