Q1 Report: Memberships, Member Benefits and Business Loans Persist as Vaccines Rollout
The first two months of 2021 marked a continuation of COVID-19 infections in the U.S. before the vaccination rollout increased to the broader population. As vaccination rates reached 4 million doses per day by the end of March, the year’s first quarter saw a decline in infections. In addition to vaccinations, Michigan’s revitalization was marked by a decreased unemployment rate, which sat at 5.1% at quarter’s end — well below the national rate of 6%.
Q1 results for the state’s credit unions mirrored these national trends: strong earnings and membership gains, fast (stimulus-induced) savings growth and high asset quality.
Michigan credit union memberships now stand at 5.69 million following the quarter’s 0.7% growth rate.
Membership growth by region (for trailing 12 months):
- Grand Rapids: 5.4%
- Traverse City: 4.4%
- Lansing: 1.3%
- Muskegon: 0.7%
Michigan credit union loan portfolios experienced a growth rate almost identical to the previous quarter at 1.1%. The state outpaced national averages in member business loans, first mortgages and new automobile loans.
Q1 loan growth (by type):
- Member business loans: 3.7
- Used auto: 1.2%
- New auto: -1.2%
- First mortgages: 2.8%
“While the first quarter of 2021 saw the pandemic’s continued surge in Michigan, the beginning of the vaccine rollout gave us all hope that we can turn the corner on the COVID-19 virus,” said MCUL President/CEO Patty Corkery. “This quarter’s data shows that our industry achieved steady membership and loan growth during a historically difficult time not only because they are resilient, but persistent in finding ways to meet members where they need to be met. As we continue to navigate the virus, we are hopeful that the second quarter data will support continued efforts to combat COVID-19.”
CUNA’s Member Benefits Report for Q1 2021 shows that Michigan credit unions contributed to a total of $567 million in direct financial benefits to Michigan’s 5.69 million members over the previous twelve months. This is a nearly $70 million increase from the previous quarter. The Q1 total is equal to $101 per member or $212 per 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 Q1 2021 NCUA Call Report Data here.
You can also find more Q1 data on Michigan credit unions’ low rates and high dividends in the Q1 Member Benefits Report.Go to main navigation