SOUTHFIELD, Mich.—Membership in Michigan’s credit unions is nearing six-million, as the lingering effects of a slower economy continue to be felt, according to new data released by the Michigan Credit Union League.
While the economic conditions are being felt by most CU members, Michigan credit unions’ financial results continued to reflect solid earnings, strong membership gains, and fast loan growth during the third quarter, the league said.
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.
Among other data points:
- 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%.
Lending Growth
According to the league data, Q2 loan growth by type (for trailing 12 months) include:
- Member business loans: 27.9%
- New auto: 28.4%
- Used auto: 19.7%
- Credit cards: 12.3%
- HELC & second mortgage: 24.5%
“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,” said MCUL CEO Patty Corkery. “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.
“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.”
Benefits to Members
The league cited data from CUNA’s Q3 Member Benefits Report for 2022 which 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.
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