Michigan Credit Unions

Member engagement showed improvement with growth losses moderating to -0.35% in Q3 2025 from -0.71% in Q2, though significantly trailing the 1.21% growth achieved in Q3 2024. The current decline remains 26 basis points better than the national average of -0.61%, suggesting Michigan credit unions are managing membership challenges more effectively than peers.

Profitability strengthened considerably with ROA increasing to 0.94% from 0.86% quarter-over-quarter and 0.83% year-over-year, positioning Michigan credit unions 16 basis points above the national benchmark. Net interest margin also improved to 3.72% from 3.64% in Q2 and 3.43% a year ago, matching national levels and reflecting effective rate management.

Growth momentum accelerated significantly across all categories in Q3. Loan growth surged to 2.30% from 1.33% quarter-over-quarter, substantially outpacing national growth of 0.20%. Asset growth accelerated to 3.53% from 3.22% in Q2, while deposit growth reached 2.91% from 2.61%, both exceeding national benchmarks by substantial margins.

Risk metrics remained well-controlled with delinquencies stable at 0.83%, up just 1 basis point from Q2 and 4 basis points year-over-year, staying 2 basis points below the national average. Net worth strengthened to 12.73% from 12.39% quarter-over-quarter and 12.34% annually, though remaining 95 basis points below national levels.

Portfolio composition shifted toward real estate with first mortgage concentration increasing to 30.63% from 30.14% in Q2 and 29.84% year-over-year, significantly exceeding the national average of 21.76%. Certificate deposits rose to 18.58% from 17.53% annually while indirect auto lending declined to 11.94% from 12.27% year-over-year.