Source: Callahan & Associates' Peer-to-Peer Software, Bureau of Economic Analysis
Is there a relationship between state-level GDP growth and credit union asset growth in that state? The graph above, with a polynomial trend line, indicates a rough correlation. Credit unions in states with negative GDP growth were mixed in state-level asset growth. Yet two states – those points on the far right of the graph – grew at a rate twice the industry average, despite negative GDP.
Michigan is one of those two states (the other is Alaska). Michigan's economy contracted 1.5 percent in 2008. Credit unions across the state, though, have appropriately responded to member and community needs. DFCU Financial ($2.5B in Dearborn, MI) annually pays out bonus dividends and interest refunds to members, exceeding $17.5M in 2008. The credit union has set up a microsite to encourage current and potential members to calculate their approximate year-end payout. The calculator demonstrates the value of having a comprehensive relationship with the credit union.
Are Alaska and Michigan exceptions to state-level performance? How has your credit union or state league responded to regional changes?