Navy Federal Credit Union Posts Strong Results in 2004

Navy Federal Credit Union grew by nearly $3 billion in assets in 2004. Find out what the main drivers were behind their success in 2004.

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.

Wondering how your credit union compared to the rest of the industry in 2004? Callahan & Associates’ latest Internet-basedfinancial analytical tool, CU Analyzer, takes an educational approach to financial analysis. Review today’s Credit Union of the Day to learn more about how CU Analyzer can help you and your staff better understand credit union performance to make more informed business decisions!

April 19, 2016

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