From the Wires
Navy Federal Closes Record-Breaking Year
Jan. 11, 2013 06:00 AM
Credit Union Credits Success to Member Loyalty
VIENNA, Va., Jan. 11, 2013 /PRNewswire-USNewswire/ -- Navy Federal Credit Union, the world's leading credit union, announced record growth in new members, new loans and new checking accounts in 2012. Despite the challenging year in many parts of the economy, the credit union attributes its achievements to its member-centric philosophy.
"Our success is due to our focus on doing the right things for our members," noted President and CEO Cutler Dawson. "We ended the year with $52.5 billion in assets—a positive sign for the financial health of our organization, and our ability to offer members the best financial options available."
Navy Federal saw gains in membership, deposits, loan volume, and industry accolades:
- Total membership surpassed the four million mark in the summer of 2012, with an addition of more than 600,000 new members for the year. Navy Federal cites quality member service, and word-of-mouth as a major growth factor. "Members tell their friends and family about their positive experiences here—the excitement spreads," acknowledged Nancy DeDona, vice president, Membership.
- Navy Federal closed out the year with a record $10 billion in mortgage originations. "Historically low rates and promotions, like offering to pay up to $2500 in closings costs, are a huge differentiator in the industry," said Jack Gaffney, executive vice president, Lending. "We aim to find the right mortgage or refinance option to fit our members' needs."
- The credit union originated $4.8 billion in auto loans in 2012—a 46% increase over 2011. Jack Gaffney, executive vice president, Lending, stated, "Whether giving loan discounts to active duty military, or offering rebates for refinancing—we do things other lenders can't and won't." While historically low rates spurred much of the loan volume, the credit union also credited the growth to rapid loan processes and comprehensive service.
- Credit card growth rates outstripped general industry results. Navy Federal opened almost 250,000 new credit card accounts, a 22% increase over 2011. The credit card portfolio increased by $1 billion—a 17% over the previous year compared to the single digit growth reported by the credit card industry. "The goal is for our members to get the best value for their money on our credit cards," commented Gaffney. Navy Federal has several low-rate credit card products that provide competitive rewards for members, and in January 2013, the organization kicked off a promotion offering 0% fixed introductory APR on balance transfers for 12 months with no balance transfer fees.
- For the sixth year, the credit union ranked as a leader in overall member satisfaction, according to results from the 2012 American Customer Satisfaction Index (ACSI). Their score led the banking industry.
Dawson maintains that 2012's results directly correlate to member satisfaction: competitive rates, easy-to-understand products and services and an unwavering service commitment drove increases across the organization. "We want members to trust that they get the best value for their money—that's more important now than ever."
Contact: Michele Townes
Phone: (703) 206-3828
SOURCE Navy Federal Credit Union