Navy Federal Credit Union 2011 Annual Report Download - page 5

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REPORT OF THE CHAIRMAN AND PRESIDENT
Navy Federal achieved
great success in 2011.
We continued to thrive
despite the challenges of a turbulent
economy, persistent unemployment, a
national climate of uncertainty, and
growing regulatory burdens. Our
core values helped us stay focused on
what matters most: our members,
our mission, and our future.
is is in stark contrast
to other nancial
institutions that chose
to redene themselves,
adopt unfavorable
policies, or even close
their doors.
Our reputation for
having a principled
approach to business
helped fuel growth in
membership, products,
services, and assets. Total
membership increased by
a record 230,000 with nearly one-
fourth of new members coming from
the Army and Air Force. By year-end,
total membership stood at 3.9 million.
Total deposits grew by $2.4 billion
to end the year at $34 billion, giving
testament to the continuing trust our
members place in us. New members
helped bolster our checking account
portfolio, which added 410,000
new accounts and ended the year
with over two million accounts,
over half of which are funded via
Direct Deposit.
Members needing loans found
credit readily available at Navy Federal.
Consumer loans grew by over $6
billion, an increase of 10% over 2010,
driven in large part by auto loan rates
as low as 1.79% APR. Mortgage loans
remained at their historically low
rates, beneting members who wished
to purchase a home or renance an
existing loan. We closed $5.3 billion
in mortgage loans in 2011. And
despite renewed competition in the
credit card market, Navy Federal’s
portfolio increased over 16% and
totaled nearly $6 billion at year-end.
We ended 2011 with $31.5 billion in
total loans.
Total assets increased by nearly
$3 billion to reach $47 billion, an
increase of 6%. Total reserves, an
indicator of Navy Federal’s safety and
soundness, reached $5 billion as of
31 December 2011.
At Navy Federal, success is not just
meeting nancial goals. Success is
bringing improved convenience and
service to our members. We opened
11 new branches, bringing our world-
wide footprint to 220 locations at
year-end. Our Contact Center handled
nearly 19 million member inquiries,
surpassing 2010 by 800,000 calls.
Both Navy Federal Online® Account
Access and our Mobile Banking service
experienced strong enrollments of
13% and 71%, respectively.
For 78 years, Navy Federal’s focus
has been dened by our guiding
principles of service, commitment,
and integrity. Our unwavering stance
on doing what is right for the people
that matter most—our members—
is what helped make 2011 another
greatly successful year for your
credit union.
John A. Lockard
Chairman
Cutler Dawson
President
NAVY FEDERAL —ENDURING STRENGTH 3