Auto lending continues to shine at Georgia's credit unions as the not-for-profit financial institutions carried their strong 2013 lending results into the first quarter of 2014. 

While overall loan growth at Georgia's credit unions slowed slightly in the first quarter of 2014 to 0.7 percent (2.8 percent annualized), likely a result of seasonality, loan growth continued to outpace savings growth at rates of 5.0 percent versus 2.5 percent, respectively over the 12 month period ending March, 2014. 

"More Georgians back at work, continued low interest rates on consumer loans and a much improved housing market have all helped to rebuild consumer confidence," said Mike Mercer, president and CEO of Georgia Credit Union Affiliates (GCUA). "Consumers are more willing to take on those big ticket life purchases such as new cars and homes." 

Automobile lending was the star performer of the loan portfolios during the three month period with new vehicles leading the charge. New vehicle loans showed a quarterly increase of 5.4 percent (21.5 percent annualized), approximately twice the growth rate recorded in 2013. Used auto loans as well as first mortgages also ended the quarter in the positive with quarterly gains of 1.5 percent and 0.5 percent respectively. That growth was offset by declines in both credit card/unsecured loans and second mortgages. 

"It is not surprising that more Georgians are choosing to purchase new vehicles this year," explained Mercer. "The cost of owning a new car versus a late-model used car is not much different for some models, which clearly helps new car sales." 

Georgia consumers' increased confidence in both labor and overall economic markets.

• According to the Bureau of Labor Statistics, Georgia's March unemployment rate of 7.0 percent was a 0.4 percent decline from December.
• Georgia's housing market continues to improve, recording its highest FHFA's purchase-only index reading in three years.
• Georgia credit union borrower-bankruptcy filings continued their decline, falling by more than 17 percent in the year ended March 2014.