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 income stayed 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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Feb. 7, 2005


  • Could you show a graph or trend line of Navy or a pie chart of their loan or share portfolio to put your 04 numbers and examples in context. Also your referance to the prior ten years of net income at $131 million is very misleading when compared to the two $300 million plus years for it takes very low years and averages them with very high to suggest there was something unique about 03 and 04's net incomes. The best way to present this would be to show the ROA, a relative measure of earnings over the ten year period. Also in articles like this, it is helpfull to publish a two year condenced balance sheet and income statement with ratios so a reader can to their own analysis. Finally, did anyone talk with Navy to capture their high point in 2004. Chip
  • Good summary. c
  • I am a proud member of Navy FCU! Hooyah! Go Navy, Beat Army!!
  • interesting to hear about the biggest. Most interesting is their delinquency rate.
  • Growth in shares is what really drives growth in assets. How did they accomplish 11.7% growth in shares? Under other highlights,second bullet, what is 9 "who" basis points?
  • According to Callahan's annual Technology Survey publication, Navy uses an in-house core processor (no vendor name provided so it could be proprietary) and uses Checkfree/EDS for Bill Pay.
  • Who is your billpay processor
  • Who is your core processor?
  • Mostly interesting to me is the fact that Navy Federal was supposedly set up only for deployed and overseas Sailors and Marines. Now they take everybody that looks at a military installation and are going crazy making money and of course turning their backs on earlier members.
  • Good evening: My name is Raymond Curtis Jr., and I would like to know what are the requirements for becoming a member of Navy Federal Credit Union? Your assistance in helping me to become a member will be greatly appreciated! Thank you very much!!