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Navy Federal Credit Union • 2013 Annual report
5
Record-breaking Loan Growth
The U.S. economy continued to recover and gain strength, spurred by low interest rates,
an improving housing market, and an uptick in job growth. Even so, Navy Federal’s impressive
results in 2013 outpaced the financial industry’s performance.
In 2013, Americans purchased 15 million new automobiles, a 7.5% increase over the previous
year. By comparison, Navy Federal booked 298,000 auto loans of nearly $6 billion, increases
of 16% and 18%, respectively. Auto loan growth was driven by
the following factors: the popularity of our 1.49% APR new
car rate, the $250 incentive to refinance a loan from another
lender, and a strong pre-approval program throughout the
year. Additionally, the entire consumer loan portfolio, comprising
checking lines of credit and auto, boat, motorcycle, and
personal loans, grew to $12 billion, a 19% increase over 2012.
The housing market continued its rebound throughout 2013, with continued low interest
rates. At Navy Federal, we closed over 46,500 mortgage loans for $11 billion, surpassing
the 2012 record of $10 billion. Many first-time homebuyers chose Navy Federal because
of our 100% financing, closing cost assistance, personal service, and educational tools
such as our online Home Center.
Our credit card portfolio also had a record-breaking year, with total outstandings ending
the year at $8.1 billion, a net gain of $1.3 billion. Several factors drove this impressive result.
During 2013, we made changes to both our goRewards® and Flagship cards, reducing fees
and improving the point rewards structure. Members now earn 1 point for every dollar spent
using their goRewards card. Flagship cardholders now earn 2 points for every dollar spent.
These enhancements, together with our very popular 0% APR balance transfer promotion,
contributed to over 300,000 new credit cards being issued in 2013.
These numbers, in addition to year-end results, measure the notable success of Navy Federal
for 2013. At year end, total assets increased by $3 billion to reach $56 billion. Total reserves,
a measure of Navy Federal’s safety and soundness, reached $6 billion. The many achievements
of this past year can be attributed to the trust our members place in us to deliver products
that deliver real value and confidence that business decisions are always made with their best
interests in mind.
Chairman & President
Almost 300,000
members took out
auto loans totaling
nearly $6 billion.
, continued