NCUA Q1 2023 Data: Memberships and Direct Financial Benefits Rise, Inflation Slows

In the first quarter of 2023, the U.S. economy performed well despite continued, but slowing, inflation. Michigan credit union performance mirrored this trend, including a rise in memberships and steady loan growth.

Inflation, measured by the Consumer Price Index, slowed during the quarter from a 0.52% increase in January to 0.37% in February and 0.5% in March. Prices rose 4.99% in the year ending March – the lowest 12-month increase in 22 months.

According to the National Credit Union Administration, credit union first-quarter financial results reflect solid membership gains. Nationally, memberships increased by 1.2% (or 4.8% annualized) in the three months through March 2023 and by 4.3% year-over-year. The Bureau of Economic Analysis estimates the U.S. population grew by 0.5% in the quarter.

In Michigan, memberships rose by 0.8% in Q1, or a gain of approximately 26,000 members, which lands total Michigan credit union memberships at 5.97 million. Full year growth ending in March 2023 was 2.1%.

Membership growth by region (for trailing 12 months):

• Detroit: 7.2%
• Grand Rapids: 6.1%
• Traverse City: 4.5%
• Marquette: 1.6%
• Lansing: 1.0%
• Muskegon: -0.4%

Michigan credit union loan portfolios saw a 2.7% increase (or 18.8% annualized), which is down from the Q4 2022 rate of 3.6% but above the national rate of 1.7%.

Q1 loan growth by type (for trailing 12 months):

• Member business loans: 26.3%
• New auto: 30.1%
• Used auto: 18.2%
• Credit cards: 13.3%
• First mortgage: 13.4%
• HEL & 2nd Mtg: 42.8%
• Other unsecured loans: 24.0%

Loan growth by region (for trailing 12 months):

• Grand Rapids: 29.8%
• Traverse City: 22.1%
• Detroit: 20.4%
• Marquette: 20.2%
• Alpena: 19.2%
• Lansing: 13.6%
• Muskegon: 13.6%

CUNA’s Q1 Member Benefits Report for 2023 shows that Michigan credit unions contributed a total of $765 million in direct financial benefits to Michigan’s 5.97 million members over the previous twelve months. This is up substantially from the $485 million in the year ending in Q4 2022.

In other words, according to CUNA, credit union members financing a $25,000 vehicle for five years will save an average of $150 per year in interest when compared to banking institutions.

These benefits translate to $130 per member or $273 per household — about $100 higher per household from Q4 2022. 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.

“The latest NCUA Call Report data reveals a healthy national credit union movement, including a steady net worth ratio and an approximate 97% of credit unions well capitalized. And in Michigan, I am happy to see that, following a stagnant quarter in Q4, Michigan credit union memberships are back on track,” said Michigan Credit Union League President/CEO Patty Corkery. “The 0.8% rise in memberships means 26,000 people now have greater access to healthy and affordable financial options. The League will continue to prioritize raising awareness of the credit union difference, such as the direct financial benefits cited in the CUNA Member Benefits Report.”

Find the complete Q1 2023 NCUA Call Report Data here.

You can also find more Q1 data on Michigan credit unions’ low rates and high dividends in the CUNA Q1 Member Benefits Report.

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