Navy Federal Credit Union 2011 Annual Report Download - page 29

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2011 FINANCIAL SECTION 13
e maturities of Navy Federal’s securities are as follows:
(dollars in thousands)
December 31, 2011 Amortized Cost Fair Value
Securities
Due in one year or less $ 402,536 $ 404,607
Due aer one year through ve years 3,277,547 3,378,149
Due aer ve years through ten years 3,524,883 3,694,429
Due aer ten years 4,332,024 4,523,819
$ 11,536,990 $ 12,001,004
(dollars in thousands)
December 31, 2010 Amortized Cost Fair Value
Securities
Due in one year or less $ — $ —
Due aer one year through ve years 2,962,995 3,007,975
Due aer ve years through ten years 2,090,217 2,056,515
Due aer ten years 4,440,016 4,560,364
$ 9,493,228 $ 9,624,854
Navy Federal held $374.4 million and $400.0 million, respectively, of Federal Home Loan Bank of Atlanta (FHLBA) stock as of December 31, 2011
and 2010. 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 $9.2 billion line of credit facility.
All debt securities were reviewed individually to determine whether the unrealized losses associated with them were caused by an other-than-
temporary decline in the value of such investments. Navy Federal’s methodology to determine whether unrealized losses are other-than-temporary is
based on the following factors: whether Navy Federal intends to sell or hold the security until its costs can be recovered, the nature of the security, the
portion of unrealized losses that are attributable to credit losses and the nancial condition of the issuer of the security.
Navy Federal does not intend to sell nor would Navy Federal be, more likely than not, required to sell these securities before recovering its amortized
cost basis. ese securities include both government securities issued by government corporations that are explicitly backed by the full faith and credit
of the U.S. government, as well as government-sponsored agency securities. e unrealized losses associated with these investments are not a result of
a change in the credit quality of the issuer; rather, the losses are reective of changing market interest rates. erefore, Navy Federal expects to recover
the entire cost basis of these securities.
ere were 45 available-for-sale securities and 4 held-to-maturity securities in an unrealized loss position at December 31, 2011. e following table
presents these investments at fair value and their associated gross unrealized losses broken down by the amount of time the investments have been
in a loss position: