NCUA Q3 2021 Report: Michigan CUs Continue as Community Beacons During COVID-19 Variants

Michigan memberships hit 5.77 million as credit unions continue to assist members struggling during the pandemic.

The third quarter of 2021 saw the emergence of COVID-19’s Delta variant, which continued the virus’ effect on the economy and supply chain disruption but did not slow Michigan credit union performance. Financial results continued to reflect very strong earnings, solid membership gains, fast loan growth and relatively slow savings growth during Q3.

Memberships increased 1.2% (4.8% annualized) in the three months ending September — nearly 14 times faster than U.S. population growth (which was recently reported to be 0.35% by the Census Bureau — a 120-year low). Total Michigan credit union memberships now stand at 5.77 million, or more than 57% of the state’s population (National credit union memberships eclipsed 130 million during the quarter).

Membership growth by region (for trailing 12 months):

• Grand Rapids: 5.3%
• Traverse City: 4.6%
• Flint: 2.4%
• Muskegon: 1.6%
• Lansing: 1.5%
• Marquette: 0.9%

Michigan credit union loan portfolios increased 8.5% over the past year, which vastly outpaced the national rate of 5.5% and is well above Michigan’s 2019 and 2020 pace at Q3.

Q3 loan growth (by type):

• Member business loans: 15.0%
• First mortgages: 13.3%
• Used auto: 9.3%
• New auto: 1.6%

“While COVID-19 and its variants have continued to disrupt daily life, there is hope in NCUA’s Q3 Call Report data. Michigan credit unions are in good financial shape to continue to serve our movement’s 5.77 million members, many of whom are counting on their trusted financial partners while they continue to struggle during the pandemic,” said MCUL CEO Patty Corkery. “I am incredibly proud of everything the Michigan credit union movement does for its members, be it the many community outreach initiatives or simply by helping people through safe and affordable financial services.”

CUNA’s Q3 Member Benefits Report for 2021 shows that Michigan credit unions contributed to a total of $556 million in direct financial benefits to Michigan’s 5.77 million members over the previous twelve months. This total is equal to $98 per member or $205 per household, which is nearly identical to CUNA’s Q2 report.

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 2021 NCUA Call Report Data here.

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