Navy Federal Credit Union 2015 Annual Report Download - page 74

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Financial Section 55
2015—SHARED SUCCESS
(dollars in thousands) Estimated Fair Value
December 31, 2014 Carrying
Amount Total Level 1 Level 2 Level 3
Financial assets:
Cash $ 426,201 $ 426,201 $ 426,201
Short-term investments 354,538 354,538 323,052 $ 31,486
Available-for-sale securities 12,986,192 12,986,192 12,986,192
Held-to-maturity securities 369,084 370,225 370,225
Mortgage loans awaiting sale 572,420 572,420 572,420
Loans to members, net of
allowance for loan losses 45,461,735 50,903,173 21,453,526 $ 29,449,647
Investments in FHLBs 462,878 462,878 462,878
Mortgage servicing rights 235,801 235,801 235,801
Other assets 16,090 16,090 2,047 14,043
Financial liabilities:
Members’ accounts 44,154,199 41,050,943 41,050,943
Securities sold under
repurchase agreements 1,469,502 1,472,615 1,472,615
Notes payable 9,942,200 10,327,671 10,327,671
Other liabilities 37,872 37,872 37,869 3
ASC 825-10, Fair Value of Financial Instruments—Disclosure, also requires the disclosure of all
significant concentrations of credit risk arising from financial instruments, whether from an
individual counterparty or groups of counterparties. Navy Federal has assessed the counterparty
credit risk on its financial instruments and has determined that it is not material to the
financial statements.
NOTE 23: REVISIONS TO PREVIOUSLY REPORTED FINANCIAL STATEMENTS
Management identified misclassifications in certain financial statement line items (listed below)
related to the classification of certain revenue and expense amounts related to the use of credit/
debit card interchanges and loan origination expense in previously reported Consolidated
Statement of Income for the year ended December 31, 2014.
Management evaluated the impact of these misclassifications on the previously reported financial
statements, presented herein, and concluded they did not, individually or in aggregate, result in a
material misstatement of Navy Federal’s previously reported consolidated financial statements.
Additionally, because these misclassifications did not result in any out-of-period adjustment, there
is no cumulative eect to be reflected in the 2015 financial statements. The misclassifications do not
have an impact on the previously reported net income as it amounted to a reclassification between
financial statement line items. Although the impact of these changes was not material to the
consolidated financial statements for the year ended December 31, 2014, management concluded
a revision of the respective financial statement line items for the year ended December 31, 2014
presented in the 2015 consolidated financial statements is appropriate. These corrections, noted
below, have no impact on Navy Federal’s financial position, results of operations, or regulatory
capital ratios for the year ended December 31, 2014.