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70 LENDER/SERVICER PROFILE Navy Federal Credit Union ONE2WATCH Sources: Navyfederal.org (1/25/2014), Navy Federal Annual Credit Report (3/28/2013), Bloomberg Businessweek (1/25/2014) RECOGNITION » Navy Federal is the largest U.S. retail credit union in terms of membership, with four million members » Navy Federal is the largest U.S. retail credit union in terms of asset size with $54 billion in assets KNOW THIS As of December 31, 2012, Navy Federal had $6.03M in real estate loans that were more than 12 months delinquent. The value of all loans that were considered delinquent during this time period was $3.12M. VERBOSITY "We continue to set the standard high and surpass even our expectations. In turn, we reward and recognize our employees by providing opportunities for career advancement, competitive training initiatives, and excellent perks and benefits." - Navy Federal President/CEO Cutler Dawson on the announcement that Navy Federal made Fortune Magazine's 2014 list of "100 Best Companies to Work For" COMPANY VITALS Headquarters: Vienna, Virginia Phone: 888.842.6328 Online: NavyFederal.org Headquartered in Vienna, Virginia, the Navy Federal Credit Union (Navy Federal) is the nation's largest retail credit union—both by asset size and membership. Founded in 1933 with only seven members, Navy Federal now cites four million members and a workforce of more than 11,000 on its website. Navy Federal also cites $54 billion in assets. Membership to Navy Federal is limited to the following: Department of Defense (DoD) uniformed personnel, DoD reservists, U.S. Coast Guard uniformed personnel, Army and Air National Guard personnel, DoD Officer Candidate programs, all DoD civilian employees, U.S. government employees assigned to DoD installations, DoD contractors assigned to U.S. government installations, and employees of Navy Federal and their family. Navy Federal offers home loans, equity loans, car loans, and credit cards. COMPANY'S LATEST January 4, 2014 Number of the Week: Millennials in the Military Are Much More Financially Secure 79%: Share of 18-to-34 year old members of the military "very" or "somewhat" satisfied with their current financial situation. Being all that you can be in the military appears to include having your finances in order. Young members of the military are more likely to save for retirement, be prepared for an emergency expense and feel better about their financial situation than their peers, a recent survey from Navy Federal Credit Union found. - Wall Street Journal April 22, 2013 Largest U.S. Credit Union May Avoid Systemic Designation Navy Federal Credit Union, the largest such institution in the U.S., is unlikely to be designated systemically important, according to a member of the Financial Stability Oversight Council. "What we are looking at are non-regulated entities like insurance companies," Debbie Matz, who serves on the council as chairman of the National Credit Union Administration, said in an interview in her office in Alexandria, Virginia, today. Even the largest credit union wouldn't draw the council's oversight because it's already federally regulated, she said. The council, created by the Dodd-Frank Act in the aftermath of the 2008 financial crisis, reviews non-bank financial firms that have $50 billion in assets and meet some other criteria to decide if they warrant designation as posing a potential risk to the financial system. While all banks with more than $50 billion in assets are automatically put under increased Federal Reserve oversight, credit unions, insurance companies, hedge funds and other non-banks would have to be reviewed separately. - Bloomberg KEY PERSONNEL Cutler Dawson President and CEO Frank Thorp Secretary and Director Captain Grisell F. Collazo Secretary and Director Lynda McDaniel VP of Membership Janice Kilgore VP of Greater Pensacola Operations Staffing » Staff of more than 11,000 worldwide » Workforce grew 14 percent in 2013 » One-third of employees work in branch offices SERVICING SUMMARY Portfolio Growth » Q4 2012: $32.3B » Q4 2011: $29.8B MSRs » Q4 2012: $1.44M » Q4 2011: $1.42M » Annual Change: 1.4% Originations » Q4 2012: $5.27M » Q4 2011: $3.25M » Annual Change: 62% *Navy Federal records MSRs at fair value with changes in fair value recorded and separately disclosed in the Consolidated Statement of Income. MSR valuation is sensitive to interest rate and prepayment risk. Delinquency Stats REO » Q4 2012: $3.22M » Q$ 2011: $4.95M » Annual Change: -35% *REO is classified as held-for-sale and initially recorded at fair value less estimated costs to sell (e.g., brokers' commissions, legal expenses, title transfer fees, and closing costs) at the time of acquisition. After acquisition, REO is carried at lower of cost or fair value. Holding costs such as insurance, maintenance, taxes, and utility costs are expensed as incurred. Holding gains and losses are included in "Other non-interest expense" on the Consolidated Statements of Income. Headquarters: Vienna, Virginia HEADQUARTERS

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