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Michigan Credit Union League

NCUA Q3 2022 Report: Michigan Credit Union Members Near 6 Million Amidst Lingering Economic Effects

Memberships get a surge from Detroiters, now at 5.94 million.

The issues of COVID-19 and Russia’s war in Ukraine that affected the national economy in previous quarters continued to linger in the third quarter of 2022. Likewise in Q3, inflation was once again top of mind for consumers and their financial organizations.

Inflation, measured by the Consumer Price Index, increased 0.46% in the third quarter, nearly identical to the 0.49% increase in the second quarter. Prices rose 8.4% in the year ending September. While that increase was still tough on consumers, it’s a welcome slowing from the 9% 12-month increase reported at the end of the second quarter.

The GDP increased at a 3.2% inflation-adjusted annualized rate in the third quarter – up from the second quarter 2022’s 0.6% decrease.

However, credit union financial results continued to reflect solid earnings, strong membership gains, and fast loan growth during the third quarter. Michigan credit union results largely mirrored these national trends.

Michigan credit union membership growth for Q2 was almost identical to the Q1 rate. With a 2% rise (2.9% annualized), the state’s credit unions now have 5.94 million members.

Membership growth by region (for trailing 12 months):

  • Grand Rapids: 6.4%
  • Detroit: 4.3%
  • Traverse City: 4.1%
  • Lansing: 1.8%
  • Marquette: 1.5%

Credit union loan portfolios’ 6.3% increase (or 17.9% annualized) is exactly equal to the Q2 rate and well above the national rate of 5.4%.

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

  • Member business loans: 27.9%
  • New auto: 28.4%
  • Used auto: 19.7%
  • Credit cards: 12.3%
  • HEL & 2nd Mtg: 24.5%

Loan growth by region (for trailing 12 months):

  • Grand Rapids: 26%
  • Traverse City: 21.6%
  • Marquette: 18.4%
  • Detroit: 17%
  • Lansing: 14.7%
  • Alpena: 13.7%
  • Muskegon: 8.8%

“As has been the case all year, the continuing effects of COVID, the war in Ukraine and inflation are causing real struggles for Michigan residents. While we may see a rise in inflation start to taper off, I am happy that during these tough economic times, nearly six million Michiganders have found a trusted financial partner at their local credit union. In Detroit alone, I am heartened to see that membership growth nearly doubled in Q3 from the previous quarter,” said MCUL CEO Patty Corkery. “As these numbers show, more and more people are finding out that the Michigan credit union movement stands healthy and ready to provide financial stewardship for those in need.”

CUNA’s Q3 Member Benefits Report for 2022 shows that Michigan credit unions contributed to a total of $485 million in direct financial benefits to Michigan’s 5.94 million members over the previous twelve months. In other words, according to CUNA, credit union members financing a $25,000 vehicle for five years will save an average of $90 per year in interest when compared to banking institutions.

These benefits translate to $84 per member or $175 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 Q3 2022 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.

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2023-01-23 00:00:00