New Statistics from NCUA Show Big CU Growth in 2009 (Monitor: March 29, 2010)
Year-end statistics compiled by the NCUA show that 2009 was strong for Michigan credit unions in many respects, including a growth in savings deposits by 12.2 percent to a total of $32.5 billion. The best measure of industry strength, the net worth to assets ratio, showed credit unions at 10.9 percent, significantly higher than the 7 percent ratio considered to be well-capitalized by regulators and a full percentage point higher than the 9.9 percent national average for credit unions.
Credit unions saw strong growth in most loan types in 2009 with total loans increasing by 4.1 percent, even though other lenders reported sharp drops in lending. New auto loans grew by 19.7 percent, a number that can be partially attributed to participation in the "Invest in America" program. Used auto lending grew by 12.5 percent, credit card loans grew by 4.5 percent, and first mortgage loans grew by 2.8 percent, despite Michigan’s depressed real estate market.
Michigan households are also turning to credit unions in record numbers. After flat membership growth since 2001, largely as a result of Michigan’s shrinking population, credit union membership rolls grew by more than 37,000 in 2009 to a total membership of 4,434,186. Michigan has the highest percentage of credit union membership relative to state population in the country.
“This membership growth is due in part to the public outcry over Wall Street and big bank abuses nationally,” Adams said. “Credit unions are leveraging their strength, community commitment, consumer-friendly pricing and well-earned member trust to fill voids and really excel in this tough Michigan economy.”
Small business loans were particularly strong with 18 percent growth to $838 million. This should continue into 2010, as more than 30 credit unions have pledged $43 million in business loans as part of a first-of-its-kind entrepreneurship development program dubbed the Small Business Financing Alliance. The initiative was created in partnership with Gov. Jennifer Granholm and the Michigan Economic Development Corporation, and Granholm announced the partnership during her State of the State address in February, citing it as a key part of her plan to create a new Michigan economy through small business growth and job creation.
“Credit unions, as not-for-profit cooperatives, have demonstrated their desire and capacity to lend during these difficult economic times,” Adams said. “They are also fueling loan growth for the auto industry through the 'Invest in America' program and now see great opportunities to expand small business lending. Credit unions invest in people, in Michigan and in America.”
The full report is available on the MCUL CU Statistics, Economic Data and Research page.