Michigan Credit Union Membership and Lending Show Strong Growth Through 2016 Q3

LANSING, MI (Dec. 7, 2016) Michigan credit unions surpassed 5 million memberships during the third quarter of 2016. The state’s not-for-profit financial cooperatives added approximately 143,000 memberships in the first three quarters of 2016, equating to a 3.6 percent year-over-year increase. Since 2010, state-wide credit unions have grown by more than 500,000 members.

Alongside increased memberships, 2016 3Q data shows credit unions boasted significant lending increases in the categories highlighted below, compared to the same time last year.

Total Loans: 10.8 percent

Credit Cards: 5.5 percent

Other Unsecured Loans: 7.7 percent

New Car: 12.6 percent

Used Car: 13.5 percent

First Mortgage: 8.1 percent

Member business loans: 23.5 percent

State-wide small business lending registered at nearly double the rate credit unions reported at the national level (13.6 percent), and far outpaced the Michigan Credit Union League’s Q3 data in 2015.

In addition, car loans continue to be a primary way Michigan credit unions are serving members. The sustained lending for both used and new car loans in the state is consistent with rising auto loans at the national level. Per Edmunds.com (as cited in The Detroit News), new car sales alone approached 18 million across the country, which leads to increased financing and loan length.

The increase in auto loans parallels a decrease in interest rates. WalletHub.com’s 2016 Q3 data shows that interest rates on new cars are the lowest in three years. The rate at which Michigan credit unions are offering auto loans exhibits a persistent support of members as demand rises.

Outside small business and auto lending success, impressive first-mortgage lending gains, as compared to this time last year, were posted by credit unions in the following cities:

Detroit: 31.6 percent

Grand Rapids: 11.3 percent

Lansing: 4.3 percent

Marquette: 14.3 percent

Traverse City: 12 percent

“Though memberships continue to grow, Michigan credit unions remain dedicated to the core principal of impacting lives through affordable, high-value products and services,” said MCUL CEO Dave Adams. “This quarter’s increase in auto, mortgage and member business lending is a testament to credit unions’ unwavering support of their members and communities.”

About the Michigan Credit Union League & Affiliates
Organized in 1934, the Michigan Credit Union League is a trade association representing Michigan’s credit unions. Based in Lansing, MCUL works to build awareness of these locally owned, cooperative institutions and their mission to support members, communities and local businesses. For more information, visit www.mcul.org, follow us on Facebook at www.facebook.com/MICreditUnions and connect with us on Twitter at http://www.twitter.com/MICreditUnions.