Mich. CUs See Huge Growth in Auto Loans, Membership, Jobs in Second Quarter (Misc News: September 24, 2013)
Michigan credit unions reported major increases in loans for new and used automobiles which far surpassed the national rates, according to 2013 second quarter data released by the NCUA and analyzed by the MCUL and Affiliates.
The results also showed credit union membership continued to increase for the eighth straight quarter – growth that also translated into 1,000 new employees at Michigan credit unions in the past four years.
“Michigan credit unions continue to play a key role in helping Michigan’s economy make its comeback. Families, students and small businesses alike are turning to credit unions in record numbers because of the value they provide and the trust that they have earned,” CEO David Adams said. “The data shows that credit unions are increasingly becoming the lender of choice for more and more Michiganders. As our membership and loan volume increases, our credit unions are able to hire more people and further the state’s economic recovery in yet another way.”
Highlights of the second quarter results include:
- Michigan credit unions’ market share for indirect new auto loans in the second quarter of 2013 was 17.1%, up from 14.8 in the same period in 2012, and up from 11 percent in 2011.
- The credit union share of indirect used auto loans increased to 39.9%, up from 36.5% in 2012 and 34.9 percent in 2011.
- Michigan credit unions have added more than 125,000 new members in the past eight quarters, with more than 16,000 added this year. Total credit union membership in Michigan stands at 4.57 million.
- For the first half of 2013, total deposits increased 4.2%, growing faster than loans, which were up 3.1%. Total loans as a percentage of assets are at their lowest level since 1994.
- Loans to member businesses also rose during the first half of 2013, increasing 8.4% – up from 7% during the same period in 2012.
- Michigan credit unions added 1,000 new employees in the past four years at a time when some large banks moved their headquarters out of the state.
Credit unions across the nation and in Michigan have received attention in recent months for their ability to offer low rates for auto and other loans, which in turn strengthens their roles as not-for-profit financial institutions whose priority is serving the local community, not shareholders. Recently CFPB Director Richard Cordray praised credit unions that “continued to uphold sound underwriting standards,” in an article in Forbes (Aug. 31, 2013).