Michigan Credit Unions at 5.4 Million Members, Give $423 Million in Benefits in 2018
The last quarter of 2018 saw the U.S. economy growing at a healthy pace, translating into solid membership growth, loan growth and earnings for Michigan credit unions. A fourth quarter membership increase of 0.7% was reported, and 3.3% for the year, bringing total memberships to 5.4 million, according to the National Credit Union Administration (NCUA).
Annualized membership growth (by region):
- Detroit: 2.8%
- Grand Rapids: 7.4%
- Lansing: 1.6%
- Muskegon: 1.7%
- Traverse City: 8.7%
The Credit Union National Association (CUNA) estimates that these 5.4 million members received a total of $423 million in direct financial benefits last year, which is equivalent to $168 per household or $80 to each member. These benefits are calculated based on average savings differences between credit union and bank pricing, and 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.
Michigan credit union loan growth came in at a strong 10.4% in 2018, with a 1.5% rise in the fourth quarter.
Annualized loan growth (by loan type):
- New automobile loans: 1.7%
- Used automobile loans: 0.5%
- First mortgages: 1.8%
- Credit cards: 4.3%
- Other unsecured loans: 2.6%
- Commercial loans: 3.2%
“Michigan credit union membership outpaced population growth through 2018 and we expect to maintain this trend this year,” said MCUL President and CEO Dave Adams. “The League has aligned our advertising campaign with CUNA’s national campaign, “Open Your Eyes to a Credit Union®,” this year to create more awareness of the credit union difference. By using the campaign in Michigan to draw attention to the breadth of credit unions’ services to potential and current members, membership growth, loan growth and earnings should continue steadily rising in 2019.”
Find the complete Q4 2018 NCUA Call Report Data here.
You can also find more Q4 data on Michigan credit unions’ low rates and high dividends in the Q4 Member Benefits Report.