Credit unions in Michigan continued to exhibit strong growth rates in assets, loans, surplus funds and savings in the second quarter of 2017, according to the Michigan Credit Union League.
Specifically, loan growth improved to a second-quarter rate of 4.1 percent, significantly higher than the 1.4 percent growth in the first quarter.
Total loans at Michigan credit unions grew by 11 percent in the year ended June 2017, slightly higher than the national average of 10.8 percent. This continues the fastest loan growth since 1994, when it was 15.9 percent.
In addition, on an annualized basis through the second quarter of 2017, member business loans grew by 23.2 percent; new automobile loans by 15.7 percent; used automobile loans by 11.9 percent; first mortgages: 10.6 percent; credit cards by 7.0 percent; and other unsecured loans: by 7.3 percent.
Citing data from the National Credit Union Administration, MCUL also said loan delinquencies fell below the national average, leading to “strong earnings that are also well above national averages.”
The league said the robust performance of the state’s credit unions came on the back of a strong national economy.
“Fueled by high consumer confidence and spending, business investments, low unemployment and stable inflation, the U.S. economy expanded at a robust rate of 3.0 percent in the second quarter of 2017, and is now on track for annual GDP growth of 2.1 percent for 2017,” the league said in a press release. “These strong economic fundamentals continue to benefit credit unions and their member-owners, both in Michigan and nationwide, which are experiencing some of the fastest membership and loan growth in decades.”
Indeed, Michigan credit unions reported a 3.1 percent 12-month increase in total members through June 2017 – slightly lower than last year’s rate of 3.6 percent, but faster than any other year in the past three decades.
Michigan credit unions now have 5.1 million members, or a little more than half (51.5 percent) of the state’s entire population. Membership growth at credit unions far exceeds Michigan’s annual population growth rate of 0.1 percent.
By city, Grand Rapids (6.8 percent), Traverse City (6.0 percent) and Flint (4.1 percent) delivered the highest rates in membership growth.
“At more than five million members strong, it’s clear that Michigan sees the value in joining cooperative, not-for-profit financial institutions committed to supporting their communities,” MCUL CEO Dave Adams said in a statement. “These membership and loan growth numbers are more than just statistics -- they represent reliable transportation for families, first-time home-ownership dreams and new jobs provided through small business loans. They demonstrate the real difference credit unions make in people’s lives.”