NCUA Q2 2024 Data: Slowed Growth Remains Before Return to Normalcy
The National Credit Union Administration’s Q2 2024 data forecasts a return to normal economic conditions in the coming year for both consumers and credit unions. The Consumer Price Index measured inflation at 3.0% in the year ending June 2024, down 0.5% from Q1, with a continued decline in Q3.
However, while the Federal Reserve will calm interest rates, credit unions should expect to see challenges in membership growth rates and loan performance persist for a little longer before stabilizing in 2025. By the end of next year, economists expect credit union operating conditions closer to the pre-COVID era than the four years since.
During the second quarter in Michigan, credit union memberships grew by 0.5%, a similar pace as Q1, but slower than the Q2 national rate of 2.4%. Total Michigan credit union memberships now stand at 6.01 million.
Q2 membership growth by region (for trailing 12 months):
- Alpena: 2.8%
- Detroit: 3.4%
- Flint: -0.9%
- Grand Rapids: 2.4%
- Lansing: -7.7%
- Marquette: 2.2%
- Muskegon: 1.2%
- Traverse City: 2.6%
Credit union loan portfolios saw a 4.5% increase in Q1, which is above the national rate of 3.4%.
Q2 loan growth by type (for trailing 12 months):
- Credit cards: 8.9%
- First mortgage: 4.9%
- HEL & 2nd Mtg: 18.5%
- Member business loans: 22.1%
- New auto: -9.3%
- Other unsecured loans: 8.0%
- Used auto: -2.5%
Q2 loan growth by region (for trailing 12 months):
- Alpena: 4.7%
- Detroit: -7.2%
- Flint: 3.2%
- Grand Rapids: 5.7%
- Lansing: -3.2%
- Marquette: 9.7%
- Muskegon: 4.1%
- Traverse City: 5.1%
America’s Credit Unions’ Q2 Member Benefits Report for 2024 shows that Michigan credit unions contributed a total of $1.02 billion in direct financial benefits to Michigan’s 6 million members over the previous twelve months.
These benefits translate to $172 per member or $361 per household. These figures are calculated based on average savings differences between credit union and bank pricing. They result from financial benefits, such as higher CD rates and fee-free checking, as well as lower rates and fees on products like home and auto loans.
That means, according to America’s Credit Unions, credit union members financing a $25,000 vehicle for five years will save an average of $70 per year in interest when compared to banking institutions.
“While the NCUA’s Q2 data is consistent with Q1’s expectations for slowed membership and loan growth, we are encouraged by the optimistic outlook of a return to normalcy for both consumers and credit unions,” said Michigan Credit Union League (MCUL) CEO Patty Corkery. “Though the economy will always fluctuate, credit unions will remain steady, trusted providers of healthy financial services, as exemplified by the $1 billion in direct financial benefits received by Michigan credit unions’ six million members during the last twelve months.”
Find the complete Q2 2024 NCUA Call Report Data here.
You can also find more Q2 data on Michigan credit unions’ low rates and high dividends in America’s Credit Unions’ Q2 Member Benefits Report.
« Return to "Press Releases"
