After six years of stagnation and economic hardship, Florida isslowly coming out of the recession cocoon.

Recently, the Sunshine State's unemployment rate fell to 8.5%,the lowest in nearly four years, and combined with the momentum ofthe housing market, it shows that Florida is on a positive path andhas been for months. Pending home sales, closed sales and pricesare all trending up.

Statewide closed sales of existing single-family homes totaled17,779 in October, up 25.3% compared to the year-ago figure,according to data from Florida Realtors Industry Data and Analysisdepartment and vendor partner 10K Research and Marketing. Closedsales typically occur 30 to 90 days after sales contracts arewritten.

But despite all the sunny news, the road to recovery is stillpaved with shadows of the housing bust.

Florida is rated as the third-poorest state in the nation, withabout one in five Floridians (19.5%) living below the povertylevel, according to the U.S. Census Bureau. But, it is also a statewhere consumer confidence is so optimistic, Floridians said theyexpect the nation's economy to improve both in the short-term andover the next five years, according to the University of Florida'sSurvey Research Center in the Bureau of Economic and BusinessResearch.

That consumer confidence puts Florida credit unions in a goodposition to help their struggling members find their way back to abright and prosperous future.

As of September, Florida credit unions reported 77 basis pointsof ROAA, with 2.4% delinquencies and a 12-month loan growth rate of-0.4%. The national average was 86 basis points of ROAA at thatpoint.

• SEE the NCUA state-by-state map and moreCredit Union Times analysis.

Also in September, Florida's credit unions added thousands ofnew members, pushing membership beyond 4.68 million for the firsttime, according to the League of Southeastern Credit Unions. Thestate's credit unions added 43,000 members in the second quarterand assets rose by $310 million during that period to reach arecord $45.6 billion.

Florida credit unions also increased business loans to membersby 3% in the second quarter and auto loans to members rose for thefirst time since 2007, while real estate loans increased for thefirst time since 2009, according to the League.

The $1.85 billion Pen Air Federal Credit Unionreported a respectable 5.23% loan growth to the NCUA as ofSeptember 30, and a ROAA of 0.83%. But with a delinquency rate of9.27% and charge-offs at 1.33%, it shows that the recovery inFlorida may take some time.

“Pen Air FCU is located in Northwest Florida and we also servemembers in the neighboring Baldwin County (southeast), Alabama,”said Patricia M. Veal, vice president of marketing for thePensacola credit union. “We may not necessarily be the normfor the rest of Florida, but, it seems we are all facing the sameissues with the economy and the housing market.”

On the positive side, Pen Air FCU has positioned itselfstrategically to maintain its military roots, but to also expandselect employee groups so that they don't have to turn away newmembers. The credit union offers programs to engage members,like the Jumpstart Certificate program for young adults to provideGen Y with the tools needed for financial success. Pre-paid cashcards are also in the works to attract Gen Y.

Pen Air's Milestone Members are offered perks based on length ofmembership with the credit union, and members with multipleaccounts and services receive reward points for travel andmerchandise.

“Our net membership growth surpasses our peers so I would saythat along with our reputation for safety, soundness and 5-StarRating from Bauer Financial, our overall marketing strategy hasbeen successful,” Veal said.

In the Tampa Bay area, the $24.5 million Manatee CommunityFederal Credit Union has been serving the community for 55 years.Founded in 1958 as Tropicana Employees Federal Credit Union,serving Tropicana Products employees and their families for nearly50 years, the credit union was renamed five years ago after itscharter was opened to the at-large community.

“2012 is certainly a different type of year, said Cindy D.Barco, manager/CEO of MCFCU. “Across the nation, thefinancial industry continues to struggle through recovery from therecent recession.”

MCFCU's loan portfolio started contracting in 2010 with a 13%decrease in portfolio size, and another 22% decrease in 2011.However, after struggling with low loan demand the first half of2012, Barco said the credit union has experienced seen significantloan gains in the third and fourth quarter.

She said auto lending is the core product for the credit union,with 2012 auto balances up 9% and total loan growth for 2012expected to be 12%. Helping build auto loans was a partnership withCUDL to draw from local dealers, as well as a partnership withEnterprise Car Sales.

MCFCU's ROAA as of Sept. 30 was 0.33%, a big improvement overlast year, Barco said.

“The credit union experienced its highest year of loan loss in2011 due to mortgage depreciation and loss,” Barco explained.“Charged off loans in 2011 increased 83% over 2010, with 62% oftotal charge offs being mortgage loans. This resulted in largeprovision for loan loss expense in 2010 and 2011.”

That resulted in a negative ROA of -.44% in 2011. However, nowthat mortgage loan quality has improved, the credit union hasexperienced minimal loan losses so far this year, with no mortgagecharge offs at all, she said.

A study released Sept. 2, 2012 by the Research Institute onSocial and Economic Policy, reports that in 2007, the state wassmacked hard by the recession, due mainly to the Miami constructionindustry. A few years later, Florida was leading the nation innegative economic indicators, but now the state is starting to comeout of its slump.

“Florida's economy is moving in the right direction as thestate's unemployment rate declines each month and more Floridiansfind jobs,” said James Miller of the Department of EconomicOpportunity.

To prove this point, the $1.8 billion Grow Financial CreditUnion of Tampa Fla., one of Tampa Bay's largest credit unions,is posting a sunny ROAA of 0.98% and a loan growth of 0.52%, whichmarks a big improvement over last year's negative results of -8.31%loan growth.

“New ideas, new processes, the best staff in the industry, andwe work very hard to achieve maximum performance within theconfines of controlled risk management,” said Bob Fisher,president/CEO of Grow Financial, when asked about the creditunion's recent success. “We expect 2013 to be not only great, butthe foundation floor for creating the credit union model of thefuture.”

So while it's not always sunny in Florida, the forecast callsfor a continued recovery and brighter days ahead.

“Florida is working its way out of a steep recession.” saidDemocratic State Sen. Maria Sachs of Delray Beach. “We are notalone in our struggle. Funding from the federal governmenthas helped to feed the hungry, to aid the recently unemployed, tokeep our teachers in the classroom, and to support ourinfrastructure projects. Florida is moving forward.”