Navy Federal Credit Union 2009 Annual Report Download

Download and view the complete annual report

Please find the complete 2009 Navy Federal Credit Union annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 28

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28




Honoring Tradition

Table of contents

  • Page 1
    Navy Federal Credit UNioN aNNUal report 09 Honoring Tradition

  • Page 2
    ... as of 31 december 2008 2009 Sources that the numbers are extracted from: Annual Reports: Consolidated Statements of Financial Condition, Consolidated Statements of Operations Management Reports: Mortgage Loans Serviced, Membership Net Growth 2 Navy Federal Credit Union 2009 annual Report 1

  • Page 3
    ... and from all branches of service turned to their credit union for help financing homes, buying cars, saving for retirement and for products and services that make managing their finances easier and more convenient. Over 214,000 new members joined Navy Federal in 2009, bringing total membership to...

  • Page 4
    ...Navy Federal ATM. Many of Navy Federal's most popular services are available at no cost to members. Our free Web Bill Pay service experienced 17% growth in 2009 and members made over 17 million payments through this online channel. Over 2.7 million members manage their finances using Account Access...

  • Page 5
    ...Navy Federal's products and services have been designed to meet the unique needs of those who serve in the Armed Forces. Our Active Duty Checking® account features ATM fee rebates, earns dividends, comes with free checks and a Visa Check Card and includes free online account access and Web Bill Pay...

  • Page 6
    ... our efforts. Our new mobile banking service will be expanded to include Web Bill Pay and a new iPhone application. More branches will be opened, including one at the Pentagon and another outside the gates of West Point. We will also be undertaking a major redesign of Navy Federal Online to enhance...

  • Page 7
    ... The 2009 Cutler Dawson Treasurer Frank orp IV John A. Lockard Chairman Kenneth R. Burns First Vice Chairman Bruce B. Engelhardt Second Vice Chairman Terry J. Benedict Stanley D. Bozin William P. Mizerak Joseph P. Mulloy Henry J. Sanford 10 Navy Federal Credit Union 2009 annual Report...

  • Page 8
    ... of the credit union and to render an opinion on the accuracy of the year-end financial statements. A report of their comprehensive year-end audit of Navy Federal's financial statements appears in this Annual Report. e Supervisory Committee also provides an avenue of open communication for you...

  • Page 9
    ... U.S. • Navy Federal branches and ATMs located on or near most military bases worldwide 1 Minimum balance of $1,500 is required to earn dividends with Flagship Checking. 2Checking Protection is a credit product and subject to credit approval. 3Terms and conditions are applied to gift cards. 4Cash...

  • Page 10
    ... products are not federally insured, not obligations of the credit union, not guaranteed by the credit union or any affiliated entity, involve investment risks, including the possible loss of principal, and may be offered by an employee who serves both functions of accepting member deposits...

  • Page 11
    PO Box 3000, Merrifield, VA 22119-3000 navyfederal.org Contains 10% recycled post-consumer fiber.

  • Page 12
    ... consolidated balance sheets of the Navy Federal Credit Union ("Navy Federal") as of December 31, 2009 and December 31, 2008, and the related consolidated statements of income, of changes in reserves and undivided earnings and of cash ï¬,ows for the years then ended. These financial statements...

  • Page 13
    Navy Federal Credit Union Consolidated Statements of Financial Condition (dollars in thousands) December 31 Assets Cash Short-term investments Securities available-for-sale Securities held-to-maturity Mortgage loans awaiting sale Loans to members, net of allowance for loan losses of $588,278 at ...

  • Page 14
    ... December 31, 2008 Net income Adjustments related to pension accounting Net unrealized gain on available-for-sale securities Discretionary transfer Balance at December 31, 2009 Navy Federal Credit Union Consolidated Statements of 2009 Years Ended December 31 2009 $ 245,483 $ 2008 81,633 662,853 87...

  • Page 15
    ... to income. Mortgage loans awaiting sale are sold with the mortgage servicing rights retained by Navy Federal. Cash For purposes of the consolidated financial statements, cash includes cash and balances due from banks and other credit unions. 6 Navy Federal Credit Union 2009 Financial Section...

  • Page 16
    ...outstanding except for credit cards. Interest on credit cards is calculated by applying the periodic rate to the average daily balance outstanding. Accrual of interest on all loans is discontinued where manage- NCUSIF Deposit The deposit in the National Credit Union Share Insurance Fund (NCUSIF) is...

  • Page 17
    ... of Federal Home Loan Bank of Atlanta (FHLBA) stock as of December 31, 2009 and 2008. FHLBA stock is a restricted investment and is carried at cost, which is par value. As a member of the FHLBA, Navy Federal has access to a $10.3 billion line of credit facility. All debt securities were reviewed...

  • Page 18
    ...Home equity lines of credit Less: Allowance for loan losses Total loans to members $ At December 31, 2009 and 2008, there was no decline considered "other-than-temporary" in the value of U.S. Government and federal agency mortgage-backed securities owned by Navy Federal. Other investments represent...

  • Page 19
    ...its Consolidated Statements of Financial Condition at fair value with changes in fair value included in current earnings. These derivative instruments are economic hedges to which Navy Federal does not receive hedge accounting treatment. (dollars in thousands) Consumer Credit card Real estate Total...

  • Page 20
    ...Note 9: Fixed Assets The following is a summary of property and equipment Navy Federal owned at December 31, 2009 and 2008: (dollars in thousands) Money market Share savings Member escrow Sharechek Share and IRA certificates IRA shares IRA MMSA Investor custodial accounts Total deposits Weighted...

  • Page 21
    ... used to determine the projected benefit obligation for the pension and retiree medical benefit were: Pension Dividends on members' deposit accounts totaled as follows: (dollars in thousands) Money market Share savings Sharechek Share and IRA certificates IRA shares Total dividends $ $ 2009...

  • Page 22
    ...within plan assets at December 31, 2009 as equity and fixed income assets are broadly diversified. Navy Federal 401(k) Savings Plan The Navy Federal 401(k) savings plan is a defined contribution plan where employees can contribute pre-tax money to a 401(k) retirement account and receive employer...

  • Page 23
    ..., 2009 (dollars in thousands) Securities available-for-sale Mortgage servicing rights Other assets-Derivative commitments Total assets at fair value on a recurring basis Other liabilities-Derivative commitments Total liabilities at fair value on a recurring basis 22 Navy Federal Credit Union 2009...

  • Page 24
    ... by discounting the future cash ï¬,ows using the current market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Investments, including Mortgage-Backed Securities Fair value is based on a quoted market price, if available. If...

  • Page 25
    .... 2009 Members' Accounts The fair value of Share Savings, Money Market Savings, Checking and Individual Retirement Account (IRA) share accounts is the amount payable on demand at the reporting date. For IRA Certificate and Share Certificate accounts, fair value is estimated using the discounted...

  • Page 26
    ... table displays the amount of borrowed funds by maturity for each of the next five years as of December 31, 2009: (dollars in thousands) 2010 2011 2012 2013 Thereafter Total $ Amount 1,505,500 317,000 213,500 820,350 4,298,835 7,155,185 $ 28 Navy Federal Credit Union 2009 Financial Section 29

  • Page 27
    2009 30 Navy Federal Credit Union 2009 Financial Section 31

  • Page 28
    Copyright © 2010 Navy Federal NFCU 8010-F (3-10)