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Michigan Credit Union League

Membership Grows by Nearly 100,000 in first Three Quarters of 2014

Michigan credit unions signed up a record 97,175 new members with through just the first three quarters of 2014 bringing the total number of members in the state to more than 4.73 million.

Consumer and small business lending also rose by record-high rates in almost all categories from new/used auto loans to credit cards while small business loans grew by more than 17 percent from the same time last year.

According to financial analysts at the CUNA, the state’s 2.5-percent, 12-month growth in memberships is the fastest annual increase since 1998. The growth is particularly noteworthy because the state’s population has remained stagnant over the last few years.“Consumers and small businesses in Michigan continue to discover the great service and tremendous value at credit unions in record numbers,” MCUL & Affiliates CEO David Adams said, “We haven’t seen growth numbers like these in decades.”

When it comes to lending, Michigan credit unions saw the largest increases in area of member business loans with a 17.3 percent year-over-year increase.

In the past 10 years, and even through the financial crisis in 2008, credit unions have continued to lend to small businesses. Business loans have soared from $192.7 million in 2004 to $587 million in 2009 to $1.4 billion at the end of the third quarter of 2014.

The steady increase in new members could correlate with the steep rise in new and used auto loans. New auto loans came in at $1.9 billion and are up 12.3 percent from the same time last year, and used vehicle loans which came in at $6.36 billion are up 14.8 percent from the same time period.

The popular GM Credit Union Member Discount could account for a segment of the solid auto lending increases. The program helped General Motors grow its national market share when more than 160,000 credit union members used the discount to buy a new car or truck in 2014. CU Solutions Group manages this national program, encouraging thousands of credit unions across the country to promote GM product discounts to their 100 million members.

Other year-over-year performance numbers break down as follows: First-time mortgages which totaled $12.4 billion are up 7.5 percent, and unsecured loans totaling $1.36 billion are up 11.1 percent.

When it comes to loan quality, delinquencies increased to .88 percent at the end of September and net charge off rates declined from an average annualized rate of .50 percent in the second quarter to .47 percent during the third quarter.

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2015-01-12 00:00:00