Michigan Credit Union membership well above population growth in third quarter
LANSING, MI (January 4, 2019) — In the third quarter of 2018, healthy labor markets across the country fueled personal income gains, which boosted confidence and translated into solid increases in retail sales and housing purchases, according to the National Credit Union Administration (NCUA).
This healthy operating environment was reflected in Michigan’s credit union results with strong membership and loan growth and healthy earnings. Memberships rose by 3.2 percent in the last year, which is well above the state’s 0.2 percent population growth. This brings total Michigan credit union memberships to 5.4 million. In other words, approximately 550 consumers are joining a Michigan credit union every day.
Annualized membership growth (by region):
- Detroit: 2.6 percent
- Grand Rapids: 7.1 percent
- Lansing: 1.6 percent
- Muskegon: 1.7 percent
- Traverse City: 8.7 percent
Loan growth rose by 11.4 percent in the year ending in September 2018 — approximately the same rate as full-year 2017 credit union loan portfolios.
Annualized loan growth (by loan type):
- New automobile loans: 19.7 percent
- Used automobile loans: 10.8 percent
- First mortgages: 12.7 percent
- Credit cards: 7.6 percent
- Other unsecured loans: 5 percent
- Commercial loans: 23.1 percent
In all of these loan categories, credit unions offered lower rates than banks in Q3, as well as offering lower fees including $10 less per credit card fee and $210 less per mortgage closing cost, according to CUNA’s Q3 Membership Benefits Report.
An estimated $397 million in direct financial benefits were provided to the state’s 5.3 million credit union members in the year ending in September. This is equivalent to $79 per member or $159 per household and is calculated based on average savings differences between credit union and bank pricing.
“Each quarter, we see more and more Michigan consumers are turning to credit unions for their responsible lending, lower rates and fees and other financial benefits, such as higher CD rates, fee-free checking, lower fees and better loan rates,” said Michigan Credit Union League CEO Dave Adams. “People respond to financial institutions that offer not only low-cost products and services created for financial health, not the highest profit, and that’s what we’re seeing in Michigan, where credit union memberships are outpacing population growth.”
Find the complete Q3 2018 NCUA Call Report Data here.
You can also find more Q3 data on Michigan credit unions’ low rates and high dividends in the Q3 Member Benefits Report.
About Michigan Credit Union League & Affiliates
Organized in 1934, the Michigan Credit Union League & Affiliates [mcul.org] (MCUL) is a trade association representing Michigan’s credit unions. Based in Lansing, Michigan, MCUL works to strengthen the credit union community and its image by providing advocacy on important issues, coordinating cooperative initiatives and by providing high-quality solutions that help credit unions succeed and enrich the lives of their members.