Navy Federal Credit Union 2006 Annual Report Download - page 21

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4
N F C U
C S  C  R  U E
(dollars in thousands)
(1) See Note 5 for details.
(2) See Note 14 for details.
e accompanying notes (beginning on page 6) are an integral part of these consolidated financial statements.
N F C U
C S  C F
(dollars in thousands)
e accompanying notes (beginning on page 6) are an integral part of these consolidated financial statements.
Years Ended December 31 2006 2005
Cash flows from operating activities
Net income $ 401,588 $ 266,337
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses 120,567 244,369
Depreciation of fixed assets 49,518 42,395
Amortization of mortgage servicing rights –20,672
Loss/(gain) on disposal of fixed assets (85) 353
Mortgage loans originated for sale (3,189,856) (4,363,626)
Mortgage loan sales proceeds 3,341,361 4,442,771
(Increase) in mortgage servicing assets (27,372) (49,954)
(Increase) in accrued interest receivable (11,342) (8,207)
(Increase) in prepaid expenses (45,499) (19,201)
(Increase) in accounts receivable (11,241) (50,099)
(Increase)/decrease in other assets (6,368) 2,270
Increase in dividends payable (106) (674)
Increase in drafts payable 1,356 29,442
Increase in accrued expenses and accounts payable 26,347 14,724
Increase in accrued interest payable 6,178 2,347
Increase/(decrease) in other liabilities (1,409) 1,573
Net cash provided by operating activities 653,637 575,492
Cash flows from investing activities
Net decrease in Federal funds and other short-term investments 575,339 856,164
Purchase of HTM investment securities (327,623) (1,388,549)
Proceeds from maturity of HTM investment securities 1,259,376 1,137,280
Net increase in loans to members (4,017,899) (2,444,345)
Purchase of fixed assets (172,935) (95,045)
Sale of fixed assets 42,213 32,136
Increase in deposit to NCUSIF (8,573) (13,504)
Net cash used in investing activities (2,650,102) (1,915,863)
Cash flows from financing activities
Net increase in members’ accounts 1,765,814 1,321,506
Increase in equity from merger with Gulfport CBC Credit Union 1,519 –
Net increase in securities sold under repurchase agreements 236,573 112,199
Net cash provided by financing activities 2,003,906 1,433,705
Net increase in cash 7,441 93,334
Cash at beginning of year 349,216 255,882
Cash at end of year $ 356,657 $ 349,216
Additional cash flow information:
Interest paid $ 683,323 $ 505,040
Transfers from loans to other real estate 10,610 2,977
Impact of adoption of SFAS No. 156 39,669 –
Regular
Reserve Capital Reserve Undivided Earnings
Accumulated
Other Comprehensive
Income Total Reserves and Undivided Earnings
Balance at December 31, 2004 $ 349,406 $ 2,056,796 $ 20,000 $ (85) $ 2,426,117
Net income – – 266,337 – 266,337
Net unrealized loss on available-for-sale securities – – – (24) (24)
Discretionary – 266,337 (266,337) – –
Balance at December 31, 2005 $ 349,406 $ 2,323,133 $ 20,000 $ (109) $ 2,692,430
Net income – – 401,588 – 401,588
Cumulative-effect adjustment⁽¹⁾ – – 39,669 – 39,669
Net unrealized loss on available-for-sale securities – – – 66
Merger⁽²⁾ 402 1,117 – – 1,519
Discretionary – 411,257 (411,257) – –
Balance at December 31, 2006 $ 349,808 $ 2,735,507 $ 50,000 $ (103) $ 3,135,212