Q4 Report: Michigan Credit Union Memberships Outpace Population Growth, Now at 5.65 Million

At the end of a year marked by the COVID-19 pandemic, consumers turned to credit unions.

In the fourth quarter of 2020, while the country avoided a COVID-19-related financial crisis, Michigan credit unions ended the year with healthy membership and loan growth. This happened alongside a decrease of the state’s population rate, meaning more Michiganders have turned to credit unions as a trusting financial partner during an especially difficult year.

The state’s credit unions now report 5.65 million total memberships after a 0.6% increase in Q4 2020, which is nearly equal to the 0.8% rate in Q4 2019. The full-year increase was 1.9%.

Membership growth by region (for trailing 12 months):

• Grand Rapids: 5.4%
• Traverse City: 4.5%
• Alpena: 2.8%
• Lansing: 1.6%

Michigan credit unions also experienced steady loan growth in Q4. Loan portfolios grew by 1.2% – 4.8% annualized — which outpaced the national rate of 0.8%. Year-over-year loan growth came in at 7.3%.

Q4 loan growth (by type):

• New auto: 3.2%
• Used auto: 3.2%
• First mortgages: 3.2%
• HEL & Second mortgages: 2.1%
• Small business loans: 0.4%
• Other unsecured loans: 12.2%

“Everyone knows that 2020 was a particularly difficult year. The COVID-19 pandemic caused widespread financial distress, but what these Q4 numbers show us is that, during uncertainty, a growing number of Michigan residents realized they could turn to their local credit union,” said MCUL CEO Dave Adams. “People respond to financial institutions that show, through accessible and affordable products and solutions, that they care about members and their financial health.”

The latest cooperative advertising campaign from CU Link, Banking Built for People, aims to deliver this message to current and potential Michigan members. The campaign, which launched this year, raises awareness of the credit union difference, including lower rates on loans and mortgage closings, ATM accessibility and a movement-wide dedication to community investment. Banking Built for People emphasizes a core message: credit unions care more about their members, and what makes us different, makes us better.

CUNA’s Member Benefits Report for Q4 2020 shows that Michigan credit unions contributed to a total of $500 million in direct financial benefits to Michigan’s 5.65 million members over the previous twelve months — a nearly $100 million increase from member benefits reported in Q3 2020. This is equal to $90 per member or $188 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 Q4 2020 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.