With less than stellar gains in lending, credit unions may haveto shift their focus even more to meeting members where they are asunemployment, furloughs and foreclosures impact how and if they areable to continue paying their loans.

CUNA Mutual Chief Economist Dave Colby said over the next 12 to18 months, repairing members' balance sheets may be the primarysource of loan growth for credit unions. Moves such as loanrefinances and debt captures may aid in providing better financingterms for members while improving credit union spread and creatingroom for loan portfolio growth.

“Since financed consumer spending has stalled, we must turn ourattention to what consumers are doing,” Colby said. “Without loangrowth, we will be forced to turn away deposits and [manage] onrazor-thin margins.”