Michigan Credit Unions

Member engagement remains a persistent soft spot for Michigan credit unions. Membership declined for the fifth consecutive quarter in Q2 2026, though the rate nearly stabilized at -0.01% — essentially flat compared to -0.05% in Q1 2026 (QoQ). Year-over-year, however, the trajectory has improved markedly: the -0.01% reading in Q2 2026 compares favorably to -0.71% in Q2 2025, an acceleration of 0.70 pp. Michigan CUs now stand 68 basis points above the national member growth rate of -0.69%, suggesting the industry broadly is struggling to attract new members, though Michigan's contraction has nearly halted.

Michigan credit unions delivered their strongest profitability performance in recent periods. ROA rose to 0.99% in Q2 2026, up from 0.87% in Q1 2026 (QoQ, +0.12 pp) and up from 0.86% in Q2 2025 (YoY, +0.13 pp), placing the cohort 10 basis points above the national average of 0.89%. NIM also strengthened, reaching 3.80% — up 7 bps from Q1 2026 and up 0.16 pp from Q2 2025's 3.64%, now 6 basis points above the national 3.74%. Both profitability metrics show consistent improvement across both timeframes, reflecting effective margin management.

Growth dynamics in Q2 2026 present a nuanced picture. Asset growth decelerated modestly to 4.23% from 4.60% in Q1 2026 (QoQ, -0.36 pp), but accelerated strongly year-over-year from 3.22% in Q2 2025 (+1.01 pp), extending a positive streak now nine consecutive quarters. Michigan CUs lead the national asset growth rate of 2.63% by 1.61 percentage points. Loan growth accelerated in both directions — rising to 3.59% from 3.34% in Q1 2026 (QoQ, +0.25 pp) and surging from 1.33% in Q2 2025 (YoY, +2.26 pp) — marking five consecutive quarters of positive loan growth and vastly outpacing the national 0.22%.

The risk profile for Michigan credit unions showed mixed signals in Q2 2026. Delinquency increased to 0.83% from 0.67% in Q1 2026 (QoQ, +0.15 pp), a meaningful single-quarter deterioration, though year-over-year the rate is essentially stable versus 0.82% in Q2 2025 (+0.013 pp). The cohort remains 5 basis points below the national delinquency benchmark of 0.88%, a modest buffer. Net worth strengthened to 12.78% from 12.55% in Q1 2026 (+0.23 pp) and from 12.39% in Q2 2025 (+0.39 pp), yet still trails the national average of 13.81% by 1.03 percentage points, limiting the capital cushion available against credit stress.

Michigan credit unions' portfolio composition reflects a mortgage-heavy, certificate-funded model. First mortgage concentration held nearly stable QoQ at 31.47% (up just 3 bps from 31.44% in Q1 2026) but expanded 1.33 pp year-over-year from 30.14% in Q2 2025 — well above the national 22.22%. Indirect auto edged up 5 bps QoQ to 11.72% but declined 0.34 pp YoY from 12.06%, still exceeding the national 7.71%. On the funding side, certificate concentration rose 0.14 pp QoQ to 18.78% and 0.99 pp YoY from 17.78%, approaching but still below the national 20.02%, signaling continued member preference for term deposits.