LANSING, Mich.–Data compiled by the Michigan CU League for the second quarter of this year show the state’s credit unions continue to grow and act as “financial first responders” during the pandemic.
While Michigan’s unemployment rate peaked in April at 24%, year-over-year memberships in Michigan grew by 1.8% to approximately 5.6-million members. In addition, Michigan credit unions experienced a steady 0.5% second quarter growth.
Among the assistance the state’s credit unions provided during Q2, according to the league:
Money saved (by program):
- 260,000 skip-a-pays on over $1 billion in loans
- 80,000 auto loan modifications totaling $800 million in loans
- More than 15,000 modifications on $2 billion in mortgage loans
- 10,000 unsecured emergency loans totaling $24 million
- More than 10,000 PPP loans totaling $600 million
- 600,000 fee waivers totaling $12.7 million
Rapid Mobilization
The MCUL said during Q2 Michigan credit unions also focused on helping small business owners, with many rapidly mobilizing to become approved lenders by the Small Business Administration to assist members with its Paycheck Protection Program. As a result, more than 10,000 small business owners accessed $600 million in loans to help operations make it through the pandemic. Further, 10% of these loans were given to new or non-members who turned to a credit union after being turned away by other lenders, the league said.
“During the second quarter of 2020, Michigan credit unions did what they’ve charged themselves with doing: be a beacon for their community, providing financial relief to those most in need,” said MCUL CEO Dave Adams. “But these numbers, while impressive, are only a part of the picture. These financial first responders found so many other ways to serve members through things like community outreach and fundraising. This quarter, the Michigan credit union movement proved to its 5.6 million members that, during an unprecedented emergency, they have a financial partner they can count on.”
Loan Portfolios Grow
According to the league, Michigan credit union loan portfolios grew by 2.9% in the second quarter, which makes for a 11.6% annualized pace. That’s about four times faster than the first quarter increase and faster than the 2.6% increase reported at the same time in 2019, the league said. Year-over-year loan growth came in at 7.7%.
Q2 loan growth (by type):
- Small business loans: 14.5%
- First mortgages: 13.1%
- Home equity/2nd mortgages: 0.2%
- Other unsecured loans: 28.1%
The league cited CUNA’s Member Benefits Report for Q2 2020, which shows that Michigan credit unions contributed to a total of $406.6 million in direct financial benefits to Michigan’s 5.6 million members over the previous twelve months. This is equal to $74 per member or $156 per member household, the league said. The figures are calculated based on average savings differences between credit union and bank pricing.