NCUA Q4 2022 Data: Michigan Credit Unions Report Strong Health Amid National Economic Concerns
During the first three quarters of 2022, the U.S. economy was impacted by supply chain issues. According to the National Credit Union Administration’s Q4 data, by the fourth quarter those concerns were shifted to the potential of a recession following aggressive Federal Reserve monetary policy moves.
Inflation, measured by the Consumer Price Index, increased 0.83% in the fourth quarter, well above the 0.61% increase in the third quarter. But headline prices rose 6.4% in the year and that represents a welcome slowing from the 8.2% 12-month increase in prices reported at the end of the third quarter.
The GDP increased at a 2.6% inflation-adjusted annualized rate in the fourth quarter – down slightly from the third quarter’s 3.2% increase. Full year growth was 2.1%.
Despite these economic concerns, credit unions continued to see solid earnings growth at both the state and national level.
In Michigan, amongst stagnating population growth and following an outstanding year in 2021, membership finally slowed down in Q4. Full year growth was 2.2%, and Michigan credit union memberships remain at 5.94 million, or approximately 60% of the state’s population.
Nationally, credit union memberships increased by 4.3% in 2022, which marks the fastest annual gain since 2018 and is about 11 times faster than the 0.4% Census Bureau estimate for U.S. population growth during the year. That puts national memberships at 136.58 million, or approximately 41% of the U.S. population.
Membership growth by region (for trailing 12 months):
- Grand Rapids: 5.5%
- Detroit: 5.5%
- Traverse City: 4.2%
- Marquette: 2.1%
- Lansing: 1.3%
Credit union loan portfolios saw a 3.6% increase (or 18.9% annualized), which is down from the Q3 rate of 6.3% but above the national rate of 3.4%.
Q4 loan growth by type (for trailing 12 months):
- Member business loans: 22.4%
- New auto: 33.8%
- Used auto: 20.5%
- Credit cards: 13.4%
- HEL & 2nd Mtg: 32.8%
- Other unsecured loans: 19.2%
Loan growth by region (for trailing 12 months):
- Grand Rapids: 26.1%
- Traverse City: 22.8%
- Muskegon: 18.4%
- Detroit: 16.4%
- Alpena: 16%
- Lansing: 16%
- Marquette: 12.1%
“While an economic recession may be looming, I am very encouraged by NCUA’s Q4 2022 data, which shows a healthy credit union movement that ended the year with its fastest membership gain in four years,” said Michigan Credit Union League CEO Patty Corkery. “In Michigan, raising credit union awareness will continue to be a priority as we develop our evolving Try a Credit Union advertising campaign. As more Michiganders find out what the majority of the state’s residents already know — that credit unions are the most trusted of financial service providers — the better Michigan’s overall financial health will be.”
CUNA’s Q4 Member Benefits Report for 2022 shows that Michigan credit unions contributed a total of $485 million in direct financial benefits to Michigan’s 5.94 million members over the previous twelve months. In other words, according to CUNA, credit union members financing a $25,000 vehicle for five years will save an average of $22 per year in interest when compared to banking institutions.
These benefits translate to $83 per member or $174 per household. These figures are calculated based on average savings differences between credit union and bank pricing. They result from financial benefits, such as higher CD rates and fee-free checking, as well as lower rates and fees on products like home, car and auto loans.
Find the complete Q4 2022 NCUA Call Report Data here.
You can also find more Q4 data on Michigan credit unions’ low rates and high dividends in the CUNA Q4 Member Benefits Report.
