Navy Federal Credit Union, based out of Merrifield, VA, is the credit union industry leader with $22.9 billion in assets. The credit union gained $2.9 billion in assets in 2004, thanks to an 11.2% growth in loan balances. The main driver in their loan portfolio was real estate, which increased by 19.1% to $6.4 billion. Long-term (greater than 15 years) fixed rate mortgages made up the largest component of their real estate loans granted in 2004 at $3.6 billion. Navy was also active in the secondary market, selling off $4.3 billion of their mortgages in 2004. (See graph below of Navy’s loan portfolio composition).
Share growth reached 11.7% for the 12-month period, led by a 21.8% jump in money market shares. This was slightly above their share growth of 2003, which was 11.6%. On the earnings side, net income decreased by 2.8% to $304.7 million. However, net incomestayed above $300 million for the second consecutive year.
Other highlights include:
- Membership rose 2.6%
- Return on Assets declined 25 basis points to 1.42%.
This follows the trend of the industry average for ROA which dropped 9 basis points to .92%.
- Net Worth levels increased to 9.7% of assets
- Asset quality remained outstanding with a 0.5% delinquency ratio
For a complete look at Navy’s financial statement, click here.
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