Navy Federal Credit Union 2015 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2015 Navy Federal Credit Union annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 78

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78

Navy Federal Credit Union38
NOTE 14: GOODWILL
Navy Federal recognizes net assets acquired and liabilities assumed of acquired entities at
estimated fair value as of the acquisition date, subject to refinement as information relative
to the fair values at the date of acquisition becomes available. Navy Federal recorded $43.7
million of goodwill related to its acquisition of USAFCU on October 1, 2010. In accordance with
ASC 350-20, Goodwill and Other, goodwill is evaluated for impairment annually and upon any
changes in circumstances that could likely result in reducing the fair value of a reporting unit
below its carrying amount. Navy Federal performed a qualitative assessment of its goodwill as
of September 30, 2015 and 2014, pursuant to ASU 2011-08, Testing Goodwill for Impairment, and
concluded it was not likely the fair value of any reporting unit was below its carrying amount,
and therefore did not recognize any impairment charges.
The following table summarizes the carrying amount of goodwill:
(dollars in thousands) Carrying Value of Goodwill
December 31, 2013 $ 58,905
Adjustments during 2014 —
December 31, 2014 58,905
Adjustments during 2015 —
December 31, 2015 $ 58,905
NOTE 15: MEMBERS’ ACCOUNTS
Interest rates on members’ share accounts are set by the Board of Directors and are based on
an evaluation of current and future market conditions. Interest on members’ accounts is based
on available earnings for each interest period and is not guaranteed by Navy Federal. In claims
against the assets of Navy Federal, such as in the event of its liquidation, Navy Federal members’
accounts are subordinate to other liabilities of Navy Federal.
The aggregate amount of time deposits, consisting of share certificates and IRA certificates,
that meet or exceed $250,000 was $1.8 billion and $1.5 billion at December 31, 2015 and
2014, respectively.
At December 31, 2015, scheduled maturities of time deposits, consisting of share certificates and
IRA certificates, were as follows:
(dollars in thousands) Amount
2016 $ 6,971,802
2017 3,425,899
2018 2,108,773
2019 1,210,376
2020 847,594
Thereafter 1,419,808
Total $ 15,984,252