LANSING, Mich. (6/2/09)--First quarter 2009 data show Michigan credit unions continued growth and increased lending in a challenging economy, says the Michigan Credit Union League. New-auto loans increased to $2.03 billion from $1.89 billion at an annualized growth rate of 30% for the quarter, said the league (Michigan Monitor
June 1). Used-auto loans grew at an annualized rate of 10.8% to $3.53 billion. First mortgage loans experienced 2.8% in annualized growth rate--to $9.73 billion outstanding. "Credit union participation in the 'Invest in America' program continues to show promise as new- and used-auto loan volumes grow at a very strong rate," said Michigan league President/CEO David Adams. "The annualized growth rate of 40% in the fourth quarter of 2008 and the 30% in the first quarter of 2009 are particularly noteworthy, given the shrinking volume of car sales and auto loans affecting the industry as a whole," he added. The trend bucks the national trend. "New-auto loan volumes have been going down nationally in each of the past five quarters," Adams said. "But in Michigan, we're seeing very robust growth." Other data for first quarter:
* Total small business loans grew 16% to $713 million. Small business loans increased by 22% between March 31, 2008, and March 31, 2009. * Credit unions saw unprecedented growth in shares and deposits, which rose at an annualized rate of 26% to $30.9 billion. Total assets grew 23% to $36.4 billion. * Membership growth was a 0.64%, the strongest membership growth in the past five quarters. Total credit union net income was $13.1 million vs. $16 million during fourth quarter of 2008. The aggregate provision for loan losses continued at $72 million, down from the $99 million booked during fourth quarter 2008. * Aggregate net worth/assets ratio is 10.88%, well above the national average. Michigan credit unions held $9.1 billion in investments as of March 31, which is an increase from $8.2 billion at the end of 2008.