NCUA Q1 2022 Report: Rise in Michigan Credit Union Memberships and Inflation

Consumers find jobs and credit unions during the largest inflation hike since 1982.

The first quarter of 2022 saw continued supply chain disruption due to COVID-19’s Omicron variant and Russia’s invasion of Ukraine, as well as a 8.6% rise in inflation in the year ending in March 2022 —  the fastest 12-month inflation increase since January 1982. However, there were signs of Michigan’s economic recovery from the pandemic, such as a lowered unemployment rate, which ended the quarter at 4.4%. This is below the national average (4.6%) and nearing the state’s pre-pandemic rate of 3.8%.

For Michigan credit unions, memberships and loan portfolios continued to grow.

Consistent with the previous quarter, memberships in Michigan rose 0.6% (2.8% annualized) in Q1 2022. The state’s credit union movement now boasts 5.85 million members.

Membership growth by region (for trailing 12 months):

• Grand Rapids: 6.0%
• Traverse City: 4.2%
• Flint: 2.6%
• Alpena 2.0%
• Lansing: 1.6%
• Marquette: 0.8%
• Muskegon: 0.8%

Michigan credit union loan portfolios increased 2.7% in Q1, bringing the annualized rate to 11.6%. This average is slightly above the national average (11.2%) and ahead of the 10.2% at the same time last year.

Q1 loan growth (by type, for trailing 12 months):

• Member business loans: 25.2%
• Used auto: 13.4%
• Credit cards: 8.6%
• New auto: 8.1%

“While we are slowly but surely recovering from the COVID-19 pandemic, data from Q1 2022 shows us that there are other economic hurdles that Michigan consumers are facing right now. It’s clear that state residents need credit unions to help them navigate these hurdles and realize their financial goals, and I am heartened to see memberships steadily rising,” said MCUL CEO Patty Corkery. “Also heartening is Michigan’s decline in unemployment, nearing its pre-pandemic level. With MCUL’s newly launched cooperative advertising campaign —  ‘Credit unions. For real. For your future.’ — we are targeting both areas of emphasis: memberships and employment. By advertising to Gen Z and millennial consumers, the League aims to raise awareness of our industry, as well as current open positions at credit unions across the state.”

CUNA’s Q1 Member Benefits Report for 2022 shows that Michigan credit unions contributed to a total of $425.5 million in direct financial benefits to Michigan’s 5.85 million members over the previous twelve months. This total is equal to $74 per member or $155 per household.

In other words, according to CUNA, credit union members financing a $25,000 vehicle for 5 years will save an average of $168 per year in interest when compared to banking institutions.

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 2022 NCUA Call Report Data here.

You can also find more Q1 data on Michigan credit unions’ low rates and high dividends in the CUNA Q1 Member Benefits Report.