Credit unions in the state of Michigan are keeping pace with an ever improving economy in the Great Lakes State, according to the Michigan Credit Union League, citing first quarter 2017 data from the National Credit Union Administration.
MCUL said that savings, lending and membership rates at Michigan credit unions “continue to grow” while the state’s unemployment rate “continues to drop.” Indeed, the state added almost 10,000 jobs in the first quarter, resulting in the unemployment rate falling to 5 percent. Moreover, preliminary data from the second quarter suggests that the state’s jobless rate has dropped further to 4.7 percent, a 16-year low. (By comparison, the jobless rate in the Michigan was as high as 14.9 percent in the summer of 2009, according to the
One of the primary beneficiaries of this brightening job picture can be found in loan volumes at Michigan credit unions. In the fourth quarter of 2016, MCUL reported the “strongest loan growth the state had seen since 1994.” Through the end of the first quarter of 2017, loan growth at Michigan credit unions climbed by 11.1 percent (on a quarter-over-quarter basis), slightly below the 11.5 percent growth reported in the fourth quarter of 2016.
Specifically, in first quarter of 2017, Michigan credit unions witnessed a 7.3 percent increase in credit card loans and an 8.3 percent rise in other unsecured loans (on a quarter-over-quarter basis). Meanwhile, new car loans jumped by 16.4 percent; used car loans rose by 12.7 percent; first mortgage loans leapt by 9.7 percent; and member business loans soared by 19.8 percent.
MCUL indicated that despite “significant increases” in lending and spending, the state’s credit unions still saw a 4.9 percent increase in member savings (a nearly 20 percent annualized increase) during the first quarter of 2017.
Membership at local credit unions is also rising – first quarter of 2017 witnessed a 1 percent growth over the prior quarter, above the 0.7 percent rise seen in the fourth quarter of 2016. Michigan credit unions now boast about 5.1 million members – or roughly half of the state’s entire population.
The regions which exhibited the strongest membership growth rates were Grand Rapids (6.7 percent); Traverse City (5.5 percent) and Lansing (1.6 percent).
“As the national and Michigan economies continue to reflect higher levels of employment and consumer spending, Michigan credit unions’ growth metrics reflect how credit unions are having a positive impact on people’s ability to have access to low-cost borrowing and higher-yield savings accounts,” MCUL CEO Dave Adams said in a statement. “The unprecedented growth in deposit accounts, loans by every category and overall memberships, suggest that Michiganders recognize the value and service provided by Michigan’s credit unions.”
In addition, the net worth ratio for Michigan state credit unions came in at 11.3 percent in the first quarter of 2017, above the national average of 10.7 percent. Moreover, Credit Union National Association projects that Michigan credit unions can expect “continual membership and loan growth, raised asset quality and favorable earnings.”
