Navy Federal Credit Union 2008 Annual Report Download - page 7

NAVY FEDERAL CREDIT UNION
4 5
2008 FINANCIAL SECTION
Regular
Reserve
Capital
Reserve
Undivided
Earnings
Accumulated
Other
Comprehensive
Income
Total Reserves
and Undivided
Earnings
Balance at December 31, 2006 $ 349,808 $ 2,735,507 $ 50,000 $ (103) $ 3,135,212
Adjustment to beginning balance — 45,591 ——45,591
Adjusted balance at
December 31, 2006 349,808 2,781,098 50,000 (103) 3,180,803
Net income, as restated ——230,056 — 230,056
Adjustments to initially apply
SFAS 158 ——— (101,662) (101,662)
Net unrealized loss on
available-for-sale securities ——— (2,974) (2,974)
Discretionary transfer, as restated — 230,056 (230,056) — —
Balance at December 31, 2007
(as restated) $ 349,808 $ 3,011,154 $ 50,000 $ (104,739) $ 3,306,223
Net income ——81,633 — 81,633
Adjustments related to SFAS 158 ——— ( 198,289) (198,289)
Net unrealized loss on
available-for-sale securities ———(48,537) (48,537)
Discretionary transfer — 81,633 (81,633) — —
Balance at December 31, 2008 $ 349,808 $ 3,092,787 $ 50,000 $ (351,565) $ 3,141,030
Navy Federal Credit Union
Consolidated Statements of Changes in Reserves and Undivided
Earnings
(dollars in thousands)
Navy Federal Credit Union
Consolidated Statements of Cash Flows
(dollars in thousands)
The accompanying notes (beginning on page 6) are an integral part of these consolidated financial statements.
The accompanying notes (beginning on page 6) are an integral part of these consolidated financial statements.
Years Ended December 31 2008 2007 (as restated)
Cash flows from operating activities
Net income $ 81,633 $ 230,056
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 654,822 283,902
Depreciation of fixed assets 77,185 60,464
Loss on disposal of fixed assets 566 193
Gain on sale of eligible obligations (4,732) —
Amortization of loan origination fees and costs 21,956 22,914
Mortgage loans originated for sale (145,203) (1,535,774)
Mortgage loan sales proceeds 146,762 1,095,678
Decrease in mortgage servicing rights 60,612 12,218
Decrease/(increase) in accrued interest receivable 4,951 (20,285)
(Increase) in prepaid expenses (119,728) (29,932)
(Increase) in accounts receivable (206,047) (52,350)
(Increase) in other assets (10,720) (8,385)
Increase in dividends payable 47 —
(Decrease) in drafts payable (22,944) (13,291)
(Decrease)/increase in accrued expenses and accounts payable (30,093) 67,509
Increase in accrued interest payable 10,142 10,969
Increase in deferred income 5,590 7,931
Increase in other liabilities 48,990 3,786
Net cash provided by operating activities 573,789 135,603
Cash flows from investing activities
Net decrease in Federal funds and other short-term investments 449,359 919,207
Purchase of AFS investment securities (2,156,706) (687,445)
Purchase of HTM investment securities (6,136,829) (4,138,747)
Proceeds from maturity of AFS investment securities 178,337 5,467
Proceeds from maturity of HTM investment securities 8,979,188 4,068,294
Net increase in loans to members (5,039,421) (6,075,757)
Purchase of fixed assets (448,557) (436,490)
Sale of fixed assets 203,355 176,019
Increase in deposit to NCUSIF (11,847) (20,062)
Net cash used in investing activities (3,983,121) (6,189,514)
Cash flows from financing activities
Net increase in members’ accounts 747,875 3,271,552
Net decrease in securities sold under repurchase agreements (443,870) (1,068,777)
Net increase in notes payable 3,193,782 3,940,424
Net cash provided by financing activities 3,497,787 6,143,199
Net increase in cash 88,455 89,288
Cash at beginning of year 445,945 356,657
Cash at end of year $ 534,400 $ 445,945
Additional cash flow information:
Interest paid $ 974,098 $ 1,044,605
Transfers from loans to other real estate 40,414 17,590