Navy Federal Credit Union 2011 Annual Report Download - page 27

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2011 FINANCIAL SECTION 11
In accordance with ASC 805-10, Navy Federal monitored the original fair values and purchase price allocation of USAFCU’s assets and liabilities
for possible acquisition accounting adjustments. A review of acquisition date fair values at September 30, 2011 resulted in an acquisition accounting
adjustment of $0.26 million, which was adjusted against goodwill. As of that date, Navy Federal considered the analysis of acquisition date values
complete and the acquisition accounting for USAFCU as nal.
Note 3: Restrictions on Cash
Navy Federal is required to maintain balances with corporate credit unions that are classied as membership shares. ese shares are not insured by
the National Credit Union Share Insurance Fund (NCUSIF) and require three years’ notice prior to withdrawal. e required balance for Navy Federal
at both December 31, 2011 and 2010 was $6.7 million.
NFFG had $1.1 million and $1.6 million set aside in restricted cash at December 31, 2011 and 2010, respectively, as part of the agreement it entered
into with Charlie Mac, LLC.
As of December 31, 2011, Navy Federal maintained a cash balance of $50,000 as collateral for a line of credit with a corporate credit union. As of
December 31, 2010, Navy Federal maintained a cash balance of $4.0 million as collateral for a line of credit with that same corporate credit union,
$1.9 million at the Federal Reserve Bank and $3.2 million as a form of collateral for a business agreement with a major credit card issuer as of
December 31, 2010.
All restricted cash amounts except membership capital shares are classied as Other Assets on the Consolidated Statements of Financial Condition.
(dollars in thousands) Original Book Value Fair Value Adjustments Final Fair Value Allocation
ASSETS
Cash $ 31,754 $ — $ 31,754
Securities available-for-sale 3,373 — 3,373
Securities held-to-maturity 5,551 — 5,551
Loans to members, net 493,335 (58,127) 435,208
Other investments 11,637 — 11,637
Receivables 33,342 — 33,342
Fixed assets 2,648 — 2,648
NCUSIF deposit 5,727 — 5,727
Other assets 11,838 2,040 13,878
Total assets 599,205 (56,087) 543,118
LIABILITIES
Members’ accounts 570,280 4,007 574,287
Accrued expenses and other payables 12,555 — 12,555
Total members’ accounts and liabilities 582,835 4,007 586,842
NET ASSETS/LIABILITIES ACQUIRED $ 16,370 $ (60,094) $ (43,724)
Note: Cost approximates fair value for short-term items.
e following statement of net assets reects the values assigned to USAFCU’s net assets by each major asset and liability caption as of the acquisition
date, October 1, 2010: