MADISON, Wis. — Despite the bleak economic environment, credit unions continue to add new members to their rosters. However, lower deposit rates could have an impact on the recent growth surge, according to the CUNA Mutual Group's July Credit Union Trends Report.

An estimated 99,000 members joined in May bringing the total membership count to an estimated 90.6 million. That marks a gain of 1.2 million members over the first five months of 2008, said Dave Colby, chief economist with CUNA Mutual. He noted that the increase appears out of line with recent trends and will likely be revised as more details become available. Still, credit unions may have to make some adjustments if they want to keep the growth momentum going.

"Unless [credit unions] fail to lower deposit rates, most of this growth surge will likely be revised away," Colby said. "In 2005, we saw strong gains due to a rapid infusion of indirect borrowers. Our outlook calls for [credit unions] to purge indirect members as their loans pay off and it is very unlikely they will see a rapid replacement of these members, as the vehicle lending outlook remains bleak."