Slide continues for Michigan credit unions
Though Michigan credit unions maintained decent membership growth in 2019, loan balances are slowing down compared to years past, according to recent data from the Michigan Credit Union League and the Credit Union National Association.
Loan balances grew in the second quarter, but remained below the 4.6% increase reported in 2018’s second quarter. That’s also reflected within the 12-month loan growth rate which stood at at 7.3%, below 2018’s 10.4%. CUs in the state saw double-digit gains in loan balances between 2014 and 2018.
Great Lakes State credit unions also saw membership inch up by 0.8% during the second quarter for a total of 5.46 million members across the state. That's a 3% increase in the year ending June 2019, compared to 3.3% one year prior.
CUNA data estimates that Michigan CUs provided about $424 million in direct benefits to credit union members during the 12 months ending in June 2019. That boils down to $79 per member in direct financial benefits, and jumps to $167 per member household over that time frame.
Due to economic challenges, CUNA economists have also predicted challenges around growth, earnings and asset quality in the coming months.