Michigan Credit Unions Add Members, Raise ROA in 3rd Quarter (Misc News: December 3, 2010)
Michigan’s credit unions continued to strengthen their financial positions in the third quarter, with strong earnings and growth in membership (54,000 new members since year-end 2009). Third-quarter statistics from the NCUA and CUNA highlight the continued deposit growth (7.3 percent for the 12 months ending Sept. 30), business loan growth (22.9 percent), and strong return on assets (ROA – up to 34 basis points from 28 at mid-year).
- Michigan’s credit unions showed stronger than expected return on assets of 0.34 percent, despite high loan losses resulting from a challenging economy, and continuing loan and deposit growth.
- The net worth to assets ratio, a key measure of financial strength, shows Michigan credit unions held steady in the third quarter at 10.8 percent, higher than the national credit union average (10.0 percent).
- As FDIC institutions pulled back on lending, Michigan credit unions still showed positive loan growth (0.7 percent) for the 12-month period ending September 30. Specific areas of growth included used auto loans (up 9.9 percent), first mortgages (up 2.9 percent) and credit cards (up 4.2 percent).
For the 12 months ending Sept. 30, commercial business loans by credit unions in Michigan showed strong growth, up 22.9 percent, while the national growth rate for credit unions was 6.9 percent.