Navy Federal Credit Union 2008 Annual Report Download - page 13

Note 11: Goodwill
The changes in the carrying amount of goodwill were as follows:
Goodwill acquired in business combinations is tested for impairment quarterly in accordance with SFAS
No. 142, Goodwill and Other Intangible Assets. Navy Federal uses the number of new accounts opened
at acquired office locations to estimate the fair value of the goodwill. The carrying value of the goodwill is
included in “Other assets” in the Consolidated Statements of Financial Condition.
Note 12: Members’ Accounts
Member deposit accounts as of December 31, 2008 and 2007, were summarized as follows:
The Emergency Economic Stabilization Act of 2008, signed into law on October 3, 2008, increased
the insurance coverage on all member accounts up to $250,000 through December 31, 2009. As such,
the total uninsured amount of members’ accounts was $1.3 billion at December 31, 2008. Based on
the original insurance coverage of $100,000 per non-IRA account and $250,000 per IRA account, the
amount of members’ accounts exceeding the original coverage limits was $3.8 billion and $4.0 billion
at December 31, 2008 and 2007, respectively.
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2008 FINANCIAL SECTION
Unused commitment balances as of December 31, 2008 and 2007, were as follows:
Note 10: Fixed Assets
The following is a summary of property and equipment Navy Federal owned at December 31, 2008 and 2007:
Navy Federal has obligations under a number of non-cancelable operating leases for premises. The future
minimum payments under the terms of the leases as of December 31, 2008, were:
Rent expense was $18.2 million and $14.7 million in 2008 and 2007 (as restated), respectively. In 2008,
Navy Federal received income from sublease contracts of $73,000 while it received $71,000 from sublease
contracts in 2007.
NAVY FEDERAL CREDIT UNION
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(dollars in thousands at year-end) 2008 2007
Unused Commitments
Credit cards $ 5,222,057 $ 4,750,474
NAVchek lines of credit 564,354 544,723
Home equity lines of credit 1,247,390 1,281,108
Preapproved auto loans 195,712 233,187
Utility deposit guarantee programs 3,146 3,030
Letter of credit 7,500 7,500
Total $ 7,240,159 $ 6,820,022
(dollars in thousands at year-end) 2008 2007
Property and Equipment
Land and buildings $ 554,339 $ 400,635
Equipment, furniture and fixtures 517,207 461,934
Leasehold improvements 107,200 87,280
Subtotal 1,178,746 949,849
Less: Accumulated depreciation (472,319) (410,874)
Total $ 706,427 $ 538,975
(dollars in thousands) Amount
2009 $ 14,621
2010 13,460
2011 12,633
2012 10,871
2013 9,133
Thereafter 22,053
Total $ 82,771
(dollars in thousands) Amount
December 31, 2006 $ 15,214
Reduction in goodwill related to decreased number of new accounts opened (289)
December 31, 2007 14,925
Reduction in goodwill related to decreased number of new accounts opened —
December 31, 2008 $ 14,925
(dollars in thousands at year-end)
Weighted
Average Rate
for 2008
2008
Weighted
Average Rate
for 2007
2007
Money Market 2.32% $ 4,260,542 4.63% $ 4,457,111
Share Savings 0.89% 4,826,346 1.38% 4,467,403
Member Escrow 0.56% 109,582 0.74% 95,849
Checking 0.43% 3,579,195 0.54% 3,181,833
Share and IRA Certificates 4.51% 11,470,990 4.51% 11,284,022
IRA shares 1.30% 364,409 1.66% 359,390
IRA MMSA 2.02% 52,422 4.49% 48,808
Investor custodial accounts 0.00% 62,029 0.00% 83,225
Total deposits $ 24,725,515 $ 23,977,641