Nearly half of all credit unionloan growth this year can be traced back to auto loans, setting thestage for record expansion across the industry for 2013.

“We are running out of superlatives, but don't need any,” wroteDave Colby, chief economist for CUNA Mutual Group in the company'sNovember Credit Union Trends Report, which tracked datathrough September.

Indeed, during the past year, autoloan portfolio expansion of $19.7 billion accounted for 48% ofall credit union loan growth, the data showed. Vehicle loans nowrepresent 30.7% of all credit union loans, up from a low of 28.7%at the end of 2011, but below the pre-recession level of 33.3%.

New vehicle loans accounted for 18% of all loan growth year-to-date and year-over-year, according to thetrends report. Currently, the national average new vehicle loanrate is 3.19%. While this is down 10% during the past year and 50%since the beginning of the recession, it is significantly betterthan an investment yield with a similar duration, Colby noted.

The used vehicle loan portfolio was up $12.4 billion during thepast year, $11.2 billion year-to-date and $5.1 billion or 4.1% inthe past quarter, the data showed. Colby said the 3.95% averageloan rate is a very good return in today's market.

Meanwhile, good news continues on the entire lending front forcredit unions, Colby pointed out. The 6.7% annual gain translatesinto an additional $41 billion in loans on the books and annualgrowth at its highest rate in 4½ years, he said.

“Looking at factors impacting future loan growth, we seestronger member demand and greatly reduced financing subsidies frommanufacturers as positives, but the end of the mortgage refinanceboom, re-emerging credit card competition, and loan sales due tointerest rate risk management, restraining growth potential,” Colbysaid.

On balance, CUNA Mutual's forecast showed annual growth of 6.2%in 2013 and annual gains averaging 6.5% through 2015.

“Interestingly enough, the sources of loan growth shown areconsistent in distribution with what we posted a year ago, but thedollar amount is up 75% on a year-over-year basis and 83%year-to-date through September,” Colby said.

Currently, member business loans are up just 0.9% year-over-year afteraveraging 9.3% during the past three calendar years, according tothe report. Colby said he will wait for third quarter datarevisions before commenting on MBL trends.