LANSING, Mich. (3/7/13)--A strong lending performance propelled Michigan credit unions to record-setting results for 2012, said the Michigan Credit Union League in an analysis of data from the National Credit Union Administration.
Michigan consumers also continue to choose credit unions in record numbers. State credit unions added 76,829 new members in 2012, more than the previous nine years combined, said the league.
With auto sales rising 13.4% in 2012 to the highest point since the start of the recession, Michigan credit unions posted an increase in new-auto loans for the first time since 2009. Credit unions have captured 15.5% of the new-auto loan market, up 3% from 2011, according to data from Experian AutoCount. Michigan credit unions increased their used auto-loan portfolios about 8% during 2012, gaining an additional 1.5% market share.
"We know that there is tremendous pent-up demand for new cars and we fully expect this growth to continue, which is great news for consumers and for our domestic auto industry," said Dave Adams, MCUL CEO.
In 2012, Michigan credit unions financed 65% more first mortgages than in 2011, a record. Member foreclosures were down 11.8% in 2012. Overall foreclosure activity in Michigan dropped by 23.5% in 2012, a rate of decline that is among the highest in the nation, according to RealtyTrac.
Student loans at Michigan credit unions also increased--by 42% in 2012---with total student loans nearing $100 million.
Total member business loans (MBL) for the state's credit unions were up 4.3% for the fourth quarter and rose 17% for the year, topping $1 billion for the first time. Nationally, credit union MBLs are up 2.9% on the quarter and 9.2% for the year.
Credit unions, the leagues and the Credit Union National Association are urging Congress to help credit unions make even more business loans by raising their MBL cap to 27.5% of assets, up from 12.25%. Doing so would help boost the economy by generating $14.5 billion in new loans and 158,000 new jobs, says CUNA, with no cost to taxpayers. Raising the MBL cap is one of CUNA's top priorities for 2013.