Q4 Report: 400 Michigan Residents Per Day Join a Credit Union in 2019
Memberships continued to rise faster than population growth and loan portfolios outpace national growth rates in Q4 2019.
A strong national and state economy in Q4 2019 made for a favorable operating environment for Michigan credit unions, translating solid membership growth, loan growth and earnings for Michigan credit unions.
According to the National Credit Union Administration, Michigan credit unions reported a 0.8% increase in the last quarter of the 2019. The full-year increase was 2.7%, which is roughly 90 times faster than Michigan population growth. Credit union memberships currently stand at 5.54 million – equal to roughly 55% of the Michigan population. Over the last 12 months, the state’s credit unions have gained approximately 148,000 members, meaning more than 400 Michigan consumers are joining a credit union every day.
Membership growth by region (for trailing 12 months):
Grand Rapids: 5.5%
Traverse City: 3.6%
According to the Credit Union National Association (CUNA)’s Q4 Member Benefits Report, Michigan credit unions provided an estimated total of $487 million in direct benefits to 5.54 million members during 2019. This is equivalent to $90 per member or $188 per member household in direct financial benefits.
CUNA calculates these stats based on average savings differences between credit union and bank pricing. They 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 loan portfolios grew by 1.7% in the quarter — a 6.8% annualized pace — which comes in slightly higher than the growth rate at the same time in 2018. Michigan credit unions outpaced the national average in all of the following loan categories.
Q4 loan growth (by type):
Small business loans: 17.9%
First mortgages: 10.4%
Home equity/2nd mortgages: 8.5%
New auto: 2.1%
Used auto: 4.9%
“Michigan credit unions finished the year strong, continuing to push membership growth faster than the state’s population growth,” said MCUL President/CEO Dave Adams. “This data isn’t just impressive business statistics, but important for the financial health of Michigan consumers. Due to the current COVID-19 pandemic, this increased number of members means more residents have easy access to the many hardship relief options that Michigan credit unions are offering to provide for those in need.”
Find the complete Q4 2019 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.