Navy Federal Credit Union 2009 Annual Report Download - page 18

(dollars in thousands)
2009 2008
Consumer loans and credit cards
Consumer loans
Auto $ 5,596,484 $ 5,975,114
Other 2,213,193 2,110,468
NAVchek®lines of credit 265,526 264,724
Federal education loans 494,310 386,201
Vehicle leases 46,260 82,890
Credit card loans 4,617,978 4,159,310
Mortgage loans
Mortgage loan investments
Fixed rate 12,881,374 12,165,405
Variable rate 304,934 341,111
In process 599 2,779
Unamortized deferred income (76,230) (63,408)
Mortgage loans awaiting sale
Fixed rate 264,859 65,200
Variable rate ——
Unrealized losses (497) —
In process 1,371 1,323
Unamortized deferred income (1,532) (1)
Equity loans
Fixed equity 3,711,332 4,611,111
Home equity lines of credit 1,033,131 1,062,627
31,353,092 31,164,854
Less: Allowance for loan losses 588,278 512,479
Total loans to members $ 30,764,814 $ 30,652,375
Navy Federal Credit Union
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2009 Financial Section
At December 31, 2009 and 2008, there was no decline considered “other-than-temporary” in the value of
U.S. Government and federal agency mortgage-backed securities owned by Navy Federal.
Other investments represent capital required to maintain partnerships with credit union organizations.
Investments pledged as collateral for borrowed funds were $357.6 million and $359.2 million at
December 31, 2009 and 2008, respectively.
Navy Federal’s certificates of deposits and share deposits in corporate credit unions are fully insured. However,
membership capital in the corporate credit unions is not insured and the value of the shares associated with
the membership capital declined, therefore the shares were permanently impaired by $20.5 million.
The following table shows Navy Federal’s deposits and membership capital shares in the corporate
credit unions:
(dollars in thousands) 2009 2008
Certificates of deposit $ 3,000 $ 2,000
Membership, capital shares 7,816 28,286
Share deposits —1
Total $ 10,816 $ 30,287
(dollars in thousands) 2009 2008
Balance, beginning of year $ 512,479 $ 256,277
Provision charged to operations 662,853 654,822
Loans charged off (623,488) (442,011)
Recoveries 36,434 43,391
Balance, end of year $ 588,278 $ 512,479
A summary of the changes in the allowance for loan losses is as follows:
Note 4: Loans to Members and Allowance for Loan Losses
The composition of loans to members at December 31, 2009 and 2008 was as follows:
2009
(dollars in thousands) Less than 12 months 12 months or longer Total
December 31, 2009 Fair value
Gross
Unrealized
Losses Fair value
Gross
Unrealized
Losses Fair value
Gross
Unrealized
Losses
Available-for-sale
securities $ 253,278 $ (2,710) $ 837,190 $ (7,341) $1,090,468 $ (10,051)
Held-to-maturity
securities 528,144 (4,018) 125,710 (980) 653,854 (4,998)
Total securities $ 781,422 $ (6,728) $ 962,900 $ (8,321) $ 1,744,322 $ (15,049)