Michigan Credit Unions Report Steady Lending, Member Growth

Michigan’s credit unions reported strong membership and loan growth, along with continued strong asset quality in the first three months of the year, despite the economic downturn.

The state’s credit unions saw a 0.5% increase in total memberships in the first quarter of 2020 and now count 5.6 million members, or approximately 56% of the state’s population, according to a press release by trade association Michigan Credit Union League & Affiliates (MCUL).

According to MCUL, Michigan credit unions began taking on new memberships from residents turned away from other financial institutions when trying to acquire relief services as Q1 transitioned into Q2. Loan portfolios grew 0.7% in the first quarter, a 2.8% annualized rate, the release said.

According to the release, small business loans grew 18.7%; first mortgages grew 11.6%; home equity/second mortgages grew 8.2%; new auto loans grew 0.7% and used auto grew 5.0%.

MCUL said in the release that it expects further growth in Q2 given that 100% of credit unions it polled have offered loan modifications and alternatives since the beginning of the pandemic, including emergency loans, lowered rates and refinancing options, alongside other services such as fee waivers, forbearances, skip-a-pay and assistance with Paycheck Protection Program loans.

“The rise in Michigan credit union members, as well as outstanding direct benefits are particularly important and heartening statistics to see at this time,” MCUL CEO Dave Adams said in the release. “As we know all too well by now, the negative effect COVID-19 has had on Michigan’s economy starting in the first quarter has been significant. In historic, difficult times like these, people need financial partners they can trust, and I’m pleased to report that 56% of Michiganders now have access to the programs and services that make credit unions different.”

The complete complete Q1 2020 NCUA Call Report can be viewed here.