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�� Virginia rank: 43 90+ Day Delinquency Rate Foreclosure Rate december 2012 2.27% Unemployment Rate 1.28% 5.5% year ago 2.37% 1.81% 6.1% percent point change -4.1% -29.4% -9.8% Top County Cumberland CounTy 90+ Day Delinquency Rate Foreclosure Rate december 2012 3.80% 3.11% year ago 5.12% 1.73% percent point change -25.6% 80.5% Top Core-based Statistical area WaShingTon-arlingTon-alexandria, dC-Va-md-WV 90+ Day Foreclosure Delinquency Rate Rate december 2012 3.05% 2.37% year ago 1.74% 1.65% percent point change 75.5% 44.2% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the December 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary December 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. IN THE NEWS Navy Federal Credit Union Ranks Among Best Companies to Work For Navy Federal Credit Union, headquartered in Vienna, Virginia, earned a spot in Fortune Magazine���s 2013 list of the ���100 Best Companies to Work For,��� the company announced. This year marks Navy Federal���s third appearance on the list, having first been recognized in 2008 and again in 2012. The company ranked No. 56 on the 2013 list, which is based on an extensive survey of employees for companies across the country. Navy Federal remains the only credit union to ever make the list, according to a release from the company. ���This is an honor for us. I believe it recognizes the enthusiasm and dedication our employees have for our mission to serve the men and women of the Department of Defense and their families,��� said Cutler Dawson, president and CEO of Navy Federal. ���2012 was a record year for us���record growth in new members, loans, deposits, and all our member success measures. But the real story is that we couldn���t have done this without the commitment of our employees. I am so very proud of the entire Navy Federal team.��� ���Some of the most eloquent comments about Navy Federal come from the employees themselves,��� Dawson continued. ���I can���t say it better than one of our employees did: ���It is a pleasure to work for a company that really cares about its employees as much as Navy Federal does. I love my job and hope to be with Navy Federal until I retire one day. I am proud to tell my family and friends how great Navy Federal is and how good they are to their employees!������ According to the release, Navy Federal���s workforce grew in 2012 to more than 10,000 employees across all of its campuses and branches worldwide. SEC Charges Three Former Execs for Misrepresenting Bank���s Portfolio Three former executives of the Bank of Commonwealth based in Norfolk, Virginia were charged for understating millions in loan losses and hiding the state of the bank���s portfolio, the Securities and Exchange Commission (SEC) announced in a statement. Edward J. Woodard (former CEO, president, and chairman of the board); Cynthia A. Sabol (former CFO); and Stephen G. Fields (former EVP) were charged for allegedly misrepresenting the bank���s deteriorating loan portfolio to investors. According to the SEC, public statements and SEC filings from Commonwealth miscommunicated the message that the bank���s portfolio was conservatively managed according to strict underwriting standards. Woodard, Sabol, and Fields were allegedly aware of the true condition of the portfolio but worked to hide the actual state. According to the SEC���s complaint, the bank���s allowance for loan and lease losses, or ALLL, was understated by about 17 to 25 percent from November 2008 to August 2010. ���During times of financial stress, it���s more important than ever for executives to make full and honest disclosure to the investing public,��� said Scott W. Friestad, associate director of the SEC���s Division of Enforcement. ���Commonwealth���s executives did the VISIT US ONLINE @ DSNEWS.COM opposite and hid the company���s worsening performance from shareholders through masking practices that understated the losses on its most troubled loans.��� Regulators closed the bank in September 2011. According to the FDIC, the bank had about $985.1 million in assets and $901.8 million in deposits when it failed. The SEC���s charges against the three execs include violations of antifraud, reporting, recordkeeping, internal controls, and deceit of auditors. Genworth Announces Capital Plan for Mortgage Insurance Business Richmond, Virginia-based Genworth Financial announced a new comprehensive capital plan for its mortgage insurance business on January 16. According to a company release, when the new plan is implemented, it will reduce Genworth Mortgage Insurance Company���s (GMICO) risk-to-capital by 12 to 15 points, reduce the need for additional capital for its mortgage insurance subsidiaries, decrease the risk of default for senior notes, and ensure the continued ability to write new business. The company revealed actions it plans to take, one of which involves transferring ownership of the European mortgage insurance subsidiaries to GMICO. Completion of transfer is expected to occur in the first quarter of 2013, and the subsidiaries will provide about $200 million in additional statutory capital to GMICO, according to the release. Genworth is also implementing a ���NewCo��� type structure to allow for the continued writing of new business in all 50 states. The option would be implemented if certain adverse conditions were to occur. As part of its plan, the company will contribute $100 million to GMICO. And, Genworth agreed to contribute another $100 million if GMICO were to enter into a deferred payment order with the North Carolina Department of Insurance or if projections show GMICO may not have enough resources to pay valid claims. Genworth is also reorganizing to create a new holding company, or new parent, which will make Genworth a direct, wholly owned subsidiary of the new parent. Upon completion of the reorganization, Genworth will continue to own its existing businesses minus the U.S. mortgage insurance subsidiaries. 107

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