Navy Federal Credit Union 2005 Annual Report Download - page 49

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19
The estimated fair values of the credit union’s financial instruments are as follows
(dollars in thousands):
2005
Carrying Amount
2005
Fair Value
2004
Carrying Amount
2004
Fair Value
Financial assets:
Cash and cash equivalents $ 3,165,226 $ 3,165,226 $ 3,879,589 $ 3,879,589
Securities available-for-sale 7,891 7,891 12,915 12,915
Securities held-to-maturity 2,875,428 2,833,481 2,591,845 2,577,883
Interest-bearing deposits 579,594 569,238 655,369 654,475
Other investments 2,221 2,210 2,226 2,259
Investment in FHLB-Atlanta 26,458 26,440 26,458 26,469
Mortgage servicing assets 131,667 131,667 102,384 102,384
Mortgage loans awaiting sale 241,209 241,209 321,268 321,268
Loans, net of allowance for loan losses 16,502,095 16,282,352 14,302,380 14,379,587
Financial liabilities and equity:
Securities sold under
repurchase agreements (2,690,873) (2,691,153) (2,578,674) (2,579,129)
Members’ accounts (18,940,275) (18,293,477) (17,618,769) (17,594,131)
Note 17: Recently Issued Accounting
Pronouncements
In August 2005, FASB issued a proposed statement that would
amend FAS 140,
Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities.
This proposed statement
would require all separately recognized servicing rights to be initially
measured at fair value, if practicable. Furthermore, this proposed
statement would permit an entity to choose either the amortization
method or fair value method as a subsequent measurement method
for financial reporting purposes. Navy Federal will continue to
monitor the status of this exposure draft as the results could affect
the financial reporting of mortgage servicing rights in the future.
Navy Federal does not expect that the difference in a method of
measurement would have a material impact on its results of
operations or its financial condition.