2017

ANNUAL

REPORT

FOCUSED ON THE FUTURE

Federally Insured by NCUA

Saving Together to Lend to Each Other

Our Story....................................................... 1

Message from the CEO & Chairperson.......... 2

Financial Performance................................... 3

Financial Highlights............................. 4, 5 & 6

Audit Report; Board of Directors................... 7

Executive Team, Management & Staff........... 8

Community Involvement................................ 9

Community Contributions............................. 10

Products and Services.................................. 11

TABLE OF CONTENTS

Naveo Credit Union was founded in 1928 when twenty-seven Portuguese-Americans banded together to form a financial cooperative after finding it increasingly difficult to access deposit and loan products from banks in the community.

Naveo Credit Union, formerly Cambridge Portuguese Credit Union, was incorporated on March 2, 1928 as a place where the community could deposit their savings with confidence and borrow money at low rates of interest. In 2014, the Credit Union changed its name to Naveo Credit Union to complement the changing demographics of the area by becoming an inclusive institution, one that is welcoming to everyone in the community.

HISTORY

Naveo is a local not-for-profit community financial institution focused on serving its members/owners. Our mission is to assist our members with their financial needs by providing them with products and services they need in a friendly, inviting environment. As stated in our motto of “Saving Together to Lend to Each Other,” we take member deposits and in-turn, lend to our neighbors and local organizations.

As a local financial institution, we are proud to take an active role in our community by reinvesting in the community with local loans and contributions to local organizations. We are aware that individuals in our community value an institution beyond just low fees and great rates, which is why we pride ourselves on the partnerships we make with local organizations that bring value to our neighbors and members.

ABOUT US

Guiding the financial lives of the people we serve – in the neighborhoods where we live.

MISSION STATEMENT

OUR STORY

Thank you to all of our members for making 2017 another successful year! During the past year, we continued to focus on our core values of providing members with a unique member experience. As a result, the Credit Union experienced growth in number of members, deposits and loans. Our deposits grew by 2.8% while our loan portfolio grew by 19%. Our loan growth is attributed to a successful solar loan program in which members took advantage of lower rates and state incentives, while reducing energy costs in their homes with the use of solar panels. Our members continue to trust us with their business loans, showcased by our 27% business loan portfolio growth. Although our goal is to serve our members in the best way with personalized service, we have also evolved and taken advantage of new technologies to better serve current and future members. We now offer a full-service mobile banking platform that provides our members the convenience of banking with us from anywhere and at any time. More of our members are taking advantage of this technology to manage their finances while saving time to focus on their personal goals. To further diversify our online offerings, this year we will introduce online account opening so members can easily open accounts in the comfort of their home.

This year we celebrate 90 years of serving our members and we are proud that we remain true to our humble beginnings and continue with the motto of “saving together to lend to each other.” This motto continues to guide us in providing our members with a place where they can make their deposits with confidence and borrow at affordable rates. In addition, we are proud to say that your money is invested locally to help our local economy. To celebrate our 90th anniversary, we will host several events throughout the year including a member barbecue at the end of the summer. We hope you can join us during our celebrations and take advantage of our offerings.

Although our members are our primary focus, we cannot be successful without a dedicated staff that looks for better ways to serve our members each day. In addition, we are privileged to have a committed volunteer Board of Directors that provides guidance to management on how to better serve our members and stay true to our mission.

Happy 90th anniversary to all of us and we look forward to continue to serve you in 2019!

Warmest regards,

Rui F. Domingos Maria L. Santos Chief Executive Officer Chairperson of the Board

MESSAGE FROM THE CEO & CHAIRPERSON

FINANCIAL PERFORMANCE

FINANCIAL HIGHLIGHTS

57

60 70 84

2014   2015   2016   2017  

LOAN GROWTH ($ Millions)!

113

118 12

3 126

2014   2015   2016   2017  

ASSET GROWTH ($ Millions)!

103 10

8 113 11

6

2014   2015   2016   2017  

DEPOSIT GROWTH ($ Millions)!

$8,909,753 !

$15,819,893 !

$8,867,477 !

$50,246,793 !

Auto Loans !

Business Loans!

Consumer Loans!

Mortgage Loans!

136

375

327 41

8

2014   2015   2016   2017  

NET INCOME!($ Thousands)!

8.9 9.

2 9.4 9.

7

2014   2015   2016   2017  

CAPITAL GROWTH ($ Millions)!

$8,909,753 !

$15,819,893 !

$8,867,477 !

$50,246,793 !

Auto Loans !

Business Loans!

Consumer Loans!

Mortgage Loans!

DEPOSIT COMPOSITION

LOAN COMPOSITION

$39,539,265 !

$23,933,824 !

$23,833,435 !

$43,163 !

$25,786,601 !

$2,377,007 !

Regular Shares!

Statement Savings!

NOW Accounts!

Club Accounts!

CDs & IRAs!

Money Market!

$39,539,265 !

$23,933,824 !

$23,833,435 !

$43,163 !

$25,786,601 !

$2,377,007 !

Regular Shares!

Statement Savings!

NOW Accounts!

Club Accounts!

CDs & IRAs!

Money Market!

AUDIT REPORT

BOARD OF DIRECTORS

The Credit Union’s financial soundness and quality of management are examined by the Commonwealth of Massachusetts’ Division of Banks and the National Credit Union Administration (NCUA).Naveo Credit Union is a member of the NCUA and the Cooperative Credit Union Association. These organizations support the objectives and concerns of the credit union movement, as well as assist with and promote the viability of individual credit unions.The audit committee oversees the operations of Naveo as required by law. The Board of Directors are appointed by the Credit Union membership with the responsibility of reviewing the Credit Union’s operations. They also monitor the regulatory examination performed by the Division of Banks and NCUA, and oversee an annual certified opinion audit. Wolf & Company, P. C., certified public accountants, performed the audits for our fiscal years ended June 30, 2017 and 2016. In their opinion, the financial statements present fairly, in all material respects, the financial position of Naveo, the results of operations and related cash flows for the years then ended in conformity with Generally Accepted Accounting Principles of the United States of America.

Maria L. Santos, ChairpersonJohn C. Feitor, 1st Vice ChairmanCharles F. McCannon, TreasurerPaul Ferreira, Secretary/ClerkChristopher AlphenManuel Da SilvaIsaac M. MachadoLeontina ManciniCharles MontemorCatarina Nogueira

EXECUTIVE TEAM

Rui F. Domingos, Chief Executive OfficerAlbert Pinho, Vice President of LendingJanet M. Cicerano, Vice President of Human ResourcesKevin George, Vice President of FinanceJudith Murdoch, Senior Operations & Retail Officer

Ana C. Santos, Mortgage Production ManagerMichael Dwyer, Operations ManagerNicolle Medeiros, Retail Manager - SomervilleRaquel Sa, Marketing ManagerSusie Pereira, Retail Manager - Cambridge

MANAGEMENT

Alexandra MarinAllie TeixeiraAna CisnerosAnna Carolina GomesAnne LabetaCibelle TimasCorália GarciaEdimar RodriguesFernanda ChavesElizabeth CabralKevin Pereira

STAFF

Margaret IaoMargaret SilvaMeralda MilheirãoMylma LemosPatricia AcquavivaPaula FerreiraPeggy NortonPriscilla RodriguezSamantha CiceroneSusan JacobucciVeronica Corrente

Naveo Credit Union is committed to building and sustaining the neighborhoods which it serves and continues to take an active role in the community by supporting the efforts of local organizations. Naveo’s strategic partnerships with local non-profits and other organizations have better allowed us to bring value to the community beyond financial services. It is apparent to us that our members appreciate a local financial institution, especially when it goes beyond banking. Our efforts show that we truly believe in the credit union philosophy of “people helping people.”

COMMUNITY INVOLVEMENT

A Bed for Every ChildAmerican Red CrossAmigos da Ribeira GrandeBoston Children’s HospitalBoston Portuguese Festival (BPF)Boys and Girls Club of Middlesex County (BGCMC)Boys and Girls Club of WoburnCarlton PTOChildren’s Miracle NetworkCommunity CooksDr. Edward Leitão Scholarship FundEast Cambridge Business Association (ECBA)East Cambridge Little LeagueEscola Portuguesa de Cambridge e Somerville, Inc.Friends of King Open SchoolImperio Mariense de SaugusJoe & Dorothy Chaves FoundationKiwanis Club of SomervilleLeukemia & Lymphoma SocietyLittle Sisters of the PoorMassachusetts Alliance of Portuguese SpeakersMassachusetts Coalition for the HomelessPortuguese Civic LeaguePortuguese in New EnglandSawtelle Hospice HouseSecond ChancesSomerville-Cambridge Elder ServicesSomerville Chamber of CommerceSomerville Council of PTAsSomerville Homeless Coalition (SHC)Somerville Fair HousingS.S. Cosmas and Damian SocietySt. Anthony’s Parish, CambridgeSt. Anthony’s Parish, SomervilleSt. Catherine of Genoa ParishToys for Local ChildrenToys for TotsUnion Square Main StreetsWilmington Pop WarnerWoburn High School

COMMUNITY CONTRIBUTIONS

SAVINGS PRODUCTSStatement Savings Passbook SavingsKid’s ClubNon-interest Bearing SavingsCertificatesIRAsChristmas Clubs

HOME LOANSHome MortgagesHome Equity LoansHome Equity Lines of Credit Mortgage Refinancing

BUSINESS SERVICESCommercial Real Estate LoansLines of CreditTerm LoansFree Business Checking**Business SavingsBusiness Money MarketMasterCard® & Visa Credit Card

PERSONAL CHECKINGSecure Checking Eco CheckingMoney Market

CONSUMER LOANSNew & Used Auto LoansPersonal LoansStudent LoansMass Save Heat LoanMass Solar LoanBicycle LoanDreamer LoanConstruction LoanMasterCard® & Visa Credit Card

eACCESSiBankingPopmoney™Mobile BankingMobile DepositeStatementsOnline Loan CenterText/E-mail AlertsFinancial Calculators24-7 Telephone Response

ADDITIONAL SERVICESEMV ATM/Debit Card24-Hour ATMMoney OrdersWire TransfersNotary PublicOfficial ChecksDirect DepositAutomatic PaymentsBank-by-MailTelephone Transfers

**Check orders are excluded.

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government, National Credit Union Administration, a U.S. Government Agency.

PRODUCTS AND SERVICES

Somerville Branch493 Somerville AvenueSomerville, MA 02143

Cambridge Branch251 Hampshire StreetCambridge, MA 02139Drive-up Available

24-7 Telephone Access1.844.NAVEO.CU (628.3628)617-547-3144naveo.org