NCUA Q3 2024 Data: Modest Loan and Membership Growth Expected to Continue
The National Credit Union Administration’s (NCUA) Q3 2024 data highlights a mixed economic environment as credit unions navigate high interest rates, stabilizing inflation and shifting loan demand. The Consumer Price Index (CPI) remained steady in the second half of 2024, with inflation projected to fall to 2.6% by year-end, nearing the Federal Reserve’s 2% target.
Despite improving liquidity and credit quality, high interest rates continue to challenge share and loan growth for credit unions. Economists anticipate a return to pre-COVID operating conditions by the end of 2025, but credit unions should expect gradual recovery in membership and loan performance before stabilization.
In Michigan, credit union memberships grew by 0.4% in Q3, a consistent pace from Q2, but below the national rate of 2.3%. Total Michigan credit union memberships now stand at 6.03 million. Michigan credit union loan portfolios also rose, coming in at 3.9% in Q3, slightly below the Q2 rate of 4.5% but still above the national average of 2.4%.
“The NCUA’s latest data shows that Michigan’s credit union system remains strong, with growth in assets, loans, and net worth. While we anticipate modest improvements in loan performance throughout 2025, high interest rates and rising delinquencies will continue to pose challenges,” said Michigan Credit Union League (MCUL) CEO Patty Corkery. “As financial stress among members increases, I echo the NCUA’s call for credit unions to remain vigilant in managing credit risk while continuing to provide trusted, member-focused financial services.”
Find the complete NCUA Q3 2024 Call Report here.
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