Q2 Report: Credit Unions See Impressive Membership Gains After One Year of COVID-19 Pandemic
The second quarter of 2021 was marked by a renewed consumer confidence and general embrace of the COVID-19 vaccines, which was reflected in credit union operating results and solid economic data for the period, including Michigan’s continued decline in unemployment rate. Unemployment reached a mid-year reading of 5.0% — almost an entire percentage lower than the national rate.
The quarter also saw impressive membership gains for Michigan credit unions. Following Q1’s 0.7% increase, Michigan credit union memberships rose 3.1%. This brings total memberships in the state to 5.73 million, or more than 57% of the state’s population.
Membership growth by region (for trailing 12 months):
- Traverse City: 5.9%
- Grand Rapids: 5.6%
- Flint: 2.0%
- Lansing: 1.9%
- Muskegon: 1.5%
Michigan credit union loan portfolios more than tripled in loan growth from the previous quarter, hitting 3.5%. This is well above the national average of 2.5%. The state outpaced the national credit union movement in all the following loan categories.
Q2 loan growth (by type):
- Member business loans: 4.6%
- First mortgages: 4.2%
- Used auto: 3.5%
- Credit cards: 2.4%
- New auto: 1.9%
“During the second quarter of 2021, many Michigan residents were ready to return to routine purchases and leisure activities, particularly going into the first summer following a lockdown. We know now that the COVID-19 virus did not go away, and there is no return to pre-pandemic normalcy. The virus will be with us for a very long time, but fortunately, employment numbers and vaccine rates will continue to rise — currently, 75% of US adults have had at least one dose of the vaccine,” said MCUL CEO Patty Corkery. “What is compelling about NCUA’s Q2 Call Report data is Michigan credit unions’ significant membership gains, which tell us that, following a tough year, people continue to have trust and confidence in credit unions.”
CUNA’s Member Benefits Report for 2021 shows that Michigan credit unions contributed to a total of $558 million in direct financial benefits to Michigan’s 5.73 million members over the previous twelve months. The Q2 total is equal to $99 per member or $208 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 Q2 2021 NCUA Call Report Data here.
You can also find more Q2 data on Michigan credit unions’ low rates and high dividends in the Q2 Member Benefits Report.Go to main navigation