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Michigan Credit Union League

Michigan Credit Unions Outpace National Growth in Q2 2018

According to the National Credit Union Administration, the U.S. economy grew at a very strong pace in the second quarter of 2018, and that pace was obvious in Michigan credit union operating results during the quarter. Membership growth, loan growth and earning results were solid as a result of high quality, low cost services.

More specifically, Michigan credit unions reported a 0.7 percent increase in total memberships in the second quarter of 2018. That represents a membership increase of 3.6 percent for the year ending June 2018, which is above the 3.5 percent full-year 2017 growth. As a result, Michigan credit unions now report a total of 5.3 million memberships.

Annualized membership growth (by region):

  • Alpena: 13.4 percent
  • Detroit: 7.3 percent
  • Grand Rapids: 22.6 percent
  • Lansing: 11.4 percent
  • Marquette: 7.4 percent
  • Muskegon: 8.5 percent
  • Traverse City: 5.5 percent

Credit union loan portfolios in Michigan grew by 4.6 percent — a solid 18.4 percent annualized pace, well above the 1.6 percent first quarter gain.

Annualized loan growth (by loan type):

  • New automobile loans: 20.8 percent
  • Used automobile loans: 11.7 percent
  • First mortgages: 14.4 percent
  • Credit cards: 6.8 percent
  • Other unsecured loans: 6.3 percent
  • Commercial loans: 12.5 percent

“Michigan’s credit unions are growing their memberships, and providing great value to their over 5.3 million members by lending responsibly and saving consumers and small businesses money every day with their lower loan rates and lower fees,” said Michigan Credit Union League President/CEO Dave Adams. “This responsible lending, coupled with their fee-free checking accounts and convenient shared ATM networks as well as their trusted service mantra, makes credit unions stand out against large banks that tend to over-fee their customers.”

In Q2 2018, Michigan credit unions continued to offer lower average loan rates in all of the above-mentioned loan categories. Additionally, the average credit card late fee was almost $10 lower than at a Michigan bank, and the average closing cost on a mortgage was more than $200 less.

The Michigan credit union capital ratio increased slightly to 11.7 percent in the second quarter of 2018, up from 11.6 percent in the first quarter. Overall, 98.7 percent of all Michigan credit unions are well capitalized with net worth ratios above the 7.0 percent regulatory threshold level.

“In a low rate environment, and with uncertainty about the stock market, more consumers are discovering the higher yields and a safe haven with federally insured CDs at credit unions,” said Adams. “Our data shows that CD rates are higher than banks at most credit unions and this is driving good deposit growth at credit unions as well as growth in checking accounts.”

As a result of lower loan rates, fewer fees and higher savings rates, Michigan credit unions provided an estimated $396,496,089 in direct financial benefits to members during the 12 months ending June 2018.

Find the complete Q2 2018 NCUA Call Report Data here.

You can also find more Q2 data on Michigan credit unions’ low rates and high dividends in the Q2 Member Benefits Report.

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2018-10-05 00:00:00