LANSING, Mich.–Michigan’s credit unions reported strong performance during the third quarter of 2023, with healthy (but lower) earnings, solid (but slowing) membership growth, modestly lower loan growth and a decline in savings balances, according to the Michigan league.
The MCUL said Michigan memberships grew by 0.6% in Q3 and 1.2% in the year ending in September. Total state memberships now stand at slightly above six million.
Q3 membership growth by region (for trailing 12 months):
- Alpena: 13.0%
- Detroit: 3.8%
- Flint: -1.5%
- Grand Rapids: 5.0%
- Lansing: -4.2%
- Marquette: 2.2%
- Muskegon: -0.4%
- Traverse City: 4.9%
Michigan credit union loan portfolios increased by 11.3%, year-over-year, which is above the national rate of 9%, the league said.
The league said Q3 loan growth by type (for trailing 12 months):
- Member business loans: 24.5%
- New auto: 7.1%
- Used auto: 6.6%
- Credit cards: 11.9%
- First mortgage: 9.0%
- HEL & 2nd Mtg: 24.8%
- Other unsecured loans: 20.7%
Loan growth by region (for trailing 12 months):
- Alpena: 10.3%
- Detroit: 2.1%
- Grand Rapids: 20.2%
- Lansing: 4.7%
- Marquette: 14.3%
- Muskegon: 8.7%
- Traverse City: 10.5%
According to America’s Credit Unions’ (ACU) Q3 Member Benefits Report for 2023, Michigan credit unions contributed a total of $762 million in direct financial benefits to Michigan’s six-million members over the previous 12 months.
“These benefits translate to $128 per member or $268 per household,” the league said. “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 and auto loans.”
That means, according to ACU, credit union members financing a $25,000 vehicle for five years will save an average of $88 per year in interest when compared to banking institutions, according to the MCUL.
“What sticks out to me about the NCUA’s Q3 data is not only are national and state credit unions continuing steady loan growth, but that memberships are rising at a faster pace than the population,” said Michigan Credit Union League President/CEO Patty Corkery. “Through smart financial services and lower rates and fees, reflected in the $762 million in direct financial benefits, Michigan credit unions have earned their status as trusted partners to six million members and growing.”