Now at 5.2 million members strong, Michigan credit unions report continued growth in Q4 2017
LANSING, MI (March 28, 2018) — With consumer confidence near cyclical highs, the U.S. economy grew at a consistent pace in the fourth quarter of 2017 and the unemployment rate fell to a near 17-year low. Strong consumer spending and tax reform had the stock market trading near record highs throughout the quarter, and while inflation concerns increased, overall price changes remained in the Federal Reserve’s comfort zone. Michigan credit membership growth, loan growth and earnings results remained solid throughout the quarter.
Michigan credit unions reported a 0.8 percent increase in total memberships in the fourth quarter of 2017, which led to an annual increase of 3.5 percent for the year. Michigan credit unions now report a total of 5.2 million memberships — roughly 52 percent of the state’s estimated 9.9 million population.
Additionally, Michigan credit union loan portfolios grew by 2.6 percent in the fourth quarter — a solid 10.4 percent annualized pace. New auto loans led the way with a three-month, 5.5 percent gain. Holiday spending, and hence credit union loan growth, came in at or near post-recession highs, with credit card loan growth coming in at 5.1 percent for the fourth quarter, eclipsing the 4.8 percent gain reported in the final quarter of 2016. Overall, 2017 loan growth came in at 11.6 percent — the highest rate of growth since 1994.
2017 annual growth trends for Michigan credit unions include:
Membership growth (by region):
- Alpena: 1.4 percent
- Detroit: -2.9 percent
- Grand Rapids: 4.7 percent
- Lansing: 0.0 percent
- Marquette: -2.1 percent
- Muskegon: -0.2 percent
- Traverse City: 5.9 percent
Loan growth (by loan type):
- Member business loans: 8.2 percent
- New automobile loans: 19.8 percent
- Used automobile loans: 11.8 percent
- First mortgages: 11.8 percent
- Credit cards: 6.8 percent
- Other unsecured loans: 7.1 percent
“2017 was a great year for Michigan credit unions,” said Ken Ross, Michigan Credit Union League President/COO. “With strong membership growth and double digit increases in loan sales, it’s clear that more consumers every day are choosing the credit union difference.”
With expectations of continued modest increases in market interest rates, solid wage gains and higher consumer confidence, Credit Union National Association economists expect another year of solid loan portfolio growth in 2018.
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.