LANSING, Mich.–Despite the ongoing coronavirus pandemic and a shrinking state population, Michigan’s credit unions are reporting strong membership and loan growth for Q4 2020.
The Michigan League said the data indicate “Michiganders have turned to credit unions as a trusting financial partner during an especially difficult year.”
According to data compiled by the league, the state’s credit unions now report 5.65 million total memberships after a 0.6% increase in Q4 2020, which is nearly equal to the 0.8% rate in Q4 2019. The full-year increase was 1.9%.
Membership growth by region (for trailing 12 months) included:
- Grand Rapids: 5.4%
- Traverse City: 4.5%
- Alpena: 2.8%
- Lansing: 1.6%
Michigan’s credit unions, the league added, also experienced steady loan growth in Q4, with portfolios growing by 1.2% – 4.8% annualized — which outpaced the national rate of 0.8%. Year-over-year loan growth came in at 7.3%.
Q4 loan growth (by type):
- New auto: 3.2%
- Used auto: 3.2%
- First mortgages: 3.2%
- HEL & Second mortgages: 2.1%
- Small business loans: 0.4%
- Other unsecured loans: 12.2%
CUs Show They ‘Care’
“Everyone knows that 2020 was a particularly difficult year. The COVID-19 pandemic caused widespread financial distress, but what these Q4 numbers show us is that, during uncertainty, a growing number of Michigan residents realized they could turn to their local credit union,” said MCUL CEO Dave Adams. “People respond to financial institutions that show, through accessible and affordable products and solutions, that they care about members and their financial health.”
The Michigan League said CUNA’s Member Benefits Report for Q4 2020 found Michigan credit unions contributed to a total of $500 million in direct financial benefits to Michigan’s 5.65 million members over the previous 12 months — a nearly $100 million increase from member benefits reported in Q3 2020. This is equal to $90 per member or $188 per member household, the league said.