Nearing 5.3 Million Members, Michigan Credit Unions Sustain Membership and Loan Growth in Q3 of 2018
Lansing, Mich. — June 28, 2018 — Keeping consumer confidence near cyclical highs, the U.S. economy grew at a strong pace in the first quarter of 2018. With the unemployment rate at a near 18-year low, strong consumer spending and tax reform had stock market trading near record highs throughout the quarter. The strong economy was evident in Michigan credit union operating results during the quarter with solid membership growth, loan growth and earnings results.
Michigan credit unions reported a 1.2 percent increase in total memberships in the first quarter of 2018, which led to an annualized increase of 3.6 percent for the trailing 12-month period ending in March 2018*. Leading the charge were the cities of Grand Rapids and Traverse City with annualized growth rates of 5.0 percent and 8.5 percent respectively. Michigan credit unions now report a total of nearly 5.3 million members — roughly 53 percent of the state’s estimated 9.9 million population.
Additionally, Michigan credit union loan portfolios grew by 1.6 percent in the first quarter, and annualized loan growth in the year ending March 2018 came in at 11.8 percent, the highest rate of growth since 1994. Annualized loan growth by individual loan category includes:
- New automobile loans: 20.2 percent
- Used automobile loans: 11.9 percent
- First mortgages: 12.3 percent
- Credit cards: 6.8 percent
- Other unsecured loans: 6.7 percent
- Commercial loans**: 7.8 percent
“The entire Michigan credit union community is encouraged to see such strong and sustained membership and loan growth,” said Dave Adams, Michigan Credit Union League President/CEO. “It’s a testament to the value that credit unions provide to individuals, families and small businesses across the state. Every new member — every dollar saved and every dollar loaned — is another vote of confidence in the credit union difference.”
Through lower loans rates, high savings rates and fewer fees than banking institutions, Michigan credit unions provided more than $346 million in direct financial benefits to their members during the 12-month period ending in March 2018.
*To account for significant seasonal fluctuations, all “annualized” growth data consists of the trailing 12-month period ending in March 2018.
**Prior to third quarter 2017, these were reported as “member business loans.” This change may cause fluctuations from prior cycles.Go to main navigation