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MADISON, Wisc. — Sparked by originations connected with used
models, CUNA Mutual Group's July Credit Union Trends Report showed these
institutions' total vehicle loan portfolio is climbing at a brisk pace.

The May total came in at $171.6 billion, reflecting a 2.1-percent
year-to-date gain and 3.7-percent uptick year-over-year.

CUNA Mutual Group chief economist Dave Colby emphasized, "This
is a remarkable turnaround given that last year at this time we were reporting
on a 3.1-percent portfolio decline."

The firm's report also highlighted credit unions continue to
improve their competitive position with respect to interest rates. The new and
used national average vehicle loan rates stand at 3.74 percent and 4.30 percent
respectively, which Colby contends are historic lows.

"When combined with growing consumer demand for replacement
vehicles, new and used loans are up in each of the past three months," Colby
explained.

Colby acknowledged credit union's new-vehicle loans might be
down year-over-year, "but with new originations above amortizations and
payoffs, we are quickly reversing this trend.

"The used vehicle portfolio is up a solid 2.6 percent
year-to-date, and its 6.6 percent annual growth supplied more than 42 percent of
all credit loan growth during the past 12 months," he continued.

Colby wrapped up his latest analysis by recapping how his
views from the past couple of years are connected with future projections.

"In 2010, I reported the following economic summary: ‘Over
the past month, economists and financial market analysts moved from a mood of
collectively confident in a modest but sustainable economic growth trajectory
to holding their breath. Mixed signals abound and we have never managed through
a synchronized global recession.'"

Colby continued with his look back from two years ago with, "‘The
path to recovery will be uneven at best. Managing our way out of the Great
Recession is difficult enough without Congress adding uncertainty to labor
costs, tax rates and, potentially energy costs. Now throw in rewriting the
rulebook for much of the financial services sector and healthcare and you can
easily see why uncertainty is on the rise.'"

Colby went on to say, "In my July 2011 report, it was noted
again with a reference to ‘Groundhog Day' and it continues to apply today.
While we are seeing a few positives in housing and near-term energy costs, the
threat of Eurozone financial market contagion and the U.S. fiscal cliff
beginning in 2013, clearly outweigh any recent good news. The U.S. election
cycle only adds cloudiness to an already uncertain path to recovery.

"Successful CU leaders are telling all who will listen —
forget the national economy and begin creating a recovery within your own field
of membership," Colby concluded.