2018 Annual Report | Navy Federal Credit Union


[MUSIC PLAYING] Throughout our
85-year history, our single-minded focus
has been on service. And in 2018, we
underscored our dedication to this guiding principle
with the introduction of our new theme– our members are the mission. Because our active duty, retired
military members, all veterans, and their families always have
and always will come first. 2018 was a year of
growth and milestones for Navy Federal Credit Union. We celebrated the addition
of our 8 millionth member and our 85th anniversary. And we honored the past 14
years of leadership excellence as we bid a fond farewell
to outgoing President Cutler Dawson. In January of 2019, we welcomed
Mary McDuffie as our new CEO. Moving forward, we’ll continue
to emphasize a great member experience and will
ensure our financial tools and services are simple,
effective, and easy to use. Let’s talk about some of
last year’s accomplishments. We added 1.2 million
new members in 2018. More than 200,000 were veterans
and their family members. We also expanded our network,
improved products and services with popular new features,
and kept our loan and savings rates competitive. Members responded
enthusiastically, borrowing more than $75 billion. Total deposits reached
a record $70.4 billion, an increase of $7.4 billion. And our total assets increased
$6.4 billion to $97 billion. The number of checking
account holders increased to 6.2
million last year. Members who had both checking
accounts and direct deposit grew 13%. And we saw a 21% increase in the
use of debit cards over 2017. Investments through our
subsidiary, Navy Federal Financial Group,
climbed to $3.1 billion. And the number of members
served increased by 28%. Now let’s look at
consumer lending. Members borrowed $15.3
billion in consumer loans, checking lines of credit,
and private student loans last year, bringing our total
portfolio to $19.8 billion, up 8% over last year. Last year, we
partnered with Carfax to provide 150,000
complimentary used car history reports to members
looking for a car loan. The reports helped members
avoid purchasing overvalued used cars, saving a
combined $63.5 million. Navy Federal’s business
services launched a new business loan processing
and management system for an improved and
faster loan process. To help more members
build credit, we lowered the minimum
required deposit to open an nRewards Secured
card from $500 to $200. And to give members the most
value for their travel dollars, we enhanced the Visa Signature
Flagship Rewards card, adding three times the rewards
on all travel purchases and a TSA pre-check or global
entry credit worth up to $100. Members opened more than half
a million new credit card accounts. Sales increased by 15% for a
total of $24.5 billion overall. We had a great year in
real estate lending. Navy Federal earned a top
score on JD Power’s 2018 survey for mortgage servicing
satisfaction. Our outstanding service and
competitive loan options helped increase our combined
mortgage and equity. More than 56,000 members
closed home loans with us for a record $15.3 billion. And members tapped into
their available equity to make home improvements
and consolidate debt to the tune of $1.1 billion. Last year in student lending, we
helped more than 8,600 students make strides toward
their education goals at more than 1,300
different schools by financing more
than $100 million in private student loans. We also helped
almost 3,500 college graduates refinance and
consolidate $149.6 million in student debt. Now let’s take a look at some
of the exciting things that happened with digital banking. We introduced a new easier to
use version of our mobile app and added new
self-service features. One of our most popular
new features is Zelle, a simple service members
can use to send money to friends and
family in minutes, regardless of where they bank. Another popular new feature,
two-factor authentication, gives members an additional
layer of security by supplementing their
usernames and passwords with a one-time passcode
sent at sign in. Now let’s look at
expansion and service. We work hard to improve
our products and services and the ways we offer them. We opened 20 new
branches in 2018, bringing our total
number to 327. Members visited our network of
branches 25.4 million times, a nearly 6% increase. During the year, we served
members through 24/7 stateside phone access to member service
representatives, e-messages, chat, social media,
alerts, and notifications. And our member service
representatives fielded just over
34 million calls. We have a proud 85-year history
of serving those who serve and the ones who matter
the most to them– their families. Our member satisfaction
remains high. We were honored last year to
be named by both Kiplinger and Money Magazine as the best
bank for military personnel. Forrester recognized
us as best in class for customer
experience and number one in full-service banking in
the 2018 US Customer Experience Index. Additionally, we’re proud
that our team members continue to rate us highly
in national surveys. Fortune magazine named us as
one of the 100 Best Companies to Work for. And we were also recognized
by Forbes, among others. As a credit union serving the
military and their families, we’ve made their mission ours. It’s written in the decisions
we make as an organization, and it’s reflected
in the way we serve. No matter their circumstances,
whether stateside or deployed, active duty or veterans,
employees or families, we’re here for our
members to help them find the financial
solutions they need to thrive now and
for generations to come. [MUSIC PLAYING]

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