Calculation Timing

Federally-insured credit unions must fund the ALLL account appropriately before dividends can be distributed in accordance with NCUA regulations § 702.402(d), Charges for loan losses (that is, if the credit union pays dividends on a quarterly basis, the ALLL account must be calculated at least quarterly). However, a credit union with a more complex loan portfolio should calculate the ALLL account more frequently.

Last updated June 29, 2020