Michigan Credit Unions

Member engagement showed mixed signals as membership declined 0.22% in Q4 2025, though this represented an improvement from the -0.35% contraction in Q3 2025. Year-over-year trends revealed significant deterioration, with member growth falling from positive 1.62% in Q4 2024 to negative territory, indicating sustained membership challenges despite quarterly stabilization efforts.

Profitability remained exceptionally strong with ROA holding steady at 0.94% quarter-over-quarter and up 13 basis points year-over-year from 0.82%. Net interest margin was stable at 3.75%, improving 4 basis points from last quarter and expanding 27 basis points annually. Michigan credit unions significantly outperformed national ROA of 0.73%.

Growth momentum accelerated across all major categories in Q4 2025. Asset growth jumped to 4.46% from 3.53% quarter-over-quarter, though decelerated from 5.20% year-over-year. Loan growth accelerated to 2.94% from 2.30% quarterly, while deposit growth reached 3.48% from 2.91%, both substantially exceeding national benchmarks of 0.52% and 2.57% respectively.

Risk metrics remained well-controlled with delinquency rates stable at 0.85%, up just 2 basis points both quarterly and annually from 0.83%. Net worth ratio was stable at 12.69%, down 4 basis points quarterly but up 37 basis points year-over-year. Credit quality stayed favorable, with delinquencies below the national 0.90% benchmark.

Portfolio composition shifted toward real estate with first mortgage concentration rising to 31.02%, up 39 basis points quarterly and 1.26 percentage points annually, well above the national 21.97%. Certificate deposits increased to 18.60%, while indirect auto lending decreased to 11.77%. The mortgage-heavy strategy distinguishes Michigan from national portfolio patterns.