Despite State’s Population Decline, Michigan Credit Unions Tout Membership Gains

Despite a recent short-term population decline of its state, the Michigan Credit Union League reported Monday that credit union total membership at the end of 2020 stood at 5.65 million, an increase of 1.9% or 107,350 new members.

The Wolverine State lost 18,240 residents from July 2019 to July 2020 with a total population of 9,966,555, the U.S. Census Bureau reported at the end of last year. However, new population numbers released by the Census Bureau Monday showed that Michigan’s population increased over the long-term by 2% from 2010 to 2020 at 10,077,331.

The Grand Rapids region saw the highest membership growth of 5.4%, while Traverse City was second at 4.5%, followed by Alpena at 2.8% and 1.6% in the Lansing region, according to MCUL.

“The COVID-19 pandemic caused widespread financial distress, but what these Q4 numbers show us is that, during uncertainty, a growing number of Michigan residents realized they could turn to their local credit union,” MCUL President/CEO Dave Adams said in a prepared statement. “People respond to financial institutions that show, through accessible and affordable products and solutions, that they care about members and their financial health.”

Michigan’s 212 credit unions also experienced steady loan growth in the fourth quarter as portfolios grew by 1.2% to 4.8% annualized and year-over-year loan growth increased by 7.3%, according to MCUL.

Nonetheless, because the NCUA uses a median annual membership growth metric, the independent agency’s Quarterly U.S. Map Review for the fourth quarter of 2020 showed that Michigan’s median annual membership declined by 0.6%, meaning half of all of Michigan credit unions had a value at or above the 0.6% median, and the other half of the state’s credit unions had a value that was less than or equal to the 0.6% median.

While the overall credit union membership continued to grow nationally from 120.4 members at the end of 2019, to 124.3 members at the end of 2020, at the median, membership declined by 0.5%, according to the NCUA. Membership was unchanged at the median over the year ending in the fourth quarter of 2019.

Fifty-six percent of credit unions had fewer members at the end of 2020 than in 2019. Credit unions with falling membership have tended to be small. Sixty-five percent of the nation’s credit unions manage assets of less than $50 million.

Credit unions based in Alaska saw the biggest jump in median annual membership growth of 3.7%, followed by Guam (2.5%), Idaho (2.3%), Virgin Islands (1.9%), Vermont (1.7%), Nevada (1.6%), Maine (1.1%), Arizona (0.8%), South Dakota (0.7%) and Iowa (0.6%), according to the NCUA.

Nationally, loans outstanding declined by 0.9% at the median over the year ending in the fourth quarter of 2020. During the previous year, loans grew by 3.1% at the median, the NCUA reported.

The median loan growth was strongest in Alaska (7.2%), Idaho (7%), Utah (5.5%), Nevada (4.7%) Missouri (4.6%), Wyoming (4.5%), a tie with Guam (3.8%) and Washington (3.8%), Florida (3.1%) and Vermont (2.9%), according to the NCUA.