ANN ARBOR, Mich. (7/8/10)--Credit unions based in Ann Arbor, Mich., are benefiting from the backlash against banks, according to a local newspaper. Consumers are upset with banks for their involvement in subprime mortgages and derivatives, which triggered the financial crisis. The anger has caused consumers in Ann Arbor to join credit unions, said AnnArbor.com
(July 4). Ypsilanti FCU, now Washtenaw FCU, saw its deposits jump to $30.5 million from $25 million at the end of 2008. CEO Gregory Gurka noted in the article that consumers are trying to keep their money local and feel more secure when the institution is based in their community. Overall, Michigan credit unions’ assets rose 17.5% to $38.2 billion in December 2009 from December 2007. Michigan Credit Union League CEO David Adams told the newspaper that credit unions are benefiting from dissatisfied consumers taking their business to credit unions. Credit unions have proved that banking is about service, not profit, he added. Other credit union items the newspaper noted:
* U-M CU in June purchased the former Ann Arbor News building to serve as its corporate headquarters for its expanding staff; * DFCU Financial, Dearborn, last month agreed to acquire MidWest Financial CU of Ann Arbor, which had $185 million in assets at the end of 2009. DFCU’s assets are $3 billion; * Washtenaw FCU changed its name after opening its membership to anyone who works, lives or worships in the county; and * Community Driven CU, Ypsilanti, is focusing more on auto loans as banks pull back on lending. Last year, the credit union offered $10 million in auto loans, compared with the usual $3 million.