At Vienna-based Navy Federal, the nation's largest credit union with $36.35 billion in assets, fourth-quarter losses were driven by a conservative reassessment of potential loan losses and a $40 million write-down on the value of its mortgage-servicing rights, said Lauren Lloyd, chief financial officer.
The servicing rights declined in market value because mortgage rates dropped in December, which could entice more borrowers to refinance and pay off their loans early, she
Navy Federal set aside $245 million in the fourth quarter as a provision to cover potential loan losses.
Although the credit union lost money in the quarter, it made $105.29 million in net income for the year.
, which serves Department of Defense
personnel, launched an aggressive expansion last year with plans to double its branch count by 2012.
Those plans will not be effected by the losses, Lloyd