Michigan credit unions performed well through the first three quarters of 2019 but as with much of the rest of the industry, CUs in the Great Lakes State continue to see slowdowns across a variety of key metrics.
Data released from the Michigan Credit Union League and the Credit Union National Association, shows a 1.1% uptick in membership across the state during Q3 for a 2.7% increase over the past year. In the year ending Sept. 30, 2018, Michigan credit unions increased membership by 3.2%.
Still, the state has plenty to tout. Membership grew 14 times faster than population growth in Michigan and 5.5 million Michiganders – roughly 55% of the state’s population – now belong to a credit union. CUs based in Marquette, Mich., on Lake Superior in the state’s Upper Peninsula, saw membership rise by a whopping 19.2% in the 12-month period ending in September, while Grand Rapids credit unions saw a 5.6% increase in membership and Traverse City-based shops added members at a rate of 3.9%. Detroit, Alpena and Lansing all posted membership gains below 3% each.
Lending during Q3 was up by 2.7% for an annualized rate of 10.8%, compared with a growth pace of 11.4% for the year ending in September 2018. Commercial lending saw the strongest gains during Q3 at 4.8% growth, while mortgages of all types rose at 3.1%. New and used auto loans grew at 2.5% and 1.9%, respectively.
Ninety-seven percent of credit unions in the state reported positive ROA.
“Michigan credit union membership growth is far outpacing the state’s population growth; it’s good news for members and for Michigan’s economy, and we see that reflected in the significant increase in direct financial benefits given to members,” Dave Adams, president and CEO of the Michigan Credit Union League, said in a press release. “Additionally, any increased success of credit unions extends to all state consumers. As earnings rise, so do the contributions that these Michigan not-for-profit financial institutions are able to reinvest in their communities through these financial services as well as significant financial education efforts.”
Lastly, CUNA’s Q3 Member Benefit Report for Michigan shows that in the year ending Sept. 30, credit unions provided $482 million in direct financial benefits to members statewide, up from $424 million the previous quarter.
Coverage of previous Michigan growth reports can be found here:
