Noventis Credit Union Ltd. Summary Consolidated Financial Statements

For the Year Ended December 31, 2016

A copy of the complete consolidated financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.noventis.ca.

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Independent Auditors' Report To the Members of Noventis Credit Union Ltd.: The accompanying summary consolidated financial statements, which comprise the summary consolidated statement of financial position as at December 31, 2016, and the summary consolidated statements of comprehensive income, changes in members’ equity and cash flows for the year then ended are derived from the audited consolidated financial statements of Noventis Credit Union Ltd. for the year ended December 31, 2016. We expressed an unmodified audit opinion on those consolidated financial statements in our report dated March 20, 2017. The summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary consolidated financial statements, therefore, is not a substitute for reading the audited consolidated financial statements of Noventis Credit Union Ltd. Management’s Responsibility for the Summary Consolidated Financial Statements Management is responsible for the preparation of the summary consolidated financial statements in accordance with International Financial Reporting Standards. Auditors' Responsibility

Our responsibility is to express an opinion on the summary consolidated financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report on Summary Financial Statements”. Opinion In our opinion, the summary consolidated financial statements derived from the audited consolidated financial statements of Noventis Credit Union Ltd. for the year ended December 31, 2016 are a fair summary of those consolidated financial statements. Winnipeg, Manitoba March 20, 2017 Chartered Professional Accountants

A copy of the complete consolidated financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.noventis.ca.

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Noventis Credit Union Ltd. Summary Consolidated Statement of Financial Position

As at December 31, 2016

2016 2015

Assets

Funds on hand and on deposit 40,138,274 69,185,703

Investments 50,432,500 30,338,326

Members' loans 703,370,469 656,514,676

Other assets 2,728,198 1,872,549

Property and equipment 13,214,059 12,927,852

Goodwill and intangible assets 5,851,112 6,265,089

Income taxes recoverable - 133,562

815,734,612 777,237,757

Liabilities

Members' savings and deposits 761,357,887 724,693,475

Accounts payable and other liabilities 4,044,203 5,212,431

Income taxes payable 47,989 -

Deferred taxes 644,665 646,665

766,094,744 730,552,571

Members' equity

Members' shares 7,955,583 8,457,214

Retained surplus 32,924,868 29,468,555

Contributed surplus 8,759,417 8,759,417

49,639,868 46,685,186

815,734,612 777,237,757

Approved on Behalf of the Board

Signed “Paul Cuthbert” , Director

Signed “Bragi Simundsson” , Director

A copy of the complete consolidated financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.noventis.ca.

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Noventis Credit Union Ltd. Summary Consolidated Statement of Comprehensive Income

Year

ended

December 31,

2016

Three months

ended

December 31,

2015

Financial income

Interest from members' loans 25,146,145 6,203,452

Investment income 1,658,158 436,031

26,804,303 6,639,483

Cost of funds 11,067,907 2,836,569

Financial margin 15,736,396 3,802,914

Operating expenses

Administration 4,520,920 1,300,156

Member security 646,383 156,279

Occupancy 2,027,314 461,204

Organizational 463,968 121,891

Personnel 9,502,394 2,342,869

Gross operating expenses 17,160,979 4,382,399

Other revenue

Banking service charges, fees, and commissions (4,055,581) (1,031,272)

Insurance commissions (2,309,315) (332,306)

6,364,896 1,363,578

Net operating expenses 10,796,083 3,018,821

Income from operations before provision for impaired loans and income taxes 4,940,313 784,093

Provision for impaired loans 774,000 30,000

Income before provision for income taxes 4,166,313 754,093

Provision for income taxes 710,000 141,250

Income and comprehensive income for the year 3,456,313 612,843

A copy of the complete consolidated financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.noventis.ca.

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Noventis Credit Union Ltd. Summary Consolidated Statement of Changes in Members’ Equity

Members'

shares

Retained

surplus

Contributed

surplus Total

Balance, September 30, 2015 6,336,557 28,855,712 - 35,192,269

Income and comprehensive income - 612,843 - 612,843

Issuance of member shares 1,610 - - 1,610

Redemption of member shares (41,841) - - (41,841)

Business combination 2,160,888 - 8,759,417 10,920,305

Balance, December 31, 2015 8,457,214 29,468,555 8,759,417 46,685,186

Income and comprehensive income - 3,456,313 - 3,456,313

Issuance of member shares 7,895 - - 7,895

Redemption of member shares (509,526) - - (509,526)

Balance, December 31, 2016 7,955,583 32,924,868 8,759,417 49,639,868

A copy of the complete consolidated financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.noventis.ca.

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Noventis Credit Union Ltd. Summary Consolidated Statement of Cash Flows

Year ended

December 31,

2016

Three months

ended

December 31,

2015

Cash provided by (used for) the following activities

Operating activities

Interest received from members' loans 25,104,241 6,424,938

Interest received from investments 1,694,552 563,708

Income taxes paid (530,449) (181,240)

Interest paid to members (11,427,790) (2,699,053)

Net operating expenses paid (17,762,663) (3,694,143)

Other income received 6,364,896 1,363,578

3,442,787 1,777,788

Investing activities

Net change in members' loans (47,587,889) (6,862,146)

Net change in investments (20,130,568) (245,811)

Purchase of property and equipment (1,294,423) (1,144,588)

(69,012,880) (8,252,545)

Financing activities

Net change in members' savings and deposits 37,024,295 (4,880,763)

Issue of members' shares 7,895 1,610

Redemption of members' shares (509,526) (41,841)

36,522,664 (4,920,994)

Decrease in funds on hand and on deposit (29,047,429) (11,395,751)

Funds on hand and on deposit, beginning of year 69,185,703 80,581,454

Funds on hand and on deposit, end of year 40,138,274 69,185,703

A copy of the complete consolidated financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.noventis.ca.

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Noventis Credit Union Ltd. Notes to the Summary Consolidated Financial Statements

For the Year Ending December 31, 2016

1. Reporting entity information

Noventis Credit Union Ltd. merged with Starbuck Credit Union Limited on October 1, 2015 and changed its year end to December 31.

2. Compliance with minimum capital and liquidity requirements

Noventis Credit Union Ltd. (the “Credit Union”) is in compliance with the capital and liquidity reserve requirements at December 31, 2016 established by the Regulations to The Credit Unions and Caisses Populaires Act of Manitoba. Readers of the summary consolidated financial statements are advised that in order to appropriately interpret the Credit Union’s capital and liquidity, the reader must refer to the audited consolidated financial statements and notes for the year ending December 31, 2016, which contain the information detailing the calculation.