Michigan credit unions continue historic growth in Q2 2017
Increases in credit union membership and lending outpacing national averages
LANSING, MI (September 28, 2017) — Second-quarter 2017 data from the National Credit Union Administration (NCUA) shows that Michigan credit union growth rates in assets, loans, surplus funds and savings were above the national average, while delinquencies fell below the national average. This has led to strong earnings that are also well above national averages.
Fueled by high consumer confidence and spending, business investments, low unemployment and stable inflation, the U.S. economy expanded at a robust rate of 3.0 percent in the second quarter of 2017, and is now on track for annual GDP growth of 2.1 percent for 2017. These strong economic fundamentals continue to benefit credit unions and their member-owners, both in Michigan and nationwide, which are experiencing some of the fastest membership and loan growth in decades.
Michigan credit unions in particular recorded a 3.1 percent 12-month increase in total members through June 2017 — slightly lower than last year’s rate of 3.6 percent, but faster than any other year in the past three decades. Membership growth is also much higher than Michigan’s annual population growth rate of 0.1 percent, as reported by the U.S. Census Bureau. Michigan credit unions now report 5.1 million memberships, or just over half (51.5 percent) of the state’s population.
Loan growth improved to a second quarter rate of 4.1 percent, significantly higher than the 1.4 percent growth in the first quarter. Total loans at Michigan credit unions grew 11.0 percent in the year ending June 2017, slightly higher than the national average of 10.8 percent. This continues the fastest loan growth since 1994, when it was 15.9 percent.
Segmented trends for Michigan credit unions in the second quarter of 2017 are provided below.
Annualized loan growth (by loan type):
- Member business loans: 23.2 percent
- New automobile loans: 15.7 percent
- Used automobile loans: 11.9 percent
- First mortgages: 10.6 percent
- Credit cards: 7.0 percent
- Other unsecured loans: 7.3 percent
Annualized membership growth (by region):
- Alpena: 1.1 percent
- Detroit: -1.7 percent
- Flint: 4.1 percent
- Grand Rapids: 6.8 percent
- Lansing: 0.5 percent
- Marquette: -1.4 percent
- Muskegon: -0.2 percent
- Traverse City: 6.0 percent
“At more than five million members strong, it’s clear that Michigan sees the value in joining cooperative, not-for-profit financial institutions committed to supporting their communities,” said Michigan Credit Union League CEO Dave Adams. “These membership and loan growth numbers are more than just statistics — they represent reliable transportation for families, first-time home-ownership dreams and new jobs provided through small business loans. They demonstrate the real difference credit unions make in people’s lives.”
With low interest rates, high employment and solid economic growth, Credit Union National Association economists expect strong loan portfolio growth through 2018, even if interest rates tick up a bit.
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.