Wednesday, April 22, 2020

Coronavirus Hits Navy FCU's Q1 Net Income

Navy Federal Credit Union (Vienna, VA) reported a decline in net income for the first 3 months of 2020 compared to the same time period a year ago, as the coronavirus affected its performance.

Net income fell from almost $423.6 million for the first quarter of 2019 to $245.7 million for the fist quarter of 2020 -- an almost 42 percent decline in net income from a year earlier.

The increase in provisions for loan and lease losses contributed to the decline in net income. Provisions for loan and lease losses increased by $112 million between the first quarter of 2019 and the first quarter of 2020. At the end of the first quarter of 2020, provisions for loan and lease losses were $504.5 million.

Delinquent loans increased from almost $710.9 million as of March 2019 to $958 million one year later -- a year-over-year increase of approximately 35 percent. However, loans two month or more past due were down $21.5 million from the end of 2019.

Allowance for loan and lease losses were $1.74 billion for the quarter ending March 31, 2020. As of March 31, 2019, allowance for loan and lease losses were $1.54 billion. At the end of 2019, allowance for loan and lease losses were $1.632 million.

Assets at Navy FCU surged over the last year. Assets grew by almost 22 percent to $125.7 billion at the end of the first quarter of 2020.

Loans were up by slightly less than $11.2 billion over the last year to $86.2 billion as of March 31, 2020.

The information for the first quarter of 2020 was obtained from Navy Federal Credit Union's website. Data for the first quarter of 2019 came from the credit union's Call Report at the National Credit Union Administration.

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