NCUA Q2 2022 Report: Michigan Credit Unions Show Steady Service During Historic Inflation Increase

Michigan credit unions focus on 5.87 million members amidst 9.1% annualized inflation increase.

The national economy in the second quarter of 2022 continued to be affected by issues of the previous quarter — supply chain disruption due to COVID-19 and Russia’s invasion of Ukraine and a historic rise in inflation. Prices rose 9.1% in the year ending June 2022, which is the fastest 12-month increase since November 1981.

Despite these economic struggles, national credit union financial results reflected strong earnings, solid membership gains, fast loan growth and above average savings growth during the quarter. Results for credit unions in Michigan largely mirrored these trends.

Michigan credit union membership growth for Q2 was almost identical to the Q1 rate. With a 0.5% rise (2.5% annualized), the state’s credit unions now have 5.87 million members.

Membership growth by region (for trailing 12 months):

• Grand Rapids: 5.8%
• Traverse City: 2.6%
• Detroit: 2.2%
• Flint: 1.8%
• Lansing: 1.5%
• Marquette: 1.1%

Credit union loan portfolios’ 6.3% increase is well above last quarter, nearly equal to the 6.6% national rate. This national increase represents the highest mid-year cumulative loan growth in 25 years. However, according to the Credit Union National Association (CUNA), credit unions remain flush with liquidity.

Q2 loan growth (by type, for trailing 12 months):

• Member business loans: 26.9%
• New auto: 17.9%
• Used auto: 17%
• Credit cards: 10.7%
• HEL & 2nd Mtg: 9.2%

“The historic inflation rate we’re currently seeing around the nation has now mostly replaced the COVID-19 pandemic as consumers’ biggest economic difficulty. The 9.1% price increase from this time last year has obviously influenced Michiganders’ spending and saving habits, but it hasn’t changed Michigan credit unions’ focus on members,” said Michigan Credit Union League CEO Patty Corkery. “Through global health crises, national disasters and historic economic changes, our movement has shown that they stand ready to help our 5.87 million members succeed.”

CUNA’s Q2 Member Benefits Report for 2022 shows that Michigan credit unions contributed to a total of $499.9 million in direct financial benefits to Michigan’s 5.87 million members over the previous twelve months. In other words, according to CUNA, credit union members financing a $25,000 vehicle for 5 years will save an average of $145 per year in interest when compared to banking institutions.

These benefits translate to $85 per member or $179 per household, and are nearly $75 million higher than Q1 2022. 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 2022 NCUA Call Report Data here.

You can also find more Q2 data on Michigan credit unions’ low rates and high dividends in the CUNA Q2 Member Benefits Report.