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Michigan Credit Union League

Michigan Credit Unions Continue to Strengthen their State's Economy

LANSING, MI — June 28, 2017 — First-quarter 2017 data from the National Credit Union Administration (NCUA) shows Michigan credit union gains in stride with the state’s economic health. Savings, lending and membership rates continue to grow while state unemployment continues to drop.

One of the factors of Michigan’s strong first quarter was a healthy labor market. Michigan added nearly 10,000 jobs in Q1, dropping the state’s unemployment rate down to five percent. Further, early Q2 numbers show a further dip to 4.7 percent unemployment — the lowest rate in sixteen years.

The rise in Michigan’s financial health directly impacted the demand for loans. In the fourth quarter of 2016, the Michigan Credit Union League (MCUL) reported the strongest loan growth the state had seen since 1994. Through Q1 2017, Michigan credit union loan growth rose by 11.1 percent, a rate that nearly matched the 11.5 percent from the previous quarter. The Credit Union National Association (CUNA) predicts that loan growth should once again eclipse double-digit increases.

Q1 2017 loan growth by type:

  • Total Loans: 11.1 percent

  • Credit Cards: 7.3 percent

  • Other Unsecured Loans: 8.3 percent

  • New Car Loans: 16.4 percent

  • Used Car Loans: 12.7 percent

  • First Mortgage Loans: 9.7 percent

  • Member Business Loans: 19.8 percent

Despite significant increases in lending and spending, Michigan credit unions still saw a 4.9 percent increase in member savings (a nearly 20 percent annualized increase) during the first quarter.

MCUL recognized 2016 as a year of credit union membership growth that it hadn’t seen in thirty years. So far, with Q1 data, membership rates don’t show any sign of slowing down. The one percent membership growth witnessed in Q1 2017 is an even faster pace than left off in Q4 2016 (.7 percent). Michigan credit unions now report 5.1 million memberships — just over half the state’s population.

Membership growth by region:

  • Alpena: 1.3 percent

  • Detroit: 0.7 percent

  • Grand Rapids: 6.7 percent

  • Lansing: 1.6 percent

  • Marquette: -0.5 percent

  • Muskegon: 0.4 percent

  • Traverse City: 5.5 percent

Additionally, Michigan credit union net worth ratio came in at 11.3 percent, which not only outpaces the national average of 10.7 percent, but far surpasses the threshold for the distinction of being “well capitalized” (seven percent). Going forward, CUNA estimates that Michigan credit unions can expect continual membership and loan growth, raised asset quality and favorable earnings.

“As the national and Michigan economies continue to reflect higher levels of employment and consumer spending, Michigan credit unions’ growth metrics reflect how credit unions are having a positive impact on people’s ability to have access to low-cost borrowing and higher yield savings accounts,” said MCUL CEO Dave Adams. “The unprecedented growth in deposit accounts, loans by every category and overall memberships, suggest that Michiganders recognize the value and service provided by Michigan’s credit unions.”

Overall, NCUA’s Q1 data presents Michigan credit unions as financially strong and prepared for economic change.

Find the full report here.

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2017-06-30 00:00:00