A financial institution has issued a 6% annual installment loan with 5 years remaining to maturity. The loan requires annual payments of $100,000. The financial institution believes that over the next 3 years, the borrower will fail to make 5% of the required payments due to forecasted economic conditions. However, those conditions will begin to improve in years 4 and 5 to allow the borrower to fulfill 98% of its annual obligation. What is the financial institution's CECL?