In Partnership with Credit Union National Association
Go to main content
SOC - FacebookSOC - TwitterSOC - LinkedINSOC - YouTube
Michigan Credit Union League

Q3 Report: Credit Unions Build Trust with 5.62M Members During Ongoing Pandemic

Members continue to find low interest rates on loans and mortgages at Michigan credit unions during COVID-19.

In the third quarter of 2020, the national and state economy rebounded relatively quickly from the previous quarter, with Michigan’s unemployment rate falling from a high of 24% in April to 8.6% in September. With the COVID-19 pandemic’s continued surge in Q3, causing prolonged uncertainty, many state residents found support through Michigan credit unions. By offering low interest rates on loans and mortgages, these Michigan non-profits helped members access necessary resources during a difficult time.

As a result of being trusted financial partners during the current crisis, Michigan credit unions saw a rise in Q3 memberships of 1.1%, and 2.1% over the past year. Memberships now stand at 5.62 million in the state.

Membership growth by region (for trailing 12 months):

  • Grand Rapids: 5.4%
  • Traverse City: 4.5%
  • Alpena: 2.7%
  • Lansing: 1.6%

In Q3, the credit unions’ assistance via low-interest loans translated to a total loan growth rate of 2.9%, and 7.9% over the past 12 months. This far outpaced the national growth rate of 6.6%.

Q3 loan growth (by type):

  • First mortgages: 13.9%
  • Small business loans: 11.7%
  • Used auto: 4.1%
  • Other unsecured loans: 26.5%

MCUL’s current research indicates that loss of income is currently the largest household concern for members and non-members in the state moving into 2021. This pandemic-related concern has resulted in an increase in deposits and unsecured loans, and Michigan credit unions proved in Q3 that they are there to help an increasing number of members stretch every dollar, proving what makes Michigan credit unions different, makes them better.

“While Michigan’s economy saw a significant bounce back in the third quarter of 2020, credit unions didn’t stop looking for ways to assist members through the ongoing pandemic,” said MCUL CEO Dave Adams. “Our industry’s cooperative, not-for-profit structure allows credit unions to help Michigan’s 5.62 million members with products and services that are driven by need, rather than profit. The significant loan growth seen in Q3 is a direct result of credit unions responding to crisis by providing accessible, low-interest-rate products that foster healthy financial futures and trust between members and their credit union.”

CUNA’s Member Benefits Report for Q3 2020 shows that Michigan credit unions contributed to a total of $412.5 million in direct financial benefits to Michigan’s 5.6 million members over the previous twelve months. This is equal to $74 per member or $156 per member household.

These figures are calculated 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.

Find the complete Q3 2020 NCUA Call Report Data here.

You can also find more Q3 data on Michigan credit unions’ low rates and high dividends in the Q3 Member Benefits Report.

Go to main navigation
Especially For:
2021-01-13 00:00:00