LANSING, MI (January 10, 2020) — Michigan’s economy in the third quarter of 2019 was a favorable operating environment for credit unions. The Credit Union National Association and Michigan Credit Union League reported healthy membership and loan growth, high asset quality, healthier earnings and higher net worth ratios for Michigan’s cooperative, not-for-profit financial institutions.
Memberships rose 1.1% in the quarter, making for a 2.7% increase over the past 12 months. This rate of increase is 14 times faster than the rate of population growth in the state. After Q3, Michigan credit unions now report 5.5 million members, equal to 55% of the state’s population. Currently, more than 500 consumers are joining credit unions in Michigan every day with more than 12,000 joining credit unions nationwide.
Membership growth by region (for trailing 12 months):
In the year ending in September 2019, CUNA estimates that Michigan credit unions provided $482 million in direct financial benefits to the state’s 5.5 million members. This is an increase to the already impressive $424 million recorded in the preceding quarter.
These benefits are equivalent to $89 per member or $187 per member household in direct financial benefits. CUNA calculates these stats based on average savings differences between credit union and bank pricing, and result from financial benefits, such as higher CD rates and fee-free checking, as well as lower rates and fees on products like home, car and auto loans.
Loan portfolios grew by 2.7% in the quarter, which makes for a 10.8% annualized pace and a rate marginally above second quarter growth. Michigan credit unions outpaced the national average in all of the following loan categories.
Q3 loan growth (by type):
“Michigan credit union membership growth is far outpacing the state’s population growth; it’s good news for members and for Michigan’s economy, and we see that reflected in the significant increase in direct financial benefits given to members,” said MCUL President/CEO Dave Adams. “Additionally, any increased success of credit unions extends to all state consumers. As earnings rise, so do the contributions that these Michigan not-for-profit financial institutions are able to reinvest in their communities through these financial services as well as significant financial education efforts.”
Find the complete Q3 2019 Michigan Credit Union Profile Report here.
You can also find more Q3 data on Michigan credit unions’ low rates and high dividends in the Q3 Member Benefits Report.
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.
Shawn Glinis
734.793.3449 | Shawn.Glinis@mcul.org
